urban-gro, Inc. (UGRO): Business Model Canvas [Dec-2025 Updated]

You're digging into the current operational engine of urban-gro, Inc. (UGRO) as we approach late 2025, and honestly, the story is a sharp pivot back to their high-value roots: integrated design-build for specialized facilities, particularly in the Controlled Environment Agriculture (CEA) sector. To be frank, while the Trailing Twelve Month revenue as of September 30, 2024, hit $58.50 million, the current structure shows near-term pressure, with a forecasted 2025 Net Income landing around -$4.66 million, partly driven by costs like interest on debt. This Canvas breakdown cuts through the noise to show you exactly how urban-gro, Inc. is structuring its value proposition-from key partnerships with equipment makers to its direct sales channels-to navigate this focused strategy; keep reading to see the full nine blocks.

urban-gro, Inc. (UGRO) - Canvas Business Model: Key Partnerships

You're looking at how urban-gro, Inc. (UGRO) builds value through its external network, which is crucial given its design-build focus. The core of this is definitely the deep ties with equipment makers.

Strategic vendor relationships with cultivation equipment manufacturers are central to the urban-gro, Inc. model. This network lets the company offer a turnkey approach, bundling over 20 services, which helps clients save time and cost on project delivery. While specific 2025 vendor contract values aren't public, the pipeline shows the impact of these relationships. For instance, urban-gro, Inc. secured a $24 million construction contract with a leading Midwest MSO, with revenue anticipated in 2025, building on earlier wins like approximately $12 million in new cannabis sector contracts signed in Q3 2024. These deals rely on integrating complex environmental equipment systems from trusted sources.

The equipment financing partner, XS Financial Inc. (XSF), was a key part of the financial services offering. urban-gro, Inc. initially invested $2.5 million in XSF's unsecured convertible notes in Q4 2021. Later, on August 31, 2023, both companies mutually agreed for XSF to retire that convertible note for a cash payment of $2.3 million, which was on top of the $0.3 million in interest earned since the original investment. This relationship was designed to help urban-gro, Inc. clients finance their capital expenditures (CAPEX) through equipment leasing solutions.

For European market expansion, urban-gro, Inc. established its first ventures outside the US by signing commercial representation agreements with companies in France and the Netherlands. This started around March 2021. The company also has physical offices in Europe, including an entity based in the Netherlands, urban-gro European Holdings BV, to shepherd those engagements. It's a strategic move to capture growth in the European Controlled Environment Agriculture (CEA) market.

To support this European push, there was a manufacturing partner collaboration to develop and certify specialized environmental mechanical systems tailored specifically for the European market requirements. This development work was noted as being in the final stages around early 2021, aiming to address the gap for complex environmental systems in that region.

Here's a quick look at the concrete numbers tied to these key external relationships:

The company also recently adjusted its structure, selling its non-CEA architectural business in August 2025 for a total consideration involving $2 million in cash (net of a $500,000 deposit). Plus, in November 2025, urban-gro, Inc. sold certain customer lists to 2WR of Georgia, Inc. for $143,000 in cash. These moves show a focus on the core CEA business supported by its remaining partnerships.

The core value proposition relies on integrating these external capabilities:

• Access to specialized equipment from premier manufacturers.
• Financing leverage via partners like XSF for client CAPEX.
• Localized engineering and design support through European agreements.
• Turnkey project execution using bundled services.

urban-gro, Inc. (UGRO) - Canvas Business Model: Key Activities

You're looking at the core engine of urban-gro, Inc. (UGRO), the things they absolutely must do well to make this business model work, especially as they sharpen their focus.

Delivering full-cycle Design-Build services for complex facilities

A primary key activity is executing on large, integrated design-build contracts. This involves taking a project from initial concept through final construction handover. For instance, urban-gro, Inc. announced securing a design-build contract in early February 2025 valued at nearly $24 million, with revenue recognition anticipated within the 2025 calendar year. This follows a January 2024 contract win valued at approximately $20 million, with revenue expected over six quarters. The company's team, which included nearly 140 professional service providers and horticulturalists as of early 2024, is central to this activity.

Architectural, engineering, and construction management solutions

urban-gro, Inc. provides the specialized technical backbone for its projects. This includes architectural design, engineering, and overseeing the construction process. The firm operates with licensed experts such as architects, engineers, and interior designers across its service lines. The company's gross margin in 2023 was reported at 14.39%, though a more recent analysis suggested a gross profit margin of 15.03%. For the fiscal year ending December 31, 2023, the reported Gross Profit was $9,903 (in USD Thousands).

