Overview

* Hydrofarm ( HYFM ) Q3 net sales fell 33.3% yr/yr, missing analyst expectations

* Company's gross profit margin decreased due to lower sales and production volumes

* CEO transition announced with Bill Toler resuming CEO role on Dec 1, 2025

Outlook

* Hydrofarm ( HYFM ) expects 2025 Adjusted Gross Profit Margin of approximately 20%

* Company reaffirms reduced Adjusted SG&A expense for 2025

* Hydrofarm ( HYFM ) anticipates positive free cash flow for final nine months of 2025

Result Drivers

* PROPRIETARY BRAND FOCUS - Co achieved best quarterly proprietary brand sales mix of 2025, aiding higher-margin product sales

* INDUSTRY OVERSUPPLY - Sales decline attributed to 32.2% drop in volume/mix due to industry oversupply

* COST SAVINGS INITIATIVES - Co expects $2 mln in annual savings from consolidating U.S. manufacturing facilities

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $29.35 $35.73

mln mln (1

Analyst)

Q3 Net -$16.39

Income mln

Q3 Gross $3.41

Profit mln

Q3 -$12.96

Operatin mln

g Income

Q3 -$16.27

Pretax mln

Profit

Analyst Coverage

* Wall Street's median 12-month price target for Hydrofarm Holdings Group Inc ( HYFM ) is $7.50, about 71.4% above its November 11 closing price of $2.15

Press Release:

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(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.)