Urban-gro reports quarterly results ‘below expectations’

LAFAYETTE — Urban-gro Inc. (Nasdaq: UGRO), an indoor agricultural engineering firm that primarily operates in the food and cannabis industries, took a step backwards in the second quarter of 2022.

The company, which has struggled with profitability at times throughout its history, appeared to be turning a corner last year, clawing within shouting distance of being in the black for the full 2021 fiscal year. 

But while revenue for the second quarter of 2022, up 27% from the same period last year, the company posted a net loss. 

That loss was $1.7 million, compared to net income of $1.3 million in the second quarter of 2021, a quarter that included a Paycheck Protection Program loan forgiveness of $1 million.

“I am proud of our team’s performance this quarter amid the well-documented headwinds that persist in the cannabis industry.  Although our quarterly results were below our expectations, we drove a 27% increase in revenues versus the prior year period and have a robust project pipeline heading into our second half,” Urban-Gro CEO Bradley Nattrass said in a prepared statement. “Further, our efforts to strategically diversify our business into other sectors are helping insulate us from the broader turbulence that other ancillary industry participants are experiencing.  We are actively working with some of the largest names in their respective sectors, including global consumer packaged goods food and beverage, food-focused CEA, and healthcare.  Further, we continue to leverage our unique set of capabilities within broader segments of the market and have identified an ever-larger pipeline of new opportunities.”  

Urban-gro reported its earnings after the end of trading Monday when the company’s stock price was $6.28.

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