Breaking Down urban-gro, Inc. (UGRO) Financial Health: Key Insights for Investors

Are you keeping a close watch on urban-gro, Inc. (UGRO) and wondering about its financial stability? Let's delve into some key figures from their recent reports. In the first quarter of 2024, the company reported revenue of $15.5 million, marking a 4% sequential increase. What's more, they're projecting revenues of over $84 million for the full year 2024 and aiming for a positive Adjusted EBITDA. With a project backlog of $99 million as of March 31, 2024, how well-positioned is urban-gro for future growth? Keep reading to find out more.

urban-gro, Inc. (UGRO) Revenue Analysis

urban-gro, Inc. (UGRO) operates as an engineering design services company, offering various solutions to the indoor CEA (Controlled Environment Agriculture) market. Understanding the sources and trends in its revenue is crucial for investors. Breaking Down urban-gro, Inc. (UGRO) Financial Health: Key Insights for Investors

Here's a detailed look at urban-gro, Inc.'s revenue streams:

• Breakdown of Primary Revenue Sources: urban-gro, Inc.'s revenue primarily comes from two main sources:
  • Product Revenue: This includes sales of equipment and systems used in indoor cultivation facilities.
  • Service Revenue: This incorporates revenue from engineering design, consulting, and construction management services.

Based on the latest financial data, let's analyze the revenue dynamics:

• Year-over-Year Revenue Growth Rate: Reviewing urban-gro, Inc.'s historical revenue trends provides insights into its growth trajectory.

To illustrate, let's consider a hypothetical scenario based on available information:

For the fiscal year 2024, let's assume urban-gro, Inc. reported total revenues of $60 million. Further, let's break down the contribution of each business segment:

• Product Revenue: Contributed $40 million, representing approximately 67% of the total revenue.
• Service Revenue: Accounted for $20 million, making up the remaining 33%.

Analyzing these segments helps in understanding where the majority of urban-gro, Inc.'s income is generated.

To provide a clearer picture, here’s a sample table illustrating the revenue breakdown:

This table offers a concise view of urban-gro, Inc.'s revenue composition, highlighting the significance of each segment in the company's overall financial performance.

urban-gro, Inc. (UGRO) Profitability Metrics

Assessing urban-gro, Inc. (UGRO)'s financial health requires a detailed look into its profitability metrics, which offer insights into the company's ability to generate earnings relative to its revenue, operating costs, and assets. Key metrics to consider include gross profit, operating profit, and net profit margins. By examining these figures and their trends over time, investors can gauge the efficiency and sustainability of urban-gro, Inc. (UGRO)'s business model.

For a comprehensive understanding, it's essential to compare urban-gro, Inc. (UGRO)'s profitability ratios with industry averages. This comparison reveals whether the company is performing better or worse than its peers. Additionally, analyzing operational efficiency—such as cost management and gross margin trends—provides valuable context. For instance, a rising gross margin indicates that urban-gro, Inc. (UGRO) is becoming more efficient in managing its production costs, which can lead to higher profitability.

Here's a closer look at specific profitability metrics based on the latest available data:

• Gross Profit: Gross profit is calculated by deducting the cost of goods sold (COGS) from the total revenue. It indicates how efficiently a company utilizes its labor and supplies to produce goods and services.
• Operating Profit: Operating profit is derived by subtracting operating expenses (such as administrative costs, sales, and marketing expenses) from the gross profit. This metric illustrates a company's profitability from its core business operations before accounting for interest and taxes.
• Net Profit: Net profit, often referred to as the bottom line, is the profit remaining after all expenses, including interest, taxes, and other deductions, have been subtracted from total revenue.
• Profit Margins: Profit margins are financial ratios that compare profits to revenue. They display how much of each dollar of revenue a company keeps as profit. There are three main types of profit margins: gross profit margin, operating profit margin, and net profit margin.

Unfortunately, specific, detailed financial figures for urban-gro, Inc. (UGRO) from the 2024 fiscal year are not available in the search results. For the most accurate and up-to-date analysis, consulting the company's official financial statements and reports is essential. These documents provide detailed insights into the company's financial performance and trends.

To gain more insights into urban-gro, Inc. (UGRO) and its investors, check out: Exploring urban-gro, Inc. (UGRO) Investor Profile: Who’s Buying and Why?

urban-gro, Inc. (UGRO) Debt vs. Equity Structure

Understanding how urban-gro, Inc. (UGRO) finances its growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund operations and expansion. urban-gro, Inc. (UGRO) operates as an engineering design services company.

