GrowGeneration (GRWG) Gross Margin
GrowGeneration (GRWG) currently has a gross margin of 26.8%. Margins are contracting over recent quarters. The company is a Ancillary cannabis company trading on the NASDAQ.
Current Gross Margin
26.8%
Margin Trend
Contracting
Latest Quarter Margin
24.1%
Quarterly Gross Margin
| Period | Revenue | COGS | Gross Profit | Gross Margin |
|---|---|---|---|---|
| FY2025 Q4 | $37.8M | $28.7M | $9.1M | 24.1% |
| FY2025 Q3 | $47.3M | $34.4M | $12.9M | 27.2% |
| FY2025 Q2 | $41.0M | $29.4M | $11.6M | 28.3% |
| FY2025 Q1 | $35.7M | $26.0M | $9.7M | 27.2% |
| FY2024 Q4 | $37.4M | $31.3M | $6.1M | 16.4% |
| FY2024 Q3 | $50.0M | $39.2M | $10.8M | 21.6% |
| FY2024 Q2 | $53.5M | $39.1M | $14.4M | 26.9% |
| FY2024 Q1 | $47.9M | $35.5M | $12.4M | 25.8% |
| FY2023 Q4 | $49.5M | $37.8M | $11.6M | 23.5% |
Frequently Asked Questions
What is GRWG's current gross margin?+
Gross margin for GrowGeneration is calculated as (revenue minus cost of revenue) divided by revenue, expressed as a percentage. It measures how efficiently the company converts sales into gross profit before operating expenses. Higher margins indicate better pricing power or lower production costs.
What is a good gross margin for cannabis companies?+
Cannabis gross margins vary widely by sub-sector. Retailers typically see 40-55%, vertically integrated MSOs 45-60%, and LPs 20-45%. GrowGeneration's margin should be compared to peers in the same sub-sector for meaningful context. Margins above 50% generally indicate strong pricing power.
Why do GRWG's margins change quarter to quarter?+
Gross margin fluctuations for GrowGeneration can result from changes in product mix, pricing pressure from competition, input cost changes (e.g., energy, labor), inventory write-downs, or scaling into new markets where initial costs are higher. Seasonal harvest patterns can also affect margins for cultivators.