Urban-Gro, Inc. (UGRO) Lands $24M Cannabis Facility Contract Amid Growth Surge

We recently compiled a list of the 12 Cheap Pot Stocks to Buy According to Hedge Funds. Urban-Gro, Inc. stands ninth on our list.

Urban-Gro, Inc. (NASDAQ:UGRO) is a design-build and professional services firm focused on Controlled Environment Agriculture (CEA), cannabis cultivation technologies, and commercial construction. It offers architectural engineering, equipment innovation, and project management services to optimize facility efficiency in cannabis and broader commercial sectors.

As of mid-2025, Urban-Gro, Inc. (NASDAQ:UGRO) has secured several major contracts, signaling strong project momentum. Notable deals include a $24 million construction contract with a Midwest-based Multi-State Operator (MSO) for a vertically integrated cannabis facility and a $6 million LED lighting equipment contract with a major North American cannabis operator, both expected to generate revenue in 2025. The firm also expanded its footprint beyond cannabis, securing multiple repeat contracts with Fogo de Chão for new restaurant construction across several U.S. states, a $4 million healthcare design project for a southeastern U.S. hospital, and a $1.2 million architectural agreement with the Muscogee County School District in Georgia.

Despite facing regulatory challenges related to delayed financial filings and restated earnings due to historical tax accounting errors, the company has been granted time until October 2025 to regain full Nasdaq compliance. In line with strengthening its financial position, the business exited its investment in XS Financial Inc. in May 2025, reinforcing a shift toward core operations and capital efficiency.

Urban-Gro, Inc. (NASDAQ:UGRO)’s current trajectory reflects strategic diversification, a focus on high-value cannabis and commercial contracts, and a commitment to innovation, particularly in CEA and sustainable facility design.

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