Hydrofarm Holdings (HYFM) Gross Margin
Hydrofarm Holdings (HYFM) does not report a gross margin in our data yet. Margins are expanding over recent quarters. The company is an ancillary cannabis company trading on the NASDAQ.
Current Gross Margin
—
Margin Trend
Expanding
Latest Quarter Margin
11.3%
Quarterly Gross Margin
| Period | Revenue | COGS | Gross Profit | Gross Margin |
|---|---|---|---|---|
| FY2026 Q2 | $23.2M | $20.6M | $2.6M | 11.3% |
| FY2026 Q1 | $28.5M | $26.7M | $1.8M | 6.4% |
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.