Hydrofarm reports Q EPS (28c), consensus (18c)

Reports Q2 revenue $63.1M, consensus $64.72M…Adjusted EBITDA(1) increased to $2.5M compared to $(6.8M).Bill Toler, Chairman and Chief Executive Officer of Hydrofarm, said, “In the second quarter, we delivered positive Adjusted EBITDA for the first time since Q1 of 2022, driven by strong gross margin expansion and significant cost reduction measures. Our Adjusted SG&A is now at its lowest quarterly total since Q2 of 2021, before we made all of our 5 acquisitions. Through the sound execution of our restructuring plan and related cost saving efforts, we have achieved significant margin improvement and are now in a much stronger position to navigate the current volume softness in our industry. In addition, our aggressive working capital management continued as we reduced our inventory levels and created meaningfully positive free cash flow of over $8 M in the quarter. We are pleased with our progress and we remain confident in the long-term fundamentals of our business.”