Hydrofarm Holdings Group Inc. Common Stock (HYFM)

FairStock Score: 15/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn durable profits and sell below intrinsic value. Hydrofarm fails the first test. Revenue fell from $226.6 million in FY2023 to $190.3 million in FY2024 and then to $134.3 million in FY2025. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $23.2 million and net loss was $10.6 million, versus $39.2 million of revenue and a $16.9 million net loss in fiscal Q2 2025. The FY2025 net loss was $289.8 million. This is not a mild dip; it is a shrinking distributor of hydroponics equipment exposed to cannabis cultivation, with little apparent pricing power. FairStock calculations as of the 2026-10-13 close show a negative P/E of -0.01, ROE of -535.51%, ROCE of -7.81%, Piotroski F-Score of 4/9, and an Altman Z-Score of -13.30, which points to financial distress. Trailing free cash flow is -$5.3 million, a -140.9% FCF yield on the $3.8 million market cap. The computed Lynch category is none because the company lost money in each of the last four years. At $0.78, the market cap is tiny, and a low price can seduce. Yet Graham warned that a bargain must be measured against proven earning power and assets, not hope. Here P/B is not available, and the company has no demonstrated path to profit. It may be an option on recovery; it is not a value investment by my standards.

In plain English: Hydrofarm sells equipment and supplies for growing plants indoors, including cannabis. The business is weak: sales are shrinking, it has lost money for years, and it is burning cash. At 78 cents a share on 2026-10-13, the price looks very cheap on the surface, but the heavy losses make it risky rather than a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer