GrowGeneration (GRWG) Q2 2026 earnings summary

Executive summary

• Net sales reached $43.2 million in Q2 2026, up 12.6% sequentially and 5.5% year-over-year, marking the third consecutive quarter of year-over-year revenue growth, driven by commercial B2B expansion and proprietary brand penetration.

• Proprietary brand penetration increased to 39.7% of Cultivation and Gardening revenue, a 770 basis point improvement year-over-year, achieving the 40% target ahead of schedule.

• Net loss improved to $2.0 million (negative $0.03 per share) from $4.8 million loss last year, with positive adjusted EBITDA of $0.3 million, a $1.6 million improvement year-over-year.

• Operating expenses declined 13.1% year-over-year, reflecting cost-reduction initiatives, retail store closures, and asset retirements.

• Ended Q2 with $41 million in cash, cash equivalents, and marketable securities, and no debt, providing flexibility for growth and shareholder returns.

Financial highlights

• Q2 2026 net sales were $43.2 million, up 12.6% sequentially and 5.5% year-over-year; six months: $81.6 million, up 6.4% year-over-year.

• Gross profit was $12.3 million, with gross margin at 28.5%, up from 25.4% last quarter and 28.3% last year.

• GAAP net loss improved to $2 million (negative $0.03 per share) from $4.8 million loss last year; six months net loss: $6.9 million, improved from $14.2 million loss year-over-year.

• Adjusted EBITDA was $0.3 million in Q2 2026, compared to a $1.3 million loss in Q2 2025.

• Cash, cash equivalents, and marketable securities totaled $41.0 million as of June 30, 2026.

Outlook and guidance

• Q3 2026 revenue expected between $44 million-$46 million, with positive adjusted EBITDA.

• Full year 2026 guidance: net revenue $162 million-$168 million, adjusted EBITDA $2 million-$3 million (raised from breakeven prior guidance).

• Gross margin for 2026 anticipated between 27% and 29%.

• Anticipated recognition of over $2 million in IEEPA tariff refunds in Q3; $2.6 million in tariff refunds received after June 30, 2026, not recognized in Q2.

• Management expects continued focus on proprietary brand expansion, commercial and e-commerce channel growth, and further penetration of Storage Solutions across diversified markets.