Hydrofarm Holdings Group Announces Fourth Quarter and Full Year 2024 Results
Rhea-AI Summary
Hydrofarm Holdings Group (NASDAQ: HYFM) has released its Q4 and full-year 2024 financial results, showing continued challenges in the hydroponics industry. Q4 net sales declined 20.9% to $37.3 million from $47.2 million year-over-year, while full-year 2024 revenue decreased to $190.3 million from $226.6 million.
The company reported a Q4 net loss of $17.5 million, compared to $15.2 million in the previous year. Full-year net loss increased to $66.7 million. Despite challenges, the company achieved positive Q4 operating cash flow of $2.7 million and maintained zero balance on its Revolving Credit Facility.
For 2025 outlook, Hydrofarm expects net sales to decrease 10-20%, with negative but improved Adjusted EBITDA and Free Cash Flow compared to 2024. The company has successfully increased its proprietary brands sales mix to 56% in 2024 from 35% in 2020, while reducing manufacturing footprint by nearly 60% since early 2023.
Positive
- Generated positive Q4 operating cash flow of $2.7M
- Increased proprietary brands mix to 56% from 35% in 2020
- Achieved $9M in SG&A expense savings in 2024
- Maintained zero balance on Revolving Credit Facility
- Reduced manufacturing footprint by 60% while maintaining quality
Negative
- Q4 net sales declined 20.9% to $37.3M
- Q4 net loss increased to $17.5M from $15.2M
- Full year 2024 net loss increased to $66.7M
- Q4 Gross Profit Margin decreased to 4.9% from 17.9%
- Negative Free Cash Flow of $3.2M for full year 2024
- Forecasting 10-20% revenue decline for 2025
News Market Reaction 1 Alert
On the day this news was published, HYFM declined 20.92%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SHOEMAKERSVILLE, Pa., March 05, 2025 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the “Company”) (Nasdaq: HYFM), a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture, today announced financial results for its fourth quarter and fiscal year ended December 31, 2024.
Fourth Quarter Highlights vs. Prior Year Period:
- Net sales decreased to
$37.3 million compared to$47.2 million . - Gross Profit and Adjusted Gross Profit(1) of
$1.8 million and$3.6 million . - Gross Profit Margin decreased to
4.9% of net sales compared to17.9% . - Adjusted Gross Profit Margin(1) decreased to
9.6% of net sales compared to24.3% . - SG&A expense and Adjusted SG&A(1) expense decreased by (14.7)% and (9.8)%, respectively.
- Net loss increased to
$17.5 million compared to$15.2 million . - Adjusted EBITDA(1) of
$(7.3) million compared to$(0.6) million . - Gross Profit, Net Loss, Adjusted Gross Profit(1) and Adjusted EBITDA(1) were negatively impacted by approximately
$1.4 million , or3.8% of net sales, due to inventory reserves and related changes. - Cash generated from operating activities and Free Cash Flow(1) were
$2.7 million and$2.4 million , respectively.
Fiscal Year 2024 Highlights vs. Prior Year Period:
- Net sales decreased to
$190.3 million compared to$226.6 million . - Gross Profit and Adjusted Gross Profit(1) of
$32.1 million and$40.3 million , respectively. - Gross Profit Margin increased to
16.9% of net sales compared to16.6% . - Adjusted Gross Profit Margin(1) decreased to
21.2% of net sales compared to24.3% . - SG&A expense and Adjusted SG&A(1) expense decreased by (16.6)% and (16.9)%, respectively.
- Net loss increased to
$66.7 million compared to$64.8 million . - Adjusted EBITDA(1) of
$(5.2) million compared to$0.3 million . - Cash used in operating activities and Free Cash Flow(1) were
$(0.3) million and$(3.2) million , respectively.
(1) Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted SG&A, Adjusted SG&A as a percent of net sales, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. For a description of our non-GAAP measures see the “Non-GAAP Measures” section accompanying this release; and for reconciliations of GAAP to non-GAAP measures see the “Reconciliation of Non-GAAP Measures” accompanying this release.
