Hydrofarm Q2 sales down

Hydrofarm Holdings

12/08/2025 12:14

Overview

Hydrofarm fiscal Q2 net sales fell 28.4%, missing analyst expectations, per LSEG data

Gross profit margin declined due to lower sales and restructuring costs

Company initiated restructuring plan, expecting over $3 mln annual savings

Outlook

Hydrofarm reaffirms improved Adjusted Gross Profit Margin for 2025

Company expects reduced Adjusted SG&A expenses in 2025

Hydrofarm anticipates positive free cash flow for final nine months of 2025

Company plans capital expenditures under $2 mln for full year 2025

Result Drivers

INDUSTRY HEADWINDS - Net sales declined 28.4% due to industry oversupply and a decrease in product volume/mix

RESTRUCTURING COSTS - Gross profit margin impacted by $3.3 mln in non-cash restructuring costs

COST REDUCTIONS - SG&A expenses decreased due to decrease in compensation costs from lower headcount and restructuring initiatives

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$39.24 mln
$51 mln (1 Analyst)
Q2 EPS
-$3.63
Q2 Net Income
-$16.86 mln
Q2 Gross Profit
$2.79 mln
Q2 Operating Income
-$13.35 mln
Q2 Pretax Profit
-$16.96 mln


Analyst Coverage

The one available analyst rating on the shares is "hold"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

Wall Street's median 12-month price target for Hydrofarm Holdings Group Inc is $7.50, about 39.9% above its August 11 closing price of $4.51

Press Release: ID:nGNX3pgGnL

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)