📊 HYFM Key Takeaways
Is HYFM a Good Investment? Thesis Analysis
Hydrofarm is insolvent with negative equity of -$63.3M and liabilities exceeding assets by $63.3M. The company is burning cash at -$14.1M annually from operations while posting massive losses (-$289.8M net income) and faces a liquidity crisis with a current ratio of 0.37x, unable to meet short-term obligations. Revenue has collapsed 29.4% YoY while the company carries $111.9M in debt against only $6.3M in cash.
Why Buy HYFM? Key Strengths
- Maintains positive gross margin of 11.3% despite operational distress
- Retains $6.3M in cash for immediate liquidity needs
- Still generating $134.3M in annual revenue base for potential restructuring
HYFM Investment Risks to Consider
- Negative stockholders' equity of -$63.3M indicates balance sheet insolvency
- Current ratio of 0.37x and quick ratio of 0.13x show inability to meet short-term obligations
- Operating cash flow of -$14.1M and free cash flow of -$15.1M indicate unsustainable cash burn
- Operating margin of -206.3% and net margin of -215.9% demonstrate severe operational distress
- Debt service burden of $111.9M in long-term debt with inadequate cash reserves creates critical refinancing risk
- Revenue decline of 29.4% YoY shows deteriorating business fundamentals
- Zero insider Form 4 activity in 90 days may indicate lack of management confidence
Key Metrics to Watch
- Quarterly cash burn rate and path to cash flow breakeven
- Debt covenant compliance status and refinancing deadlines
- Revenue stabilization and gross margin sustainability
- Working capital trends and liquidity runway in months
HYFM Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
HYFM Profitability Ratios
HYFM vs Default Sector
How HYDROFARM HOLDINGS GROUP, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HYFM Overvalued or Undervalued?
Based on fundamental analysis, HYDROFARM HOLDINGS GROUP, INC. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HYFM Balance Sheet & Liquidity
HYFM 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: HYDROFARM HOLDINGS GROUP, INC.'s revenue has declined by 60% over the 5-year period, indicating business contraction. The most recent EPS of $-14.51 indicates the company is currently unprofitable.
HYFM Growth Metrics (YoY)
HYFM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $29.4M | -$13.1M | $-2.86 |
| Q2 2025 | $39.2M | -$16.9M | $-3.63 |
| Q1 2025 | $40.5M | -$12.6M | $-2.75 |
| Q3 2024 | $44.0M | -$13.1M | $-0.29 |
| Q2 2024 | $54.8M | -$12.9M | $-0.28 |
| Q1 2024 | $54.2M | -$12.6M | $-0.28 |
| Q3 2023 | $54.2M | -$19.9M | $-0.44 |
| Q2 2023 | $63.1M | -$12.9M | $-0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HYFM Capital Allocation
HYFM SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for HYDROFARM HOLDINGS GROUP, INC. (CIK: 0001695295)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HYFM
What is the AI rating for HYFM?
HYDROFARM HOLDINGS GROUP, INC. (HYFM) has an AI rating of STRONG SELL with 97% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HYFM's key strengths?
Claude: Maintains positive gross margin of 11.3% despite operational distress. Retains $6.3M in cash for immediate liquidity needs.
What are the risks of investing in HYFM?
Claude: Negative stockholders' equity of -$63.3M indicates balance sheet insolvency. Current ratio of 0.37x and quick ratio of 0.13x show inability to meet short-term obligations.
What is HYFM's revenue and growth?
HYDROFARM HOLDINGS GROUP, INC. reported revenue of $134.3M.
Does HYFM pay dividends?
HYDROFARM HOLDINGS GROUP, INC. does not currently pay dividends.
Where can I find HYFM SEC filings?
Official SEC filings for HYDROFARM HOLDINGS GROUP, INC. (CIK: 0001695295) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HYFM's EPS?
HYDROFARM HOLDINGS GROUP, INC. has a diluted EPS of $-62.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HYFM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, HYDROFARM HOLDINGS GROUP, INC. has a STRONG SELL rating with 97% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HYFM stock overvalued or undervalued?
Valuation metrics for HYFM: ROE of N/A (sector avg: 15%), net margin of -215.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HYFM stock in 2026?
Our dual AI analysis gives HYDROFARM HOLDINGS GROUP, INC. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HYFM's free cash flow?
HYDROFARM HOLDINGS GROUP, INC.'s operating cash flow is $-14.1M, with capital expenditures of $1.0M. FCF margin is -11.2%.
How does HYFM compare to other Default stocks?
Vs Default sector averages: Net margin -215.9% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.37 (avg: 1.8).