urban-gro, Inc. (UGRO) Stock Analysis

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• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
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urban-gro, Inc. (UGRO) Industrial Operations Profile

urban-gro, Inc. is a specialist in integrated environmental control systems for indoor controlled environment agriculture (CEA) and retail, offering comprehensive design, engineering, and construction services. Operating across the US, Canada, and Europe, the company supports cannabis and produce cultivators with advanced facility solutions and ongoing operational support.

What Is the Investment Thesis for UGRO?

urban-gro, Inc. operates within the specialized and growing controlled environment agriculture (CEA) market, offering integrated design, engineering, and construction services primarily to the cannabis and produce sectors. A key value driver is the ongoing expansion of the legal cannabis market, which necessitates advanced indoor cultivation facilities and sophisticated environmental controls, directly driving demand for UGRO's comprehensive services. The company's ability to provide end-to-end solutions, from architectural design to equipment integration and ongoing maintenance, positions it to capture significant project value. However, the company currently faces financial challenges, evidenced by a negative profit margin of -200.2% and a negative gross margin of -14.5%, indicating operational inefficiencies or significant upfront investment costs. The market capitalization of $2.33M suggests a very small or micro-cap status, which can imply higher volatility, as reflected by its Beta of -2.90. Growth catalysts include securing new, large-scale contracts for CEA facility development and further geographic expansion within North America and Europe. Mitigating risks associated with regulatory uncertainty in the cannabis industry and fluctuating capital markets, which can impact project financing, will be critical for improving profitability and achieving sustainable growth.

Based on FMP financials and quantitative analysis

UGRO Key Highlights

• Market Capitalization: $0.00B, indicating a micro-cap company with potentially higher volatility and limited liquidity.
• Profit Margin: -200.2%, reflecting significant operational losses relative to revenue, suggesting challenges in achieving profitability.
• Gross Margin: -14.5%, indicating that the cost of goods sold exceeds revenue, pointing to potential issues in pricing, production efficiency, or project execution.
• Beta: -2.90, suggesting an inverse relationship with the broader market and higher volatility, though such a negative beta can sometimes be an anomaly in small-cap stocks.
• Employees: 130 individuals, supporting its specialized architectural, engineering, and construction services across multiple geographies.

Who Are UGRO's Competitors?

UGRO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are UGRO's Key Strengths?

• Comprehensive, integrated design, engineering, and construction services for CEA.
• Specialized expertise in environmental control systems for cannabis and produce.
• Established operations across the US, Canada, and Europe.
• Strategic partnerships as a Value-Added Reseller (VAR) for cultivation equipment.

What Are UGRO's Weaknesses?

• Significant negative profit margin (-200.2%) and gross margin (-14.5%).
• Small market capitalization ($0.00B) indicating limited financial scale.
• Reliance on capital-intensive projects which can be impacted by economic downturns.
• High volatility indicated by a Beta of -2.90.

What Could Drive UGRO Stock Higher?

• **Ongoing: Expansion of Legal Cannabis Markets**: The continued legislative progress in various U.S. states and international jurisdictions towards legalizing medical and recreational cannabis is an ongoing catalyst. This expansion directly drives the demand for new, compliant, and efficient indoor cultivation facilities, for which urban-gro provides its specialized design, engineering, and construction services.
• **Ongoing: Growth in Controlled Environment Agriculture (CEA) Demand**: The increasing global focus on food security, sustainable farming practices, and local produce supply chains fuels the demand for CEA facilities beyond cannabis. urban-gro's expertise in designing and integrating advanced systems for produce cultivation positions it to benefit from this broader industry growth.
• **Upcoming: Securing New Large-Scale Contracts**: The announcement and execution of new significant design, engineering, and construction contracts for major CEA projects in either the cannabis or produce sectors would serve as a key catalyst, demonstrating the company's ability to capture market share and drive future revenue growth.

What Are the Key Risks for UGRO?

• Financial-distress signal — its Altman Z-Score of -1.15 sits in the distress zone (elevated bankruptcy risk).
• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• **Ongoing: Regulatory Uncertainty in Cannabis Market**: The fragmented and evolving regulatory landscape surrounding cannabis in the United States and internationally poses an ongoing risk. Changes in legislation, licensing, or interstate commerce can significantly impact client investment decisions and the pace of new project development, directly affecting urban-gro's pipeline.
• **Ongoing: Fluctuating Capital Markets**: The availability and cost of capital for clients in the CEA sector, particularly cannabis, are highly susceptible to broader capital market fluctuations. Economic downturns or tighter lending conditions can delay or cancel new projects, impacting urban-gro's ability to secure new contracts and generate revenue.
• **Ongoing: Negative Profitability and Gross Margins**: The company's reported profit margin of -200.2% and gross margin of -14.5% indicate significant financial challenges. Sustained negative profitability could impact its ability to fund operations, invest in growth, or attract further capital, posing an ongoing operational and financial risk.
• **Potential: Intense Competition**: The CEA design and build market, while specialized, is competitive. urban-gro faces competition from other specialized firms, general contractors entering the space, and equipment manufacturers. This could lead to pricing pressures, reduced contract wins, or longer sales cycles, potentially impacting market share and profitability.