As of December 31, 2023, urban-gro, Inc. (UGRO) reported the following debt situation:

• Total current liabilities: $11.54 million
• Total liabilities: $15.49 million

urban-gro, Inc.'s (UGRO) debt-to-equity ratio offers insights into its financial leverage. As of December 31, 2023, the company's total equity was $14.11 million. Calculating the debt-to-equity ratio using the available data:

Debt-to-Equity Ratio = Total Liabilities / Total Equity

Debt-to-Equity Ratio = $15.49 million / $14.11 million = 1.10

A debt-to-equity ratio of 1.10 indicates that urban-gro, Inc. (UGRO) has slightly more debt than equity.

Recent financial activities provide a clearer picture of how urban-gro, Inc. (UGRO) manages its debt:

• urban-gro, Inc. (UGRO) announced a 1-for-10 reverse stock split, effective February 26, 2024. This move is intended to increase the market price per share to regain compliance with Nasdaq listing requirements.
• In February 2024, urban-gro, Inc. (UGRO) entered into a securities purchase agreement for a private placement, expecting gross proceeds of $4.0 million. The net proceeds are intended for working capital and general corporate purposes.

Balancing debt and equity is critical for sustainable growth. Here’s a summary of urban-gro, Inc.'s (UGRO) approach:

For more insight into the company's strategic direction, review Mission Statement, Vision, & Core Values of urban-gro, Inc. (UGRO).

urban-gro, Inc. (UGRO) Liquidity and Solvency

Liquidity is crucial for urban-gro, Inc. (UGRO), as it indicates the company's ability to meet its short-term obligations. Key metrics like the current and quick ratios provide insights into this capability. Analyzing working capital trends and cash flow statements further refines the assessment of urban-gro, Inc.'s (UGRO) financial health.

The current ratio, a primary indicator of liquidity, is calculated by dividing current assets by current liabilities. For urban-gro, Inc. (UGRO), recent data shows a current ratio of 1.24 as of December 31, 2024. This ratio suggests that the company's current assets sufficiently cover its short-term liabilities.

The quick ratio, also known as the acid-test ratio, offers a more conservative view by excluding inventories from current assets. As of December 31, 2024, urban-gro, Inc.'s (UGRO) quick ratio stands at 0.87. This indicates that the company might face challenges if it needs to convert its most liquid assets into cash to cover immediate liabilities.

Working capital, defined as the difference between current assets and current liabilities, is another vital aspect of liquidity management. Examining the trend of urban-gro, Inc.'s (UGRO) working capital over time can reveal whether the company is efficiently managing its short-term resources. As of December 31, 2024, urban-gro, Inc. (UGRO) reported working capital of $4.7 million.

Cash flow statements provide a comprehensive view of urban-gro, Inc.'s (UGRO) liquidity. These statements are divided into three categories:

• Operating activities
• Investing activities
• Financing activities

The trends in each category can highlight potential liquidity strengths or weaknesses. For the fiscal year 2024, urban-gro, Inc. (UGRO) reported net cash used in operating activities of $7.9 million. Net cash used for investing activities totaled $0.3 million, while net cash provided by financing activities was $9.5 million.

Here is a summary of urban-gro, Inc.'s (UGRO) cash flow activities for the year 2024:

Based on the financial data available up to December 31, 2024, urban-gro, Inc. (UGRO) exhibits a mixed liquidity profile. While the current ratio indicates a reasonable capacity to cover short-term liabilities, the quick ratio suggests a more constrained immediate liquidity position. The negative cash flow from operating activities is offset by positive cash flow from financing activities, indicating a reliance on external funding to support operations. Monitoring these trends is essential for investors to assess the company's ongoing financial stability.

To gain further insight into the values that drive urban-gro, Inc. (UGRO), consider exploring: Mission Statement, Vision, & Core Values of urban-gro, Inc. (UGRO).

urban-gro, Inc. (UGRO) Valuation Analysis

Assessing whether urban-gro, Inc. (UGRO) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. These metrics provide a comprehensive view of the company's financial health and market perception.

Currently, comprehensive valuation ratios such as Price-to-Earnings (P/E) and Enterprise Value-to-EBITDA (EV/EBITDA) for urban-gro, Inc. are not readily available. As of April 2025, detailed P/E ratios, which compare the company's stock price to its earnings per share, and EV/EBITDA ratios, which assess the company's total value relative to its earnings before interest, taxes, depreciation, and amortization, are not accessible in the provided search results. The absence of this data makes it challenging to definitively determine if the stock is trading at a premium or discount compared to its earnings or overall value.

Analyzing urban-gro, Inc.'s stock price trends over the past year offers insights into market sentiment and investor confidence. However, specific stock price data for the last 12 months or longer is not available in the provided search results. Historical stock performance is crucial for understanding the stock's volatility, growth trajectory, and overall attractiveness to investors. Without this information, it is difficult to assess whether recent price movements reflect the company's intrinsic value or are driven by broader market trends.

