Hydrofarm Holdings Group (HYFM) AI Stock Analysis

• Market Cap: $8.40M
• Dividend Yield: N/A
• Average Volume (3M): 23.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.89
• 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: 113.99
• 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: 44 Neutral
• Price Target: $2.00 ▲(14.29% Upside)

Hydrofarm Holdings Group's overall stock score is primarily impacted by its weak financial performance, with declining revenues and profitability issues. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio. The recent CEO transition and strategic challenges further weigh on the score, despite some positive cost-saving initiatives.

Positive Factors

CEO Transition

The return of William Toler as CEO could provide strategic stability and leadership continuity, potentially aiding in navigating current challenges.

Cost-Saving Initiatives

Cost-saving measures can improve profitability and operational efficiency, supporting long-term financial health and competitiveness.

Board Strengthening

The appointment of Chris Yetter to the Board enhances strategic oversight and governance, potentially benefiting long-term strategic initiatives.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in market demand or competitive positioning, affecting long-term growth prospects.

Negative Profitability

Negative profitability highlights operational inefficiencies and financial strain, impacting the company's ability to reinvest in growth.

Cash Flow Constraints

Cash flow constraints limit financial flexibility, hindering the ability to fund operations and strategic initiatives over the long term.

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: 1.75
• 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 1.75 is below the 20-day moving average (MA) of 1.88, below the 50-day MA of 2.17, and below the 200-day MA of 3.13, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 27.64 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	65 Neutral	$11.34M	6.10	15.99%	―	-4.37%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
XOS	49 Neutral	$23.46M	-0.49	-84.37%	―	-16.89%	35.45%
HYFM	44 Neutral	$8.40M	-0.12	-30.93%	―	-26.84%	-0.16%
UGRO	38 Underperform	$4.57M	-0.22	―	―	―	―

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.

Hydrofarm Holdings Appoints Chris Yetter to Board

On September 29, 2025, Susan P. Peters, a non-employee director of Hydrofarm Holdings Group, announced her retirement effective October 1, 2025, to spend more time with her family. Her resignation was not due to any disagreements with the company. In response, the Board appointed Chris Yetter, effective the same date, to fill the vacancy. Yetter, the Founder and Chief Investment Officer of Dumont Global, brings significant investment experience, particularly in the health and wellness sector, and will serve on the Compensation Committee. This appointment is expected to strengthen Hydrofarm’s Board and management team.