UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number: 001-39773 Hydrofarm Holdings Group, Inc. (Exact name of registrant as specified in its charter) Delaware 81-4895761 (State or other jurisdiction of inc ...

Exhibit 99.1 Hydrofarm Holdings Group Announces Fourth Quarter and Full Year 2025 Results Shoemakersville, PA — March 27, 2026 — Hydrofarm Holdings Group, Inc. ("Hydrofarm" or the "Company") (Nasdaq: HYFM), a leading independent manufacturer and distributor of branded hydroponics equipment and supplies for controlled environment agriculture, today announced financial results for its fourth quarter and fiscal year ended December 31, 2025. • Net sales decreased to $25.1 million compared to $37.3 million. • Gr ...

Core Viewpoint - Hydrofarm Holdings Group, Inc. reported a significant decline in net sales and an increase in net loss for the fourth quarter of 2025, primarily due to industry oversupply and restructuring efforts aimed at improving profitability and financial stability [4][5][8]. Financial Performance - Net sales for Q4 2025 decreased by 32.7% to $25.1 million from $37.3 million in the prior year, driven by a 27.3% decline in volume/mix and a 5.6% decrease in price [5]. - Gross profit increased to $2.1 million (8.5% of net sales) compared to $1.8 million (4.9% of net sales) in the prior year, with adjusted gross profit rising to $3.9 million (15.4% of net sales) from $3.6 million (9.6% of net sales) [6]. - Selling, general and administrative (SG&A) expenses were reduced to $9.6 million from $17.0 million, with adjusted SG&A expenses decreasing to $8.8 million from $10.8 million [7]. - The net loss for Q4 2025 was $242.2 million, significantly higher than the $17.5 million loss in the prior year, primarily due to a $232.2 million impairment charge related to intangible assets [8]. - Adjusted EBITDA improved to $(4.9) million from $(7.3) million in the prior year, reflecting higher adjusted gross profit and lower adjusted SG&A expenses [9]. Balance Sheet and Cash Flow - As of December 31, 2025, the company had $6.3 million in cash and a principal balance of $114.4 million on its Term Loan [10]. - Cash used in operating activities was $(4.0) million, with free cash flow reported at $(4.3) million, reflecting lower earnings and working capital changes [11]. - The company deferred a $2.8 million interest payment on its Term Loan, resulting in an event of default and subsequent reclassification of the Term Loan to current liabilities [12]. Strategic Initiatives - The company is focused on driving high-quality revenue streams, improving profit margins, and strengthening its financial position through cost reductions and operational changes [13]. - Significant progress has been made in consolidating U.S. manufacturing facilities and reducing distribution centers to enhance efficiency [4].

Industry Overview - The U.S. cannabis industry is expanding despite volatility, with ancillary companies playing a crucial role in the infrastructure by supplying equipment, nutrients, lighting, and hydroponic systems to cultivators [1][4] - Ancillary companies face fewer regulatory restrictions and can operate across state lines, allowing for faster scaling compared to plant-touching operators [2] - The demand for cultivation equipment is growing alongside the cannabis industry, as cultivators rely on hydroponic supplies and environmental controls for consistent crop production [2][4] Market Dynamics - The cannabis sector is experiencing price compression and oversupply in several states, but long-term growth prospects remain strong, with the U.S. cannabis market potentially exceeding $50 billion annually in the next decade [4] - Ancillary companies provide indirect exposure to the cannabis market, often avoiding heavy taxes and regulatory burdens, which can lead to more stable business models during downturns [5] Key Ancillary Companies - **GrowGeneration Corp. (GRWG)**: A leading hydroponic and gardening retailer serving cannabis cultivators, operating approximately 31 retail locations across major cultivation states. The company has focused on restructuring operations to improve profitability and has a strong balance sheet with potential for acquisitions [7][11][15] - **Hydrofarm Holdings Group Inc. (HYFM)**: A major supplier of hydroponic equipment, focusing on cultivation infrastructure for both cannabis and indoor agriculture. The company has faced revenue declines due to industry oversupply but is implementing cost reduction measures to stabilize margins [16][21][22] - **The Scotts Miracle-Gro Company (SMG)**: Known for lawn and garden products, its Hawthorne Gardening division supplies hydroponic equipment to cannabis growers. The company has a diversified business model, generating significant revenue from its core segment while maintaining strong relationships with cannabis cultivators [23][29][30]

