---
title: "Hydrofarm | 8-K: FY2026 Q1 Revenue: USD 28.52 M"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286607847.md"
datetime: "2026-05-15T20:11:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286607847.md)
  - [en](https://longbridge.com/en/news/286607847.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286607847.md)
---

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

Revenue: As of FY2026 Q1, the actual value is USD 28.52 M.

EPS: As of FY2026 Q1, the actual value is USD -3.07.

EBIT: As of FY2026 Q1, the actual value is USD -2.865 M.

Hydrofarm Holdings Group, Inc. reported its financial results for the first quarter ended March 31, 2026 .

#### Net Sales

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 .

#### Gross Profit

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 . This was negatively impacted by $1.7 million in restructuring expenses . 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 .

#### Selling, General and Administrative (SG&A) Expense

GAAP SG&A expense improved to $10.6 million from $17.9 million in the prior year period, a 40.8% decrease . Adjusted SG&A (Non-GAAP) expense improved to $8.4 million from $11.0 million in the prior year period, a 23.1% decrease . These reductions were due to restructuring actions, cost-saving initiatives, and a $1.2 million decrease in employee compensation costs .

#### Net Loss

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 . The increase in net loss was primarily due to lower net sales, lower gross profit, and higher interest expense, partially offset by SG&A reductions .

#### Adjusted EBITDA

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&A expense reductions .

#### Cash Flow

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 . Capital expenditures were less than $0.1 million . Free Cash Flow (Non-GAAP) was - $0.8 million, an improvement of $11.2 million compared to - $12.0 million in the prior year .

#### Balance Sheet and Liquidity

As of March 31, 2026, Hydrofarm Holdings Group, Inc. had $4.8 million in cash and $0.5 million in restricted cash . 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 . 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 . A Forbearance Agreement was entered into on April 8, 2026, which includes a $1 million minimum liquidity threshold and regular budget approvals .

#### Outlook / Strategic Priorities

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 . The company is also exploring strategic alternatives to enhance liquidity and capital structure, engaging in ongoing discussions with Term Loan lenders .

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