John Lindeman, Chief Executive Officer of Hydrofarm, said, "In 2024, we delivered over
Fourth Quarter 2024 Financial Results
Net sales in the fourth quarter of 2024 decreased
Gross Profit decreased to
Selling, general and administrative (“SG&A”) expense was
Net loss was
Adjusted EBITDA(1) decreased to
Balance Sheet, Liquidity and Cash Flow
As of December 31, 2024, the Company had
The Company generated net cash from operating activities of
For the full year 2024, cash used in operating activities was
Full Year 2025 Outlook
The Company is providing the following outlook for the full fiscal year 2025:
- Net sales to decrease ten to twenty (10
-20% ) percent. - Adjusted EBITDA(1) that is negative, but improved from 2024.
- Free Cash Flow(1) that is negative, but improved from 2024.
Hydrofarm’s 2025 outlook is predicated on several assumptions, including:
- Improved year-over-year Adjusted Gross Profit Margin resulting primarily from an expectation of (i) a higher full year proprietary brand sales mix, (ii) continued benefit from cost savings associated with 2024 restructuring and related productivity initiatives as well as new cost savings planned for 2025, (iii) minimal non-restructuring inventory reserves or related charges.
- Reduced year-over-year Adjusted SG&A expense resulting from full year benefit of reductions completed in 2024 and further reductions in professional and outside service fees, facilities and insurance expense.
- Further reduction in inventory and net working capital for the full year.
- Capital expenditures of less than
$2 million .
(1) Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted SG&A, Adjusted SG&A as a percent of net sales, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. For a description of our non-GAAP measures see the “Non-GAAP Measures” section accompanying this release; and for reconciliations of GAAP to non-GAAP measures see the “Reconciliation of Non-GAAP Measures” accompanying this release.
Conference Call and Presentation
The Company will host a conference call to discuss financial results for the fourth quarter and full year 2024 today at 8:30 a.m. Eastern Time. John Lindeman, Chief Executive Officer, and Kevin O'Brien, Chief Financial Officer, will host the call. An earnings presentation is also available for reference on the Hydrofarm investor relations website.
The conference call can be accessed live over the phone by dialing 1-800-343-5172 and entering the conference ID: HYFMQ4. The conference call will also be webcast live and archived on the Company's investor relations website at https://investors.hydrofarm.com/ under the “News & Events” section.
About Hydrofarm Holdings Group, Inc.
Hydrofarm is a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture, including grow lights, climate control solutions, grow media and nutrients, as well as a broad portfolio of innovative proprietary branded products. For over 40 years, Hydrofarm has helped growers make growing easier and more productive. The Company’s mission is to empower growers, farmers and cultivators with products that enable greater quality, efficiency, consistency and speed in their grow projects.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this press release, other than statements of historical fact, which address activities, events and developments that the Company expects or anticipates will or may occur in the future, including, but not limited to, information regarding the future economic performance and financial condition of the Company, the plans and objectives of the Company’s management, and the Company’s assumptions regarding such performance and plans are “forward-looking statements” within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as statements that include phrases such as “guidance,” “outlook,” “projected,” “believe,” “target,” “predict,” “estimate,” “forecast,” “strategy,” “may,” “goal,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Actual results could differ materially from the forward-looking information in this release due to a variety of factors, including, but not limited to:
