---
title: "Hydrofarm reports Q4 revenue $25.1M, GAAP net loss $242.2M including $232.2M impairment"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280789357.md"
description: "Hydrofarm reported Q4 2025 net sales of $25.1 million, down from $37.3 million a year earlier, with a GAAP net loss of $242.2 million, including a $232.2 million impairment charge. Adjusted EBITDA improved to a loss of $4.9 million, while adjusted gross profit margin rose to 15.4%. The company is pursuing strategic alternatives after defaulting on a Term Loan interest payment and has reduced SG&A expenses by 18.9% year-over-year. Hydrofarm is consolidating U.S. manufacturing and distribution as part of its restructuring plan."
datetime: "2026-03-27T12:13:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280789357.md)
  - [en](https://longbridge.com/en/news/280789357.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280789357.md)
generator: "portal-rs"
---

# Hydrofarm reports Q4 revenue $25.1M, GAAP net loss $242.2M including $232.2M impairment

Hydrofarm reported fourth-quarter 2025 net sales of $25.1 million and a GAAP net loss of $242.2 million, which included a non-cash impairment charge of $232.2 million primarily related to intangible assets. Adjusted EBITDA improved to a loss of $4.9 million and adjusted gross profit margin rose to 15.4% of sales. The company ended the quarter with $6.3 million in cash and is pursuing strategic alternatives while engaging with lenders after defaulting on a Term Loan interest payment.

**Financial Highlights**

-   Revenue: Net sales of $25.1 million for the three months ended December 31, 2025 (down from $37.3 million a year earlier).
-   Gross profit: GAAP gross profit of $2.1 million, representing an 8.5% gross margin; Adjusted Gross Profit was $3.9 million, or a 15.4% adjusted gross margin.
-   Operating income / loss: Loss from operations of $(239.6) million in the quarter, reflecting a $232.2 million impairment charge.
-   Net income / loss: GAAP net loss of $(242.2) million, or $(51.89) per diluted share, for the quarter.
-   Adjusted EBITDA: Adjusted EBITDA (non-GAAP) loss of $(4.9) million for the quarter.

**Business Highlights**

-   Sales mix: Achieved the best proprietary brand sales mix quarter of 2025, contributing to improved adjusted gross profit margin despite lower overall volumes.
-   Cost reduction: SG&A expense decreased to $9.6 million in the quarter, with Adjusted SG&A down to $8.8 million—an 18.9% reduction year-over-year—marking the 14th consecutive quarter of year-over-year expense reductions.
-   Restructuring progress: Substantially completed consolidation of U.S. manufacturing into a single facility and reduced U.S. distribution centers to two locations as part of the previously announced restructuring plan.
-   Liquidity and capital structure actions: On February 4, 2026 the company elected to defer a Term Loan interest payment, triggering an event of default and reclassification of the Term Loan to current; on February 17, 2026 the Revolving Credit Facility was terminated. The board is exploring strategic alternatives and is in discussions with Term Loan lenders.

Original SEC Filing: HYDROFARM HOLDINGS GROUP, INC. \[ HYFM \] - 8-K - Mar. 27, 2026

**Disclaimer**

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**