📊 GRWG Key Takeaways
Is GrowGeneration Corp. (GRWG) a Good Investment?
GrowGeneration is experiencing significant operational distress with declining revenue (-14.4% YoY), negative operating cash flow, and continuing net losses, indicating structural challenges in the retail garden supply business. While the balance sheet remains strong with no debt and $21.7M in cash, the negative free cash flow and deteriorating profitability suggest the company is consuming capital with no clear path to recovery.
Revenue is contracting double-digits and operating margins remain deeply negative, indicating the core retail model is not currently profitable. While the company is debt-free with strong liquidity, ongoing operating cash burn and declining sales make near-term fundamental improvement uncertain. Until revenue stabilizes and operating leverage improves, risk of further deterioration outweighs upside.
Why Buy GrowGeneration Corp. Stock? GRWG Key Strengths
- Zero long-term debt and strong balance sheet with $92.8M equity
- Healthy liquidity with 4.05x current ratio and $21.7M cash position
- Gross margin of 25.4% indicates reasonable pricing power and cost structure
- Debt-free balance sheet with $30.4M cash and 3.99x current ratio
- Decent gross margin (26.8%) provides room for operating improvements
- Low capex requirements and improving EPS YoY provide flexibility to restructure
GRWG Stock Risks: GrowGeneration Corp. Investment Risks
- Revenue contracted 14.4% YoY indicating declining market demand or competitive pressures
- Negative operating cash flow (-$5.0M) and free cash flow (-$5.1M) with approximately 4-5 quarters of cash runway at current burn rate
- Operating losses (-$5.3M) and negative ROE/ROA destroying shareholder value with no clear path to profitability
- Sustained revenue decline (-14.4% YoY) signals weak demand
- Negative operating and net margins driving cash burn (FCF -$9.5M)
- Runway erosion or potential dilution if losses persist despite no debt
Key Metrics to Watch
- Revenue trend and stabilization
- Operating cash flow improvement and path to positive free cash flow
- Operating margin expansion and timeline to profitability
- Revenue growth (YoY and same-store)
- Operating cash flow and operating margin
GrowGeneration Corp. (GRWG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.05x current ratio provides a solid financial cushion.
GRWG Profit Margin, ROE & Profitability Analysis
GRWG vs Consumer Sector: How GrowGeneration Corp. Compares
How GrowGeneration Corp. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GrowGeneration Corp. Stock Overvalued? GRWG Valuation Analysis 2026
Based on fundamental analysis, GrowGeneration Corp. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GrowGeneration Corp. Balance Sheet: GRWG Debt, Cash & Liquidity
GRWG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: GrowGeneration Corp.'s revenue has declined by 47% over the 5-year period, indicating business contraction. The most recent EPS of $-0.76 indicates the company is currently unprofitable.
GRWG Revenue Growth, EPS Growth & YoY Performance
GRWG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $35.7M | -$4.9M | $-0.08 |
| Q3 2025 | $47.3M | -$2.4M | $-0.04 |
| Q2 2025 | $41.0M | -$4.8M | $-0.08 |
| Q1 2025 | $35.7M | -$8.8M | $-0.14 |
| Q3 2024 | $50.0M | -$5.7M | $-0.12 |
| Q2 2024 | $53.5M | -$5.7M | $-0.09 |
| Q1 2024 | $47.9M | -$6.1M | $-0.10 |
| Q3 2023 | $55.7M | -$7.2M | $-0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GrowGeneration Corp. Dividends, Buybacks & Capital Allocation
GRWG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for GrowGeneration Corp. (CIK: 0001604868)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GRWG
What is the AI rating for GRWG?
GrowGeneration Corp. (GRWG) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GRWG's key strengths?
Claude: Zero long-term debt and strong balance sheet with $92.8M equity. Healthy liquidity with 4.05x current ratio and $21.7M cash position. ChatGPT: Debt-free balance sheet with $30.4M cash and 3.99x current ratio. Decent gross margin (26.8%) provides room for operating improvements.
What are the risks of investing in GRWG?
Claude: Revenue contracted 14.4% YoY indicating declining market demand or competitive pressures. Negative operating cash flow (-$5.0M) and free cash flow (-$5.1M) with approximately 4-5 quarters of cash runway at current burn rate. ChatGPT: Sustained revenue decline (-14.4% YoY) signals weak demand. Negative operating and net margins driving cash burn (FCF -$9.5M).
What is GRWG's revenue and growth?
GrowGeneration Corp. reported revenue of $38.4M.
Does GRWG pay dividends?
GrowGeneration Corp. does not currently pay dividends.
Where can I find GRWG SEC filings?
Official SEC filings for GrowGeneration Corp. (CIK: 0001604868) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GRWG's EPS?
GrowGeneration Corp. has a diluted EPS of $-0.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GRWG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, GrowGeneration Corp. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GRWG stock overvalued or undervalued?
Valuation metrics for GRWG: ROE of -5.3% (sector avg: 18%), net margin of -12.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy GRWG stock in 2026?
Our dual AI analysis gives GrowGeneration Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GRWG's free cash flow?
GrowGeneration Corp.'s operating cash flow is $-5.0M, with capital expenditures of $61.5K. FCF margin is -13.3%.
How does GRWG compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -12.8% (avg: 8%), ROE -5.3% (avg: 18%), current ratio 4.05 (avg: 1.5).