Hydrofarm Holdings Group (HYFM) AI Stock Analysis

• Market Cap: $13.42M
• Dividend Yield: N/A
• Average Volume (3M): 20.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• 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: 17,522
• 30 Day Avg. Volume: 20,620
• 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: 71.64
• Enterprise Value/Revenue: 5.97
• Enterprise Value/Gross Profit: 48.00
• Enterprise Value/Ebitda: -29.87
• 1Y Price Target: $3.50
• Price Target Upside: 21.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $3.50 ▲(21.53% Upside)

Hydrofarm Holdings Group's overall stock score reflects significant financial challenges, with declining revenues and profitability being the most impactful factors. Technical analysis indicates bearish momentum, and valuation metrics are poor. While the earnings call highlighted some positive restructuring efforts, the overall sentiment remains cautious due to substantial declines in sales and profitability.

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 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: 2.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 2.88 is below the 20-day moving average (MA) of 3.35, below the 50-day MA of 4.00, and below the 200-day MA of 4.23, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 29.38 is Positive, neither overbought nor oversold. The STOCH value of 24.06 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
ARTW	66 Neutral	$12.77M	8.22	2.54%	―	-14.22%	―
HYFM	48 Neutral	$13.42M	―	-27.51%	―	-23.40%	13.78%
UGRO	38 Underperform	$5.77M	-0.28	―	―	-20.80%	3.49%
BNC	37 Underperform	$334.32M	-0.80	―	―	9.69%	-101.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hydrofarm Holdings Group Corporate Events

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.

Hydrofarm Holdings Appoints New Board Member, Amends Charter

On June 9, 2025, Hydrofarm Holdings Group, Inc. appointed B. John Lindeman to its board of directors, filling the vacancy left by Richard D. Moss. Concurrently, the company made amendments to its charter, retiring and eliminating references to 7,725,045 shares of Series A Preferred Stock, which were converted into common stock, and reducing the authorized shares of Series A Preferred Stock.