Hydrofarm Holdings Group Inc

Hydrofarm Holdings Group Inc presents a distressed capital structure characterized by negative total equity of -63.3 million USD and total liabilities of 187.1 million USD against total assets of 123.8 million USD. The company holds minimal cash and equivalents of 6.3 million USD, which is insufficient to cover its operating cash flow deficit of -14.1 million USD. With long-term debt reported at a negligible 50,000 USD, the balance sheet is dominated by non-debt liabilities, resulting in a debt-to-equity ratio of -0.0 and a negative enterprise value-to-revenue multiple of -0.02. The market capitalization stands at approximately 3.1 million USD, reflecting severe market skepticism regarding the company's solvency and future cash generation capabilities.

Profitability metrics indicate significant operational distress, with a net income loss of -289.8 million USD and an operating income loss of -276.9 million USD for the latest period. The gross profit of 15.2 million USD on revenue of 134.3 million USD suggests a gross margin of approximately 11.3%, which is likely insufficient to cover operating expenses given the magnitude of the operating loss. Return on assets is -2.34, and return on equity is reported as 4.58, a metric that is misleading due to the negative equity base and does not reflect true economic value creation. Without cohort median data for direct comparison, the absolute scale of the losses relative to the small revenue base indicates a fundamental breakdown in the current business model's unit economics.

Analysts project a 1,035% upside to a $7.50 target price from the current $0.66 market level.

The company ranks best-in-class for ROE at 4.58%, significantly outperforming the 0.09% Machinery cohort median.

Liquidity and dilution risks are assessed as low, suggesting manageable short-term solvency and share count stability.

Capex to revenue ratio of -0.76% is above the cohort median, indicating lower capital intensity requirements.

Operating and net margins sit in the bottom quartile of the Machinery cohort at -2.06% and -2.16% respectively.

The company faces high credit risk and high leverage, with a debt-to-equity ratio of -1.77.

Revenue $25.1M, −32,7% YoY; Operating income −1 465,5% YoY.

• ▍Revenue $25.1M, −32,7% YoY
• ▍Operating income −1 465,5% YoY
• ▍Net income −1 282,7% YoY
• ▍Free cash flow −2 217,6% YoY
• ▍Net margin -963.9%

Revenue $29.4M, −33,3% YoY; Operating income −43,4% YoY.

• ▍Revenue $29.4M, −33,3% YoY
• ▍Operating income −43,4% YoY
• ▍Net income −24,7% YoY
• ▍Free cash flow −46,5% YoY
• ▍Net margin -55.8%

Revenue $39.2M, −28,4% YoY; Operating income +30,9% YoY.

• ▍Revenue $39.2M, −28,4% YoY
• ▍Operating income +30,9% YoY
• ▍Net income +28,1% YoY
• ▍Free cash flow +39,4% YoY
• ▍Net margin -43.0%

Revenue $40.5M; Operating income -$11.0M.

• ▍Revenue $40.5M
• ▍Operating income -$11.0M
• ▍Net margin -35.5%

Revenue $37.3M; Operating income -$15.3M.

• ▍Revenue $37.3M
• ▍Operating income -$15.3M
• ▍Net margin -46.9%

Revenue $44.0M; Operating income -$9.0M.

• ▍Revenue $44.0M
• ▍Operating income -$9.0M
• ▍Net margin -29.9%

Revenue $54.8M; Operating income -$19.3M.

• ▍Revenue $54.8M
• ▍Operating income -$19.3M
• ▍Net margin -42.8%

Revenue $134.3M, −29,4% YoY; Operating income −428,9% YoY.

• ▍Revenue $134.3M, −29,4% YoY
• ▍Operating income −428,9% YoY
• ▍Net income −334,4% YoY
• ▍Free cash flow −586,0% YoY
• ▍Net margin -215.9%

Revenue $190.3M, −16,0% YoY; Operating income −5,3% YoY.

• ▍Revenue $190.3M, −16,0% YoY
• ▍Operating income −5,3% YoY
• ▍Net income −2,9% YoY
• ▍Free cash flow −5,3% YoY
• ▍Net margin -35.1%

Revenue $226.6M, −34,2% YoY; Operating income +82,3% YoY.

• ▍Revenue $226.6M, −34,2% YoY
• ▍Operating income +82,3% YoY
• ▍Net income +77,3% YoY
• ▍Free cash flow +85,3% YoY
• ▍Net margin -28.6%

Revenue $344.5M, −28,1% YoY; Operating income −8 238,0% YoY.

• ▍Revenue $344.5M, −28,1% YoY
• ▍Operating income −8 238,0% YoY
• ▍Net income −2 227,4% YoY
• ▍Free cash flow +42,6% YoY
• ▍Net margin -82.8%

Revenue $479.4M; Operating income -$3.4M.

• ▍Revenue $479.4M
• ▍Operating income -$3.4M
• ▍Net margin 2.8%