Urban-Gro, Inc. (NASDAQ:UGRO)

Urban-gro, Inc. (NASDAQ:UGRO) ($13.36; $140.4M market cap) a fully integrated architectural, engineering and cultivation systems integration company for commercial cannabis and food-focused Controlled Environment Agriculture facilities. The company reported Q3 2021 results:

• Sales of $18.3 million vs $8.3 million in the prior year, in line with analyst estimates of $18.4 million
• EPS of $0.00 vs a loss of $0.14 in the prior year, but below analyst estimates of $0.09
• Raised full year revenue guidance to more than $60 million from prior range of $54 to $59 million
• Lowered 2021 full year adjusted EBITDA guidance to greater than $2.5 million, compared to a prior range of $4 to $5 million, to account for incremental strategic investments in growth

“I am very excited about what the future holds for urban-gro as we further expand upon our integrated service model by executing on accretive and synergistic acquisitions, investing in the European indoor CEA market, and adding key capabilities in people and resources to meet customer demand. I am thrilled with the progression of our 2WR+ acquisition, which has immediately delivered the synergies we envisioned. Further, the recent launch of our urban-gro Financial Services division is yet another tool to service our customers in a holistic manner while proactively breaking down barriers to help accelerate market growth.

We have been allocating significant resources towards our European initiative this year and I am thrilled to deliver our first large contract in the region with Urban Health Farms – a food-focused CEA leader with a strategy to expand its footprint across Europe. 

We are extremely pleased with our third quarter financial performance, which marks our fifth consecutive quarter of positive adjusted EBITDA, which remains as a key financial objective for us as we grow. Our business is in a strong position with a flexible capital structure, reflected by our balance sheet that contains more than $40 million in cash and no debt. We are poised for continued growth and are investing into the further buildout of our solution platforms.”

For more on UGRO, see our reasons for tracking note from August 2021.