Hydrofarm Holdings Group, Inc. (HYFM) AI Stock Analysis

Hydrofarm Holdings Group, Inc. manufactures and distributes controlled environment agriculture (CEA) equipment and supplies across the United States and Canada. The company provides agricultural lighting devices, indoor climate control equipment, hydroponics, nutrients, and plant additives for crops such as cannabis, flowers, fruits, and vegetables. Its distribution catalog features grow light systems, HVAC units, humidity and CO2 controllers, water pumps, heaters, chillers, and nutrient delivery systems. In addition, Hydrofarm offers growing media like soil and coconut fiber, hydroponic trays, and atmospheric control equipment. Products are marketed under proprietary and distributed brands such as Phantom, PhotoBio, Active Aqua, Active Air, HEAVY 16, and Roots Organics.

Hydrofarm experienced sustained revenue contractions over recent years, recording a 5-year revenue CAGR of -17.1% from FY2020 to FY2025. Annual revenue decreased from $479.4M in FY2021 to $344.5M in FY2022, $226.6M in FY2023, $190.3M in FY2024, and $134.3M in FY2025, representing a 29.4% decline in FY2025. Gross margin contracted to 1.6% in FY2025 from 16.9% in FY2024, while operating margin was -29.4%. Net income fell from -$66.7M in FY2024 to -$289.8M in FY2025, yielding an EPS of -$61.89. For the latest quarter ended June 30, 2026, quarterly revenue fell 40.9% year-over-year, while quarterly earnings growth was 362.5%. Trailing twelve month revenue reached $106.2M with an operating margin of -17.5%.

As of June 30, 2026, Hydrofarm held $6.2M in cash and short-term investments against total debt of $158.2M, resulting in net debt of $152.0M. The company reported negative shareholders equity of -$89.0M on total assets of $101.6M. Liquidity remains constrained, evidenced by a current ratio of 0.27. Operating cash flow was -$14.1M in FY2025, while free cash flow stood at -$15.1M after capital expenditures of $1.0M. Over the past five years, the company expanded its share count by 7.5%.

Hydrofarm trades at an enterprise value of $156.7M compared to a market capitalization of $3.7M. The stock trades at an EV/EBITDA of 44.2x, which stands above 13.9x for the median of its US-listed Industrials peers. Its forward P/E is 9.9x, lower than the peer median of 17.2x, while its EV/revenue is 1.5x. Over the past year, Hydrofarm shares declined 71.8%, while the S&P 500 gained 16.8%. Over a 5-year period, the stock fell 99.8% compared to an 83.0% gain for the benchmark index.

Analyst coverage indicates a mean price target of $6.50, representing a 737.6% premium over the last close of $0.78 on October 16, 2026. For the next fiscal year, consensus models project an EPS estimate of $0.00 with EPS growth estimated at 9.6%, alongside a revenue estimate of $0 reflecting expected revenue growth of 8.9%. Hydrofarm recorded 0 EPS beats over the last 4 quarters. The next earnings date is scheduled for November 11, 2026.

This page is an AI-written research summary of Hydrofarm Holdings Group, Inc. (HYFM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: HYFM income statement, HYFM balance sheet, HYFM key metrics, HYFM analyst forecast, HYFM chart. See the HYFM stock overview for the latest quote and news.