Hydrofarm Holdings Group, Inc. · NASDAQ:HYFM
Hydrofarm — Q1 2025 Earnings Presentation
15 slides from Hydrofarm's earnings presentation, May 13, 2025
Slide 1: First Quarter 2025 Earnings Presentation
F i rs t Quar ter 2025 Earn ings Presentat ion May 13th, 2025
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements. This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materi
Slide 3: Business Overview
Business Overview é “3 :
Slide 4: Focusing on our Strategic Priorities
Drive Diverse, High-Quality Revenue Streams • Improve Proprietary Brand Mix • Targeted Investments and New Proprietary Product Innovations • Expand Non-US/Canada and Non-Cannabis Sales Improve Profit Margins • Increase Production and Efficiency in our Manufacturing Operations • Further Optimize
Slide 5: First Quarter 2025 Highlights
First Quarter 2025 Highlights Sequential Improvement in Net Sales and Adj. Gross Profit Margin % • Reinvigorated focus on proprietary brand sales drove improved AGPM% vs. Q4 2024 • Relatively strong sales in key U.S. manufactured proprietary nutrient and grow media brands Significant Reductions in A
Slide 6: Update on FY2025 Outlook and Initiatives
Update on FY2025 Outlook and Initiatives Adjusted Gross Profit, Adjusted SG&A, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. AGPM% refers to 'Adjusted Gross Profit Margin’. Please see appendix for reconciliation of GAAP to non-GAAP measures. 6 Tariff Uncertainty • High tariffs on import
Slide 7: Financial Overview
F inanc ia l Over v iew
Slide 8: Financial Summary
Financial Summary 8 2024 2025 Three months ending ($ in thousands) Q1 Q1 Net Sales 54,172 40,534 Adjusted Gross Profit 12,665 8,532 % of Net Sales 23.4% 21.0% Adjusted SG&A 12,336 10,980 % of Net Sales 22.8% 27.1% Adjusted EBITDA 329 (2,448) % of Net Sales 0.6% (6.0)% Adjusted Gross Profit, Adjusted
Slide 9: Proprietary Brand Mix, AGPM% and Adjusted SG&A Trend
% indicates year-over-year savings percentage Quarterly Adjusted SG&A Expense Trend in AGPM% and Adjusted SG&A Meaningful Improvement to AGPM% • Proprietary Mix increase contributed to Q1 sequential improvement in AGPM% • Higher Q1 ‘25 sales of key proprietary nutrient and grow media brands manufact
Slide 10: Cash and Liquidity
Cash and Liquidity ‘Liquidity’ is defined as Cash plus Available Borrowing Capacity on our Revolving Credit Facility. 'Total Debt' is defined as Term Loan debt principal outstanding plus finance leases and other debt. Net Debt, Liquidity and Free Cash Flow are non-GAAP measures. Please see appendix
Slide 11: Revolving Line of Credit and Senior Secured Term Loan
Revolving Line of Credit • $35 million maximum commitment (effective in Q1’25) • Zero borrowed and $17 million available as of March 31, 2025 • Adjusted Term SOFR Rate + grid-based spread • Availability varies with borrowing base • 7th Amendment entered into on May 9, 2025, which extended maturity t
Slide 12: Appendix
é “a : Appendix
Slide 13: Hydrofarm's Value Proposition and Customer Base
Source: Company Information Specialty hydroponic retailers Garden centers / retail eCommerce Greenhouse / channel partners Selling to a fragmented customer base… Branded manufacturer and distributor serving the CEA (Controlled Environment Agriculture) market Hydrofarm’s Value Proposition Proprietary
Slide 14: End-to-end category coverage through proprietary and preferred brands
We have end-to-end category coverage through innovative, well-recognized proprietary and preferred brands Strong proprietary brand portfolio with solutions across key categories Illustrative margin benefit as we improve proprietary brand mix Distributed Brands Preferred Brands Proprietary Brands Con
Slide 15: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures ($ in thousands) We define Adjusted EBITDA (non-GAAP) as net loss (GAAP) excluding interest expense, income taxes, depreciation, depletion and amortization, stock-based compensation including employer payroll taxes on stock
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