Urban-gro, Inc. Reports Mixed 2023 Financial Results and Optimistic 2024 Outlook

urban-gro, Inc. has released its financial outcomes for the year 2023, showing a revenue increase of 6.7% to $71.5 million compared to the previous year, amidst challenges like a net loss widening to $18.7 million. The company aims for stronger performance in 2024, forecasting revenues to exceed $84 million and achieving positive Adjusted EBITDA.

The firm encountered delayed projects in Q4 2023 but anticipates these to contribute positively in 2024, supported by a $110 million backlog. Efforts to streamline operations have led to over $8 million in cost reductions. urban-gro’s diversified market strategy has mitigated the impact of the sluggish cannabis sector, with 70% of revenue generated from commercial industries.

For Q1 2024, urban-gro anticipates improved revenues and Adjusted EBITDA, driven by robust professional services. This optimism extends throughout 2024, with the company expecting organic growth and potentially benefiting from favorable industry-specific regulatory changes.

The company's strategic adjustments and diversified market approach indicate preparedness for capturing growth opportunities in 2024, aiming to return to positive Adjusted EBITDA generation and achieve sustainable profitable growth.