The market in which the Company operates has been substantially adversely impacted by conditions of the agricultural and cannabis industries, including oversupply and decreasing prices of the products the Company's end customers sell, which, in turn, has materially adversely impacted the Company's sales and other results of operations and which may continue to do so in the future; If industry conditions worsen or are sustained for a lengthy period, the Company could be forced to take additional impairment charges and/or inventory and accounts receivable reserves, which could be substantial, and, ultimately, the Company may face liquidity challenges; The Company’s Revolving Credit Facility and future debt facilities may limit the operation of the Company’s business including restricting its ability to sell products directly to the cannabis industry; Although equity financing may be available, the Company's current stock prices are at depressed levels and any such financing would be dilutive; Interruptions in the Company's supply chain could adversely impact expected sales growth and operations; Increased prices and inflation could adversely impact the Company's performance and financial results; Global political and economic conditions including the imposition of potential tariffs could increase the costs of the Company's products and adversely impact the competitiveness of the Company's products and the Company's financial results; The Company may be unable to meet the continued listing standards of Nasdaq; The Company's restructuring activities may increase our expenses and cash expenditures, and may not have the intended cost saving effects; The highly competitive nature of the Company’s markets could adversely affect its ability to maintain or grow revenues; Certain of the Company’s products may be purchased for use in new or emerging industries or segments, including the cannabis industry, and/or be subject to varying, inconsistent, and rapidly changing laws, regulations, administrative and enforcement approaches, and consumer perceptions which may adversely impact the market for the Company’s products; The market for the Company’s products has been impacted by conditions impacting its customers, including related crop prices, climate change, and other factors impacting growers; Compliance with government laws and regulations including environmental and other public health regulations or changes in such regulations or regulatory enforcement priorities could increase the Company’s costs of doing business or limit the Company’s ability to market all of its products; Damage to the Company’s reputation or the reputation of its products or products it markets on behalf of third parties could have an adverse effect on its business; If the Company is unable to effectively execute its e-commerce business, its reputation and operating results may be harmed; The Company’s operations may be impaired if its information technology systems fail to perform adequately or if it is the subject of a data breach or cyber-attack; The Company may not be able to adequately protect its intellectual property and other proprietary rights that are material to the Company’s business; Acquisitions, other strategic alliances and investments could result in operating and integration difficulties, dilution and other harmful consequences that may adversely impact the Company’s business and results of operations. Additional detailed information concerning a number of the important factors that could cause actual results to differ materially from the forward-looking information contained in this release is readily available in the Company’s annual, quarterly and other reports. The Company disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments except as otherwise required by law.
Contacts:
Investor Contact
Anna Kate Heller / ICR
ir@hydrofarm.com
| Hydrofarm Holdings Group, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except share and per share amounts) | ||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 37,314 | $ | 47,184 | $ | 190,288 | $ | 226,581 | ||||||||
| Cost of goods sold | 35,476 | 38,735 | 158,155 | 188,969 | ||||||||||||
| Gross profit | 1,838 | 8,449 | 32,133 | 37,612 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 16,958 | 19,872 | 72,794 | 87,314 | ||||||||||||
| Loss on asset disposition | — | — | 11,520 | — | ||||||||||||
| Loss from operations | (15,120 | ) | (11,423 | ) | (52,181 | ) | (49,702 | ) | ||||||||
