Urban-gro experiences 32% revenue decline in third quarter
LAFAYETTE — Urban-gro Inc. (Nasdaq: UGRO) reported a 32% year-over-year decrease in revenue for the third quarter of 2022, to $12.4 million from $18.3 million, in the third quarter of 2021.
Urban-gro, a professional services and design-build firm in the controlled environment agriculture industry, posted an $8.7 million net loss for the quarter after reporting $100,000 in gain for the third quarter of 2021.
Operating expenses in the quarter were up 126%, to $9.5 million from $4.2 million.
In the press release announcing the earnings report, Urban-gro attributed the revenue decline to “a decrease in cultivation equipment systems revenue … primarily reflecting significantly reduced equipment demand in the U.S. cannabis market as a result of ongoing state-level regulatory delays in the license-awarding process, as well as the lack of movement on passing key industry financial support models such as the SAFE Banking Act.”
At the end of the quarter, Urban-gro had $18.6 million in cash, with no debt. The company’s order backlog at quarter’s end was $67 million.