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Introduction We are a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture ("CEA"), including grow lights, climate control solutions, grow media and nutrients, as well as a broad portfolio of innovative and proprietary branded products. We primarily serve the U.S. and Canadian markets, and believe we are one of the…
The business is unprofitable at the operating level (-206.27% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 29.4% YoY. Margins deteriorated 178.8pp alongside, both lines moving the wrong way.
ROIC dropped from -9.50% to -79.07%, capital efficiency is deteriorating. Negative free cash flow of -$15M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$122M
▼ -29.4% YoY
Net Income (TTM)
-$290M
▼ -334.4% YoY
Op. Margin
-224.69%
▼ -178.8pp YoY
ROIC
-85.11%
▼ -69.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$4M
▼ -369.0% YoY
Op. Cash Flow (TTM)
-$3M
▼ -4239.2% YoY
Net Debt
$156M
Cash & Equiv.
$5M
5Y CAGR: -17.1%
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