Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

Hydrofarm Holdings Group Inc / Equity Bottom-Up

<ul><li>2Q25 results reflect continued market weakness.</li><li>HYFM delivered 2Q25 results that missed our expectations, with revenue of $39MM falling short of our $42MM estimate, while the adjusted EBITDA loss of $2.3MM was worse than our estimate of a loss of $0.3MM.</li><li>Industry oversupply and consolidating customer base resulted in a 28% decline in Y/Y volume/mix, with most of the decline attributed to durable product sales, with consumables seeing a less drastic correction. </li></ul>

2Q25 results reflect continued market weakness.HYFM delivered 2Q25 results that missed our expectations, with revenue of $39MM falling short of our $42MM estimate, while the adjusted EBITDA loss of $2.3MM was worse than our estimate of a loss of $0.3MM.Industry oversupply and consolidating customer base resulted in a 28% decline in Y/Y volume/mix, with most of the decline attributed to durable product sales, with consumables seeing a less drastic correction. 

Hydrofarm Holdings Group, Inc. Portfolio and Footprint Optimization...