HYDROFARM HOLDINGS GROUP, INC. — Form 8-K
Filed August 14, 2026 · analyzed by the 8-K Agent
8-K
▼ Likely negative
significance 82/100
What the filing says
Hydrofarm reported Q2 2026 net sales of $23.2M (down 40.9% YoY from $39.2M), with net loss of $10.6M ($2.23/share). The company faces acute financial distress: $114.4M Term Loan (classified current after Feb 2026 default on $2.8M interest payment), $6.2M cash, and break-even Free Cash Flow. Offsetting: sold Aurora Peat Products (Canada) on July 31, 2026 for $16M total ($5M as promissory note), with proceeds reducing debt. Forbearance agreement extended through Aug 31, 2026. Gross margin improved to 11.3% (vs 7.1%) but on collapsed sales. Adjusted SG&A cut 35.7% YoY.
Why this rating
Revenue collapse 41% YoY, default triggered, restructuring ongoing, asset sales underway. Relative to $16M market cap, $114.4M debt load is ~7x size; $6.2M cash critical. Material going-concern risk.
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