Hydrofarm Holdings Group (HYFM)
NASDAQ:HYFM
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Hydrofarm Holdings Group
(NASDAQ:HYFM)
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Rating:41Neutral
Price Target:
$0.97
▼(-51.51% Downside)
Action:UpgradedDate:04/15/26
The score is driven primarily by very weak financial performance (persistent large losses, negative equity, and pressured cash flows). Technicals add further downside risk with a clear downtrend and negative momentum. Corporate events materially increase near-term risk due to default/forbearance and Nasdaq compliance concerns, while valuation provides limited support given ongoing losses and no dividend.
Positive Factors
Recurring consumables and diversified product portfolio
Hydrofarm's mix of durable equipment and frequently repurchased consumables creates a two-tier revenue model: one-time equipment sales plus recurring consumable demand. This structural mix supports steadier reorder streams and customer retention, providing a durable revenue backbone over the next 2–6 months.
Negative Factors
Negative shareholders' equity and weakened balance sheet
A stockholders' deficit and large outstanding term debt materially weaken the capital structure and reduce creditor and shareholder cushions. Negative equity is a structural solvency red flag that constrains financing options, increases default risk, and hampers strategic flexibility over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables and diversified product portfolio
Hydrofarm's mix of durable equipment and frequently repurchased consumables creates a two-tier revenue model: one-time equipment sales plus recurring consumable demand. This structural mix supports steadier reorder streams and customer retention, providing a durable revenue backbone over the next 2–6 months.
Read all positive factors
Hydrofarm Holdings Group (HYFM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.81M
Dividend YieldN/A
Average Volume (3M)23.67K
Price to Earnings (P/E)―
Beta (1Y)1.91
Revenue Growth-29.45%
EPS Growth-328.35%
CountryUS
Employees286
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)-1.07
Shares Outstanding4,764,612
10 Day Avg. Volume19,541
30 Day Avg. Volume23,670
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.11
Price to Sales (P/S)0.05
P/FCF Ratio-0.47
Enterprise Value/Market Cap32.94
Enterprise Value/Revenue1.18
Enterprise Value/Gross Profit10.42
Enterprise Value/Ebitda-9.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-4.62
Revenue Forecast (FY)$206.44M
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 lightin...
How the Company Makes Money
Hydrofarm primarily makes money by selling cultivation equipment and consumable supplies used in controlled-environment growing. Its revenue model is product-sales driven: (1) Equipment sales (e.g., grow lighting systems, HVAC/climate control, env...
Hydrofarm Holdings Group Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
SG&A Savings and Positive Free Cash Flow
Delivered the 12th consecutive quarter of year-over-year adjusted SG&A savings with a nearly 16% reduction in expenses compared to 2024, resulting in positive free cash flow for the quarter.
Negative Updates
Significant Decline in Net Sales
Net sales for the second quarter were $39.2 million, down 28.4% year-over-year, driven by a 27.9% decline in volume mix and a 0.4% decline in pricing.
Read all updates
Q2-2025 Updates
Positive
Negative
SG&A Savings and Positive Free Cash Flow
Delivered the 12th consecutive quarter of year-over-year adjusted SG&A savings with a nearly 16% reduction in expenses compared to 2024, resulting in positive free cash flow for the quarter.
Read all positive 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
Income Statement
14
Very Negative
Balance Sheet
18
Very Negative
Cash Flow
27
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 134.25M | 190.29M | 226.58M | 344.50M | 479.42M |
| Gross Profit | 15.21M | 32.13M | 37.61M | 29.34M | 101.49M |
| EBITDA | -16.36M | -19.92M | -17.51M | -239.37M | 11.35M |
| Net Income | -289.79M | -66.72M | -64.81M | -285.42M | 13.42M |
Balance Sheet | |||||
| Total Assets | 123.80M | 426.10M | 507.64M | 573.56M | 891.24M |
| Cash, Cash Equivalents and Short-Term Investments | 6.31M | 26.11M | 30.31M | 21.29M | 26.61M |
| Total Debt | 160.08M | 169.53M | 183.93M | 186.07M | 167.57M |
| Total Liabilities | 187.10M | 202.38M | 217.03M | 223.68M | 256.06M |
| Stockholders Equity | -63.30M | 223.72M | 290.61M | 349.88M | 635.18M |
Cash Flow | |||||
| Free Cash Flow | -15.08M | -3.22M | 2.83M | 13.76M | -50.47M |
| Operating Cash Flow | -14.06M | -324.00K | 7.04M | 21.99M | -45.07M |
| Investing Cash Flow | -841.00K | 1.67M | -4.17M | -8.49M | -468.18M |
| Financing Cash Flow | -5.44M | -4.78M | 6.07M | -20.20M | 464.71M |
Hydrofarm Holdings Group Technical Analysis
Negative
1.99
Price Trends
1.17
Negative
1.46
Negative
2.46
Negative
Market Momentum
-0.07
Negative
45.65
Neutral
60.04
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 1.00, above the 50-day MA of 1.17, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 60.04 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hydrofarm Holdings Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $218.11M | 13.80 | 7.25% | ― | -9.25% | 8.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $13.99M | 15.47 | 15.99% | ― | 2.33% | 3786.15% | |
50 Neutral | $20.97M | -0.67 | -103.90% | ― | -17.81% | 58.16% | |
44 Neutral | $7.68M | -0.16 | 135.56% | ― | ― | ― | |
41 Neutral | $4.81M | -0.02 | -32.29% | ― | -29.45% | -328.35% |
* Industrials Sector Average
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Hydrofarm Holdings Group Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and FinancingRegulatory Filings and Compliance
Hydrofarm Enters Forbearance Agreement Amid Liquidity Constraints
Negative
Apr 14, 2026
On April 8, 2026, Hydrofarm Holdings Group, Inc. entered into a forbearance agreement with its lenders and new administrative agent FEAC after a February 11, 2026 notice of default tied to the company’s failure to make a January 31, 2026 int...
Delistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
Hydrofarm Faces Nasdaq Noncompliance, Evaluates Listing Remediation Options
Negative
Apr 7, 2026
On April 1, 2026, Hydrofarm Holdings Group received a Nasdaq notice that it was out of compliance with the Nasdaq Capital Market’s minimum stockholders’ equity requirement, after reporting a stockholders’ deficit of $63.3 million...
Business Operations and StrategyPrivate Placements and Financing
Hydrofarm Terminates Revolving Credit Facility Amid Liquidity Review
Negative
Feb 20, 2026
On February 17, 2026, Hydrofarm Holdings Group, Inc. entered into an agreement to terminate its revolving credit facility originally dated March 29, 2021, with JPMorgan Chase Bank and other lenders, while allowing certain provisions of the prior l...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.