NASDAQ$HYFM
Hydrofarm Holdings Group Inc. · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Hydrofarm announced its Q4 and full year 2023 results, showing significant improvement in net loss and adjusted EBITDA for both periods, with a 2024 outlook calling for lower net sales, positive adjusted EBITDA, and positive free cash flow.
Hydrofarm's Q4 2023 results showed a decrease in net sales to $47.2 million, but an improvement in gross profit to $8.4 million and a reduced net loss of $(15.2) million. Adjusted EBITDA also improved to $(0.6) million. The company's restructuring plan and cost-saving efforts contributed to positive Adjusted EBITDA and Free Cash Flow for the full year 2023.
- Net sales decreased to $47.2 million compared to $61.5 million in the prior year period.
- Gross profit increased to $8.4 million compared to a gross loss of $(0.5) million in the prior year period, with gross profit margin increasing to 17.9%.
- Net loss improved to $(15.2) million compared to a net loss of $(35.3) million in the prior year period.
- Adjusted EBITDA improved to $(0.6) million compared to $(8.4) million in the prior year period.
Headline financials
Revenue & EPS history
Hydrofarm · Revenue · Quarterly
$47.2M
Forward guidance
The Company is providing the following outlook for the full fiscal year 2024: Net sales to decrease low to high teens in percentage terms. Adjusted EBITDA that is positive. Free Cash Flow that is positive.
Tailwinds
- Improved year-over-year Adjusted Gross Profit Margin resulting primarily from cost savings associated with restructuring 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 further 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.
Headwinds
- Net sales to decrease low to high teens in percentage terms.
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 Q4 2023
-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
| Quarter | Report date | Reaction (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 | — | — | — |
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