GrowGeneration replaces Grant Thornton with BDO as independent auditor

GrowGeneration Corp. (NASDAQ:GRWG) announced Monday that it has dismissed Grant Thornton LLP as its independent registered public accounting firm, effective July 10. The company’s audit committee approved the decision, according to a statement based on a recent SEC filing.

Grant Thornton’s reports on GrowGeneration’s consolidated financial statements for the fiscal years ended December 31, 2024 and 2023 did not include adverse opinions or disclaimers of opinion, and were not qualified or modified regarding uncertainty, audit scope, or accounting principles. However, in both years, Grant Thornton concluded that GrowGeneration did not maintain effective internal control over financial reporting due to material weaknesses disclosed in the company’s annual reports.

The filing indicates there were no disagreements between GrowGeneration and Grant Thornton on accounting principles, financial statement disclosures, or audit procedures during the relevant periods. There were also no reportable events aside from the identified issues with internal controls.

As of July 10, GrowGeneration appointed BDO USA, LLP as its new independent registered public accounting firm to audit the company’s financial statements for the fiscal year ending December 31, 2025 and related interim periods. The audit committee approved this appointment. The company stated that it had not previously consulted with BDO on accounting matters or any audit opinions prior to this engagement.

A letter from Grant Thornton to the Securities and Exchange Commission, dated July 11, 2025, was included as an exhibit in the filing.

This information is based on a statement from a recent SEC filing.

In other recent news, GrowGeneration Corp reported a net loss for the first quarter of 2025, with net revenue decreasing to $35.7 million from $47.9 million in the previous year. The company attributed this decline to ongoing challenges in the cannabis cultivation market. Despite the revenue drop, GrowGeneration improved its gross margin to 27.2%, up 140 basis points from the prior year, reflecting efficiency gains. The company also reported that proprietary brand sales accounted for 32% of total revenue, an increase from 22.6% the previous year.

Additionally, GrowGeneration has acquired Viagrow, a domestic supplier of eco-friendly gardening supplies, in a cash and stock transaction. This acquisition is expected to enhance GrowGen’s gross margins in FY2025 and aligns with its strategy to expand its private-label offerings. The acquisition of Viagrow is anticipated to boost GrowGen’s performance on e-commerce platforms like Amazon (NASDAQ:AMZN) and advance its omni-channel strategy.

Furthermore, GrowGeneration has withdrawn its full-year 2025 guidance due to macroeconomic uncertainties, though it expects Q2 2025 revenue to exceed $40 million. The company continues to focus on proprietary brand growth and operational efficiency. CEO Darren Lampert emphasized the company’s strategic shift towards proprietary brand penetration and servicing commercial customers.

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