Zinger Key Points
- Net Sales: Down 18.8% year-over-year, totaling $44.0 million.
- Net Loss: Improved to $13.1 million, compared to $19.9 million last year, driven by reduced SG&A expenses.
- The ‘Trade of the Day’ is now live. Get a high-probability setup with clear entry and exit points right here.
Hydrofarm Holdings Group HYFM posted its Q3 2024 results, showing mixed performance with a drop in net sales but improved gross margins.
- Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. You can’t afford to miss out if you're serious about the business.
Key Financial Highlights
- Net Sales: Down 18.8% year-over-year, totaling $44.0 million, primarily due to lower demand in the cannabis sector.
- Gross Profit Margin: Increased significantly to 19.4% (from 6.1%), attributed to cost-saving measures and a higher mix of proprietary brands.
- Net Loss: Improved to $13.1 million, compared to $19.9 million last year, driven by reduced SG&A expenses.
- Adjusted EBITDA: Stayed positive but decreased to below $0.1 million, influenced by declining net sales but offset by lower operating costs.
Cash Flow And Liquidity
The company ended Q3 with $24.4 million in cash and $17 million in available credit. Free Cash Flow for the quarter was negative, at $(5.3) million, largely due to adjustments in working capital.
Outlook
Hydrofarm reaffirmed its 2024 guidance, targeting positive Adjusted EBITDA and Free Cash Flow for the year, despite a challenging market environment. CEO Bill Toler highlighted continued focus on proprietary brands and operational efficiency as key drivers of margin growth.
These results underscore Hydrofarm’s cautious but optimistic approach, balancing cost management with strategic growth initiatives amidst industry pressures.
Price Action
Hydrofarm traded down 4.66% at $0.56 when the market opened on Thursday.
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving—don’t get left behind!
Curious about what’s next for the industry and how to stay ahead in today’s competitive market?
Join top executives, investors, and industry leaders at the Benzinga Cannabis Capital Conference in Chicago on June 9-10. Dive deep into market-shaping strategies, investment trends, and brand-building insights that will define the future of cannabis.
Secure your spot now before prices go up—this is where the biggest deals and connections happen!