Hydrofarm 2025 Q3 Earnings Net Loss Widens by 24.7% to $16.39M

Hydrofarm (HYFM) reported a 33.3% revenue decline to $29.35 million and a widened net loss of $16.39 million in Q3 2025, missing analyst estimates. The stock price fell 40.91% month-to-date, reflecting investor concerns over industry oversupply and operational challenges.

Revenue

Hydrofarm’s Q3 2025 revenue plummeted 33.3% year-over-year to $29.35 million, driven by a 32.2% volume/mix decline attributed to industry oversupply. North American sales dropped sharply, with U.S. revenue falling from $36.3 million to $24.1 million and Canadian sales declining from $8.3 million to $5.9 million.

Earnings/Net Income

The company’s losses deepened to $3.51 per share, a 22.7% wider loss than Q3 2024. Net income turned to a $16.39 million deficit, marking a 24.7% increase in losses year-over-year.

Post-Earnings Price Action Review

Post-earnings, Hydrofarm’s stock price edged up 0.55% on the latest trading day but plummeted 16.51% for the week and 40.91% month-to-date. The steep decline underscores investor skepticism about the company’s ability to reverse its financial trajectory amid persistent industry challenges.

CEO Commentary

John Lindeman, CEO, emphasized progress in cost-cutting and operational restructuring, including $2 million in annual savings from consolidating U.S. manufacturing facilities. He highlighted a best quarterly proprietary brand sales mix in 2025, aligning with higher-margin strategies, while acknowledging production inefficiencies impacted gross margins.

Guidance

Hydrofarm reaffirmed full-year 2025 adjusted gross profit margin guidance of ~20% and capital expenditures of $2 million or less. The company also outlined $5 million in annual cost savings from restructuring initiatives, including facility consolidation and inventory rationalization.

Additional News

Hydrofarm announced a leadership transition, with Bill Toler resuming the CEO role on December 1, 2025, succeeding John Lindeman. The company also disclosed plans to consolidate two U.S. manufacturing facilities, aiming for $2 million in incremental annual savings. Additionally, the firm reiterated compliance with debt covenants despite a $114.5 million term loan outstanding, signaling focus on liquidity management.

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