Revenue has plummeted 29.6% year-over-year to $28.5 million, while gross margins have compressed to a precarious 2.5% as of 2026Q1.
| Sales/Revenue | 122.24M | 134.25M | 190.29M | 226.58M | 344.5M | 479.42M | 342.2M | 235.11M | 211.81M | 202.03M | 273.48M |
| Revenue Growth % | -30.8% | -29.45% | -16.02% | -34.23% | -28.14% | 40.1% | 45.55% | 11% | 4.84% | -26.13% | - |
| Cost of Goods Sold | 120.28M | 132.07M | 158.16M | 188.97M | 315.17M | 377.93M | 278.57M | 208.03M | 187.74M | 172.78M | 221.59M |
| COGS % of Revenue | - | 98.38% | 83.11% | 83.4% | 91.48% | 78.83% | 81.41% | 88.48% | 88.64% | 85.52% | 81.03% |
| Gross Profit | 1.96M | 2.18M | 32.13M | 37.61M | 29.34M | 101.49M | 63.63M | 27.09M | 24.07M | 29.25M | 51.89M |
| Gross Margin % | 1.6% | 1.62% | 16.89% | 16.6% | 8.52% | 21.17% | 18.59% | 11.52% | 11.36% | 14.48% | 18.97% |
| Gross Profit Growth % | - | -93.23% | -14.57% | 28.21% | -71.09% | 59.49% | 134.93% | 12.53% | -17.71% | -43.63% | - |
| Operating Expenses | 36.71M | 41.68M | 84.31M | 87.31M | 310.93M | 104.19M | 59.35M | 53.82M | 43.25M | 116.97M | 34.48M |
| OpEx % of Revenue | - | 31.05% | 44.31% | 38.54% | 90.26% | 21.73% | 17.34% | 22.89% | 20.42% | 57.9% | 12.61% |
| Selling, General & Admin | 36.71M | 41.68M | 72.79M | 87.31M | 118.6M | 104.19M | 58.49M | 43.78M | 42.23M | 29.92M | 33.23M |
| SG&A % of Revenue | - | 31.05% | 38.25% | 38.54% | 34.43% | 21.73% | 17.09% | 18.62% | 19.94% | 14.81% | 12.15% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 11.52M | 0 | 192.33M | 0 | 860K | 10.04M | 995K | 0 | 0 |
| Operating Income | -34.75M | -39.5M | -52.18M | -49.7M | -281.6M | -2.7M | 4.28M | -26.73M | -25.33M | -5.7M | 17.41M |
| Operating Margin % | -28.43% | -29.42% | -27.42% | -21.94% | -81.74% | -0.56% | 1.25% | -11.37% | -11.96% | -2.82% | 6.36% |
| Operating Income Growth % | - | 24.3% | -4.99% | 82.35% | -10333.35% | -163.05% | 116.01% | -5.55% | -344.66% | -132.73% | - |
| EBITDA | -15.09M | -16.36M | -21.49M | -17.63M | -240.07M | 12.23M | 11.06M | -19.74M | -17.07M | -1.66M | 18.64M |
| EBITDA Margin % | -12.34% | -12.19% | -11.29% | -7.78% | -69.69% | 2.55% | 3.23% | -8.4% | -8.06% | -0.82% | 6.82% |
| EBITDA Growth % | 37.13% | 23.87% | -21.92% | 92.66% | -2062.15% | 10.62% | 156.03% | -15.64% | -929.02% | -108.9% | - |
| D&A (Non-Cash Add-back) | 19.66M | 23.14M | 30.69M | 32.08M | 41.53M | 14.93M | 6.78M | 7M | 8.26M | 4.04M | 1.24M |
| EBIT | -34.75M | -39.5M | -50.61M | -49.58M | -280.9M | -3.58M | 3.44M | -27.31M | -24.33M | -5.7M | 17.41M |
| Net Interest Income | -15.92M | -13.43M | -15.24M | -15.44M | -10.96M | -2.14M | -10.14M | -13.47M | -11.61M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.18M | 712K |
| Interest Expense | 15.92M | 13.43M | 15.24M | 15.44M | 10.96M | 2.14M | 10.14M | 13.47M | 11.61M | 0 | 0 |
| Other Income/Expense | -256.2M | -251.03M | -13.67M | -15.32M | -10.26M | -3.02M | -10.98M | -14.04M | -16.76M | -89.21M | -712K |
| Pretax Income | -290.95M | -290.53M | -65.85M | -65.03M | -291.86M | -5.72M | -6.7M | -40.77M | -35.94M | -94.9M | 16.69M |
| Pretax Margin % | -238.01% | -216.41% | -34.6% | -28.7% | -84.72% | -1.19% | -1.96% | -17.34% | -16.97% | -46.97% | 6.1% |
| Income Tax | -930K | -740K | 869K | -213K | -6.44M | -19.14M | 576K | -691K | -397K | 354.67K | 144K |
| Effective Tax Rate % | 0.32% | 0.25% | -1.32% | 0.33% | 2.21% | 334.5% | -8.6% | 1.69% | 1.1% | -0.37% | 0.86% |
| Net Income | -290.02M | -289.79M | -66.72M | -64.81M | -285.42M | 13.42M | -7.27M | -40.08M | -32.89M | -82.77M | 15.78M |
| Net Margin % | -237.25% | -215.86% | -35.06% | -28.6% | -82.85% | 2.8% | -2.13% | -17.05% | -15.53% | -40.97% | 5.77% |
| Net Income Growth % | -323.42% | -334.36% | -2.94% | 77.29% | -2227.42% | 284.46% | 81.86% | -21.86% | 60.26% | -624.46% | - |
| Net Income (Continuing) | -290.02M | -289.79M | -66.72M | -64.81M | -285.42M | 13.42M | -7.27M | -40.08M | -35.54M | -82.77M | 15.78M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.07M | -1.67M |
| EPS (Diluted) | -60.88 | -62.15 | -14.51 | -14.24 | -63.46 | 3.12 | -2.95 | -12.14 | -4.72 | -6.48 | 1.24 |
| EPS Growth % | -317.34% | -328.33% | -1.9% | 77.56% | -2133.97% | 205.76% | 75.7% | -157.42% | 27.22% | -622.58% | - |
