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P R E S E N T A T I O N Hydrofarm Holdings Group Trusted brands for controlled environment agriculture since 1977 October 2026 | Nasdaq: HYFM
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I M P O R T A N T I N F O R M A T I O N Disclaimer Financial Information Financial information in this presentation is derived from the Company’s reports filed with or furnished to the SEC, which are available at www.sec.gov. Interim and pro forma financial information is unaudited. Non-GAAP Financial Measures This presentation includes non-GAAP financial measures, including Adjusted EBITDA and Adjusted SG&A. These measures should not be considered substitutes for, or superior to, measures determined in accordance with GAAP and may not be comparable to similarly titled measures of other companies. Reconciliations to the most directly comparable GAAP measures are included in the Appendix and in the Company’s earnings releases. Industry Information Certain industry information in this presentation is based on third-party sources that the Company believes to be reliable but has not independently verified. 2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements about the Company’s strategy, brands, products, end markets, operations, cost savings, logistics business, and industry, market and regulatory developments, are forward-looking statements. Words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “plan,” “potential,” “may,” “will,” “should” and similar expressions identify such statements. They are subject to known and unknown risks, uncertainties and other factors, including those described under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”), that may cause actual results to differ materially. Forward-looking statements speak only as of the date of this presentation, and the Company undertakes no obligation to update them except as required by law.
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W H O W E A R E A leading independent manufacturer and distributor of branded hydroponics equipment and supplies for Controlled Environment Agriculture (CEA) • Listed on The Nasdaq Capital Market under the ticker HYFM • IPO in December 2020 • Completed several acquisitions in 2021, transforming Hydrofarm from distributor into branded manufacturer of CEA products • Distribution centers across the U.S. and Spain • Broad product portfolio across 5 categories: Plant Nutrition, Growing Media, Supplies, Lighting, & Equipment • Proprietary nutrient and grow media brands manufactured at our facility in Eugene, Oregon • Customers include specialty hydroponic retailers, garden centers, commercial resellers, and e-commerce • Logistics services business that manages the receipt, warehousing, and distribution of customer inventory Since 1977 Celebrating our 50th anniversary in 2027 For nearly 50 years, Hydrofarm has helped growers make growing easier and more productive. 1977 Founded as Applied Hydroponics 2003-07 R&D investment and proprietary brand expansion 2010 Expanded into Europe via Eltac (Spain) 2020 Nasdaq IPO in December 2021 Acquired several branded manufacturers 2024-26 Consolidated operations due to industry dynamics; into leaner, proprietary- brand focused company 2026 Sold Canada distribution and Aurora Peat; launched Project Agility to expand logistics business 3
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B R A N D P O R T F O L I O Over 30 proprietary brands, plus selective distributed brands to support the portfolio, covering every major category of CEA products 4 P R O P R I E T A R Y B R A N D S Shaded brands are manufactured in Eugene, OR NUTRIENTS Plant nutrition system for premium quality growers NUTRIENTS Science-backed nutrients and additives for high yield growers ORGANIC NUTRIENTS Registered organic dry fertilizers for gardens and farms SOILS & NUTRIENTS Organic soils and nutrients, made in Eugene since 2000 LED LIGHTING Commercial LED fixtures, DLC- listed for utility rebates HOM E GROW LIGHTING Award-winning home grow lights and indoor gardens HYDROPONIC SYSTEM S Hydroponic systems, pumps and water chillers +26 more proprietary brands, including HEAVY 16, Phantom, Active Air D I S T R I B U T E D B R A N D S Chosen for margin and grower focus TrolMaster Anden / Quest Hydrodynamics Great White + multiple other partner brands M A D E I N E U G E N E , O R E G O N • Proprietary nutrients and grow media • Made in the U.S. for our own brands Consumables ~3/4 Durables ~1/4 Proprietary brands ~2/3 Distributed ~1/3
