NASDAQ$HYFM

Hydrofarm Holdings Group Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Hydrofarm's financial performance reflected the effectiveness of restructuring plans and cost-saving efforts, despite a decrease in net sales.

Hydrofarm Holdings Group reported a decrease in net sales to $54.8 million, but delivered positive Adjusted EBITDA for the fourth time in the last five quarters. The company is reaffirming its full year 2024 outlook on its key metrics.

  • Net sales decreased to $54.8 million compared to $63.1 million.
  • Gross Profit Margin decreased to 19.8% compared to 23.0%.
  • Adjusted EBITDA decreased to $1.7 million compared to $2.5 million.
  • Cash from operating activities and Free Cash Flow were $3.8 million and $3.4 million, respectively.

Headline financials

Total Revenue

$54.8M

Previous: $63.1M-13.1%
EPS

-$0.51

Previous: -$0.28-82.1%
Adjusted gross profit margin

24.4%

No prior period
Adjusted EBITDA

$1.73M

Previous: $2.5M-31.0%
SG&A expenses

$18.7M

No prior period
Adjusted SG&A

$11.6M

No prior period
SG&A as % of sales

34.1%

No prior period
Adjusted SG&A as % of sales

21.2%

No prior period
Net loss as % of sales

42.8%

No prior period
Adjusted EBITDA margin

3.1%

No prior period
Gross Margin

19.8%

Previous: 23.0%-13.9%
Capital Expenditures

-$1.81M

Previous: -$3.31M+45.3%
Free Cash Flow

-$25.3M

Previous: -$16.2M-56.2%
Net Income

-$23.5M

Previous: -$12.9M-82.3%
Operating Income

-$19.3M

Previous: -$9M-114.9%
Gross Profit

$10.9M

Previous: $14.5M-25.0%
Cash & Equivalents

$30.3M

Previous: $26.7M+13.6%
Total Assets

$463M

Previous: $546M-15.2%
Stock-Based Comp

$772K

Previous: $1.82M-57.5%

Revenue & EPS history

Hydrofarm · Revenue · Quarterly

$54.8M

Q2 2024-13.1%vs Q2 2023
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

The Company is reaffirming its full year 2024 outlook on its key metrics: Net sales to decrease low to high teens in percentage terms, Adjusted EBITDA that is positive and Free Cash Flow that is positive.

Tailwinds

  • Improved year-over-year Adjusted Gross Profit Margin resulting primarily from cost savings associated with restructuring actions and related productivity initiatives.
  • Improved year-over-year Adjusted Gross Profit Margin resulting primarily from an expectation of minimal non-restructuring inventory reserves or related charges.
  • Reduced year-over-year Adjusted SG&A expense resulting primarily from full year benefit of headcount reductions completed in 2023.
  • Reduced year-over-year Adjusted SG&A expense resulting primarily from reductions in professional fees, facilities and insurance expenses.
  • Reduction in inventory and net working capital helping to generate positive Free Cash Flow for the full year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-2.6%

Avg return

Earnings day

-4.3%

Avg return

5 days after

-7.5%

Avg return

30 days after

38%

10 / 26 earnings

Positive

+16.2%

Q4 2020

Best reaction

-22.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-0.9%-1.8%
Q1 2026-6.5%-10.3%-13.8%
Q3 2025-14.6%-21.9%-3.0%
Q2 2025-2.9%+0.0%-28.4%
Q1 2025+8.0%-1.9%-0.9%
Q4 2024-20.9%-26.8%-61.2%
Q3 2024-4.9%-2.7%+13.8%
Q2 2024+1.9%+0.0%+14.4%
Q1 2024-3.7%-10.2%-14.2%
Q4 2023+7.0%-2.1%+25.6%
Q3 2023+4.4%+0.0%+25.9%
Q2 2023-22.7%-22.4%-4.0%
Q1 2023-8.7%-15.0%-22.6%
Q4 2022+15.9%+18.5%-6.0%
Q3 2022+8.2%+19.7%-1.7%
Q2 2022+14.2%+30.5%+2.7%
Q1 2022-20.8%+1.9%-34.3%
Q4 2021-14.9%-28.5%-25.2%
Q4 2019-14.9%-28.5%-25.2%
Q3 2020-1.4%-10.7%-40.4%
Q3 2021+12.3%+10.8%-28.2%
Q2 2020-11.7%-8.2%+12.1%
Q2 2021-5.6%-16.6%+5.7%
Q1 2020+4.1%+3.3%+0.3%
Q1 2021-3.6%-0.3%-4.7%
Q4 2020+16.2%+10.8%+26.3%
Q3 2019
Q2 2019
Q1 2019

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro