Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) reported Q3 EPS of ($0.44), $0.28 worse than the analyst estimate of ($0.16). Revenue for the quarter came in at $54.2 million versus the consensus estimate of $56.92 million.

Full Year 2023 Outlook

The Company is reaffirming its full year 2023 outlook with the following assumptions and expectations:

Net sales of approximately $230 million to $240 million, and expect results to be around the low end of the range, versus the consensus of $233.6 million.
Adjusted EBITDA(1) that is modestly positive for the full year.
Free Cash Flow(1) that is positive for the full year.
Improved year-over-year Adjusted Gross Profit and Adjusted Gross Profit margin resulting primarily from (i) cost savings associated with restructuring and related productivity initiatives and (ii) an expectation of minimal additional non-restructuring inventory and accounts receivable reserves or related charges beyond the amounts already incurred in the nine months year-to-date.
Reduction in inventory and net working capital helping to generate positive Free Cash Flow(1) for the full year.

The Company is updating the following assumption:

Revising its expectation of capital expenditures downward to approximately $4.5 million to $5.5 million from approximately $7.0 million to $9.0 million previously.

(1) Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted SG&A, Adjusted SG&A as a percent of net sales, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. For reconciliations of GAAP to non-GAAP measures see the “Reconciliation of Non-GAAP Measures” accompanying the release.

For earnings history and earnings-related data on Hydrofarm Holdings Group, Inc. (HYFM) click here.