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C U S T O M E R S & E N D U S E R S ~1,000 wholesale accounts connect us to every kind of grower H O W W E S E R V E T H E M B2B ordering platform Most accounts order online Distribution network DCs in CA, MI, PA and Spain Owned manufacturing Nutrients and grow media, Eugene, OR Technical sales team Category experts advise buyers W H O L E S A L E C U S T O M E R S Specialty hydroponic retailers Expert staff, curated range Commercial resellers & greenhouse builders Outfitting large facilities Garden centers & hardware stores Lawn & garden shoppers E-commerce retailers Marketplaces and e-tailers International distributors Europe, UK, Australia and more E N D U S E R S + many more wholesale customers 3PL and logistics services $4.8M in FY2025; up 33% in H1 2026 5 Commercial cannabis cultivators MSOs to craft growers Commercial food & floral Greenhouses and vertical farms Home gardeners Organic nutrients, soils and grow-at-home Adjacent markets Cold plunge, aquarium, and aquaculture Organic fertilizer: $1.3B → $2.3B by 2031 Cold plunge: $355M → $660M by 2033 Logistics Services Diverse range of 3rd party logistics clients Sources: Mordor Intelligence, “United States Organic Fertilizers – Market Share Analysis, Industry Trends & Statistics, Growth F orecasts (2026–2031)” (data as of Jan. 2026); Grand View Research, “Cold Plunge Tub Market Size, Share & Trends Analysis Report” (2025 –2033 forecast); Hydrofarm Form 10 -K (FY2025) and Form 10-Q (Q2 2026)
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F O O T P R I N T & P R O J E C T A G I L I T Y Five operating sites, with distribution across the U.S. and Europe; Project Agility expanding our fast-growing logistics business Zaragoza, Spain DC Eugene, OR Manufacturing Fairfield, CA DC / 3PL New Hudson, MI Full 3PL Shoemakersville, PA DC / 3PL Manufacturing Distribution / 3PL Rent offsets include sublease income at exited sites (e.g., Fontana, CA and Canada). L O G I S T I C S I N C O M E Sublease and logistics income offsetting facility costs in SG&A ($M) $1.7M $3.9M $4.8M $3.1M 2023 2024 2025 H1 2026 Full year (Form 10-K) First half (Form 10-Q) 2.8x since 2023 FY2023 to FY2025; H1 2026 up 33% vs. H1 2025 6
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I N T E R N A T I O N A L Established international reach with expansion in high growth CEA markets International Sales Growth: Strong position in high growth markets of Thailand and Germany. Resources and market access in place for growth in emerging markets of South America, Asia and Eastern Europe. 7 Zaragoza, Spain DC Established Markets Growth Markets Zaragoza, Spain distribution center Serving Europe since 2010 Proprietary brands lead abroad House & Garden and Grotek hold strong positions in key global markets, including the UK, Spain and Australia Canada via Quality Horticulture Global grow media distribution Exclusive distributor of our brands beginning April 2026 Peat and coco grow media supplied to customers worldwide
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D I V E R S I F I E D E N D - M A R K E T S Robust agricultural manufacturing and logistics services capabilities 8 Diversification that doesn't depend on cannabis policy Organic gardening and farming Gaia Green and Roots Organics nutrients and soils for home gardeners and commercial farming Organic inputs for both consumer gardening and commercial farming Cold plunge and wellness Active Aqua water chillers, originally developed for hydroponic systems Adopted by the cold plunge market; Outdoor Chiller holds water as low as 39°F Grow-at-home lighting SunBlaster @Home grow lights and indoor gardens Halo 360 and Nano: 2nd, Best New Product, National Lawn & Garden Show Global agriculture markets Eugene manufacturing of fertilizer and growing media; global coco and peat distribution Serving general agriculture beyond CEA Logistics services (Project Agility) Full service 3rd party logistics at our distribution centers Sublease and logistics income: $4.8M in FY2025; up 33% in H1 2026
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T H E C A T A L Y S T Federal rescheduling is the next unlock for operators 01 April 2026: partial rescheduling DOJ moves certain medical cannabis products to Schedule III; DEA issues an order expediting the process 02 Next: full Schedule III Full rescheduling would end Section 280E for all state-licensed operators 03 Potential result: cash back into facilities Operators deduct normal business expenses, freeing cash to reinvest in facilities, equipment and inputs 70%+ Effective tax rates many operators face today under Section 280E $2B+ Estimated industry-wide cash flow increase from Section 280E relief 9 What it could mean for Hydrofarm: freed-up operator cash flows back into lighting, equipment and nutrients, the categories our proprietary brands serve 64% of Americans back legalization 24 + DC adult-use states, home