Revenue: As of FY2025 Q3, the actual value is USD 29.35 M, missing the estimate of USD 35.73 M.EPS: As of FY2025 Q3, the actual value is USD -3.51.EBIT: As of FY2025 Q3, the actual value is USD -9.625 M.<h3>Financial Data and Outlook Summary</h3><h4>Segment Revenue</h4><ul><li>Net Sales: Decreased to $29.4 million compared to $44.0 million in the prior year period, a decline of 33.3%.</li></ul><h4>Operational Metrics</h4><ul><li>Gross Profit: Decreased to $3.4 million, or 11.6% of net sales, compared to $8.5 million, or 19.4% of net sales, in the prior year period.</li><li>Adjusted Gross Profit: Decreased to $5.5 million, or 18.8% of net sales, compared to $10.7 million, or 24.3% of net sales, in the prior year period.</li><li>SG&amp;A Expense: Improved to $16.4 million, compared to $17.6 million in the prior year period.</li><li>Adjusted SG&amp;A Expense: Improved to $9.9 million compared to $10.7 million in the prior year period.</li><li>Net Loss: Increased to $16.4 million, or -$3.51 per diluted share, compared to a net loss of $13.1 million, or -$2.86 per diluted share in the prior year period.</li><li>Adjusted EBITDA: Decreased to -$4.4 million, compared to less than $0.1 million in the prior year period.</li></ul><h4>Cash Flow</h4><ul><li>Cash Used in Operating Activities: Less than $0.1 million.</li><li>Free Cash Flow: -$0.2 million, an improvement of $5.1 million compared to the prior year third quarter.</li></ul><h4>Balance Sheet</h4><ul><li>Cash and Cash Equivalents: $10.7 million as of September 30, 2025.</li><li>Available Borrowing Capacity: Approximately $4 million on its Revolving Credit Facility.</li><li>Principal Balance Outstanding on Term Loan: $114.5 million.</li><li>Finance Leases: $8.0 million.</li><li>Other Debt Outstanding: $0.1 million.</li></ul><h4>Unique Metrics</h4><ul><li>Proprietary Brand Mix: Increased in Q3 2025 compared to the first half of 2025, offset by lower manufacturing production volume negatively impacting AGPM%.</li><li>Restructuring Plan: On track for $3 million of estimated annual cost reductions, with new actions expected to generate an additional $2 million in annual savings.</li><li>Further annual cost savings of approximately $4 million identified.</li></ul><h4>Outlook / Guidance</h4><ul><li>Adjusted Gross Profit Margin: Expected to be approximately 20% for 2025, driven by a higher proprietary brand sales mix, cost savings from restructuring, and minimal non-restructuring inventory reserves.</li><li>Adjusted SG&amp;A Expense: Expected to be reduced year-over-year, benefiting from reductions completed in 2024 and additional savings in 2025.</li><li>Inventory Reduction and Positive Free Cash Flow: Expected for the final nine months of 2025.</li><li>Capital Expenditures: Expected to be less than $2 million for the full year 2025.</li><li>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.</li></ul>

Hydrofarm | 8-K: FY2025 Q3 Revenue Misses Estimate at USD 29.35 M