Hydrofarm Holdings Group, Inc. (HYFM) Q2 2025 Earnings Call Transcript
Net Sales $39.2 million, down 28.4% year-over-year, driven primarily by a 27.9% decline in volume mix and a 0.4% decline in pricing. The declines were primarily related to industry oversupply.
Gross Profit $2.8 million or 7.1% of net sales compared to $10.9 million or 19.8% of net sales in the year-ago period. Negatively impacted by $3.3 million of restructuring charges related to noncash inventory write-downs.
Adjusted Gross Profit $7.5 million or 19.2% of net sales compared to $13.3 million or 24.4% of net sales last year. The decrease was due to lower net sales and a decline in proprietary brand sales mix.
SG&A Expense $16.1 million compared to $18.7 million last year. Adjusted SG&A expenses were $9.8 million, a 16% reduction compared to $11.6 million last year, marking the 12th consecutive quarter of year-over-year adjusted SG&A savings.
Adjusted EBITDA Loss of $2.3 million in the second quarter, a decline from the prior year due to lower net sales and adjusted gross profit margin, partially offset by adjusted SG&A savings.
Cash Balance $11 million as of June 30, 2025. During the quarter, a $4.5 million prepayment was made on the term loan, leaving $114.5 million of principal balance on the term loan and approximately $122.6 million of total debt.
Free Cash Flow $1.4 million in the second quarter, driven by $1.7 million cash from operating activities and $0.3 million in capital expenditures. Sequential improvements in free cash flow were attributed to working capital benefits.
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Acknowledgment of Contributions: The Board of Directors expressed gratitude for Cole's leadership, highlighting his role in strengthening the company's operational foundation and expanding its global reach.
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Hydrofarm Holdings Group, Inc. (HYFM) Q2 2025 Earnings Call Transcript
Earnings Conference Call Overview: Hydrofarm Holdings Group, Inc. held its Q2 2025 earnings conference call on August 12, 2025, featuring CEO John Lindeman and CFO Kevin O'Brien, discussing the company's financial performance and future outlook.
Forward-Looking Statements Disclaimer: The call included forward-looking statements that are not guarantees of future performance and highlighted the importance of considering risks and uncertainties that could affect actual results, along with a mention of non-GAAP measures for evaluating performance.
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Hydrofarm Holdings Group, Inc. to Announce First Quarter 2025 Results on May 13, 2025
Conference Call Announcement: Hydrofarm Holdings Group, Inc. will host a conference call on May 13, 2025, at 8:30 AM ET to discuss its first quarter 2025 results, with a press release issued before market open that day.
Company Overview: Hydrofarm is a leading manufacturer and distributor of hydroponics equipment for controlled environment agriculture, aiming to enhance the productivity and efficiency of growers for over 40 years.
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Leadership Transition: Lee E. Cole will retire as President and CEO of Calavo Growers on December 8, 2025, after four decades of leadership, with B. John Lindeman appointed as his successor.
Acknowledgment of Contributions: The Board of Directors expressed gratitude for Cole's leadership, highlighting his role in strengthening the company's operational foundation and expanding its global reach.
Lindeman's Background: B. John Lindeman, who previously served as CFO of Calavo and has extensive industry experience, is expected to drive growth and create sustainable value for shareholders.
Ongoing Strategic Review: Calavo is currently evaluating strategic alternatives following a non-binding acquisition proposal received in June 2025, with no further comments planned until a specific development occurs.
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Bunge Global SA Earnings Report: Bunge Global reported adjusted earnings of $2.27 per share for Q3 2025, beating estimates despite a 1% year-over-year decline. However, its net revenues surged 71.6% to $22.16 billion but fell short of consensus expectations.
Upcoming Reports from Hydrofarm and BrightView: Hydrofarm is expected to report a revenue decline of 18.8% for Q3 2025, with an anticipated loss of $3.08 per share. BrightView is set to report a slight revenue decline for Q4 2025, with expected earnings of 32 cents per share.
Investment Insights: The article suggests that lesser-known AI firms may offer more lucrative investment opportunities compared to well-known stocks, highlighting the potential for significant profits in the evolving AI landscape.
Hydrofarm Holdings Group, Inc. (HYFM) Q2 2025 Earnings Call Transcript
Earnings Conference Call Overview: Hydrofarm Holdings Group, Inc. held its Q2 2025 earnings conference call on August 12, 2025, featuring CEO John Lindeman and CFO Kevin O'Brien, discussing the company's financial performance and future outlook.
Forward-Looking Statements Disclaimer: The call included forward-looking statements that are not guarantees of future performance and highlighted the importance of considering risks and uncertainties that could affect actual results, along with a mention of non-GAAP measures for evaluating performance.
L.B. Foster (FSTR) Q2 Earnings and Revenues Miss Estimates
Earnings Performance: L.B. Foster (FSTR) reported quarterly earnings of $0.27 per share, significantly missing the Zacks Consensus Estimate of $0.52, and has struggled with revenue estimates over the past four quarters, leading to a Zacks Rank #3 (Hold) for the stock.
Market Outlook: The company's shares have declined by 17.9% this year, contrasting with the S&P 500's gain, and future performance will depend on management's commentary and changes in earnings estimate revisions, particularly as the Steel - Producers industry ranks in the bottom 18% of Zacks industries.
Village Farms Surges 33% After Q1 Report - Hydrofarm, iAnthus, Ascend Focus On Margins, Cash Flow
Earnings Reports Overview: Several U.S. and Canadian cannabis companies reported their Q1 2025 earnings, highlighting challenges such as oversupply and regulatory uncertainty, with notable performances from Village Farms International, which saw a significant stock increase following a divestiture announcement.
Company Highlights: Hydrofarm experienced a decline in sales and widened losses, while iAnthus turned profitable due to asset sales; Ascend Wellness reported decreased revenues but maintained positive cash flow, and Village Farms showed strong growth in its Canadian cannabis segment despite overall losses.
Hydrofarm Holdings Group, Inc. to Announce First Quarter 2025 Results on May 13, 2025
Conference Call Announcement: Hydrofarm Holdings Group, Inc. will host a conference call on May 13, 2025, at 8:30 AM ET to discuss its first quarter 2025 results, with a press release issued before market open that day.
Company Overview: Hydrofarm is a leading manufacturer and distributor of hydroponics equipment for controlled environment agriculture, aiming to enhance the productivity and efficiency of growers for over 40 years.