| EPS (Basic) | - | -62.15 | -14.51 | -14.24 | -63.46 | 3.35 | -2.95 | -12.14 | -4.72 | -6.48 | 1.24 |
| Diluted Shares Outstanding | 4.76M | 4.67M | 4.6M | 4.55M | 4.5M | 4.3M | 3.35M | 3.3M | 6.97M | 1.28M | 1.28M |
| Basic Shares Outstanding | 4.76M | 4.67M | 4.6M | 4.55M | 4.5M | 4M | 3.35M | 3.3M | 6.97M | 1.28M | 1.28M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 76.04% |
Liquidity and insolvency risk
As indicated by the most recent quarterly filings, HYFM's revenue has plummeted to $28.5 million, representing a 29.6% year-over-year decline that underscores the severe demand erosion currently impacting the company's core agricultural equipment and consumable product segments across the North American market.
The consistent double-digit revenue decay suggests that the company is struggling to find a floor in a market characterized by oversupply and reduced capital expenditure from commercial cultivators. This downward trajectory appears to be structural rather than seasonal, reflecting a broader retreat in the CEA industry that limits the company's ability to leverage its distribution network.
According to the latest income statement data, Hydrofarm's gross margin has collapsed to a precarious 2.5%, a significant deterioration from historical levels that highlights the company's inability to maintain pricing power amidst intense competitive pressure and rising logistics costs within the hydroponic supply chain.
The razor-thin margin suggests that the company is essentially liquidating inventory at cost, leaving virtually no buffer to absorb fixed operating expenses. Investors should monitor whether this margin profile is a temporary byproduct of inventory clearing or a permanent shift in the competitive landscape for proprietary versus distributed goods.
Based on reported financial figures, the company's operating margin of -21.9% demonstrates a failure to achieve scale, as SG&A expenses continue to dwarf the shrinking gross profit generated by the firm's current volume of agricultural equipment and nutrient sales.
The inability to reduce overhead in proportion to the revenue decline indicates a rigid cost structure that is currently unsustainable. This lack of operating leverage suggests that the company remains highly vulnerable to further revenue volatility, as fixed costs continue to erode shareholder value regardless of top-line performance.
As reported in recent financial statements, Hydrofarm has managed to reduce quarterly SG&A to $7.0 million, yet this cost-cutting effort appears insufficient to offset the rapid evaporation of gross profit, which fell to a mere $725,000 in the most recent quarter.
While management has demonstrated an attempt to right-size the organization, the current expense base remains disproportionate to the company's diminished revenue scale. The persistent gap between operating costs and gross profit suggests that further, more drastic restructuring may be required to stabilize the income statement.
Financial data suggests that with only $6.3 million in cash and a history of significant net losses, the company faces a critical liquidity challenge that may force dilutive financing or asset sales to maintain operations in the face of ongoing negative cash flow.
Short-term survival appears to be the primary concern, as the current burn rate leaves little room for operational errors or further market deterioration. The market's valuation of the firm as a distressed entity seems to reflect these existential risks rather than any potential for a cyclical rebound in the CEA sector.
Quick answers to the most common questions about buying HYFM stock.
For fiscal year 2025, Hydrofarm Holdings Group, Inc. (HYFM) reported total revenue of $134.3M. This represents a 50.9% decline compared to $273.5M in 2016.
Hydrofarm Holdings Group, Inc. (HYFM) reported a net loss of $289.8M for the fiscal year ending 2025.
Hydrofarm Holdings Group, Inc. (HYFM) reported an operating income of $-39.5M, resulting in an operating profit margin of -29.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Hydrofarm Holdings Group, Inc. (HYFM) generated $2.2M in gross profit for the year, representing a gross profit margin of 1.6%. This demonstrates the company's core pricing power and production efficiency.