urban-gro, Inc. reported a significant decline in financial performance for the fiscal year ended December 31, 2025, with total revenue of $17.4 million, down approximately 44% from $31.2 million in 2024. This decrease was primarily attributed to a $10.1 million drop in construction design-build revenue and a $3.5 million reduction in equipment systems revenue, reflecting the company's strategic decision to wind down its legacy operations in the Controlled Environment Agriculture sector. The company recorded a net loss from continuing operations of $21.6 million, compared to a loss of $29.4 million in the previous year, indicating some improvement in operational efficiency despite the overall revenue decline.
In terms of operational changes, urban-gro completed a merger with Flash Sports and Media, Inc. on February 17, 2026, which is expected to transform the company into a diversified sports, media, and experiential marketing platform. This merger follows a period of significant restructuring, including the sale of assets and workforce reductions, as the company exited its core business sectors due to challenging market conditions. The merger aims to leverage Flash's capabilities in live events and media production, potentially enhancing revenue streams and market presence.
The company reported a negative working capital of approximately $44.8 million as of December 31, 2025, an increase from $26.5 million the previous year. This deterioration was driven by a decrease in accounts receivable and increases in accounts payable and customer deposits. As of the end of 2025, urban-gro had cash reserves of about $10,000, raising concerns about its liquidity and ability to meet future obligations. The company has indicated that its ability to continue as a going concern is contingent upon generating sufficient revenue and securing additional financing.
Geographically, urban-gro's revenue was heavily concentrated, with approximately 82% generated from customers in Sri Lanka and the remaining 18% from Zimbabwe. The company has expressed intentions to diversify its customer base and expand into new markets, including T20 cricket leagues in Malaysia and Zimbabwe, as part of its growth strategy. However, the success of these initiatives remains uncertain, and the company faces significant competition in the sports media and entertainment industry.
Looking ahead, urban-gro's management is optimistic that the merger with Flash Sports and Media will provide improved liquidity and a pathway to sustainable operations. The company plans to pursue additional capital through equity or debt financing to support integration and growth initiatives. However, there can be no assurance that the company will be able to raise the necessary capital or achieve the anticipated benefits from the merger, given the inherent risks associated with its business model and market conditions.
About urban-gro, Inc.
Urban-Gro, Inc. provides integrated design-build services, engineering, and equipment solutions for controlled environment agriculture (CEA) and commercial sectors. Its core offerings include facility design, environmental systems integration, and value-added equipment reselling. Serving clients in cannabis, produce, healthcare, and food industries, the company emphasizes sustainability, innovation, and single-point accountability to optimize operational efficiency and regulatory compliance in indoor cultivation and retail facilities.
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