| Interest expense | (3,585 | ) | (4,019 | ) | (15,237 | ) | (15,442 | ) | ||||||||
| Other income, net | 1,196 | 96 | 1,570 | 118 | ||||||||||||
| Loss before tax | (17,509 | ) | (15,346 | ) | (65,848 | ) | (65,026 | ) | ||||||||
| Income tax (expense) benefit | (4 | ) | 131 | (869 | ) | 213 | ||||||||||
| Net loss | $ | (17,513 | ) | $ | (15,215 | ) | $ | (66,717 | ) | $ | (64,813 | ) | ||||
| Net loss per share(1): | ||||||||||||||||
| Basic | $ | (3.80 | ) | $ | (3.33 | ) | $ | (14.51 | ) | $ | (14.24 | ) | ||||
| Diluted | $ | (3.80 | ) | $ | (3.33 | ) | $ | (14.51 | ) | $ | (14.24 | ) | ||||
| Weighted-average shares of common stock outstanding(1): | ||||||||||||||||
| Basic | 4,607,762 | 4,566,195 | 4,598,640 | 4,550,836 | ||||||||||||
| Diluted | 4,607,762 | 4,566,195 | 4,598,640 | 4,550,836 | ||||||||||||
| (1) Net loss per share and Weighted-average shares of common stock outstanding amounts have been adjusted to give retroactive effect to the 1-for-10 reverse stock split effected on February 12, 2025. | ||||||||||||||||
| Hydrofarm Holdings Group, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share amounts) | ||||||||
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| Assets | | | ||||||
| Current assets: | | | ||||||
| Cash and cash equivalents | $ | 26,111 | $ | 30,312 | ||||
| Accounts receivable, net | 14,756 | 16,890 | ||||||
| Inventories | 50,633 | 75,354 | ||||||
| Prepaid expenses and other current assets | 3,712 | 5,510 | ||||||
| Total current assets | 95,212 | 128,066 | ||||||
| Property, plant and equipment, net | 37,545 | 47,360 | ||||||
| Operating lease right-of-use assets | 42,869 | 54,494 | ||||||
| Intangible assets, net | 249,002 | 275,881 | ||||||
| Other assets | 1,476 | 1,842 | ||||||
| Total assets | $ | 426,104 | $ | 507,643 | ||||
| Liabilities and stockholders’ equity | | | ||||||
| Current liabilities: | | | ||||||
| Accounts payable | $ | 12,279 | $ | 12,613 | ||||
| Accrued expenses and other current liabilities | 10,647 | 9,529 | ||||||
| Deferred revenue | 2,611 | 3,231 | ||||||
| Current portion of operating lease liabilities | 7,731 | 8,336 | ||||||
| Current portion of finance lease liabilities | 459 | 954 | ||||||
| Current portion of long-term debt | 1,260 | 2,989 | ||||||
| Total current liabilities | 34,987 | 37,652 | ||||||
| Long-term operating lease liabilities | 37,553 | 47,506 | ||||||
| Long-term finance lease liabilities | 7,830 | 8,734 | ||||||
| Long-term debt | 114,693 | 115,412 | ||||||
| Deferred tax liabilities | 3,047 | 3,232 | ||||||
| Other long-term liabilities | 4,272 | 4,497 | ||||||
| Total liabilities | 202,382 | 217,033 | ||||||
| Commitments and contingencies | | | ||||||
| Stockholders’ equity | | | ||||||
| Common stock ( | — | — | ||||||
| Additional paid-in capital | 790,094 | 787,851 | ||||||
| Accumulated other comprehensive loss | (8,911 | ) | (6,497 | ) | ||||
| Accumulated deficit | (557,461 | ) | (490,744 | ) | ||||
| Total stockholders’ equity | 223,722 | 290,610 | ||||||
| Total liabilities and stockholders’ equity | $ | 426,104 | $ | 507,643 | ||||
| Hydrofarm Holdings Group, Inc. RECONCILIATION OF NON-GAAP MEASURES (In thousands, except share and per share amounts) (Unaudited) | ||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of Adjusted Gross Profit: | ||||||||||||||||
| Gross Profit (GAAP) | $ | 1,838 | $ | 8,449 | $ | 32,133 | $ | 37,612 | ||||||||
| Depreciation, depletion and amortization | 1,362 | 1,677 | 6,222 | 6,584 | ||||||||||||
| Restructuring expenses1 | 388 | 1,263 | 1,946 | 10,664 | ||||||||||||
| Severance and other2 | 5 | 79 | 5 | 155 | ||||||||||||
| Adjusted Gross Profit (Non-GAAP) | $ | 3,593 | $ | 11,468 | $ | 40,306 | $ | 55,015 | ||||||||
| As a percent of net sales: | ||||||||||||||||
| Gross Profit Margin (GAAP) | 4.9 | % | 17.9 | % | 16.9 | % | 16.6 | % | ||||||||
| Adjusted Gross Profit Margin (Non-GAAP) | 9.6 | % | 24.3 | % | 21.2 | % | 24.3 | % | ||||||||
Gross Profit (GAAP) and Adjusted Gross Profit (Non-GAAP) for the three months and year ended December 31, 2024, were negatively impacted by
Gross Profit (GAAP) and Adjusted Gross Profit (Non-GAAP) for the year ended December 31, 2023, were negatively impacted by
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of Adjusted SG&A: | ||||||||||||||||
