Hydrofarm Holdings Group (HYFM) AI Stock Analysis

• Market Cap: $8.63M
• Dividend Yield: N/A
• Average Volume (3M): 23.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: -26.84%
• EPS Growth: -0.16%
• Country: US
• Employees: 286
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -0.93
• Shares Outstanding: 4,667,004
• 10 Day Avg. Volume: 19,541
• 30 Day Avg. Volume: 23,670
• PEG Ratio: -0.21
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -8.29
• Enterprise Value/Market Cap: 110.91
• Enterprise Value/Revenue: 6.54
• Enterprise Value/Gross Profit: 64.19
• Enterprise Value/Ebitda: -43.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $2.00 ▲(0.50% Upside)

The score is held down mainly by weak financial performance (declining revenue, deeply negative margins, and negative operating/free cash flow). Technicals also remain pressured by a longer-term downtrend and negative MACD, while valuation provides limited support due to losses (negative P/E) and no stated dividend yield.

Positive Factors

Market leadership and product breadth

Hydrofarm's wide product portfolio across lighting, nutrients, media and controls supports durable competitive positioning. Serving both commercial growers and hobbyists diversifies demand, aids scale, and creates cross-sell opportunities that support revenue stability over the medium term.

Multi-channel distribution and recurring consumables

A mix of e-commerce, retail and wholesale channels plus repeat purchases of consumables creates recurring revenue that smooths demand volatility. Durable channel diversification reduces single-channel risk and supports lifetime customer value and predictable replenishment-driven sales.

Leadership change with strategic cost actions

The announced CEO return and manufacturing consolidation signal a structural response to margin pressure. Executing these cost and portfolio shifts can sustainably lower fixed costs and refocus on higher-margin proprietary products, improving operational leverage over months.

Negative Factors

Declining revenue trend

A persistent top-line decline reduces scale benefits and strains unit economics. Continued revenue contraction undermines negotiation leverage with suppliers, limits ability to invest in product development or sales initiatives, and raises the risk that fixed costs become harder to absorb.

Deeply negative profitability and low gross margins

Very negative net margins and low gross margins indicate structural profitability issues. Without margin expansion, the business cannot self-fund growth or meaningful investment, forcing difficult trade-offs between price, cost structure, and product mix to reach sustainable profitability.

Negative operating and free cash flow

Persistent negative OCF and sharply deteriorating FCF constrain reinvestment and increase reliance on external financing. Weak cash generation limits flexibility to execute strategic initiatives, heightens refinancing risk, and reduces the runway to realize planned restructuring benefits.

Hydrofarm Holdings Group Business Overview & Revenue Model

Company Description

Hydrofarm Holdings Group, Inc., together with its subsidiaries, engages in the manufacture and distribution of controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. The company offers agricultural lighting devices, indoor climate control equipment, hydroponics and nutrients, and plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment; and distributes CEA equipment and supplies, which include grow light systems; heating, ventilation, and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, chillers, and filters; nutrient and fertilizer delivery systems; and various growing media made from soil, rock wool or coconut fiber. It also provides hydroponics systems, such as hydro systems, hydro trays and components, meters and solutions, pumps and irrigation systems, water filtration systems, pots and containers, and tents and tarps; atmospheric control equipment comprising controllers, monitors and timers, ventilation/air conditioning equipment, air purification equipment, and CO2 equipment; and nutrients and additives. The company offers its products under the Phantom, PhotoBio, Active Aqua, Active Air, HEAVY 16, House & Garden, Mad Farmer, Roots Organics, Soul, Procision, Grotek, Gaia Green, Innovative Growers Equipment, Quantum, Xtrasun, Digilux, Agrobrite, SunBlaster, Jump Start, Active Eye, Autopilot, Phat, oxyClone, and GROW!T brands. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.

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 faces significant financial challenges with declining revenues, negative profitability, and cash flow constraints. While leverage is moderate, the company struggles with operational inefficiencies and cash management, impacting its overall financial health.

Income Statement

The income statement shows declining revenue with a negative growth rate of -9.1% TTM. Gross profit margin is low at 12.4% TTM, and net profit margin is significantly negative at -38.4% TTM, indicating profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.84 TTM, suggesting manageable leverage. However, return on equity is negative at -32.3% TTM, highlighting poor profitability. The equity ratio is not provided, but the overall financial stability appears weak.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, with a significant decline in free cash flow growth at -40.7% TTM. The operating cash flow to net income ratio is negative, indicating cash flow issues. Free cash flow to net income ratio is positive but reflects a challenging cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.44M	190.29M	226.58M	344.50M	479.42M	342.20M
Gross Profit	14.92M	32.13M	37.61M	29.34M	101.49M	63.63M
EBITDA	-22.18M	-19.92M	-17.51M	-239.37M	11.35M	10.22M
Net Income	-65.15M	-66.72M	-64.81M	-285.42M	13.42M	-7.27M
Balance Sheet
Total Assets	369.68M	426.10M	507.64M	573.56M	891.24M	275.80M
Cash, Cash Equivalents and Short-Term Investments	10.65M	26.11M	30.31M	21.29M	26.61M	75.18M
Total Debt	161.92M	169.53M	183.93M	186.07M	167.57M	20.06M
Total Liabilities	191.40M	202.38M	217.03M	223.68M	256.06M	64.88M
Stockholders Equity	178.28M	223.72M	290.61M	349.88M	635.18M	210.92M
Cash Flow
Free Cash Flow	-8.39M	-3.22M	2.83M	13.76M	-50.47M	-46.27M
Operating Cash Flow	-7.43M	-324.00K	7.04M	21.99M	-45.07M	-44.83M
Investing Cash Flow	-400.00K	1.67M	-4.17M	-8.49M	-468.18M	546.00K
Financing Cash Flow	-5.73M	-4.78M	6.07M	-20.20M	464.71M	88.14M

Hydrofarm Holdings Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.99 is above the 20-day moving average (MA) of 1.88, above the 50-day MA of 1.90, and below the 200-day MA of 3.06, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 50.59 is Neutral, 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
GENC	69 Neutral	$200.22M	12.84	7.68%	―	―	―
ARTW	66 Neutral	$12.10M	6.57	15.99%	―	-4.37%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
XOS	49 Neutral	$24.71M	-0.52	-84.37%	―	-16.89%	35.45%
HYFM	45 Neutral	$8.63M	-0.13	-30.93%	―	-26.84%	-0.16%
UGRO	38 Underperform	$4.22M	-0.17	―	―	―	―

Hydrofarm Holdings Group Corporate Events

Hydrofarm Holdings Announces CEO Transition Amid Challenges

On November 12, 2025, Hydrofarm Holdings Group announced a leadership transition with William Toler resuming the role of Chief Executive Officer effective December 1, 2025, following the resignation of B. John Lindeman. The company also reported its third-quarter financial results, highlighting a 33.3% decrease in net sales to $29.4 million compared to the previous year, alongside a decrease in gross profit margin. Despite these challenges, Hydrofarm is implementing cost-saving measures, including consolidating manufacturing facilities, to improve profitability and maintain its strategic focus on high-margin proprietary products.

The most recent analyst rating on (HYFM) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Hydrofarm Holdings Group stock, see the HYFM Stock Forecast page.