HYFM HYDROFARM HOLDINGS GROUP, INC.

Overview and Growth

In fiscal 2025, HYDROFARM HOLDINGS GROUP, INC. recorded $134.25M of revenue, net loss of $289.79M, and an operating cash outflow of $14.06M. The $134.25M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line contracted 29.4% from $190.29M in fiscal 2024; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of -$62.35, adding a shareholder-level measure to the absolute income figures considered below. Total assets stood at $123.80M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Revenue equaled 1.08x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $15.21M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 11.3%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced a $276.92M operating loss before non-operating and tax effects. The operating loss equaled 206.3% of revenue, showing the scale of the operating deficit relative to sales. The bottom-line result was a net loss of $289.79M after operating, financing, tax, and other recognized items. Measured against revenue, the bottom-line deficit represented 215.9% after all recognized items. Before income taxes, the company recorded a loss of $290.53M, bridging the operating result to the final net loss. Pretax margin was -216.4%, reflecting a pre-tax loss equal to 216.4% of revenue. An income-tax benefit of $740.00K improved the final result relative to pretax income or loss. The net loss equaled 234.1% of period-end assets, showing the deficit relative to the asset base.

Liquidity and Capital Structure

Total assets were $123.80M, supported by $187.10M of liabilities and -$63.30M of shareholder equity. Equity was negative at -$63.30M, meaning liabilities exceeded the residual book value available to shareholders and weakening balance-sheet resilience. Current assets were $51.44M against $140.03M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 0.37x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. Cash and equivalents totaled $6.31M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 4.5% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $111.90M, establishing the amount of borrowing carried within the company’s capital structure. Debt represented 90.4% of total assets, placing borrowing in the context of the company’s full resource base. Liabilities represented 151.1% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 5.1% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 70.9% lower than fiscal 2024 assets of $426.10M, measuring the company’s own balance-sheet change. Against $223.72M of equity in fiscal 2024, the current book-equity balance moved 128.3% and ended lower. Cash and equivalents were 75.8% lower than fiscal 2024 cash of $26.11M, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $14.06M, rather than cash generation from operations. Capital spending of $1.02M added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. Operating cash flow and capital spending combined to leave a $15.08M cash deficit after capital spending. Free-cash-flow margin was -11.2%, reflecting a cash deficit equal to 11.2% of revenue after capital spending. The free-cash-flow deficit equaled 12.2% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.