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Hydrofarm Holdings Group
(NASDAQ:HYFM)
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Rating:41Neutral
Price Target:
$0.80
▼(-15.00% Downside)
Action:Reiterated
Date:08/29/26
HYFM scores low primarily due to very weak financial performance (shrinking revenue, severe losses, negative equity, and continued negative cash flow). Technical indicators also reflect a bearish trend with the share price below major moving averages. Valuation provides limited support because losses drive a negative P/E and there is no dividend, while corporate events are mixed—asset-sale deleveraging is constructive but Nasdaq compliance risks remain a significant overhang.
Positive Factors
Portfolio simplification and debt reduction
Selling Aurora Peat simplifies the portfolio, removes peat-harvesting capital spending and directs $16 million of consideration toward the term loan. Lower complexity and debt could improve financial flexibility over the next several quarters.
Negative Factors
Revenue contraction and severe unprofitability
TTM revenue contraction, very low gross margin and substantial net losses indicate demand, scale and earnings-quality pressure. Persistent losses weaken reinvestment capacity and make recovery dependent on sustained operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio simplification and debt reduction
Selling Aurora Peat simplifies the portfolio, removes peat-harvesting capital spending and directs $16 million of consideration toward the term loan. Lower complexity and debt could improve financial flexibility over the next several quarters.
Read all positive factors
Hydrofarm Holdings Group (HYFM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.92M
Dividend YieldN/A
Average Volume (3M)5.43M
Price to Earnings (P/E)―
Beta (1Y)3.28
Revenue Growth-34.07%
EPS Growth-352.84%
CountryUS
Employees251
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)-60.70
Shares Outstanding4,819,323
10 Day Avg. Volume180,738
30 Day Avg. Volume5,429,906
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.11
Price to Sales (P/S)0.05
P/FCF Ratio-0.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-4.62
Revenue Forecast (FY)$206.44M
Hydrofarm Holdings Group Business Overview & Revenue Model
Company Description
Hydrofarm Holdings Group, Inc. is a leading manufacturer and distributor of specialized equipment and supplies for controlled environment agriculture (CEA) across the United States and Canada. The company empowers cultivators to grow a wide array ...
How the Company Makes Money
Hydrofarm primarily makes money by selling cultivation-related equipment and consumable supplies used in controlled-environment growing. Its revenue model is product sales (rather than recurring subscriptions), generated through: (1) equipment and...
Hydrofarm Holdings Group Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in SG&A savings, restructuring plans, and international sales growth. However, these were offset by significant declines in net sales and gross profit margins, as well as challenges in the durable products segment and tariff impacts.Positive Updates
SG&A Savings and Positive Free Cash Flow
Delivered the 12th consecutive quarter of year-over-year adjusted SG&A savings with a nearly 16% reduction in expenses compared to 2024, resulting in positive free cash flow for the quarter.
Negative Updates
Significant Decline in Net Sales
Net sales for the second quarter were $39.2 million, down 28.4% year-over-year, driven by a 27.9% decline in volume mix and a 0.4% decline in pricing.
Read all updates
Q2-2025 Updates
Positive
Negative
SG&A Savings and Positive Free Cash Flow
Delivered the 12th consecutive quarter of year-over-year adjusted SG&A savings with a nearly 16% reduction in expenses compared to 2024, resulting in positive free cash flow for the quarter.
