Business
Hydrofarm Holdings Group Announces Fourth Quarter and Full Year 2025 Results
SHOEMAKERSVILLE, Pa., March 27, 2026 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the “Company”) (Nasdaq: HYFM), a leading independent
About this update from Hydrofarm Holdings Group, Inc.
[{"type":"text","content":"SHOEMAKERSVILLE, Pa., March 27, 2026 (GLOBE NEWSWIRE) -- Hydrofarm Holdings Group, Inc. (“Hydrofarm” or the “Company”) (Nasdaq: HYFM), a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture, today announced financial results for its fourth quarter and fiscal year ended December 31, 2025. Fourth Quarter vs. Prior Year Period: Net sales decreased to $25.1 million compared to $37.3 million.Gross Profit Margin increased to 8.5% of net sales compared to 4.9%.Adjusted Gross Profit Margin(1) increased to 15.4% of net sales compared to 9.6%.SG&A expense and Adjusted SG&A(1) expense decreased by 43.5% and 18.9%, respectively.Net loss increased to $242.2 million compared to $17.5 million. Net loss in the fourth quarter of 2025 included a non-cash impairment charge of $232.2 million, primarily attributable to intangible assets.Adjusted EBITDA(1) of $(4.9) million compared to $(7.3) million.Cash used in operating activities and Free Cash Flow(1) were $(4.0) million and $(4.3) million, respectively. (1) Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted SG&A, Adjusted SG&A as a percent of net sales, Adjusted EBITDA, and Free Cash Flow are non-GAAP measures. For a description of our non-GAAP measures see the “Non-GAAP Measures” section accompanying this release; and for reconciliations of GAAP to non-GAAP measures see the “Reconciliation of Non-GAAP Measures” accompanying this release. Bill Toler, Chief Executive Officer of Hydrofarm, said, \"In the fourth quarter we continued to execute against our strategy and achieved our best proprietary sales mix quarter of 2025. Despite this sales mix improvement, lower volumes hindered our Adjusted Gross Profit Margin in the quarter. We reduced Adjusted SG&A expense by 18.9% compared to the fourth quarter of 2024, representing our 14th consecutive quarter of meaningful year-over-year expense reductions. To further reduce costs and right size our operations, we made significant progress towards our previously announced restructuring plan. We are now substantially complete with the consolidation of our U.S. manufacturing facilities into one location, and further reduced our U.S. distribution centers down to two locations. We are focused on positioning the business to drive high quality revenue streams, improved pr...