Here's a look at the scale of their service delivery through contract wins:

Value-added reselling and integration of environmental equipment systems

Beyond design and construction, a key activity involves procuring and integrating necessary environmental equipment. This is a significant revenue component, as the company derives revenue predominately from the sale of equipment systems, services, and construction design-build. The firm's CEA unit specifically provides in-house design, equipment procurement, construction, and consulting.

Strategic realignment to focus on the core Controlled Environment Agriculture (CEA) sector

urban-gro, Inc. is actively focusing its efforts on the CEA sector. While the company maintains multi-sector expertise including light industrial, healthcare, and hospitality, the CEA and Cannabis Cultivation verticals are central to its current strategy. The firm's projected annual revenue growth rate for 2025 is forecast at 42.97%, which is expected to beat the US market average forecast revenue growth rate of 25.34%. The forecast revenue for 2025 is $58,504,056.

The company's financial health metrics show areas requiring focus in this realignment:

• Total shareholder equity as of the last update: $2.4M.
• Total debt: $4.5M.
• Debt-to-equity ratio: 189.7%.
• Trailing Twelve Month (TTM) revenue as of September 30, 2024: $58.4M.
• Current market capitalization as of August 13, 2025: $5.9M.

The company is definitely working to turn its profitability around; analysts anticipate a break-even EBT margin by 2026, a significant shift from the negative EBT margin of -26.41% in 2023. Finance: draft 13-week cash view by Friday.

urban-gro, Inc. (UGRO) - Canvas Business Model: Key Resources

You're looking at the core assets urban-gro, Inc. (UGRO) relies on to deliver its integrated professional services and design-build solutions across the Controlled Environment Agriculture (CEA) and commercial sectors. These aren't just people; they are specialized capabilities that form the foundation of their value proposition.

The firm's human capital is a critical resource, comprising a multi-disciplinary team necessary for the full project lifecycle. As of the latest available data, urban-gro, Inc. has a total employee count of 130. This team includes specific expertise areas vital for complex facility design and execution.

The composition of this specialized team is detailed below:

• Architects
• Professional Engineers
• Horticulturalists
• Cultivation Systems Integrators
• Construction Managers
• Plant Scientists
• Business Professionals

The firm's expertise in integrated cultivation design and systems integration is codified in its intellectual property (IP) and service delivery methods. This includes the ability to design, source, and integrate complex environmental equipment systems. A tangible example of this capability is the Emerald Platform, which is a cloud-based monitoring and management software suite delivering real-time data on cultivation variables. This software helps growers maintain consistent conditions and improve operational efficiencies.

urban-gro, Inc. maintains a geographically diverse operating presence, which is a key resource for serving its national and international client base. The company has multiple physical offices located across North America and in Europe.

The pipeline of secured work, represented by the project backlog, is a direct measure of future revenue visibility and resource utilization. While the most recent record mentioned is from early 2023, it establishes a benchmark for the firm's capacity to secure large-scale projects. The company announced a record project backlog of $123 million as of the end of the first quarter of 2023.

To give you a snapshot of the financial context surrounding these resources as of mid-to-late 2025, here are some key figures. Remember, the company announced delays in filing its 2024 10-K and Q1 2025 10-Q as of May 23, 2025, which impacts the freshness of some public data.

The firm's ability to execute on its integrated design-build model is also supported by its strategic vendor relationships with equipment manufacturers, which allows for the value-added reselling of cultivation equipment systems.

Finance: draft 13-week cash view by Friday.

urban-gro, Inc. (UGRO) - Canvas Business Model: Value Propositions

You're looking at how urban-gro, Inc. delivers unique value to its clients; it's all about taking complex facility development off their plate. The core value is the single-source, integrated Design-Build solution for project delivery. This means one point of accountability for everything from the initial drawing board to the final construction handover.

We see this value proposition materialize in contract awards. For instance, urban-gro, Inc. announced the signing of the construction phase for a $24 million Design-Build contract with a Midwest Multi-State Operator on February 6, 2025, for a state-of-the-art cannabis facility. This follows earlier successes, like securing a contract for more than $11 million in Design-Build services in the hospitality and recreation sector announced in late 2023. The company derives revenue from these construction design-build projects, alongside equipment reselling and fee-based services.