| Selling, general and administrative (GAAP) | $ | 16,958 | $ | 19,872 | $ | 72,794 | $ | 87,314 | ||||||||
| Depreciation, depletion and amortization | 6,005 | 6,233 | 24,469 | 25,491 | ||||||||||||
| Restructuring expenses1 | 114 | 204 | 277 | 605 | ||||||||||||
| Severance and other2 | (99 | ) | 348 | 165 | 1,304 | |||||||||||
| Stock-based compensation3 | 93 | 1,057 | 2,399 | 5,114 | ||||||||||||
| Acquisition and integration expenses | — | 12 | — | 51 | ||||||||||||
| Adjusted SG&A (Non-GAAP) | $ | 10,845 | $ | 12,018 | $ | 45,484 | $ | 54,749 | ||||||||
| As a percent of net sales: | ||||||||||||||||
| SG&A (GAAP) | 45.4 | % | 42.1 | % | 38.3 | % | 38.5 | % | ||||||||
| Adjusted SG&A (Non-GAAP) | 29.1 | % | 25.5 | % | 23.9 | % | 24.2 | % | ||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of Adjusted EBITDA: | ||||||||||||||||
| Net loss (GAAP) | $ | (17,513 | ) | $ | (15,215 | ) | $ | (66,717 | ) | $ | (64,813 | ) | ||||
| Interest expense | 3,585 | 4,019 | 15,237 | 15,442 | ||||||||||||
| Income tax expense (benefit) | 4 | (131 | ) | 869 | (213 | ) | ||||||||||
| Depreciation, depletion and amortization | 7,367 | 7,910 | 30,691 | 32,075 | ||||||||||||
| Restructuring expenses1 | 502 | 1,467 | 2,223 | 11,269 | ||||||||||||
| Severance and other2 | (94 | ) | 427 | 170 | 1,459 | |||||||||||
| Stock-based compensation3 | 93 | 1,057 | 2,399 | 5,114 | ||||||||||||
| Acquisition and integration expenses | — | 12 | — | 51 | ||||||||||||
| Other income, net4 | (1,196 | ) | (96 | ) | (1,570 | ) | (118 | ) | ||||||||
| Loss on asset disposition5 | — | — | 11,520 | — | ||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | (7,252 | ) | $ | (550 | ) | $ | (5,178 | ) | $ | 266 | |||||
| As a percent of net sales: | ||||||||||||||||
| Net loss (GAAP) | (46.9) | % | (32.2) | % | (35.1) | % | (28.6) | % | ||||||||
| Adjusted EBITDA (Non-GAAP) | (19.4) | % | (1.2) | % | (2.7) | % | 0.1 | % | ||||||||
Net loss (GAAP) and Adjusted EBITDA (Non-GAAP) for the three months and year ended December 31, 2024, were negatively impacted by
Net loss (GAAP) and Adjusted EBITDA (Non-GAAP) for the year ended December 31, 2023, were negatively impacted by
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Reconciliation of Free Cash Flow6: | ||||||||||||||||
| Net cash (used in) from operating activities (GAAP)6: | $ | 2,656 | $ | (1,585 | ) | $ | (324 | ) | $ | 7,044 | ||||||
| Capital expenditures of Property, plant and equipment (GAAP) | (270 | ) | (159 | ) | (2,892 | ) | (4,215 | ) | ||||||||
| Free Cash Flow (Non-GAAP)6: | $ | 2,386 | $ | (1,744 | ) | $ | (3,216 | ) | $ | 2,829 | ||||||
Notes to GAAP to Non-GAAP reconciliations presented above (Adjusted Gross Profit, Adjusted SG&A, Adjusted EBITDA, and Free Cash Flow):
- For the three and twelve months ended December 31, 2024, and December 31, 2023, Restructuring expenses related primarily to non-cash inventory markdowns associated with manufacturing facility consolidations, and the charges incurred to relocate and terminate certain facilities.
- For the three and twelve months ended December 31, 2024, Severance and other charges primarily related to estimated net legal costs related to certain litigation and severance charges. For the three and twelve months ended December 31, 2023, Severance and other charges primarily related to workforce reductions and charges in conjunction with a sale-leaseback transaction during the first quarter of 2023.
- Includes stock-based compensation and related employer payroll taxes on stock-based compensation for the periods presented.
- Other income, net related primarily to foreign currency exchange rate gains and losses and other non-operating income and expenses. For the three and twelve months ended December 31, 2024, Other income, net also included a cash settlement arising from an outstanding litigation matter of a previously acquired entity. For the twelve months ended December 31, 2023, Other income, net also included charges from Amendment No. 1 to the Company's Term Loan.
- Loss on asset disposition for the twelve months ended December 31, 2024, relates to the sale in the second quarter of 2024 of the inventories, and property, plant and equipment associated with the Company's Innovative Growers Equipment ("IGE") branded products to CM Fabrication, LLC (the "Asset Sale").
