Hydrofarm Holdings Group (HYFM) AI Stock Analysis

• Market Cap: $12.44M
• Dividend Yield: N/A
• Average Volume (3M): 31.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -23.40%
• EPS Growth: 13.78%
• Country: US
• Employees: 286
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -0.54
• Shares Outstanding: 4,659,020
• 10 Day Avg. Volume: 33,235
• 30 Day Avg. Volume: 31,085
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 77.27
• Enterprise Value/Revenue: 5.97
• Enterprise Value/Gross Profit: 48.00
• Enterprise Value/Ebitda: -29.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: $2.50 ▼(-9.75% Downside)

Hydrofarm Holdings Group's overall stock score is primarily impacted by its weak financial performance and technical indicators. The company is experiencing declining revenues and profitability, with technical analysis indicating bearish momentum. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield. While the earnings call highlighted some positive restructuring efforts, the overall sentiment remains cautious due to significant sales declines and profitability challenges.

Hydrofarm Holdings Group Business Overview & Revenue Model

Company Description

Hydrofarm Holdings Group (HYFM) is a leading manufacturer and distributor of hydroponic equipment and supplies, primarily focused on the cultivation of plants in controlled environments. The company operates within the agricultural technology sector, catering to both commercial growers and home gardening enthusiasts. Hydrofarm offers a wide range of products, including lighting systems, nutrients, growing media, and environmental control equipment, designed to enhance plant growth and optimize yields.

How the Company Makes Money

Hydrofarm generates revenue through the sale of its extensive product portfolio, which includes hydroponic systems, grow lights, nutrients, and related accessories. The company operates a multi-channel distribution model, selling directly to consumers through its e-commerce platform, as well as through a network of retailers and wholesalers. Key revenue streams include wholesale distribution to commercial growers, online sales to hobbyists, and partnerships with agricultural suppliers. Additionally, Hydrofarm benefits from recurring revenue through sales of consumable products, such as nutrients and growing media, as customers frequently repurchase these items for ongoing cultivation needs.

Hydrofarm Holdings Group Financial Statement Overview

Summary

Hydrofarm Holdings Group is facing financial difficulties with declining revenues and profitability. The income statement shows significant challenges with negative growth and margins. The balance sheet is stable but indicates rising leverage, while cash flow analysis reveals cash management issues despite some improvement in free cash flow.

Income Statement

Hydrofarm Holdings Group's income statement reflects significant challenges. The company has experienced declining revenue with a negative growth rate of -8.8% TTM, and profitability metrics are concerning with a negative net profit margin of -38.4% and EBIT margin of -29.4% TTM. The gross profit margin has also decreased over time. These figures indicate operational inefficiencies and a need for cost management improvements.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.84 TTM, which is relatively stable but has increased over the years, indicating rising leverage. The return on equity is negative, reflecting ongoing losses. However, the equity ratio remains healthy, suggesting that the company still maintains a solid equity base relative to its assets.

Cash Flow

Cash flow analysis reveals some improvement in free cash flow growth at 19.7% TTM, but operating cash flow remains negative, indicating cash management issues. The free cash flow to net income ratio is relatively high, suggesting that despite losses, the company is managing to generate some cash flow relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	161.10M	190.29M	226.58M	344.50M	479.42M	342.20M
Gross Profit	20.03M	32.13M	23.92M	29.34M	101.49M	63.63M
EBITDA	-32.18M	-19.92M	-17.51M	-229.62M	17.01M	13.69M
Net Income	-61.91M	-66.72M	-64.81M	-285.42M	13.42M	-7.27M
Balance Sheet
Total Assets	389.88M	426.10M	507.64M	573.56M	891.24M	275.80M
Cash, Cash Equivalents and Short-Term Investments	10.99M	26.11M	30.31M	21.29M	26.61M	75.18M
Total Debt	164.04M	169.53M	183.93M	186.07M	167.57M	20.06M
Total Liabilities	194.87M	202.38M	217.03M	223.68M	256.06M	64.88M
Stockholders Equity	195.01M	223.72M	290.61M	349.88M	635.18M	210.92M
Cash Flow
Free Cash Flow	-10.32M	-3.22M	2.83M	13.76M	-50.47M	-46.33M
Operating Cash Flow	-11.86M	-324.00K	7.04M	21.99M	-45.07M	-44.83M
Investing Cash Flow	-1.11M	1.67M	-4.17M	-8.49M	-468.18M	546.00K
Financing Cash Flow	-6.32M	-4.78M	6.07M	-20.20M	464.71M	88.14M

Hydrofarm Holdings Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HYFM, the sentiment is Negative. The current price of 2.77 is below the 20-day moving average (MA) of 2.98, below the 50-day MA of 3.39, and below the 200-day MA of 3.85, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 18.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HYFM.

Hydrofarm Holdings Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARTW	―	$12.87M	7.02	15.99%	―	-4.37%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
XOS	―	$24.16M	―	-121.68%	―	-19.18%	24.68%
HYFM	―	$12.44M	―	-27.51%	―	-23.40%	13.78%
UGRO	―	$5.08M	―	―	―	―	―

Hydrofarm Holdings Group Corporate Events

Hydrofarm Holdings Appoints Chris Yetter to Board

On September 29, 2025, Susan P. Peters, a non-employee director of Hydrofarm Holdings Group, announced her retirement effective October 1, 2025, to spend more time with her family. Her resignation was not due to any disagreements with the company. In response, the Board appointed Chris Yetter, effective the same date, to fill the vacancy. Yetter, the Founder and Chief Investment Officer of Dumont Global, brings significant investment experience, particularly in the health and wellness sector, and will serve on the Compensation Committee. This appointment is expected to strengthen Hydrofarm’s Board and management team.

The most recent analyst rating on (HYFM) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Hydrofarm Holdings Group stock, see the HYFM Stock Forecast page.

Hydrofarm Holdings: Mixed Sentiment in Earnings Call

Hydrofarm Holdings Group Inc’s recent earnings call painted a mixed picture of the company’s financial health and strategic direction. While there were commendable achievements in SG&A savings and international sales growth, these were overshadowed by significant declines in net sales and gross profit margins. The company also faced challenges in the durable products segment and tariff impacts, adding to the complexity of its current financial landscape.

Hydrofarm Holdings Reports Q2 2025 Financial Results

Hydrofarm Holdings Group Inc. is a prominent manufacturer and distributor of hydroponics equipment and supplies, specializing in controlled environment agriculture with a focus on proprietary branded products.

Hydrofarm Holdings Reports Q2 2025 Financial Results

On August 12, 2025, Hydrofarm Holdings Group announced its financial results for the second quarter ending June 30, 2025, revealing a significant decrease in net sales and gross profit compared to the previous year, primarily due to industry oversupply and a decline in proprietary brand sales mix. Despite these challenges, the company reported positive free cash flow and initiated a restructuring plan to optimize its product portfolio and operational footprint, aiming for over $3 million in annual cost savings. The company remains focused on strategic priorities to drive high-quality revenue streams, improve profitability, and strengthen its financial position.

The most recent analyst rating on (HYFM) stock is a Hold with a $0.65 price target. To see the full list of analyst forecasts on Hydrofarm Holdings Group stock, see the HYFM Stock Forecast page.