Read all positive updates
Company Guidance
During the Hydrofarm Holdings Group's Second Quarter 2025 Earnings Conference Call, several key metrics were highlighted to provide guidance on the company's performance and strategic initiatives. The company achieved a 16% reduction in adjusted SG&A expenses, marking the 12th consecutive quarter of year-over-year savings in this area. Despite industry headwinds, including a 28.4% year-over-year decline in net sales to $39.2 million and a 27.9% decrease in volume mix, the company managed to deliver positive free cash flow of $1.4 million for the quarter. Adjusted gross profit stood at $7.5 million, or 19.2% of net sales, although negatively impacted by restructuring charges. Hydrofarm initiated a restructuring plan to optimize its product portfolio, targeting annual cost savings exceeding $3 million, primarily through reducing inventory and SKUs. The company remains focused on improving its proprietary brand mix, which accounted for 55% of sales in the first quarter, despite a softer mix in the second quarter due to challenging demand in the durables category. The company also noted a $300,000 impact from tariffs and is actively managing its sourcing strategies to mitigate future effects. With cash on hand at $11 million and total liquidity of $20 million as of June 30, 2025, Hydrofarm is well-positioned to navigate the current market challenges while remaining optimistic about future industry demand improvements.Hydrofarm Holdings Group Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 106.21M | 134.25M | 190.29M | 226.58M | 344.50M | 479.42M |
| Gross Profit | 4.41M | 2.18M | 32.13M | 37.61M | 29.34M | 101.49M |
| EBITDA | -255.62M | -253.96M | -19.92M | -17.51M | -239.37M | 11.35M |
| Net Income | -283.79M | -289.79M | -66.72M | -64.81M | -285.42M | 13.42M |
Balance Sheet | ||||||
| Total Assets | 101.58M | 123.80M | 426.10M | 507.64M | 573.56M | 891.24M |
| Cash, Cash Equivalents and Short-Term Investments | 6.15M | 6.31M | 26.11M | 30.31M | 21.29M | 26.61M |
| Total Debt | 158.15M | 160.08M | 169.53M | 183.93M | 186.07M | 167.57M |
| Total Liabilities | 190.60M | 187.10M | 202.38M | 217.03M | 223.68M | 256.06M |
| Stockholders Equity | -89.02M | -63.30M | 223.72M | 290.61M | 349.88M | 635.18M |
Cash Flow | ||||||
| Free Cash Flow | -4.27M | -15.08M | -3.22M | 2.83M | 13.76M | -50.47M |
| Operating Cash Flow | -4.72M | -14.06M | -324.00K | 7.04M | 21.99M | -45.07M |
| Investing Cash Flow | 1.09M | -841.00K | 1.67M | -4.17M | -8.49M | -468.18M |
| Financing Cash Flow | -578.00K | -5.44M | -4.78M | 6.07M | -20.20M | 464.71M |
Hydrofarm Holdings Group Technical Analysis
Negative
0.94
Price Trends
1.01
Negative
1.00
Negative
1.24
Negative
Market Momentum
-0.06
Positive
45.45
Neutral
69.46
Neutral
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 0.94 is below the 20-day moving average (MA) of 1.17, below the 50-day MA of 1.01, and below the 200-day MA of 1.24, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 69.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HYFM.
Hydrofarm Holdings Group Risk Analysis
Hydrofarm Holdings Group disclosed 72 risk factors in its most recent earnings report. Hydrofarm Holdings Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hydrofarm Holdings Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $265.74M | 15.88 | 7.81% | ― | -6.39% | -1.99% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $42.23M | -1.88 | -80.31% | ― | -26.88% | 72.36% | |
45 Neutral | $15.76M | -377.27 | -0.16% | ― | 10.50% | -101.58% | |
41 Neutral | $4.92M | -0.02 | 2175.86% | ― | -34.07% | -352.84% |
* Industrials Sector Average
HYFM
Hydrofarm Holdings Group
0.95
-2.36
-71.18%
ARTW
Art's-Way Manufacturing Co
3.32
0.11
3.43%
GENC
Gencor
18.42
2.28
14.13%
XOS
Xos
3.05
0.71
30.34%
ZDAI
DirectBooking Technology
1.66
-5.31
-76.20%
Hydrofarm Holdings Group Corporate Events
Business Operations and StrategyM&A Transactions
Hydrofarm Holdings Streamlines Portfolio with Aurora Peat Sale
Positive
Aug 6, 2026
On August 3, 2026, Hydrofarm Holdings Group announced it had completed the sale of Aurora Peat Products ULC to private buyer Raven Holdings for total consideration of $16 million, including a $5 million promissory note, with proceeds earmarked to ...
Delistings and Listing ChangesRegulatory Filings and Compliance
Hydrofarm Faces Nasdaq Listing Compliance and Bid-Price Risks
Negative
Jul 9, 2026
On April 1, 2026, Hydrofarm Holdings Group disclosed that Nasdaq had determined the company was not in compliance with the $2.5 million minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market, and although...
Delistings and Listing ChangesRegulatory Filings and Compliance
Hydrofarm Granted Nasdaq Extension to Regain Listing Compliance
Negative
Jun 22, 2026
On June 16, 2026, Hydrofarm Holdings Group, Inc. disclosed that Nasdaq granted it an extension to regain compliance with Listing Rule 5550(b), which requires minimum stockholders’ equity of $2.5 million, a $35 million market value of listed ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.