<span item_type="fundamental" item_id="7f02e90fca2fc3080da1dc34ad422131" counter_id="ST/US/HYFM" env="prod"></span><span item_type="announcement" item_id="648736195782119681" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 28.52 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD -3.07.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -2.865 M.</p><p></p><p>Hydrofarm Holdings Group, Inc. reported its financial results for the first quarter ended March 31, 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/hyfm20260209_8k.htm"></span>.</p><h4>Net Sales</h4><p>Net sales decreased to $28.5 million from $40.5 million in the prior year period, representing a 29.6% decrease, primarily due to a decrease in the volume/mix of products sold, attributed to industry oversupply <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>.</p><h4>Gross Profit</h4><p>GAAP Gross Profit decreased to $1.8 million, or 6.4% of net sales, compared to $6.9 million, or 17.0% of net sales, in the prior year period <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. This was negatively impacted by $1.7 million in restructuring expenses <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. Adjusted Gross Profit (Non-GAAP) decreased to $4.5 million, or 15.8% of net sales, from $8.5 million, or 21.0% of net sales, in the prior year period, mainly due to lower net sales, production volumes, and productivity <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>.</p><h4>Selling, General and Administrative (SG&amp;A) Expense</h4><p>GAAP SG&amp;A expense improved to $10.6 million from $17.9 million in the prior year period, a 40.8% decrease <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. Adjusted SG&amp;A (Non-GAAP) expense improved to $8.4 million from $11.0 million in the prior year period, a 23.1% decrease <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. These reductions were due to restructuring actions, cost-saving initiatives, and a $1.2 million decrease in employee compensation costs <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>.</p><h4>Net Loss</h4><p>GAAP Net loss increased to - $14.6 million, or - $3.07 per diluted share, compared to a net loss of - $14.4 million, or - $3.12 per diluted share, in the prior year period <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. The increase in net loss was primarily due to lower net sales, lower gross profit, and higher interest expense, partially offset by SG&amp;A reductions <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>.</p><h4>Adjusted EBITDA</h4><p>Adjusted EBITDA (Non-GAAP) decreased to - $3.9 million from - $2.4 million in the prior year period, primarily due to lower net sales and lower Adjusted Gross Profit, partially offset by Adjusted SG&amp;A expense reductions <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>.</p><h4>Cash Flow</h4><p>Cash used in operating activities (GAAP) was - $0.8 million during the three months ended March 31, 2026, compared to - $11.8 million in the prior year <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. Capital expenditures were less than $0.1 million <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. Free Cash Flow (Non-GAAP) was - $0.8 million, an improvement of $11.2 million compared to - $12.0 million in the prior year <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>.</p><h4>Balance Sheet and Liquidity</h4><p>As of March 31, 2026, Hydrofarm Holdings Group, Inc. had $4.8 million in cash and $0.5 million in restricted cash <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. The principal balance on its Term Loan was $114.4 million, with $7.7 million in finance leases and $0.1 million in other debt <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. An event of default on the Term Loan occurred due to a deferred interest payment, leading to its reclassification to current portion of long-term debt <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. A Forbearance Agreement was entered into on April 8, 2026, which includes a $1 million minimum liquidity threshold and regular budget approvals <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>.</p><h4>Outlook / Strategic Priorities</h4><p>Hydrofarm Holdings Group, Inc. is focused on driving high-quality revenue, improving profit margins, and strengthening its financial position through cost reduction, operational changes, and consolidating its facility footprint <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>. The company is also exploring strategic alternatives to enhance liquidity and capital structure, engaging in ongoing discussions with Term Loan lenders <span class="superscript" item_id="0" item_type="announcement_file" value="2" url="https://www.sec.gov/Archives/edgar/data/1695295/000143774926017370/ex_918850.htm"></span>.</p>

Hydrofarm | 8-K: FY2026 Q1 Revenue: USD 28.52 M