Hydrofarm Holdings Group Inc
NASDAQ:HYFM
Hydrofarm Holdings Group Inc
Hydrofarm Holdings Group, Inc. engages in the manufacture and distribution of controlled environment agriculture equipment and supplies. The company is headquartered in Fairless Hills, Pennsylvania and currently employs 709 full-time employees. The company went IPO on 2020-12-10. The firm serves the United States and Canada markets. Its products are used to grow, farm and cultivate cannabis, flowers, fruits, plants, vegetables, grains and herbs that allows end users to control farming variables, including temperature, carbon dioxide, light intensity spectrum and nutrient concentration. Its product categories include lighting, equipment, grow media, nutrients and supplies. Its nutrients category includes products that provides nutrition to crops for hydroponic cultivation, such as fertilizers and a variety of additives used through the crop cycle. Its products in the nutrient’s product line includes FoxFarm, Cutting Edge Solution, Grotek, Roots Organics, Humboldt and plant nutritional products. Its equipment product offerings include hydro components, meters and solutions, pumps and irrigation systems, water filtration systems.
Hydrofarm Holdings Group, Inc. engages in the manufacture and distribution of controlled environment agriculture equipment and supplies. The company is headquartered in Fairless Hills, Pennsylvania and currently employs 709 full-time employees. The company went IPO on 2020-12-10. The firm serves the United States and Canada markets. Its products are used to grow, farm and cultivate cannabis, flowers, fruits, plants, vegetables, grains and herbs that allows end users to control farming variables, including temperature, carbon dioxide, light intensity spectrum and nutrient concentration. Its product categories include lighting, equipment, grow media, nutrients and supplies. Its nutrients category includes products that provides nutrition to crops for hydroponic cultivation, such as fertilizers and a variety of additives used through the crop cycle. Its products in the nutrient’s product line includes FoxFarm, Cutting Edge Solution, Grotek, Roots Organics, Humboldt and plant nutritional products. Its equipment product offerings include hydro components, meters and solutions, pumps and irrigation systems, water filtration systems.
Sales Drop: Net sales were $39.2 million, down 28.4% year-over-year, mainly due to industry oversupply and weak demand for durable products.
Cost Control: The company achieved its 12th straight quarter of SG&A savings, with adjusted SG&A expenses down 16% compared to last year.
Restructuring Plan: Hydrofarm initiated a new restructuring plan, cutting over one-third of SKUs and distributed brands to focus on higher-margin proprietary products.
Profit Margins: Gross profit margin fell sharply due to restructuring charges but management expects improvement for the full year as the product mix shifts.
Free Cash Flow: Positive free cash flow of $1.4 million was generated in Q2, and management expects this trend to continue for the rest of 2025.
Tariff Impact: Tariffs have added $300,000 in costs year-to-date, mostly affecting durables; most consumable products are sourced domestically and less affected.
Diversification: International and noncannabis sales improved, with particular strength in Europe and Asia, supporting efforts to diversify revenue streams.
