Hydrofarm Holdings Group, Inc. · NASDAQ:HYFM
Hydrofarm — Q2 2025 Earnings Presentation
13 slides from Hydrofarm's earnings presentation, Aug 12, 2025
Slide 1: Second Quarter 2025 Earnings Presentation
S e c o n d Q u a r te r 2 0 2 5 Earnings Presentation August 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-US/Canada and Non-Cannabis Sales Improve Profit Margins • Increase Production and Efficiency in our Manufac
Slide 5: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights New Restructuring Plan Initiated • Optimize our product portfolio, distribution center and manufacturing footprint • Eliminating underperforming brands to simplify our product portfolio and focus on higher-margin proprietary brands • Anticipate $3M+ estimated annual co
Slide 6: Reaffirming FY2025 Expectations
Reaffirming FY2025 Expectations Industry Headwinds and Tariff Uncertainty Continues • High tariffs on imported products from China, or new tariffs on or from other countries, could impact the cost of certain products and may negatively impact performance 2025 Expectations • Expect improved Adjusted
Slide 7: Financial Overview
A ge Financial Overview
Slide 8: Financial Summary
Financial Summary 2024 2025 Three months ending ($ in thousands) Q2 Q2 Net Sales 54,793 39,245 Adjusted Gross Profit 13,349 7,531 % of Net Sales 24.4% 19.2% Adjusted SG&A 11,624 9,803 % of Net Sales 21.2% 25.0% Adjusted EBITDA 1,725 (2,272) % of Net Sales 3.1% (5.8)% Adjusted Gross Profit, Adjusted
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% -16% 90% 24.8% -9% 23.6% 23.9% 25.0% 80% 20.1% -24% 70% -29% -31% -20% Proprietary Mix % 17.6% 20.0% 60% -11% -10% -11% -16% AGPM% 50% 57% 57% 57% 15.0% 54% 53% 40% 16.2M 10.0% 14.6M 30%
Slide 10: Cash and Liquidity
Cash and Liquidity Balance Sheet Highlights as of June 30, 2025 USD millions Cash $11.0 Liquidity $20.0 Total Debt $122.6 Net Debt $111.6 Cash Flow Highlights 3 months ended June 30, 2025 USD millions Net Cash from Operations $1.7 Capital Expenditures $(0.3) Free Cash Flow $1.4 ‘Liquidity’ is define
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 $9 million available as of June 30, 2025 • Adjusted Term SOFR Rate + grid-based spread • Availability varies w
Slide 12: Appendix
Appendix AURORA Peay PRODUCTS 4) CANADIAN SPHAGNUM PEAT MOSS
Slide 13: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures ($ 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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