| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 28.52 | 29.6% |
| Total Income | 28.52 | 29.6% |
| Expenditure | 37.26 | 27.7% |
| PBT | -14.72 | 2.9% |
| Net Profit | -14.61 | 1.5% |
| OPM | -30.61% | 3.51pp |
| NPM | -51.22% | 15.73pp |
| EPS | -3.07 | 1.6% |
Hydrofarm Announces Q1 2026 Results: Net Sales Decrease to $28.5 Million
16 May 2026 · 16 May, 1:40 am
Summary
Hydrofarm Holdings Group reported a decrease in net sales for the first quarter of 2026, with sales declining by 29.6% to $28.5 million. Gross profit also decreased to $1.8 million, or 6.4% of net sales. The company experienced a net loss of $14.6 million, which was comparable to the net loss of $14.4 million in the prior year period. Despite the revenue decline, the company significantly reduced SG&A expenses and improved free cash flow compared to the previous year. The company is focused on driving high quality revenue streams, improved profitability, and strengthening its financial position.
Key Highlights
- 1
Net sales decreased by 29.6% to $28.5 million compared to $40.5 million in the prior year period, primarily due to a decline in volume/mix of products sold.
- 2
Gross profit decreased to $1.8 million, representing 6.4% of net sales, compared to $6.9 million, or 17.0% of net sales, in the prior year period.
- 3
Adjusted Gross Profit decreased to $4.5 million, or 15.8% of net sales, compared to $8.5 million, or 21.0% of net sales, in the prior year period.
- 4
SG&A expense improved to $10.6 million, compared to $17.9 million in the prior year period.
- 5
Adjusted EBITDA decreased to $(3.9) million, compared to $(2.4) million in the prior year period.
- 6
Cash used in operating activities was $(0.8) million, an improvement compared to $(11.8) million in the prior year.
- 7
Free Cash Flow improved by $11.2 million to $(0.8) million compared to the prior year.
Management Comments
William Toler
In the first quarter, we continued to execute on our strategic priorities. We have completed the consolidation of our U.S. manufacturing facilities into one location. During the quarter, we significantly reduced Adjusted SG&A expense by 23.1% compared to the prior year, representing our 15th consecutive quarter of meaningful year-over-year expense reductions. Free Cash Flow in the first quarter was also a significant improvement over the prior year. We are focused on positioning the business to drive high quality revenue streams, improved profitability, and strengthen our financial position.
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