Hydrofarm Holdings Group (NASDAQ:HYFM), a leading independent distributor and manufacturer of controlled environment agriculture (CEA) equipment and supplies, today announced its financial results for the fourth quarter and full year ended December 31, 2025.
For the fourth quarter of 2025, net sales fell 32.7% to $25.1 million, compared to $37.3 million in the prior-year period.
The decline was attributed to lower demand across nearly all product categories, particularly in the lighting and nutrient segments, as commercial growers continued to scale back capital expenditures.
Full-year 2025 net sales were $108.4 million, down from $146.2 million in 2024.
The company’s bottom line was decimated by a non-cash goodwill and intangible asset impairment charge of $232.2 million, reflecting a permanent downward revision in the fair value of its reporting units.
This charge drove a staggering Q4 net loss of $242.2 million.
Despite the massive loss, there were marginal improvements in operational efficiency; adjusted gross margin rose to 15.4% (up from 12.1% in Q4 2024), and adjusted EBITDA improved to a loss of $(4.9) million, compared to a loss of $(11.6) million a year ago.