Hydrofarm Holdings (HYFM) Gross Margin
Hydrofarm Holdings (HYFM) currently has a gross margin of 11.3%. Margins are contracting over recent quarters. The company is a Ancillary cannabis company trading on the NASDAQ.
Current Gross Margin
11.3%
Margin Trend
Contracting
Latest Quarter Margin
8.5%
Quarterly Gross Margin
| Period | Revenue | COGS | Gross Profit | Gross Margin |
|---|---|---|---|---|
| FY2025 Q4 | $25.1M | $23.0M | $2.1M | 8.5% |
| FY2025 Q3 | $29.4M | $25.9M | $3.4M | 11.6% |
| FY2025 Q2 | $39.2M | $36.5M | $2.8M | 7.1% |
| FY2025 Q1 | $40.5M | $33.7M | $6.9M | 17.0% |
| FY2024 Q4 | $37.3M | $35.5M | $1.8M | 4.9% |
| FY2024 Q3 | $44.0M | $35.5M | $8.5M | 19.4% |
| FY2024 Q2 | $54.8M | $43.9M | $10.9M | 19.8% |
| FY2024 Q1 | $54.2M | $43.2M | $10.9M | 20.2% |
| FY2023 Q4 | $47.2M | $38.7M | $8.4M | 17.9% |
Frequently Asked Questions
What is HYFM's current gross margin?+
Gross margin for Hydrofarm Holdings is calculated as (revenue minus cost of revenue) divided by revenue, expressed as a percentage. It measures how efficiently the company converts sales into gross profit before operating expenses. Higher margins indicate better pricing power or lower production costs.
What is a good gross margin for cannabis companies?+
Cannabis gross margins vary widely by sub-sector. Retailers typically see 40-55%, vertically integrated MSOs 45-60%, and LPs 20-45%. Hydrofarm Holdings's margin should be compared to peers in the same sub-sector for meaningful context. Margins above 50% generally indicate strong pricing power.
Why do HYFM's margins change quarter to quarter?+
Gross margin fluctuations for Hydrofarm Holdings can result from changes in product mix, pricing pressure from competition, input cost changes (e.g., energy, labor), inventory write-downs, or scaling into new markets where initial costs are higher. Seasonal harvest patterns can also affect margins for cultivators.