Urban-gro Posts $15.1M Nine-Month Loss as Revenue Slides 53%

Urban-gro reported a net loss of $15.1 million for the nine months ending September 30, 2025, compared to a loss of $9.3 million in the same period of 2024. The company's total revenue fell 53% to $16.9 million from $35.8 million year-over-year. Read more earnings reports.

For the third quarter ending September 30, 2025, the net loss widened to $4.8 million from $3.8 million in the prior-year quarter. Quarterly revenue dropped 70% to $2.4 million from $8.0 million.

Deteriorating Financial Position

Total assets collapsed to $3.2 million as of September 30, 2025, down from $19.5 million at year-end 2024. Cash and restricted cash plummeted to $62,875 at quarter-end, down from $819,050 at the end of 2024 and $1.1 million in the prior-year period.

Stockholders' equity turned sharply negative, reaching minus $38.9 million as of September 30, 2025, compared to minus $24.6 million at year-end 2024. Retained deficit expanded to $117.8 million from $102.8 million.

Quarterly Operations

The company posted a gross loss of $171,751 in the third quarter of 2025, a reversal from gross profit of $694,753 in the year-ago quarter. Operating expenses fell to $2.1 million from $3.9 million, but the decline failed to offset the revenue collapse.

Operating loss for the third quarter totaled $2.2 million compared to $3.2 million in the prior-year period. For the nine-month period, operating loss widened to $11.7 million from $9.0 million.

Balance Sheet Pressure

Current liabilities stood at $41.9 million as of September 30, 2025, down slightly from $42.3 million at year-end 2024, while current assets shrank to $2.2 million from $15.8 million. Accounts payable increased to $17.5 million from $13.5 million.

Accounts receivable fell to $352,307 from $6.1 million at the end of 2024. Property, plant and equipment declined to $566,609 from $813,452.

Cash Flow and Losses

Cash from operations totaled $443,087 for the nine months ending September 30, 2025, swinging positive from negative $746,924 in the prior-year period. Cash from investing was $2.0 million compared to an outflow of $97,578, while cash from financing showed an outflow of $3.2 million versus an inflow of $906,500.

The company reported earnings per share of minus $28.75 for the nine-month period on 524,501 weighted average shares outstanding, compared to minus $18.95 on 489,981 shares in the prior year. Third quarter EPS was minus $9.14 versus minus $7.56.