Core Insights - The cannabis sector is evolving, with ancillary companies better positioned than plant-touching operators due to lower regulatory risks and better resilience during market downturns [1][2] - Ancillary cannabis stocks can benefit from consistent demand for cultivation supplies, regardless of which operators gain market share [2] - Investors are focusing on improving margins and cost discipline as ancillary companies restructure and strengthen their balance sheets [3] Company Summaries GrowGeneration (GRWG) - GrowGeneration is a leading retailer of hydroponic and cultivation supplies, serving both commercial cultivators and home growers without operating cannabis dispensaries [5][9] - As of late 2025, GrowGeneration operated 24 locations across 11 states, offering a range of products through both physical and online channels [7] - Recent financial performance showed revenue growth, improved gross margins, and a narrowing of net losses, with management expecting continued revenue growth in 2026 [9][10] Hydrofarm Holdings Group (HYFM) - Hydrofarm manufactures and distributes hydroponic equipment and supplies, focusing on lighting and climate systems without operating dispensaries [11][13] - Recent financial results indicated a year-over-year revenue decline due to softer industry demand, but management is working on restructuring and improving supply chain efficiency [13][14] - Hydrofarm carries higher risk but also offers higher potential rewards, making it a speculative option for traders [15] The Scotts Miracle-Gro Company (SMG) - Scotts Miracle-Gro is known for consumer lawn and garden products and has historically been involved in the cannabis supply chain through its Hawthorne Gardening business [16][18] - The company has shifted its strategy by selling its Hawthorne division, focusing on core consumer businesses while retaining some indirect cannabis exposure [18][19] - Financial results reflect this transition, with stable gross margins and a focus on generating steadier cash flow, making it a conservative option for investors [19] Final Thoughts - Ancillary cannabis stocks present unique opportunities, with GrowGeneration showing turnaround potential, Hydrofarm offering higher-beta exposure, and Scotts Miracle-Gro providing defensive positioning [20]

Core Insights - The cannabis industry is evolving with a focus on efficiency, margin recovery, and balance sheet strength as operators adapt to tighter capital markets and shifting regulations [2][19] - Ancillary cannabis stocks provide alternative exposure to the industry, supporting it without directly selling cannabis, thus avoiding many regulatory risks while benefiting from cultivation and retail improvements [1][19] Industry Trends - Growers are upgrading equipment, improving yields, and cutting costs instead of reckless expansion, favoring well-positioned ancillary suppliers [2] - Federal reform discussions create volatility, but the demand for essential products like nutrients and lighting remains consistent, offering attractive risk-reward setups for investors [3][19] Company Summaries GrowGeneration (GRWG) - GrowGeneration is a leading hydroponics and cultivation supply company, serving cannabis growers with essential products like lighting, nutrients, and climate control [5][7] - The company has shown signs of stabilization with sequential revenue improvement and expanded gross margins, marking a return to positive adjusted EBITDA [9][10] - Key focus for GRWG is on margin sustainability and potential earnings amplification with a modest rebound in cultivation spending [10] Hydrofarm Holdings Group (HYFM) - Hydrofarm is a distributor focused on controlled environment agriculture, providing essential tools for indoor cannabis cultivation [10][11] - The company has faced revenue declines and compressed gross margins due to reduced capital expenditures from growers, but it has made progress in reducing operating expenses [11] - Investors should monitor revenue stabilization, as even flat sales could improve cash flow if costs are controlled [12] The Scotts Miracle-Gro Company (SMG) - Scotts is known for lawn and garden products but has exposure to cannabis through its Hawthorne Gardening division, which supplies hydroponic equipment [14][16] - The decision to divest Hawthorne simplifies the business and reduces cannabis-related volatility, allowing a focus on its core consumer segment [16] - Financially, Scotts has shown improving margins and prioritized debt reduction, making it a lower-risk option for investors seeking stability [17][18] Investment Considerations - Ancillary stocks are critical to the cannabis ecosystem, as growers rely on supplies and systems [22] - Each highlighted company serves different investor profiles, with GrowGeneration focusing on recovery, Hydrofarm offering higher risk and leverage, and Scotts providing stability [20][21]

