Yes, very dry foam, although yours still looks pretty wet. The foam should be so dry that it doesn't flow all the way to the bottom of the collection cup and fill it up like that. The foam should really only make it about halfway down the inside of the collection cup before it collapses. I would consider what you have in the picture very wet foam.
I see you have a drain tube - in my opinion, with the foam you have now, you will be emptying a lot of tank water out the drain tube. If you want to try to get a better gauge, remove/plug the drain line, and if you're filling the collection cup more than about 1/2 way per day, your foam is probably too wet.
Kevin