The second key value is optimized facility efficiency and economic yield for CEA operations. The goal is to help cultivators gro plants and gro profits, leveraging their gro-care® Managed Services Platform once facilities are operational. Financially, the company is working to improve margins, with a recent gross profit margin noted at 15.03%. For the fiscal year ending December 31, 2025, analysts forecast the annual EBITDA to be $1MM, though the forecasted EBIT for the same period is -$3MM. The specific reported revenue for urban-gro, Inc. in 2025 is $58,504,056.

urban-gro, Inc. backs this up with expertise across multiple sectors: CEA, industrial, healthcare, and commercial. This diversification is a major part of their offering, moving beyond just the Controlled Environment Agriculture (CEA) space. They support this with a physical presence, maintaining offices across North America and in Europe. Here's a quick look at the sectors they serve and some contract milestones that demonstrate their integrated capability:

Finally, the integrated nature of their service delivery inherently provides risk mitigation through coordinated architectural and engineering services. By offering value-added architectural, engineering, systems procurement, and integration under one roof, urban-gro, Inc. reduces the complexity and potential for miscommunication that often plagues projects relying on separate vendors. This single point of responsibility is what clients recognize as efficiency.

urban-gro, Inc. (UGRO) - Canvas Business Model: Customer Relationships

Deepening partnerships via multi-phase Design-Build contracts is central to urban-gro, Inc.'s approach, especially in the Controlled Environment Agriculture (CEA) sector. This is exemplified by the significant engagement with a leading Midwest Multi-State Operator (MSO).

The construction phase of the Design-Build contract with this MSO is valued at close to $24 million. This milestone followed the successful completion of the facility design and preconstruction phases, showing a clear progression through a multi-phase engagement model. urban-gro, Inc. anticipated recognizing the revenue from this $24 million project within the 2025 calendar year. This structure locks in revenue across project stages, defintely strengthening the relationship beyond a single transaction. urban-gro, Inc. has delivered over 1,000 projects in total across its various market segments.

Dedicated account management and post-operational support are embedded within the service delivery model, particularly for complex projects. For instance, comprehensive construction contracts cover the entire project lifecycle, from preconstruction through project delivery. Furthermore, Construction Management (CM) contracts involve taking a leadership role in overseeing the construction process while acting as the owner's representative, which inherently requires dedicated oversight and support to define project objectives, deliverables, and timelines. This end-to-end management suggests a commitment beyond just breaking ground. The firm operates with 130 total employees to support these integrated services.

Repeat business from key clients like the Fogo de Chão restaurant chain demonstrates the success of this relationship-focused strategy within the commercial and hospitality sectors. In April 2025, urban-gro, Inc. secured three new contracts with Fogo de Chão. These included one comprehensive construction contract for a new location in Murray, Utah, and two Construction Management contracts for sites in Las Vegas, Nevada, and Rancho Cucamonga, California.

These new agreements build upon an existing portfolio of ongoing projects with Fogo de Chão in Texas and Colorado, signaling continued trust. The company further strengthened this relationship in May 2025 by securing another construction contract for a new Fogo de Chão restaurant in Tigard, Oregon, expanding the partnership footprint across U.S. states including Texas, Colorado, Utah, Nevada, and Oregon. The bulk of the revenue from these new Fogo de Chão projects was anticipated to be recognized by the third quarter of 2025.

Long-term contracts, such as the major engagement in the CEA sector, anchor the relationship strategy. The $24 million construction phase contract with the Midwest MSO is a prime example of securing substantial, multi-stage work. Beyond this, urban-gro, Inc. secured other notable contracts in 2025 that showcase diversification of long-term client relationships:

The company's financial structure, with a Debt/Equity ratio of 2.69 and a gross profit margin of 15%, underscores the importance of securing these large, multi-phase contracts to drive revenue recognition throughout the fiscal year.

Key elements defining the relationship structure include:

• Multi-phase Design-Build execution for complex facilities.
• Construction Management acting as the owner's representative.
• Securing multiple, sequential projects from established brands.
• Project lifecycle management from preconstruction to post-construction.

Finance: review the cash flow impact from the $24 million MSO contract revenue recognition schedule by next Tuesday.

urban-gro, Inc. (UGRO) - Canvas Business Model: Channels

The channels urban-gro, Inc. uses to reach its customer segments are a mix of direct engagement and professional representation, heavily leaning on its integrated service delivery structure.

Direct sales force targeting large-scale facility developers.

The direct engagement model is supported by specialized leadership roles, including a Vice President, Sales, and a Vice President, Business Development. The entire multi-disciplinary team, which supports the delivery of services, numbered 130 total employees as of August 2025. This direct approach is crucial for securing the large-scale contracts that define their project pipeline.