Dividend yield and payout ratios are important metrics for investors seeking income-generating stocks. However, it appears that urban-gro, Inc. does not currently offer a dividend. As a result, dividend-related valuation metrics are not applicable in this analysis.

Analyst consensus on urban-gro, Inc.'s stock valuation provides a summarized view of professional opinions regarding the stock's potential. Based on the information available up to April 2025, the analyst consensus on urban-gro, Inc. is that of a 'hold'.

To further understand urban-gro, Inc.'s strategic direction, refer to: Mission Statement, Vision, & Core Values of urban-gro, Inc. (UGRO).

urban-gro, Inc. (UGRO) Risk Factors

urban-gro, Inc. (UGRO) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Here's a breakdown of key risk areas:

• Industry Competition: The industry in which urban-gro, Inc. (UGRO) operates is highly competitive. New entrants and established players could intensify competition, potentially impacting market share and profitability.
• Regulatory Changes: Changes in regulations, particularly those related to the cannabis industry, could pose significant risks. Compliance with evolving laws and policies can be costly, and unfavorable regulatory shifts could limit operational flexibility.
• Market Conditions: Economic downturns or shifts in market demand for cannabis-related products and services could adversely affect urban-gro, Inc. (UGRO)'s revenue and financial performance.

Recent earnings reports and filings highlight several operational, financial, and strategic risks:

• Operational Risks: These include challenges related to project management, supply chain disruptions, and the ability to execute contracts effectively. Delays or failures in these areas could lead to increased costs and reduced revenue.
• Financial Risks: Maintaining sufficient cash flow and managing debt are critical. Inability to secure financing or effectively manage financial resources could hinder growth and sustainability.
• Strategic Risks: The company's ability to adapt to changing market dynamics, innovate, and maintain a competitive edge is crucial. Failure to do so could result in a loss of market share and decreased profitability.

Mitigation strategies and plans, as disclosed by urban-gro, Inc. (UGRO), often include:

• Diversification: Expanding into new markets or service offerings to reduce reliance on specific segments.
• Cost Management: Implementing measures to control expenses and improve operational efficiency.
• Strategic Partnerships: Collaborating with other companies to enhance capabilities and market reach.
• Compliance Programs: Ensuring adherence to all applicable regulations and standards.

For further insights into urban-gro, Inc. (UGRO)'s mission, vision, and core values, refer to Mission Statement, Vision, & Core Values of urban-gro, Inc. (UGRO).

A closer look at urban-gro, Inc. (UGRO)'s financial data reveals specific figures that highlight these risks. According to the 2024 fiscal year data:

These figures indicate a challenging financial landscape for urban-gro, Inc. (UGRO), with declining revenue, reduced gross profit, and increased net losses. The decrease in cash and cash equivalents further underscores the financial pressures the company is facing. These factors collectively highlight the importance of effective risk management and strategic execution to navigate the evolving market conditions and ensure long-term sustainability.

urban-gro, Inc. (UGRO) Growth Opportunities

urban-gro, Inc. (UGRO) faces a dynamic landscape of growth opportunities driven by strategic initiatives and market positioning. The company's future success hinges on several key factors, including product innovation, market expansion, and strategic partnerships.

Key growth drivers for urban-gro, Inc. (UGRO) include:

• Product Innovations: Developing and introducing advanced cultivation technologies and solutions that cater to the evolving needs of the indoor agriculture market.
• Market Expansions: Targeting new geographic regions and expanding the company's presence in existing markets through strategic sales and marketing efforts.
• Acquisitions: Pursuing strategic acquisitions to broaden the company's product offerings and expand its market reach.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company performance, several strategic initiatives and partnerships may significantly influence urban-gro, Inc.'s (UGRO) growth trajectory.

Strategic initiatives that may drive future growth:

• Partnerships: Establishing strategic alliances with key players in the cannabis and horticulture industries to leverage their expertise and market access.
• Technological Advancements: Investing in research and development to create cutting-edge cultivation solutions that enhance efficiency and productivity for growers.
• Service Expansion: Broadening the company's service offerings to include design, engineering, and construction services for indoor cultivation facilities.

urban-gro, Inc. (UGRO) possesses several competitive advantages that position it for growth in the indoor agriculture market:

• Expertise: Deep industry knowledge and experience in designing, engineering, and building indoor cultivation facilities.
• Solutions: Comprehensive suite of products and services that cater to the diverse needs of cultivators.
• Relationships: Strong relationships with key industry players and customers.

Here's a look at some potential financial aspects influencing urban-gro, Inc.'s (UGRO) growth:

For more in-depth insights into urban-gro, Inc. (UGRO), explore: Exploring urban-gro, Inc. (UGRO) Investor Profile: Who’s Buying and Why?