to 53% of Americans 40 + DC medical states; 74% of Americans live where medical or adult use is legal Sources: U.S. Department of Justice, final order placing FDA-approved and state-licensed medical marijuana in Schedule III (signed Apr. 22, 2026; published in the Federal Register Apr. 28, 2026); Whitney Economics, “Whitney Economics Refreshes Analysis of Federal Tax Impact on Legal Cannabis Operators” (press release, Apr. 9, 2026); Gallup, marijuana legalization poll (2025); Pew Research Center, “Facts about marijuana” (May 26, 2026) and “Most Americans now live in a legal marijuana state” (Feb. 29, 2024); Congressional Research Service, “The Federal Status of Marijuana and the Policy Gap with States,” IF12270 (updated Mar. 10, 2026)
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L E A D E R S H I P Consumer-brand and product manufacturing operators with an engaged Board; plus deep CEA industry experience on the broader team L E A D E R S H I P T E A M Bill Toler Executive Chairman & CEO Mark Parker President Kevin O’Brien Chief Financial Officer Erica Ackerman Chief Accounting Officer Eric Ceresnie SVP Corp. Dev. & International Gerard Cantwell SVP Supply Chain 10 Prior: Hostess Brands (CEO), Campbell Soup, Procter & Gamble Prior: Campbell Soup, iQ Solutions Prior: CPI Card Group, Deloitte Prior: McKessonPrior: Monomoy Capital Partners, Ernst & Young, A.T. Kearney Prior: Dart Container, SodaStream USA B O A R D O F D I R E C T O R S · C H A I R E D B Y B I L L T O L E R Renah Persofsky Lead Director, Tilray Brands Patrick Chung VP Finance, Tricap Properties; CPA Melisa Denis Retired Lead Partner, KPMG Chris Yetter Founder & CIO, Dumont Global
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I N V E S T M E N T H I G H L I G H T S Hydrofarm is well positioned for a CEA industry recovery 11 Since 1977 Independent CEA leader Branded hydroponics equipment and supplies, listed on Nasdaq as HYFM. 30+ Proprietary brands Every major CEA category, with U.S. manufacturing consolidated in Eugene, OR. ~1,000 Wholesale accounts Hydroponic retailers, garden centers, commercial resellers and e-commerce, served from DCs in the U.S. and Spain. 2.8x Logistics income since 2023 Offsets facility costs as Project Agility expands the 3PL business. ~3/4 Consumable net sales Nutrients, grow media and supplies replenished with every grow cycle (FY2025). 16 Quarters of lower Adjusted SG&A Consecutive year-over-year reductions through Q2 2026. A focused, leaner Hydrofarm: proprietary brands, owned manufacturing and a growing logistics business, positioned for the recovery in CEA demand.
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APPENDIX 12
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F I N A N C I A L S U M M A R Y Statement of operations and Adjusted EBITDA $ I N T H O U S A N D S | A S R E P O R T E D | I N C L U D E S A P P U N L E S S N O T E D Total company results as reported, including Aurora Peat Products (APP), which was sold on July 31, 2026. Sources: Form 8-K, Exhibit 99.1 (May 15, 2026) for Q1 2026; Form 8-K, Exhibit 99.1 (Aug. 14, 2026) for Q2 2026; Form 8-K, Exhibit 99.1 (Mar. 27, 2026) for FY2025. The shaded column is the “Pro Forma HYFM” statement of operations for FY2025 as filed in Form 8-K, Exhibit 99.2 (Aug. 6, 2026), reflecting the disposition of APP and related pro forma adjustments, including reduced Term Loan interest expense. Adjusted EBITDA is a non-GAAP measure, as defined and reconciled in the Company’s earnings releases. Quarterly periods and the pro forma column are unaudited. Three months ended June 30, 2026 Three months ended Mar. 31, 2026 Year ended Dec. 31, 2025 FY2025 pro forma excl. APP Net sales 23,211 28,524 134,252 126,226 Cost of goods sold 20,577 26,687 119,043 111,320 Gross profit 2,634 1,837 15,209 14,906 Gross margin % 11.3% 6.4% 11.3% Selling, general and administrative 10,062 10,568 59,948 59,501 Impairments – – 232,179 232,179 Loss from operations (7,428) (8,731) (276,918) (276,774) Interest expense (3,453) (5,866) (13,427) (11,795) Other income (expense), net 25 (122) (185) 363 Loss before tax (10,856) (14,719) (290,530) (288,206) Income tax benefit 225 108 740 586 Net loss (10,631) (14,611) (289,790) (287,620) Three months ended Mar. 31, 2026 Three months ended June 30, 2026 Net loss (14,611) (10,631) Interest expense 5,866 3,453 Income tax benefit (108) (225) Depreciation, depletion and amortization 1,031 988 Restructuring expenses 2,497 3,365 Other 41 41 Stock-based compensation 170 146 Debt transactions and strategic alternatives 1,060 1,234 Other expense (income), net 122 (25) Adjusted EBITDA (non-GAAP) (3,932) (1,654) Adjusted EBITDA margin % (13.8%) (7.1%) STATEMENT OF OPERATIONS NET LOSS TO ADJUSTED EBITDA (NON-GAAP) 13