Hydrofarm Holdings Group, Inc. announced financial results for Q2 2025. Net sales decreased to $39.2 million from $54.8 million, with a net loss of $16.9 million. Adjusted EBITDA was $(2.3) million, and the company initiated a restructuring plan for cost reduction and efficiency improvement.

The decline in sales was mainly due to industry oversupply, impacting durable products more than consumables. Gross profit decreased to $2.8 million, with Adjusted Gross Profit margin at 19.2%. SG&A expenses improved to $16.1 million, and Adjusted SG&A expense reduced to $9.8 million.

The company had $11.0 million in cash and $9 million available on its Revolving Credit Facility as of June 30, 2025. Cash from operating activities was $1.7 million, yielding Free Cash Flow of $1.4 million. The company reaffirmed expectations for fiscal year 2025, focusing on improving profit margins and financial position.

Hydrofarm remains committed to driving diverse revenue streams, improving profit margins, and strengthening its financial position. The company reported non-GAAP financial measures to provide investors with additional useful information for evaluating performance. Adjusted EBITDA, Adjusted Gross Profit, and Adjusted SG&A are key metrics for assessing ongoing operating performance.

Read more at GlobeNewswire: Hydrofarm Holdings Group Announces Second Quarter 2025