Hydrofarm Holdings Group, Inc. · NASDAQ:HYFM
Hydrofarm — Q3 2025 Earnings Presentation
13 slides from Hydrofarm's earnings presentation, Nov 12, 2025
Slide 1: Third Quarter 2025 Earnings Presentation
T h i rd Q u a r te r 2 0 2 5 Earnings Presentation November 12th, 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
B u s i n e s s O ve r v i ew
Slide 4: Focusing on our Strategic Priorities
Focusing on our Strategic Priorities ✓ Drive Diverse, High-Quality Revenue Streams • Improve Proprietary Brand Mix • Targeted Investments and New Proprietary Product Innovations • Expand Non-U.S./Canada and Non-Cannabis Sales ✓ Improve Profit Margins • Increase Production Efficiency in our Manufactu
Slide 5: Third Quarter 2025 Highlights
Third Quarter 2025 Highlights Restructuring execution yielding improvements • Product portfolio optimization improved proprietary brand mix sequentially and working capital • Reduced distribution center footprint in Q3, and reduced headcount and other facility costs • On track for the previously ann
Slide 6: FY2025 Expectations
FY2025 Expectations Industry Headwinds and Tariff Uncertainty Continue • High tariffs on imported products from China, or new tariffs on or from other countries, could impact the cost of certain products and may negatively impact performance Full Year 2025 Outlook • Now expect Adjusted Gross Profit
Slide 7: Financial Overview
Financial Overview : “a :
Slide 8: Financial Summary
Financial Summary 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. 8
Slide 9: Trend in AGPM% and Adjusted SG&A
Trend in AGPM% and Adjusted SG&A Proprietary Brand Sales Mix and AGPM% Quarterly Adjusted SG&A Expense 100% 30.0% 90% 24.8% -9% 23.6% 23.9% 25.0% 80% 20.1% -29% -31% -24% 70% 18.8% -20% Proprietary Mix % 20.0% 17.6% -11% -10% -11% 60% -16% -7% AGPM% 50% 57% 57% 57% 54% 57% 15.0% 53% 16.2M 40% 14.6M
Slide 10: Cash and Liquidity
Cash and Liquidity Balance Sheet Highlights as of September 30, 2025 USD millions Cash $10.7 Liquidity $14.7 Total Debt $122.5 Net Debt $111.8 Cash Flow Highlights 3 months ended September 30, 2025 USD millions Net Cash Used in Operations $(0.0) Capital Expenditures $(0.2) Free Cash Flow $(0.2) ‘Liq
Slide 11: Debt Details
Debt Details Un-utilized Revolving Credit facility and Covenant-light Term Loan that does not mature until 2028 Revolving Line of Credit • $22 million maximum commitment • Zero borrowed and $4 million available as of September 30, 2025 • Adjusted Term SOFR Rate + grid-based spread • Availability var
Slide 12: Appendix
Appendix
Slide 13: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures ($ 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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