Top Ancillary Cannabis Stocks to Fuel Your April 2025 Portfolio
As the cannabis market expands across the United States, ancillary companies are stepping into the spotlight. These companies provide essential services and products to cannabis growers and retailers without touching the plant itself. Therefore, they can offer exposure to the sector without the same regulatory risks. Today, we explore three top ancillary cannabis stocks to watch in March 2025.
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3 Top Ancillary Cannabis Stocks to Watch in March 2025
- GrowGeneration Corp. (NASDAQ: GRWG)
- Hydrofarm Holdings Group Inc. (NASDAQ: HYFM)
- Scotts Miracle-Gro Company (NYSE: SMG)
GrowGeneration Corp. (NASDAQ: GRWG)
GrowGeneration Corp. stands as the largest hydroponic and organic garden retailer in the United States. The company currently operates more than 30 retail and distribution centers across multiple states. These stores are strategically located in high-growth cannabis regions such as California, Colorado, and Michigan. GrowGeneration offers a full range of products, including organic nutrients, lighting, and hydroponic supplies. As cannabis cultivation grows nationwide, so too does the demand for the specialized products that GrowGeneration provides.
Despite a challenging environment in 2024, GrowGeneration has taken strong steps to streamline operations. For the full year, the company projects net revenues between $170 million and $180 million. Management expects adjusted EBITDA to range from a slight loss to a modest profit. Furthermore, GrowGeneration anticipates gross profit margins improving to between 29% and 31%. This improvement is the result of a renewed focus on higher-margin product lines and operational efficiencies. These financial targets position GrowGeneration for a possible rebound as the cannabis industry strengthens.
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Hydrofarm Holdings Group Inc. (NASDAQ: HYFM)
Hydrofarm Holdings Group Inc. is a major distributor and manufacturer of hydroponic equipment and indoor agriculture supplies. Unlike plant-touching cannabis companies, Hydrofarm supports cultivators with lights, grow media, ventilation, and nutrients. It maintains a strong market presence across cultivation-heavy states like California, Oregon, and Washington. Hydrofarm has become a trusted partner for licensed growers aiming to optimize their yields and streamline operations. As cannabis cultivation scales, Hydrofarm’s market opportunity continues to grow.
In 2024, Hydrofarm posted net sales of $190.3 million, slightly down from the previous year. However, management achieved stronger adjusted gross margins through an increased focus on proprietary branded products. Additionally, the company aggressively reduced its manufacturing footprint by nearly 60% compared to 2023 levels. These cost-saving initiatives have been critical in maintaining financial flexibility. Hydrofarm remains focused on returning to profitability while leveraging its brand strength in the indoor cultivation market.
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Scotts Miracle-Gro Company (NYSE: SMG)
The Scotts Miracle-Gro Company is best known for its consumer lawn and garden products such as Miracle-Gro and Ortho. However, through its subsidiary Hawthorne Gardening Company, Scotts has also played a significant role in the cannabis industry. Hawthorne supplies lighting, nutrients, and environmental controls to licensed cannabis cultivators nationwide. Although it does not operate dispensaries, Scotts’ reach into the indoor growing sector gives it a significant footprint in cannabis. Recently, the company has shifted its cannabis strategy to better align with its core consumer businesses.
Financially, Scotts continues to post solid results despite industry headwinds. The company reported approximately $3.6 billion in total sales for 2024. Management actively focuses on profitability by streamlining operations and optimizing its business units. Recently, Scotts separated its cannabis assets into independent strategic partnerships, allowing for better focus on lawn and garden opportunities. Despite the cannabis sector’s challenges, Scotts remains an ancillary player with a diversified, resilient business model.
April’s Top Ancillary Cannabis Stocks: Essential Picks for the Emerging Market
Ancillary cannabis companies provide investors with a unique way to benefit from the industry’s growth without the same legal risks. GrowGeneration, Hydrofarm, and Scotts Miracle-Gro each bring something different to the table. Whether it’s hydroponic supplies, cultivation technology, or strategic diversification, these stocks are worth watching closely as we move through 2025.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
