Hydrofarm Holdings Group announced its fourth quarter and full year 2025 financial results, reporting a net loss of $242.2 million for Q4 2025, which included a $232.2 million non-cash impairment charge. The company also disclosed an event of default on its Term Loan after deferring an interest payment and is exploring strategic alternatives to strengthen its liquidity and capital structure.
Key takeaways
Q4 2025 net loss increased to $242.2 million from $17.5 million in Q4 2024, primarily due to a $232.2 million non-cash impairment charge.
Q4 2025 net sales decreased 32.7% to $25.1 million from $37.3 million in the prior year period.
The company deferred a $2.8 million Term Loan interest payment on February 4, 2026, resulting in an event of default and reclassification of the loan to current debt.
As of December 31, 2025, the company had $6.3 million in cash and $114.4 million in principal balance on its Term Loan outstanding.
Adjusted EBITDA improved to $(4.9) million in Q4 2025 from $(7.3) million in Q4 2024.
The company is exploring strategic alternatives to strengthen its liquidity and capital structure and is engaged in discussions with Term Loan lenders.