HYFMHIGH SIGNALFINANCIAL10-K

HYFM experienced a severe financial deterioration with cash reserves plummeting by nearly 76% to $6.3M while revenue declined substantially and gross profit was meaningfully reduced.

The company faces immediate liquidity concerns given the dramatic cash burn and deteriorating operational performance across all key metrics. The combination of declining revenue, compressed profitability, and critically low cash reserves suggests potential going-concern issues and possible restructuring scenarios ahead.

Comparing 2026-03-27 vs 2025-03-05View on EDGAR →
FINANCIAL ANALYSIS

HYFM's financial position deteriorated sharply with cash reserves falling from $26.1M to just $6.3M, while total assets contracted significantly from $426.1M to $123.8M. Revenue declined 29% to $134.3M with gross profit substantially compressed, though the company modestly reduced SG&A expenses by 18%. The dramatic reduction in total assets alongside the severe cash position decline indicates potential asset sales or write-downs during a period of operational stress.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-75.8%
$26.1M→$6.3M

Cash declined 75.8% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Assets
Balance Sheet
-70.9%
$426.1M→$123.8M

Total assets contracted 70.9% — asset sales, write-downs, or balance sheet optimization underway.

Capital Expenditure
Cash Flow
-64.6%
$2.9M→$1.0M

Capex reduced 64.6% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Gross Profit
P&L
-52.7%
$32.1M→$15.2M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Current Assets
Balance Sheet
-46%
$95.2M→$51.4M

Current assets declined 46% — monitor working capital adequacy and short-term liquidity.

Accounts Receivable
Balance Sheet
-44.5%
$14.8M→$8.2M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Interest Expense
P&L
+40.9%
$11.0M→$15.4M

Interest expense surged 40.9% — significant debt increase or rising rates materially impacting earnings.

Inventory
Balance Sheet
-34.2%
$50.6M→$33.3M

Inventory drawn down 34.2% — strong sell-through or deliberate destocking; watch for supply constraints.

Revenue
P&L
-29.4%
$190.3M→$134.3M

Revenue softened 29.4% — monitor whether this is cyclical or structural.

SG&A Expense
P&L
-17.6%
$72.8M→$59.9M

SG&A reduced 17.6% — improved cost efficiency or headcount reduction improving operating margins.

LANGUAGE CHANGES
NEW — 2026-03-27
PRIOR — 2025-03-05
ADDED
As of March 20, 2026, the Registrant had 4,764,612 shares of common stock, $0.0001 par value per share, outstanding.
In some cases, you can identify forward-looking statements by such terminology as believe, may, will, potentially, estimate, continue, anticipate, intend, could, would, project, plan, expect and similar expressions that convey uncertainty of future events or outcomes, although not all forward-looking statements contain these words.
We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, and financial needs.
One supplier accounted for over 10% of purchases in 2025 and 2024.
and Canada, and Exceptional Customer Service Our infrastructure and reach enables us to provide delivery and service capabilities to a diverse group of customers primarily in the United States and Canada.
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REMOVED
As of February 27, 2025, the Registrant had 4,614,279 shares of common stock, $0.0001 par value per share, outstanding.
EXPLANATORY NOTE REGARDING REVERSE STOCK SPLIT On February 12, 2025, Hydrofarm Holdings Group, Inc.
The new CUSIP number for the Common Stock following the Reverse Stock Split is 44888K407.
As previously reported, the Reverse Stock Split was approved by Hydrofarm Holdings stockholders at Hydrofarm Holdings annual meeting of stockholders held on June 6, 2024, at a ratio ranging from any whole number between 1-for-1.1 and 1-for-25, as determined by Hydrofarm Holdings board of directors in its discretion.
On February 6, 2025, the board of directors approved a ratio of 1-for-10 for the Reverse Stock Split.
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