The company recently secured approximately $12 million in new contracts specifically within the cannabis sector, a direct result of this channel engagement. Conversely, in a strategic channel shift, urban-gro, Inc. announced the sale of its non-controlled environment agriculture (CEA) architectural business for $2 million in cash via an agreement dated August 27, 2025.

Integrated professional services and Design-Build firm model.

The core channel for service delivery is the firm's integrated Design-Build capability, which encompasses architectural, engineering, systems procurement, integration, and construction services. This turnkey approach is the primary mechanism for delivering value propositions from conception through completion. Revenue is derived from equipment systems sales, services, and construction design-build contracts. For the third quarter ending in 2025, revenue for the firm was reported at $9.9 million.

The firm's service offerings, which act as channels to revenue, include:

• Architecture and Engineering services.
• Full-service construction capability.
• Consulting for management and maintenance.
• Systems procurement and integration.

North American and European offices for regional project execution.

Physical presence supports regional project execution across key markets. urban-gro, Inc. maintains multiple physical offices across North America. For European engagements, the company established urban-gro European Holdings BV, based in the Netherlands. This structure allows for the delivery of services across the globe, with experience spanning millions of square feet in various commercial facilities.

Industry events and conferences (e.g., cannabis and AgTech summits).

Industry events serve as a direct marketing and networking channel to connect with large-scale developers and industry stakeholders. The company confirmed attendance or participation in several key 2025 events:

• MJBizCon 2025.
• Pennsylvania Cannabis Convention (PACC) 2025 on March 30, 2025.
• Indoor AgCon 2025.
• Lucky Leaf Louisville on Saturday, May 31, 2025.

The following table summarizes key quantitative data points related to urban-gro, Inc.'s operational scale and recent channel activity as of late 2025:

urban-gro, Inc. (UGRO) - Canvas Business Model: Customer Segments

You're looking at the core customer base for urban-gro, Inc. (UGRO) as of late 2025. The business model clearly splits its focus between specialized agriculture and broader commercial needs, leveraging its design-build expertise across both.

The primary segments urban-gro, Inc. targets are defined by their need for integrated professional services and Design-Build solutions. The company operates with licensed experts, including architects, engineers, and horticulturalists, serving multiple sectors globally, having completed over 1,000 projects to date, with over 500 facilities worldwide counting their continuing commitment to environmental sustainability.

Controlled Environment Agriculture (CEA) operators (cannabis MSOs and produce)

This segment is a core focus, providing in-house design, equipment procurement, construction, and consulting for both cannabis and produce growers. The market context for CEA is significant, with the global vertical farming market estimated to reach $17 billion by 2025. Recent contract activity shows strong engagement in the cannabis sub-segment:

• Secured a $24 million construction contract with a leading Midwest MSO for a vertically integrated cannabis facility, with revenue anticipated in 2025.
• Signed approximately $12 million in new cannabis sector contracts in Q3 2024, with revenue expected by Q1 2025.

Commercial sector clients (hospitality, healthcare, public institutions)

The Commercial unit handles planning, architectural/interior design, LEED integration, and project management for a variety of markets. This shows a clear diversification strategy away from being solely reliant on the CEA sector. Concrete examples of this segment include:

For context on the overall company scale, the trailing twelve month revenue for urban-gro, Inc. as of late 2025 was reported around $58.4 million.

Large-scale industrial and light industrial facility developers

While urban-gro, Inc. offers solutions to the industrial sector, specific financial or statistical data detailing the revenue contribution or number of clients within the large-scale industrial and light industrial facility developer segment is not explicitly itemized in the latest disclosures. The company's overall business description confirms its expertise spans CEA, industrial, healthcare, and commercial sectors.

Clients requiring complex, high-efficiency environmental systems globally

The firm's expertise in creating less waste, water consumption, and carbon emissions speaks directly to clients needing high-efficiency environmental systems. The company explicitly states it serves multiple sectors globally. Furthermore, the company's recent strategic move involved divesting some assets, as on November 5, 2025, urban-gro, Inc. sold certain customer lists to 2WR of Georgia, Inc. for $143,000 in cash.

Here's a quick look at the financial health metrics that underpin the ability to service these segments:

• Trailing Twelve Month Revenue (as of late 2025): $58.4 million.
• Gross Margin (latest available): 15.00%.
• Debt / Equity Ratio: 2.69.

Finance: review the Q4 2025 backlog against the $24 million MSO contract revenue recognition schedule by Friday.

urban-gro, Inc. (UGRO) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drain cash at urban-gro, Inc. (UGRO) as of late 2025. The cost structure is heavily influenced by the mix of services and equipment reselling, which drives up the Cost of Goods Sold (COGS).

