GrowGeneration (GRWG) Oppenheimer 26th Annual Consumer Growth and E-Commerce Conference summary

Business transformation and strategy

• Shifted from retail-focused to a technology-enabled B2B platform, reducing store count from 65 to 19 and focusing on commercial cultivation, wholesale, and proprietary brands.

• Proprietary brands now represent about 37% of cultivation and gardening revenue, with a target of 40% by year-end and expectations to reach mid-40s to 50% next year.

• Expanded into international markets, signing contracts to deliver proprietary products to Canada, Europe, and Latin America.

• Commercial locations now serve as marketing and distribution hubs, with a technical sales team driving consultative, value-added selling.

• Focused on expanding into lawn and garden, specialty agriculture, and big box retail channels, leveraging proprietary products.

Financial performance and operational efficiency

• Reduced inventory from $130 million to $40 million, consolidated distribution, and invested in CRM, ERP, and WMS systems.

• Lowered expenses by $60 million over four years, with $30 million in reductions from 2024 to 2025, and improved operating leverage.

• Forecasting positive adjusted EBITDA in Q2 2026, with structural cost actions supporting long-term profitability.

• Store count reduced from nearly 70 in 2021 to under 20, with headcount down from 800 to 200, positioning for sustainable growth.

• Year-over-year growth achieved despite fewer stores, with improving adjusted EBITDA and a lower break-even point.

Market dynamics and growth drivers

• Customer base shifted from hobbyist and small growers to large multi-state and single-state operators, with 90% of business now B2B.

• Growth driven by proprietary brands, expansion into new verticals, and increased CapEx spending in the industry.

• CapEx cycle expected to drive recurring consumable sales, with new facility builds leading to long-term customer relationships.

• Industry trends include price stabilization, legalization momentum, and a shift from illegal to legal markets.

• International expansion and new product launches in lawn, garden, and ag expected to fuel future growth.