Hydrofarm Holdings stock reports a 40.9 percent revenue drop

Published on 09/23/2026 at 04:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Hydrofarm Holdings stock reported second quarter 2026 sales of USD 23.2 million, down 40.9 percent year over year. Adjusted EBITDA improved to negative USD 1.7 million.

HYFM, US44888K1034, Illustration mit AI erstellt.

Hydrofarm Holdings Group (ISIN US44888K1034) reported second quarter 2026 net sales of USD 23.2 million, a 40.9 percent decline from USD 39.2 million a year earlier. The latest filing also showed adjusted EBITDA improving to negative USD 1.7 million from negative USD 2.3 million in the comparable period, according to StockTitan on September 22, 2026.

Margins improve despite lower sales

The second quarter gross margin reached 11.3 percent, compared with 7.1 percent in second quarter 2025. Adjusted gross profit was USD 4.6 million, or 20.0 percent of sales, while selling, general and administrative costs fell to USD 10.1 million from USD 16.1 million.

The cost base therefore contracted by USD 6.0 million year over year, while adjusted SG&A declined 35.7 percent to USD 6.3 million. That comparison is central to the report: revenue pressure remained severe, but restructuring reduced the operating burden.

Loss narrows while demand stays weak

Hydrofarm posted a net loss of USD 10.6 million, or USD 2.23 per diluted share, in second quarter 2026. The loss was USD 16.9 million, or USD 3.63 per share, in second quarter 2025, making the per-share loss USD 1.40 narrower year over year.

The filing attributed the sales decline mainly to lower volume linked to industry oversupply and the discontinuation of certain distributed brands. Gross profit was USD 2.6 million in the quarter, while the reported operating figures show that cost reduction has not yet offset the scale of the revenue contraction.

HYFM remains a small-cap restructuring case

Hydrofarm stock was quoted at USD 0.804 on September 22, 2026, with a daily change of negative 3.11 percent and a market capitalization of USD 3.83 million, according to the cited market snapshot. The quoted figure is more than 80 percent below USD 5, highlighting the micro-cap profile alongside the second quarter operating losses.

For investors, the report presents two simultaneous signals: adjusted EBITDA improved by USD 0.6 million year over year, but sales fell USD 16.0 million. The next market question is whether further overhead reductions can compensate for weaker volume and brand portfolio changes.

Stock trades at USD 0.804

Hydrofarm stock stood at USD 0.804 on September 22, 2026. The same snapshot reported a 24-hour volume of 3.83 million shares and a market capitalization of USD 3.83 million.