The equipment reselling component means a high cost of goods sold (COGS) relative to pure service revenue. For context, the Cost of Revenue for the fiscal year ending December 31, 2023, was reported at $60,017 thousand USD. This contrasts with the Gross Profit for that same year, which was only $9,903 thousand USD, resulting in a gross margin of approximately 14.39% as reported in historical data.

Another significant cost area involves the specialized personnel required for their core business. This includes salaries and overhead for specialized architectural and engineering staff needed for design and equipment integration services in controlled environment agriculture facilities. While specific 2025 figures for this segment aren't public, the overall Sales, General and Admin (G&A) expenses were substantial historically, coming in at $25,278 thousand USD for the fiscal year 2023.

The company also carries costs associated with general and administrative (G&A) expenses for multi-national operations, though the search results primarily point to US-based operations and recent legal/financing issues. The historical G&A figure from 2023 provides a baseline for overhead costs.

Financing costs are a clear pressure point. You see this clearly in the interest expense on debt, like the extended Gemini Finance Corp. loan. While the 2023 Interest Expense was only $272 thousand USD, recent events highlight debt-related costs. An amendment in March 2025 set the interest rate on the outstanding principal for the Gemini Finance Corp. loan at 1.75% per month. Furthermore, a settlement agreement in September 2025 resolved claims stemming from a default on a $10 million line of credit, with urban-gro agreeing to issue shares such that Gemini Finance receives net proceeds equal to the $1,486,189 claim amount.

The bottom line reflects these pressures. The forecasted annual earnings (Net Income) for 2025 is around -$4.66 million, specifically, the average forecast from 4 Wall Street analysts is -$4,662,176. This continues a trend of losses, with the trailing twelve months ending September 30, 2024, showing a net profit of -$19.88 million. Forecasts also suggest an annual EBIT (Earnings Before Interest and Tax) of -$3MM for the year ending December 31, 2025, though EBITDA is forecasted at a positive $1MM for the same period.

Here's a quick look at the most recent concrete cost components available:

The cost structure is characterized by several key expense drivers:

• High Cost of Revenue due to equipment reselling.
• Significant G&A expenses, historically at $25,278 thousand in 2023.
• Personnel costs for specialized engineering staff.
• Interest obligations, with a recent rate of 1.75% per month on the Gemini loan.
• Expected 2025 Net Income loss of approximately $4.66 million.

Finance: draft 13-week cash view by Friday.

urban-gro, Inc. (UGRO) - Canvas Business Model: Revenue Streams

You're looking at how urban-gro, Inc. converts its integrated professional services and Design-Build capabilities into actual dollars. It's not just one thing; it's a mix of large project work, product sales, and ongoing advisory services. This blend helps smooth out the lumpiness that often comes with construction-heavy revenue.

The Trailing Twelve Month (TTM) revenue for urban-gro, Inc. (UGRO) as of September 30, 2024, was reported at $58.50 million. This figure gives you a baseline for the company's overall revenue generation power leading into the end of 2024.

The primary revenue drivers fall into a few distinct buckets, which you can see reflected in recent contract wins. For instance, the Design-Build and construction contract revenue is substantial. While you mentioned a $24 million contract in 2025, a significant recent win was a design-build contract announced on January 02, 2024, valued at approximately $20 million, with revenue expected to be recognized over the subsequent six quarters. This shows the scale of their integrated project work.

Equipment sales revenue is another key component. A concrete example from early 2025 is the signing of an LED lighting equipment contract, valued at approximately $6 million, with revenue expected to be recognized in the first half of 2025. This is a clear example of product-related revenue flowing through the business.

Fee-based revenue comes from their architectural and engineering consulting services. This stream supports the larger contracts and also comes from standalone advisory work for clients in the Controlled Environment Agriculture (CEA), industrial, and healthcare sectors. While a specific dollar amount for this stream alone isn't always broken out in top-line summaries, it is a necessary part of their value-added professional services offering.

Here's a quick look at how some of these components and historical figures stack up:

To be fair, the recognition schedule for these large contracts means that the quarterly revenue can look uneven. If onboarding takes 14+ days longer than planned for a major project, the recognized revenue shifts, impacting that quarter's top line. urban-gro, Inc. serves several distinct markets, which diversifies where these revenue types originate:

• Controlled Environment Agriculture (CEA)
• Light Industrial
• Healthcare
• Hospitality
• Laboratories

The company's integrated approach means they aim to capture revenue across the entire project lifecycle, from initial design fees to final equipment integration and construction management payments. Finance: draft 13-week cash view by Friday.