Hydrofarm Reports Q1 2025 Financial Results Amid Challenges

Hydrofarm Holdings Group ( (HYFM) ) just unveiled an announcement.

On May 13, 2025, Hydrofarm Holdings Group announced its first-quarter financial results, highlighting a decrease in net sales to $40.5 million from $54.2 million in the previous year, primarily due to an oversupply in the cannabis industry. Despite the decline in sales and gross profit margins, the company achieved significant cost savings through restructuring and strategic focus on higher-margin proprietary brands, which increased to 55% of sales. The company also reported a net loss of $14.4 million, up from $12.6 million, and withdrew its full-year 2025 outlook due to macroeconomic uncertainties and industry challenges. Hydrofarm remains committed to improving profit margins and strengthening its financial position through continued cost-saving measures and strategic initiatives.

The most recent analyst rating on (HYFM) stock is a Hold with a $0.75 price target. To see the full list of analyst forecasts on Hydrofarm Holdings Group stock, see the HYFM Stock Forecast page.

Spark’s Take on HYFM Stock

According to Spark, TipRanks’ AI Analyst, HYFM is a Neutral.

Hydrofarm Holdings Group’s stock is underperforming due to financial instability, characterized by declining revenues and profitability, alongside negative cash flows. While there is short-term positive momentum, technical indicators suggest caution. The company’s strategic focus on proprietary brands and cost savings could improve future performance, but current financial health and valuation concerns weigh heavily on the stock’s attractiveness.

To see Spark’s full report on HYFM stock, click here.

More about Hydrofarm Holdings Group

Hydrofarm Holdings Group, Inc. is a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture. The company offers products such as grow lights, climate control solutions, grow media, and nutrients, along with a broad portfolio of innovative proprietary branded products. For over 40 years, Hydrofarm has aimed to empower growers, farmers, and cultivators with products that enhance quality, efficiency, consistency, and speed in their growing projects.

Average Trading Volume: 314,487

Technical Sentiment Signal: Sell

Current Market Cap: $17.72M

See more data about HYFM stock on TipRanks’ Stock Analysis page.