What Are the Growth Opportunities for UGRO?

• **Expansion in the Legal Cannabis Market**: The ongoing legalization and expansion of cannabis markets across various U.S. states and internationally present a significant growth driver for urban-gro. As more regions permit medical and recreational cannabis, demand for purpose-built, highly controlled cultivation facilities increases. urban-gro's expertise in integrated cultivation design and environmental control systems positions it to capitalize on these new market entries and expansions, offering turnkey solutions that ensure compliance and optimize yields for new and existing operators. The global legal cannabis market is projected to grow substantially, creating a continuous need for specialized infrastructure.
• **Growth in Controlled Environment Agriculture (CEA) for Produce**: Beyond cannabis, the broader CEA market for traditional produce (e.g., leafy greens, berries) is experiencing robust growth due to increasing consumer demand for locally sourced, fresh produce, and concerns over food security and supply chain resilience. urban-gro's capabilities in designing and integrating advanced systems for water treatment, fertigation, and environmental control are directly applicable to these facilities. This diversification into the produce sector provides a stable, long-term growth avenue, reducing reliance on the more volatile cannabis market and tapping into a global food market estimated in the trillions.
• **Geographic Expansion and Market Penetration**: urban-gro currently operates in the United States, Canada, and Europe. Further deepening its market penetration within these existing geographies and strategically expanding into new international markets with nascent CEA or legal cannabis industries represents a considerable growth opportunity. Leveraging its established project portfolio and expertise, the company can pursue new clients and larger-scale projects in regions where indoor farming is gaining traction. This geographic diversification can help mitigate regional market fluctuations and broaden its revenue base.
• **Comprehensive Service Offerings and Recurring Revenue**: The company's comprehensive suite of services, from pre-construction planning and architectural design to ongoing maintenance, training, and its "gro-care" program, creates multiple revenue streams. Expanding the adoption of its "gro-care" program and other recurring service contracts can provide a more stable and predictable revenue base. As facilities mature, the need for maintenance, upgrades, and operational support increases, offering urban-gro opportunities to secure long-term service agreements and enhance customer lifetime value, moving beyond one-off project revenues.
• **Strategic Partnerships and Value-Added Reselling (VAR)**: urban-gro's role as a Value-Added Reseller (VAR) for cultivation equipment systems, built on strategic partnerships with leading manufacturers, allows it to offer integrated solutions without the capital intensity of manufacturing. Expanding and strengthening these partnerships, or forming new ones with innovative technology providers, can enhance its product portfolio and competitive edge. This model enables urban-gro to provide cutting-edge equipment and systems, staying abreast of technological advancements in horticulture, and offering clients comprehensive, integrated packages that are difficult for competitors to replicate.

What Opportunities Does UGRO Have?

• Continued expansion and legalization of the global cannabis market.
• Growing demand for controlled environment agriculture (CEA) in the produce sector.
• Potential for deeper market penetration and new geographic expansion.
• Development of recurring revenue streams through "gro-care" and maintenance programs.

What Threats Does UGRO Face?

• Regulatory uncertainty and changes in the legal cannabis industry.
• Fluctuations in capital markets impacting project financing and client investment.
• Intense competition from other specialized design firms, general contractors, and equipment suppliers.
• Economic downturns reducing investment in new agricultural infrastructure projects.

What Are UGRO's Competitive Advantages?

• **Integrated Turnkey Solutions**: Offers a comprehensive suite of services from design and engineering to construction and ongoing support, providing a single point of contact for complex CEA projects.
• **Specialized Expertise**: Deep knowledge in designing and integrating sophisticated environmental control systems specific to high-value crops like cannabis and sensitive produce.
• **Strategic VAR Partnerships**: Leverages partnerships with leading equipment manufacturers, enabling access to cutting-edge technology and a broad product portfolio without direct manufacturing costs.
• **Geographic Reach**: Established operations across the United States, Canada, and Europe, allowing it to serve a broad and diverse client base in multiple regulatory environments.

