GrowGeneration Q4 Earnings Miss Estimates, Revenues Decrease Y/Y

Core Insights - GrowGeneration Corp. (GRWG) reported a wider adjusted loss per share of 27 cents in Q4 2024, compared to the Zacks Consensus Estimate of a loss of 18 cents and a loss of 18 cents in Q4 2023 [1][2] Financial Performance - The company recorded a non-cash impairment of goodwill and intangible assets amounting to $6.7 million in the quarter, leading to a total loss per share of 39 cents [2] - Revenues for the quarter were $37 million, a decline of 24.3% year over year, attributed to 19 fewer retail locations in 2024, and missed the Zacks Consensus Estimate of $38.3 million [3] - Comparable store sales increased by 1% year over year [3] - Cost of sales decreased by 17% year over year to $31 million, while gross profit fell by 47.4% to $6.1 million, resulting in a gross margin of 16.3%, down from 23.5% in the prior year [4] - Selling, general and administrative costs decreased by 12.8% year over year to $7 million, with adjusted EBITDA showing a loss of $8.1 million compared to a loss of $3.7 million in the prior year [5] Cash Position - At the end of 2024, GRWG had cash, cash equivalents, and marketable securities totaling $56.5 million, with inventory at $40 million and prepaid and other current assets at $8 million [6] - Total current liabilities were $24 million at the end of 2024 [6] Annual Results - For the full year 2024, GrowGeneration reported a loss per share of 82 cents, compared to a loss of 76 cents in 2023 [7] - Total revenues for 2024 were $189 million, a decline of 16.4% year over year, missing the Zacks Consensus Estimate of $190 million [7] Future Guidance - The company anticipates revenues between $170 million and $180 million for 2025 [8] Stock Performance - Over the past year, GrowGeneration shares have decreased by 47.4%, in contrast to an 8.6% decline in the industry [9]