Urban-Gro Inc. reported revenues of USD 7.76 million for the second quarter (Q2) ended June 30, 2025, reflecting a 57% decrease for the period. Gross profit for Q2 2025 was USD 0.04 million, with gross margin at approximately 0.01% of revenues. The company’s cost of revenues for the quarter was USD 7.7 million, down 50%. Operating expenses rose 18% to USD 6.0 million in Q2 2025, primarily due to a USD 1.1 million increase in general and administrative expenses. For the half year $(HY)$ ended June 30, 2025, operating expenses totaled USD 10.7 million. Urban-Gro Inc. attributed the revenue decline mainly to continued negative market conditions in the Controlled Environment Agriculture sector, as well as decreases in construction design-build revenue contracts. The company ended the quarter with negative working capital of USD 36.2 million.

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