GrowGeneration Cultivates Resilience in the Evolving CEA Market

DENVER, CO – November 12, 2025 – In a market often characterized by volatility, GrowGeneration Corp. (NASDAQ: GRWG), a leading supplier of specialty products for controlled environment agriculture (CEA), is demonstrating a strategic pivot towards long-term stability and consistent performance. The company's upcoming exhibit at the 2025 CEAg World Conference and Expo, scheduled for November 19–21 in Durham, North Carolina, underscores its commitment to innovation and market leadership within a rapidly evolving agricultural landscape.

Navigating a Dynamic Market with Strategic Efficiency

GrowGeneration's recent financial performance paints a picture of a company actively course-correcting and building resilience. The third quarter of 2025 saw net sales climb to $47.3 million, marking a robust 15.4% sequential increase. This upward trajectory was accompanied by a significant expansion in gross margins to 27.2% and a return to positive adjusted EBITDA of $1.3 million, a notable turnaround from a $3.7 million loss in the prior year. The GAAP net loss also narrowed to $2.4 million, or negative $0.04 per share, surpassing analyst expectations.

This improved financial health is largely attributed to a successful restructuring plan focused on lowering operating expenses, enhancing gross margins, and strategically shifting the revenue mix towards higher-margin proprietary brands. These brands, including Char Coir, Drip Hydro, and PowerSi, comprised 31.6% of cultivation and gardening revenue in Q3 2025, up from 23.8% previously, with a target to reach 40% by 2026. This emphasis on proprietary products not only boosts profitability but also strengthens the company's competitive moat. With a strong balance sheet boasting $48.3 million in cash and zero debt, GrowGeneration appears well-positioned to weather future economic headwinds and capitalize on growth opportunities. While 2024 saw a revenue decline, projections for 2026 anticipate positive revenue growth and adjusted EBITDA, signaling a robust outlook for investors seeking stable portfolios.

The CEA Revolution: Trends and Challenges Driving Growth

GrowGeneration's focus on CEA places it at the heart of one of agriculture's most transformative sectors. The global CEA market, estimated at $96.1 billion in 2024, is projected to reach an astounding $507.3 billion by 2034, growing at a CAGR of 18.1%. This explosive growth is fueled by critical global trends:

• Food Security and Sustainability: Rising populations and concerns over resource scarcity are driving demand for sustainable, localized food production. CEA offers solutions for year-round cultivation, drastically reduced water usage, and minimized transportation costs.
• Climate Change Adaptation: As traditional farming grapples with unpredictable weather patterns and declining arable land, CEA provides a controlled environment that ensures consistent yields regardless of external conditions.
• Technological Advancements: Innovations in automation, AI, IoT, and advanced LED lighting are continuously enhancing efficiency and optimizing resource use within CEA systems.

However, the sector is not without its challenges. High initial investment and operational costs, particularly for energy, remain significant hurdles. Market uncertainty, including high interest rates, has led to a slowdown in new CEA facility construction. In response, a key trend for 2025 and beyond is the increased investment in optimizing and improving existing operations, alongside a shift towards more cost-effective greenhouse projects over fully indoor vertical farms. Companies like GrowGeneration, by providing essential, high-performance supplies and integrated solutions, play a crucial role in enabling growers to navigate these complexities and improve profitability.

Strategic Innovation: Proprietary Brands and Solutions

At CEAg World, GrowGeneration will showcase its extensive portfolio of proprietary brands and integrated solutions, purpose-built for performance across diverse settings, including indoor, greenhouse, and mixed-light environments. This focus on product innovation is central to its strategy for capturing market share and supporting the evolving needs of commercial cultivators.

Among the featured products are:

• Char Coir: Billed as the highest-grade coco available, sourced from a single farm for unparalleled consistency and quality, each batch is accompanied by a chemical analysis, emphasizing transparency and reliability.
• Drip Hydro: A complete nutrient solution developed by growers for growers, backed by over 45 years of cultivation experience. It aims to simplify the growing process while delivering high-quality results, increased yields, and reduced overhead.
• PowerSi: Concentrated additives designed to enhance plant health, boost yields, and improve overall crop quality.
• The Harvest Company: Offers a diverse range of essential products for both home and commercial gardening, providing comprehensive solutions from seed to harvest.
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