📊 HYFM Key Takeaways
Is Hydrofarm Holdings Group, Inc.. (HYFM) a Good Investment?
Hydrofarm faces imminent financial distress with negative stockholders equity of -$78.1M (technically insolvent), collapsing revenue (-29.4% YoY), and catastrophic cash burn. With only $4.8M cash against -$778K FCF, critical liquidity ratios (0.33x current, 0.14x quick), and $114.5M debt that cannot be serviced from operations, bankruptcy risk is elevated.
Fundamentals indicate severe financial distress: revenue is contracting sharply, gross margins are slim, and operating and net losses are extreme. Liquidity is critically weak (current ratio 0.37x, cash $6.3M) alongside high leverage and negative interest coverage, creating near-term solvency risk. Without a recapitalization and clear improvements in margins and operating cash flow, downside risk dominates.
Why Buy Hydrofarm Holdings Group, Inc.. Stock? HYFM Key Strengths
- Company maintains asset base of $117.8M with potential liquidation value
- Continued revenue generation ($28.5M) provides some operational foundation
- Exists in wholesale distribution sector with established market presence
- Low capital expenditure requirements provide flexibility
- Positive gross profit offers a base for potential margin repair
- Existing asset base may support restructuring efforts
HYFM Stock Risks: Hydrofarm Holdings Group, Inc.. Investment Risks
- Negative stockholders equity of -$78.1M indicates technical insolvency
- Severe cash depletion risk with only $4.8M liquidity against -$778K FCF burn rate
- Revenue collapsing 29.4% YoY with 51.2% net loss margin is unsustainable
- Dangerously low liquidity ratios (0.33x current, 0.14x quick) cannot service obligations
- High debt burden of $114.5M with negative interest coverage of -2.2x
- Operating cash flow negative, indicating core business cannot fund operations
- Acute liquidity risk given sub-1.0 current and quick ratios
- High leverage with negative equity and interest coverage implies default/dilution risk
- Continued revenue decline and low gross margin constrain path to profitability
Key Metrics to Watch
- Cash balance depletion rate and runway to insolvency
- Revenue stabilization and gross margin recovery
- Operating cash flow return to positive territory
- Debt restructuring or refinancing announcements
- Asset impairment charges or going concern qualifications in filings
- Current ratio
- Operating cash flow
Hydrofarm Holdings Group, Inc.. (HYFM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
HYFM Profit Margin, ROE & Profitability Analysis
HYFM vs Market Sector: How Hydrofarm Holdings Group, Inc.. Compares
How Hydrofarm Holdings Group, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hydrofarm Holdings Group, Inc.. Stock Overvalued? HYFM Valuation Analysis 2026
Based on fundamental analysis, Hydrofarm Holdings Group, Inc.. has mixed fundamental signals relative to the Market 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.
Hydrofarm Holdings Group, Inc.. Balance Sheet: HYFM Debt, Cash & Liquidity
HYFM Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
HYFM Quarterly Earnings & 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.
Hydrofarm Holdings Group, Inc.. Dividends, Buybacks & Capital Allocation
HYFM SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 94% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HYFM's key strengths?
Claude: Company maintains asset base of $117.8M with potential liquidation value. Continued revenue generation ($28.5M) provides some operational foundation. ChatGPT: Low capital expenditure requirements provide flexibility. Positive gross profit offers a base for potential margin repair.
What are the risks of investing in HYFM?
Claude: Negative stockholders equity of -$78.1M indicates technical insolvency. Severe cash depletion risk with only $4.8M liquidity against -$778K FCF burn rate. ChatGPT: Acute liquidity risk given sub-1.0 current and quick ratios. High leverage with negative equity and interest coverage implies default/dilution risk.
What is HYFM's revenue and growth?
Hydrofarm Holdings Group, Inc.. reported revenue of $28.5M.
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 $-3.07.
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 May 2026, Hydrofarm Holdings Group, Inc.. has a STRONG SELL rating with 94% 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 -51.2% (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 $-759.0K, with capital expenditures of $19.0K. FCF margin is -2.7%.
How does HYFM compare to other Market stocks?
Vs Default sector averages: Net margin -51.2% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.33 (avg: 1.8).