---
schema_version: "secwatch.filing_event.v1"
accession: "0001628280-23-028575"
form_type: "8-K"
ticker: "HYFM"
cik: "0001695295"
company_name: "HYDROFARM HOLDINGS GROUP, INC."
filed_at: "2023-08-09T23:59:59+00:00"
generated_at: "2026-06-11T22:37:30.734477+00:00"
event_type: "earnings"
sentiment: "positive"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Hydrofarm Q2 net sales down 35% to $63.1M; posts positive Adjusted EBITDA $2.5M, updates FY outlook

## Summary
- Net sales $63.1M vs $97.5M YoY; volume decline 32.5% due to cannabis oversupply.
- Gross margin expanded to 23.0% from 7.5%; adjusted gross margin 27.0%.
- Net loss $12.9M ($0.28/sh) vs $203.3M ($4.53) in prior year including $189.6M impairment.
- Adjusted EBITDA turned positive to $2.5M from -$6.8M; generated $8.3M free cash flow.
- FY2023 outlook: net sales ~$230-240M, modestly positive EBITDA, positive free cash flow.

## SEC filing metadata
- accession: 0001628280-23-028575
- form_type: 8-K
- ticker: HYFM
- cik: 0001695295
- company_name: HYDROFARM HOLDINGS GROUP, INC.
- filed_at: 2023-08-09T23:59:59+00:00
- event_type: earnings
- sentiment: positive
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 2.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1695295/000162828023028575/0001628280-23-028575-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1695295/000162828023028575/hyfm-20230809.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001628280-23-028575
- JSON: https://secwatch.observer/filing/0001628280-23-028575.json
- Plain text: https://secwatch.observer/filing/0001628280-23-028575.txt

## Key facts
- Earnings Releases
  HYDROFARM HOLDINGS GROUP, INC. reported full year 2023 results: revenue $230 million to $240 million.
  - Period: full year 2023
  - Revenue: $230 million to $240 million
  - Result: guidance update
  source text: The Company is updating its full year 2023 outlook: • Net sales of approximately $230 million to $240 million. • Adjusted EBITDA (1) that is modestly positive for the full year, consistent with previous expectations. • Free Cash Flow (1) that is positive for the full year, consistent with previous expectations.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1695295/000162828023028575/0001628280-23-028575-index.htm
- Earnings Releases
  HYDROFARM HOLDINGS GROUP, INC. reported the second quarter ended June 30, 2023 results: revenue $63.1 million, net income $12.9 million, EPS $(0.28) per diluted share.
  - Period: the second quarter ended June 30, 2023
  - Revenue: $63.1 million
  - Net income: $12.9 million
  - EPS: $(0.28) per diluted share
  - Result: reported results
  source text: Net sales in the second quarter of 2023 decreased to $63.1 million compared to $97.5 million in the second quarter of 2022, driven by a 32.5% decline in volume of products sold, a 2.3% decrease in price/mix of products sold, and a 0.5% decline from unfavorable foreign exchange rates. The decrease in volume of products sold was primarily related to oversupply in the cannabis industry. The reduction in price was mainly due to lower prices on specific previously reserved lighting products, as well as a higher mix of generally lower-priced consumables relative to higher-priced durable products. Gross profit increased to $14.5 million during the second quarter of 2023, compared to $7.3 million in the prior year period. The increase was primarily due to a $9.9 million reduction in inventory provisions compared to the prior year period. Gross profit margin percentage increased to 23.0% from 7.5% in the prior year. Gross profit and gross profit margin percentage also improved due to selling a
  evidence_url: https://www.sec.gov/Archives/edgar/data/1695295/000162828023028575/0001628280-23-028575-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.