From GlobeNewswire: 2025-03-05 07:00:00

Hydrofarm Holdings Group, Inc. reported a decrease in net sales to $37.3 million in the fourth quarter of 2024, down from $47.2 million in the prior year period. Gross Profit and Adjusted Gross Profit also declined, along with an increase in net loss to $17.5 million.

For the fiscal year 2024, net sales dropped to $190.3 million compared to $226.6 million the previous year. Gross Profit and Adjusted Gross Profit saw a decrease, while net loss increased to $66.7 million. Adjusted EBITDA was negative at $(5.2) million.

Hydrofarm’s strategic focus on proprietary brands led to an increase in sales mix to 56% in 2024. The company aims to reinvigorate its sales mix, optimize distribution, and implement cost-saving measures in 2025. E-commerce growth and revenue diversification efforts are also key focuses.

Adjusted Gross Profit, Adjusted SG&A, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures used to evaluate Hydrofarm’s financial performance. Net loss for the fourth quarter and full year of 2024 was impacted by inventory reserves and related charges.

The Company’s outlook for fiscal year 2025 includes a projected 10-20% decrease in net sales, negative Adjusted EBITDA, and negative Free Cash Flow, but improvements from 2024. Assumptions include increased Adjusted Gross Profit Margin and reduced Adjusted SG&A expense.

Hydrofarm will host a conference call to discuss financial results for the fourth quarter and full year 2024. CEO John Lindeman highlighted the company’s commitment to cost management, despite industry challenges. The focus remains on enhancing shareholder value through strategic initiatives.



Read more at GlobeNewswire:: Hydrofarm Holdings Group Announces Fourth Quarter and Full