Hydroponics equipment maker Hydrofarm misses Q3 sales estimates on lower production

Reuters
2025/11/12
Hydroponics equipment maker Hydrofarm misses Q3 sales estimates on lower production

Overview

  • Hydrofarm 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 expects 2025 Adjusted Gross Profit Margin of approximately 20%

  • Company reaffirms reduced Adjusted SG&A expense for 2025

  • Hydrofarm 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/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

$29.35 mln

$35.73 mln (1 Analyst)

Q3 Net Income

-$16.39 mln

Q3 Gross Profit

$3.41 mln

Q3 Operating Income

-$12.96 mln

Q3 Pretax Profit

-$16.27 mln

Analyst Coverage

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

Press Release: ID:nGNX9pckQc

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)

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