| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 23.21 | 18.6% | 40.9% |
| Total Income | 23.21 | 18.6% | 40.9% |
| Expenditure | 30.64 | 17.8% | 41.7% |
| PBT | -10.86 | 26.2% | 36.0% |
| Net Profit | -10.63 | 27.2% | 37.0% |
| OPM | -32.00% | 1.39pp | 2.00pp |
| NPM | -45.80% | 5.42pp | 2.84pp |
| EPS | -2.23 | 27.4% | 38.6% |
Hydrofarm Holdings Group Announces Q2 2026 Results
15 Aug 2026 · 15 Aug, 1:54 am
Summary
Hydrofarm Holdings Group announced its financial results for the second quarter ended June 30, 2026, reporting a decrease in net sales to $23.2 million from $39.2 million in the prior year. Despite lower sales, the company saw an improvement in profitability metrics, with Gross Profit Margin increasing to 11.3% and Adjusted Gross Profit Margin rising to 20.0%. Selling, general, and administrative expenses were significantly reduced by 37.7%. The net loss narrowed to $10.6 million from $16.9 million year-over-year, and Adjusted EBITDA improved to $(1.7) million. Management highlighted a focus on proprietary brand sales mix and expense reductions, noting the sale of Aurora Peat Products as a key strategic step.
Key Highlights
- 1
Hydrofarm Holdings Group reported net sales of $23.2 million for the second quarter ended June 30, 2026, a decrease compared to $39.2 million in the prior year period.
- 2
The company's Gross Profit Margin increased to 11.3% of net sales in Q2 2026, up from 7.1% in the prior year period.
- 3
Adjusted Gross Profit Margin improved to 20.0% of net sales in Q2 2026, compared to 19.2% in the prior year period.
- 4
SG&A expense decreased by 37.7% to $10.1 million in Q2 2026 compared to the prior year period.
- 5
Net loss for the second quarter of 2026 decreased to $10.6 million, compared to a net loss of $16.9 million in the prior year period.
- 6
Adjusted EBITDA for Q2 2026 was $(1.7) million, an improvement from $(2.3) million in the prior year period.
- 7
Cash from operating activities and Free Cash Flow were approximately break-even in Q2 2026, compared to $1.7 million and $1.4 million, respectively, in the prior year.
Management Comments
William Toler
In the second quarter, we achieved our best quarterly proprietary brand sales mix ever, consistent with our strategy of focusing sales efforts on these products. We also significantly reduced Adjusted SG&A expense by 35.7% compared to the prior year, aided by facility cost reductions from logistics services. This represents our 16th consecutive quarter of meaningful year-over-year expense reductions. In July, we closed on the sale of Aurora Peat Products, which was a key strategic step in optimizing our portfolio and strengthening Hydrofarm's capital structure, as the proceeds from the transaction reduced our outstanding debt. We are committed to our strategic priorities to drive high-quality revenue streams, and improve profit margins and profitability.
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