GrowGeneration (GRWG) Investor presentation summary

Business transformation and growth strategy

• Transitioned from hydroponics retailer to branded cultivation infrastructure platform, expanding into controlled environment agriculture (CEA) and mainstream lawn & garden markets.

• Proprietary brands now account for 37% of Q1 2026 revenue, driving sustainable margin growth and targeting 40-50% of future revenue.

• Strategic focus on B2B platform, operational efficiency, retail consolidation, and international expansion.

• Diversified market reach includes cannabis, greenhouse produce, specialty crops, and infrastructure, with a global CEA market opportunity projected at $250B by 2035.

• Supply chain advantages include just-in-time inventory, mix pallet drops, and regional distribution hubs for rapid replenishment.

Financial performance and position

• Q1 2026 net sales reached $38.4M, with a gross margin of 25.4% and proprietary brands contributing 37% of revenue.

• Achieved a 23.4% year-over-year reduction in operating expenses, with $27M in costs permanently removed in 2025.

• Ended Q1 2026 with $41.1M in cash and zero debt, providing over three years of operating runway.

• Adjusted EBITDA improved by $2.4M year-over-year, with a net loss of $4.9M in Q1 2026.

• On track to achieve positive adjusted EBITDA, supported by a lean, cash-rich balance sheet.

Market catalysts and future outlook

• Cannabis rescheduling to Schedule III removes significant tax burdens, unlocking capital for industry expansion.

• CEA market growth driven by food security, reshoring, and greenhouse produce demand, with U.S. greenhouse produce growing 8-10% annually.

• Strategic partnerships, such as Arett Sales, provide instant access to thousands of independent garden centers.

• Proprietary brand expansion and digital infrastructure scaling position the company for high-margin, sustainable growth.

• Leadership team with deep experience in finance, acquisitions, sales, and operations guides ongoing transformation.