- The total gross proceeds associated with the IGE Asset Sale were
$8.7 million , of which the Company estimated and classified$5.0 million in Net cash from operating activities, and$3.7 million in Investing activities, as these cash flows were associated with the sale of inventory and property, plant and equipment, respectively. The cash proceeds classified within Net cash from operating activities were partially offset by$1.3 million cash paid to terminate the associated facility lease and cash transaction costs paid during the period. As a result, the Asset Sale contributed an estimated$3.5 million to Net cash from operating activities and Free Cash Flow during the twelve months ended December 31, 2024. In addition, in connection with the Asset Sale, the Company paid$0.7 million to terminate certain equipment finance leases and classified this cash outflow within Financing activities for the twelve months ended December 31, 2024. In total, the IGE Asset Sale contributed net cash proceeds, after repayment of certain lease liabilities and transaction expenses, of an estimated$6.3 million . In 2023, gross proceeds of$8.6 million received during the twelve months ended December 31, 2023, from a sale-leaseback of real estate located in Eugene, Oregon, was classified as a Financing activity and is not reflected in Net cash from operating activities or Free Cash Flow in the prior year period.
Non-GAAP Financial Measures
We report our financial results in accordance with generally accepted accounting principles in the U.S. (“GAAP”). Management believes that certain non-GAAP financial measures provide investors with additional useful information in evaluating our performance and that excluding certain items that may vary substantially in frequency and magnitude period-to-period from net loss provides useful supplemental measures that assist in evaluating our ability to generate earnings and to more readily compare these metrics between past and future periods. These non-GAAP financial measures may be different than similarly titled measures used by other companies.
To supplement our condensed consolidated financial statements which are prepared in accordance with GAAP, we use "Adjusted EBITDA", "Adjusted Gross Profit", "Adjusted SG&A", "Free Cash Flow", "Net Debt", and "Liquidity" which are non-GAAP financial measures. We also present certain of these non-GAAP metrics as a percentage of net sales. Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP. There are several limitations related to the use of our non-GAAP financial measures as compared to the closest comparable GAAP measures.
We define Adjusted EBITDA (non-GAAP) as net loss (GAAP) excluding interest expense, income taxes, depreciation, depletion and amortization, stock-based compensation including employer payroll taxes on stock-based compensation, restructuring expenses, impairments, severance, loss on asset disposition, other income/expense, net, and other non-cash, unusual and/or infrequent costs (i.e., acquisition and integration expenses), which we do not consider in our evaluation of ongoing operating performance.
We define Adjusted EBITDA (non-GAAP) as a percent of net sales as Adjusted EBITDA (as defined above) divided by net sales in the respective period.
We define Adjusted Gross Profit (non-GAAP) as Gross Profit (GAAP) excluding depreciation, depletion, and amortization, restructuring expenses, severance and other expenses, and other non-cash, unusual and/or infrequent costs, which we do not consider in our evaluation of ongoing operating performance.
We define Adjusted Gross Profit Margin (non-GAAP) as a percent of net sales as Adjusted Gross Profit (as defined above) divided by net sales in the respective period.
We define Adjusted SG&A (non-GAAP) as SG&A (GAAP) excluding depreciation, depletion, and amortization, stock-based compensation including employer payroll taxes on stock-based compensation, restructuring expenses, severance and other expenses, and other non-cash, unusual and/or infrequent costs (i.e., acquisition and integration expenses), which we do not consider in our evaluation of ongoing operating performance.
We define Adjusted SG&A (non-GAAP) as a percent of net sales as Adjusted SG&A (as defined above) divided by net sales in the respective period.
We define Free Cash Flow (non-GAAP) as Net cash from (used in) operating activities less capital expenditures for property, plant and equipment. We believe this provides additional insight into the Company's ability to generate cash and maintain liquidity. However, Free Cash Flow does not represent funds available for investment or other discretionary uses since it does not deduct cash used to service our debt or other cash flows from financing activities or investing activities.
We define Liquidity as total cash, cash equivalents and restricted cash, if applicable, plus available borrowing capacity on our Revolving Credit Facility.
We define Net Debt as total debt principal outstanding plus finance lease liabilities and other debt, less cash, cash equivalents and restricted cash, if applicable.
FAQ
What caused Hydrofarm's (HYFM) revenue decline in Q4 2024?
How much did HYFM's proprietary brand sales mix improve from 2020 to 2024?
What is Hydrofarm's (HYFM) cash position and debt status as of December 31, 2024?
What are HYFM's revenue projections for 2025?
How much did Hydrofarm reduce its manufacturing footprint since early 2023?
