The company faces imminent liquidity stress with term loan default and negative equity. Monitor for debt restructuring, potential equity dilution, or Nasdaq delisting. The improved cash burn is a silver lining but insufficient to offset insolvency risk.
Price Chart
Executive Summary
Hydrofarm reported Q1 2026 revenue of $28.5M, down 29.6% YoY, with net loss widening to $14.6M as industry oversupply continued to pressure sales. The company remains in default on its $114.4M term loan and is operating under a forbearance agreement, signaling elevated liquidity risk.
Key Financial Metrics
Key Facts
- Revenue fell 29.6% to $28.5M vs $40.5M a year ago
- Net loss widened to $14.6M vs $14.4M
- Adjusted EBITDA worsened to -$3.9M vs -$2.4M
- Cash burn improved to -$0.8M from -$12.0M in Free Cash Flow
- Term loan in default since February 2026; forbearance agreement signed April 8, 2026
- Total stockholders' deficit of $78.1M as of March 31, 2026
Financial Impact
Revenue decline of 29.6% YoY; net loss increased; default on $114.4M term loan poses existential risk
Risk Factors
- Term loan default may trigger acceleration or restructuring
- Potential Nasdaq delisting if stock price remains low
- Further revenue declines from industry oversupply
- Going-concern risk as losses persist and liquidity tightens
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-017370 |
| Document: hyfm20260209_8k.htm | 0001437749-26-017370 |
| Document: 0001437749-26-017370-index-headers.html | 0001437749-26-017370 |
| Document: 0001437749-26-017370-index.html | 0001437749-26-017370 |
| Document: 0001437749-26-017370.txt | 0001437749-26-017370 |
| 8-K Data (Synthetic) | 0001437749-26-017370 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 9, 2026 17d ago | 8-K | $0.7050 $0.8010 | ▼ −13.62% | ▼ −15.11% | $0.8450 (−19.86%) |
Aug 14, 2026 10w ago | 8-K | $1.25 $0.9099 | ▲ +27.21% | ▲ +26.02% | $0.8450 (+32.40%) |
Aug 14, 2026 10w ago | Press Release | $1.25 $0.9099 | ▲ +27.21% | ▲ +26.02% | $0.8450 (+32.40%) |
Jun 22, 2026 18w ago | 8-K | $0.9202 $0.8101 | ▲ +11.96% | ▲ +12.98% | $0.8450 (+8.17%) |
May 28, 2026 21w ago | DEFA14A | $0.9710 $0.9600 | ▼ −1.13% | ▲ +1.39% | $0.8450 (−12.98%) |
May 15, 2026 23w ago | 8-K | $1.00 $0.9850 | ▲ +1.50% | ▲ +3.12% | $0.8450 (+15.50%) |
May 15, 2026 23w ago | Press Release | $1.00 $0.9850 | ▲ +1.50% | ▲ +3.12% | $0.8450 (+15.50%) |
Apr 7, 2026 28w ago | 8-K | $0.9850 $0.9010 | ▲ +8.53% | ▲ +12.04% | $0.8450 (+14.21%) |
US Market Status
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