Hydrofarm Holdings Group AI Stock Analysis
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Hydrofarm Holdings Group (HYFM) AI Stock Analysis
Hydrofarm Holdings Group
(NASDAQ:HYFM)
The score is constrained primarily by severe financial weakness, negative valuation indicators, and poor technical trends. Debt elimination and restored Nasdaq compliance provide meaningful support, but dilution risk and ongoing listing monitoring limit the benefit.
Hydrofarm Holdings Group (HYFM) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $3.61M
- Dividend Yield
- ―
- Average Volume (3M)
- 340.49K
- Price to Earnings (P/E)
- -0.0
- Beta (1Y)
- 3.76
- Revenue Growth
- -34.07%
- EPS Growth
- -352.84%
- Country
- US
- Employees
- 251
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Agricultural - Machinery
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 of...
Hydrofarm Holdings Group Earnings Call Summary
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.
Q2-2025 Updates
Positive Updates
Negative 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
Financial performance is severely weak: revenue has declined, losses remain substantial, shareholders’ equity was negative before the recent restructuring, and cash flow remains negative. Cost-cutting and moderating cash burn provide limited offset.
Income Statement
14Very NegativeBalance Sheet
9Very NegativeCash Flow
21Negative| 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 | -258.43M | -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 | -5.30M | -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
Price Trends
Market Momentum
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 0.71 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.86, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.91 is Neutral, neither overbought nor oversold. The STOCH value of 55.74 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.
Latest Risks Added
3 New RisksHydrofarm Holdings Group Peers Comparison
Overall Rating
GENC82Outperform
ARTW58Neutral
XOS48Neutral- HYFM42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GENC | 82Outperform | $258.27M | 17.37 | 6.82% | ― | -6.39% | -1.99% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| ARTW | 58Neutral | $14.93M | -31.35 | -3.06% | ― | 4.55% | -122.70% |
| XOS | 48Neutral | $32.56M | -0.72 | -80.31% | ― | -48.84% | 45.30% |
| HYFM | 42Neutral | $10.04M | -0.01 | 2175.86% | ― | -34.07% | -352.84% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HYFM | Hydrofarm Holdings Group Inc | 0.71 | -0.97 | -57.74% | |
| ARTW | Art's-way Manufacturing | 2.78 | 0.61 | 27.97% | |
| GENC | Gencor Industries, Inc. | 17.54 | 4.40 | 33.49% | |
| XOS | Xos, Inc. | 1.71 | -0.61 | -26.29% | |
| ZDAI | Directbooking Technology Co., Ltd. | 1.50 | -4.66 | -75.65% |
Hydrofarm Holdings Group Corporate Events
Hydrofarm Regains Nasdaq Compliance After Equity Restoration
PositiveHydrofarm Holdings Group is an independent manufacturer and distributor serving controlled-environment agriculture with plant nutrition, growing media, horticultural lighting and climate-control products from proprietary and partner brands. It also p...
Hydrofarm restructures debt and raises capital to regain Nasdaq
PositiveOn October 27, 2026, Hydrofarm completed a combined registered direct offering and private placement, issuing common stock, pre-funded warrants and common warrants that generated gross proceeds of $8.3 million for general corporate purposes. Concurre...
Hydrofarm launches equity financing and debt restructuring plan
NegativeOn October 27, 2026, Hydrofarm announced definitive agreements for a registered direct offering and concurrent private placement of common stock, pre-funded warrants and common stock warrants, expected to raise about $8.3 million in gross proceeds. M...
Hydrofarm Holdings Updates Investors with New Presentation
NeutralOn October 5, 2026, Hydrofarm Holdings Group, Inc. entered into a mutual release agreement to fully settle all claims related to a prior engagement, agreeing subject to milestones to issue 300,000 shares of a newly designated non-voting, convertible...
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.
Date of analysis: Nov 12, 2026