Hydroponic Giant Shares Slightly Down On Q2 Revenue Decline, Lower Guidance

Hydroponic innovator, GrowGeneration Corp. GRWG reported Tuesday its financial results for the second quarter of 2023, revealing revenues of $63.9 million, down from $71.1 million in the same quarter of 2022.

“I am pleased with our performance and results in the quarter,” Darren Lampert, GrowGeneration’s co-founder and CEO stated. “GrowGen is proud to share that we generated net revenue of $63.9 million, which is a 12% improvement to the first quarter. Further, the company is reporting positive Adjusted EBITDA of $0.9 million, consistent with the expectations that we previously communicated. The improvements in revenue and Adjusted EBITDA are a testament to our team’s work over the previous few quarters in right-sizing the business and focusing on profitable growth.”

Q2 2023 Highlights

  • Net loss amounted to $5.7 million, which compares to net loss of $136.38 million in the same quarter of 2022.
  • Gross profit was $17.14 million, versus $20.23 million in the second quarter of 2022.
  • Gross profit margin was of 26.8%, representing a decrease of 1.7% to the prior year period.
  • Adjusted EBITDA was a gain of $856,000 compared to an adjusted EBITDA loss of $2.99 million.
  • As of June 30, 2023, cash and short-term marketable securities were $70.6 million.

The company also change full-year 2023 guidance for revenue to be between $220 million and $225 million and Adjusted EBITDA to be a loss between $4 million and $6 million. Previously the company guided for full-year 2023 revenue between $250 million and $270 million, and for an adjusted EBITDA loss of $4 million to an adjusted EBITDA gain of $1 million.

Price Action 

GrowGen shares were trading 6.11% lower at $3.408 per share during Wednesday’s pre-market session.

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Photo: Courtesy of Cannafornia via Pexels

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Posted In: CannabisEarningsNewsPenny StocksMarketsDarren Lampertpremium
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