What Does UGRO Do?

urban-gro, Inc., established in 2014 and headquartered in Lafayette, Colorado, has evolved into a key provider of sophisticated environmental control systems for indoor controlled environment agriculture (CEA) and various retail environments. Its operational footprint extends across the United States, Canada, and Europe, serving a diverse client base. The company's core offering encompasses comprehensive architectural, engineering, and construction (AEC) services, beginning with crucial pre-construction planning and cultivation space programming (CSP). This extends through detailed architectural and interior design, integrated cultivation design, and engineering, culminating in owner's representative/construction management and general contracting services. Beyond initial facility build-out, urban-gro ensures operational longevity and efficiency through ongoing maintenance, specialized training, and continuous support. This includes facility and equipment commissioning services, complemented by its "gro-care" crop and asset protection program, which provides training, equipment maintenance, and an interactive online support system for documentation and project management. Property condition assessment services further enhance their holistic approach. In addition to its AEC capabilities, urban-gro delivers integrated equipment solutions. This involves the meticulous design, strategic sourcing, and seamless integration of vital environmental systems. These include heating, ventilation, and air conditioning (HVAC) solutions, overarching environmental control systems, precise fertigation and irrigation distribution, advanced water treatment, and efficient wastewater reclamation systems. The company also supplies commercial horticulture lighting, innovative rolling and automated container benching systems, specialized fans, and solutions for microbial mitigation and odor reduction. Furthermore, urban-gro operates as a Value-Added Reseller (VAR) for cultivation equipment systems, leveraging strategic partnerships with leading manufacturers to offer best-in-class technology. Its clientele primarily includes operators and facilitators within the CEA sector, with a significant focus on the rapidly expanding cannabis and produce markets. The company also extends its expertise to commercial entities in food and beverage consumer packaged goods (CPG), healthcare, higher education, and hospitality industries, positioning itself as a versatile partner in controlled environment solutions.

What Products and Services Does UGRO Offer?

• Designs, engineers, and constructs sophisticated environmental control systems for indoor controlled environment agriculture (CEA) facilities.
• Provides architectural, engineering, and construction (AEC) services, including pre-construction planning, architectural design, and general contracting.
• Integrates essential environmental systems like HVAC, fertigation, irrigation, water treatment, and wastewater reclamation.
• Supplies commercial horticulture lighting, automated benching systems, specialized fans, and microbial mitigation solutions.
• Offers ongoing facility maintenance, operational training, and support through its "gro-care" crop and asset protection program.
• Acts as a Value-Added Reseller (VAR) for cultivation equipment systems, partnering with leading manufacturers.
• Serves clients primarily in the cannabis and produce markets, as well as commercial entities in CPG, healthcare, and hospitality.
• Conducts property condition assessment services to evaluate existing facility infrastructure.

How Does UGRO Make Money?

• **Project-Based Services**: Generates revenue through fees for architectural, engineering, and construction (AEC) services on new facility builds and expansions.
• **Equipment Sales and Integration**: Earns revenue from designing, sourcing, and integrating specialized environmental control and cultivation equipment as a Value-Added Reseller (VAR).
• **Recurring Maintenance & Support**: Provides ongoing "gro-care" programs, training, and facility commissioning services for recurring revenue streams.
• **Consulting & Planning**: Offers pre-construction planning, cultivation space programming (CSP), and property condition assessments on a fee-for-service basis.

What Industry Does UGRO Operate In?

urban-gro, Inc. operates within the Agricultural - Machinery industry, specifically targeting the niche but rapidly expanding controlled environment agriculture (CEA) sector. This industry is characterized by a growing demand for advanced indoor cultivation solutions, driven by factors such as increasing global food demand, climate change impacts on traditional farming, and the legalization and expansion of the cannabis market. urban-gro positions itself as a comprehensive solutions provider, offering integrated architectural, engineering, and construction (AEC) services alongside specialized equipment integration. This differentiates it from pure equipment suppliers or general contractors, allowing it to capture a larger share of project value. The competitive landscape includes specialized CEA design firms, general construction companies with an agricultural focus, and various equipment manufacturers. Market trends indicate a shift towards more sustainable, efficient, and technologically advanced indoor farming methods, which aligns with urban-gro's expertise in environmental control and resource management systems. The company's focus on both cannabis and produce markets provides diversification within the CEA sector.

Who Are UGRO's Key Customers?

• Operators and facilitators within the Controlled Environment Agriculture (CEA) sector.
• Cultivators and producers in the legal cannabis market.
• Growers and businesses in the indoor produce market (e.g., vertical farms).
• Commercial entities across food and beverage consumer packaged goods (CPG).
• Institutions in the healthcare, higher education, and hospitality industries requiring specialized environmental controls.

FY2026 estForward Outlook

Wall Street analysts project urban-gro, Inc. revenue of about $103.1M for fiscal 2026, with EPS near $-2.25.

ROE 0%Key Financial Metrics

Return on equity for urban-gro, Inc. stands at 0.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -8.1%, showing how much profit it generates from its asset base. Its free cash flow yield is -84.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.05 means current liabilities exceed short-term assets, a liquidity point worth watching.

F-Score 3/9Financial Health

urban-gro, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -1.15 places it in the distress zone, a signal of elevated financial risk.

UGRO Valuation & Market Position

With a $2.33M market cap, urban-gro, Inc. sits in the micro-cap segment of the market. Relative to its peer group, UGRO's quantitative score of 37/100 is below the peer average of 53/100.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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