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 accounted for 32.8% of 2025 revenue, driving sustainable margin growth and targeting 40-50% of future revenue.

• Strategic focus on B2B platform, commercial cultivation, operational efficiency, and international expansion.

• Diversified market reach now includes cannabis, greenhouse produce, specialty crops, and garden centers, addressing a $250B global CEA market by 2035.

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

Financial performance and operational highlights

• FY 2025 net sales reached $162M, with gross margin up 370 bps YoY to 26.8%.

• Adjusted EBITDA improved to -$6.0M, with a net loss of $24M, reflecting significant cost reductions and operational restructuring.

• Operating expenses declined 28% YoY to $68.9M, and the company ended 2025 with $46.1M in cash and zero debt.

• Proprietary brand sales and cost discipline are positioning the company toward positive adjusted EBITDA.

Market catalysts and future outlook

• DEA Schedule III reclassification of cannabis removes major 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.

• Three-year restructuring has created a lean, profitable footprint with a clear path to profitability and long-term value creation.