Hydrofarm Group (HYFM) Q4 2025 earnings summary

Executive summary

• Net sales for Q4 2025 declined 32.7% year-over-year to $25.1 million, primarily due to a 27.3% drop in volume/mix and a 5.6% decrease in price.

• Gross profit margin improved to 8.5% from 4.9% year-over-year, with adjusted gross profit margin rising to 15.4% from 9.6%.

• Net loss increased sharply to $242.2 million, driven by a $232.2 million non-cash impairment charge related to intangible assets.

• Adjusted EBITDA improved to $(4.9) million from $(7.3) million year-over-year.

• Significant restructuring actions included facility consolidation and cost reductions, with SG&A expense down 43.5% and adjusted SG&A down 18.9%.

Financial highlights

• Q4 2025 net sales: $25.1 million (down from $37.3 million year-over-year).

• Gross profit: $2.1 million (8.5% margin); adjusted gross profit: $3.9 million (15.4% margin).

• Net loss: $242.2 million ($51.89 per diluted share) vs. $17.5 million ($3.80 per share) prior year.

• Adjusted EBITDA: $(4.9) million vs. $(7.3) million prior year.

• Free cash flow: $(4.3) million for Q4 2025.

Outlook and guidance

• Strategic focus on driving high-quality revenue, improving profit margins, and strengthening financial position.

• Ongoing cost reduction and productivity initiatives, including operational changes and facility consolidation.

• Exploring strategic alternatives to address liquidity and capital structure.