Hydrofarm Holdings Group, Inc. · NASDAQ:HYFM
Hydrofarm — Q1 2025 Earnings Presentation
15 slides from Hydrofarm's earnings presentation, May 13, 2025
Slide 1: First Quarter 2025 Earnings Presentation
F i r s t Q u a r te r 2 0 2 5 Earnings Presentation May 13th, 2025
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements. This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materi
Slide 3: Business Overview
B u s i n e s s O ve r v i ew
Slide 4: Focusing on our Strategic Priorities
Focusing on our Strategic Priorities Drive Diverse, High-Quality Revenue Streams • Improve Proprietary Brand Mix • Targeted Investments and New Proprietary Product Innovations • Expand Non-US/Canada and Non-Cannabis Sales Improve Profit Margins • Increase Production and Efficiency in our Manufac
Slide 5: First Quarter 2025 Highlights
First Quarter 2025 Highlights Sequential Improvement in Net Sales and Adj. Gross Profit Margin % • Reinvigorated focus on proprietary brand sales drove improved AGPM% vs. Q4 2024 • Relatively strong sales in key U.S. manufactured proprietary nutrient and grow media brands Significant Reductions in A
Slide 6: Update on FY2025 Outlook and Initiatives
Update on FY2025 Outlook and Initiatives Tariff Uncertainty • High tariffs on imported products from China, or new tariffs from other countries, could impact the cost of certain products and may negatively impact performance Initiating Product Portfolio Review to Improve Efficiency • Product portfol
Slide 7: Financial Overview
F i n a n c i a l O ve r v i ew
Slide 8: Financial Summary
Financial Summary 2024 2025 Three months ending ($ in thousands) Q1 Q1 Net Sales 54,172 40,534 Adjusted Gross Profit 12,665 8,532 % of Net Sales 23.4% 21.0% Adjusted SG&A 12,336 10,980 % of Net Sales 22.8% 27.1% Adjusted EBITDA 329 (2,448) % of Net Sales 0.6% (6.0)% Adjusted Gross Profit, Adjusted S
Slide 9: Trend in AGPM% and Adjusted SG&A
Trend in AGPM% and Adjusted SG&A Proprietary Brand Sales Mix and AGPM% Quarterly Adjusted SG&A Expense 60% 30% -16% 24.4% 24.3% -9% 23.4% 58% 24% 58% 21.0% -29% -31% -24% -20% -11% -10% -11% 57% Proprietary Mix % 56% 18% AGPM% 56% 9.6% 16.2M 55% 54% 12% 14.6M 12.0M 12.0M 12.3M 11.6M 10.7M 10.8M 11.0
Slide 10: Cash and Liquidity
Cash and Liquidity Balance Sheet Highlights as of March 31, 2025 USD millions Cash and cash equivalents $13.7 Liquidity $30.7 Total Debt $127.3 Net Debt $113.6 Cash Flow Highlights 3 months ended March 31, 2025 USD millions Net Cash Used in Operations $(11.8) Capital Expenditures $(0.2) Free Cash Fl
Slide 11: Debt Details
Debt Details Un-utilized Revolving Credit facility and Covenant-light Term Loan that does not mature until 2028 Revolving Line of Credit • $35 million maximum commitment (effective in Q1’25) • Zero borrowed and $17 million available as of March 31, 2025 • Adjusted Term SOFR Rate + grid-based spread
Slide 12: Appendix
: “3 : Appendix
Slide 13: Branded manufacturer and distributor serving the CEA market
Branded manufacturer and distributor serving the CEA (Controlled Environment Agriculture) market Selling to a fragmented …that reaches an evolving Hydrofarm’s Value Proposition customer base… mix of end users Proprietary brands Specialty hydroponic retailers Approx. 35 brands, including: Commercial
Slide 14: Strong proprietary brand portfolio with solutions across key categories
Strong proprietary brand portfolio with solutions across key categories We have end-to-end category coverage through innovative, Consumables Durables well-recognized proprietary and preferred brands Nutrients Grow Media Supplies Lighting Equipment Illustrative margin benefit as we improve proprietar
Slide 15: Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures ($ in thousands) 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
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