Core Insights - The cannabis industry is evolving with increasing legalization in the U.S., and ancillary cannabis companies are emerging as attractive investment opportunities due to fewer regulatory hurdles compared to plant-touching operators [1] Group 1: GrowGeneration Corp. (GRWG) - GrowGeneration Corp. is a leading ancillary cannabis company specializing in hydroponic and organic gardening products for cannabis cultivators, operating over twenty retail and distribution locations across major markets like California, Colorado, and Florida [2] - The company has focused on restructuring and margin improvement, showing stabilizing revenue and improved gross margins due to a higher mix of proprietary brands, while also reducing operating expenses [3] - GrowGeneration reported positive adjusted EBITDA recently, marking a significant milestone, and maintains a strong cash position with minimal debt, providing flexibility during industry downturns [3] Group 2: Hydrofarm Holdings Group, Inc. (HYFM) - Hydrofarm Holdings Group manufactures and distributes hydroponic equipment for commercial growers, with a strong presence in West Coast cannabis markets and a broad product portfolio [6] - The company has faced challenges due to industry oversupply, leading to revenue declines and increased losses, but is focusing on restructuring initiatives to stabilize operations [8] - Despite weaker demand, Hydrofarm's brands retain loyalty among professional cultivators, and its diversification into indoor food production markets provides some revenue insulation [8] Group 3: The Scotts Miracle-Gro Company (SMG) - The Scotts Miracle-Gro Company, known for lawn and garden products, has a division called Hawthorne Gardening that supplies hydroponic growers with essential cultivation technology [9] - While Hawthorne's sales have declined due to slowed cultivation, Scotts remains profitable and cash-generative, supported by its core lawn and garden products [10] - The company generates strong free cash flow and has publicly supported cannabis reform initiatives, which could benefit Hawthorne if federal policies shift favorably [10]

分组1 - MindWalk Holdings Corp. (NASDAQ:HYFT) shares increased by 11.3% to $1.97 in pre-market trading ahead of its quarterly earnings report [1] - Wall Street anticipates a quarterly loss of 1 cent per share for MindWalk, with expected revenue of $4.00 million [1] 分组2 - Oriental Culture Holding LTD (NASDAQ:OCG) saw a significant gain of 61.4% to $0.3550 after a previous decline of over 75% [4] - AMC Robotics Corporation (NASDAQ:AMCI) surged by 57.2% to $4.26 following a 44% drop [4] - WORK Medical Technology Group LTD (NASDAQ:WOK) rose 44.4% to $0.1559 after a 36% decline [4] - cbdMD, Inc. (NASDAQ:YCBD) increased by 20% to $1.44 after a 90% jump [4] - Kyverna Therapeutics Inc (NASDAQ:KYTX) surged 16.1% to $10.20 as it prepares to announce Phase 2 data for KYV-101 [4] - iRobot Corp (NASDAQ:IRBT) fell 82.4% to $0.76 after announcing a strategic transaction [4] - CCH Holdings Ltd (NASDAQ:CCHH) declined 20.6% to $2.10 after an 82% drop [4] - Tiziana Life Sciences Ltd – ADR (NASDAQ:TLSA) fell 15.2% to $1.51 after filing for a common stock offering [4]

Core Insights - Ancillary cannabis stocks are crucial as they provide services and products to the cannabis industry without direct exposure to federal restrictions, allowing investors to engage in industry growth amid changing laws [1][2] - The demand for cultivation equipment and related services is increasing as new markets emerge, positioning ancillary companies for gradual growth into 2026 [1][2] Company Summaries GrowGeneration Corp. (GRWG) - GrowGeneration is a leading retailer of hydroponic and gardening supplies, focusing on cultivation equipment for both large and small cannabis producers [3][5] - The company has reported moderate year-over-year revenue improvements, with a focus on reducing operating expenses and improving inventory management [5][6] - Despite recent net losses, the balance sheet remains healthy, with solid cash reserves and limited long-term debt, indicating potential for renewed growth if cannabis cultivation investment increases in 2026 [6] Hydrofarm Holdings Group Inc. (HYFM) - Hydrofarm is a well-established manufacturer of hydroponic equipment, supplying commercial cultivation facilities with essential growing systems and climate equipment [7][9] - The company has faced revenue declines due to reduced spending from cultivation operators, but it is implementing cost reductions to protect margins [8][9] - Hydrofarm's focus on expanding its proprietary product portfolio positions it for potential long-term value, especially if industry conditions improve in 2026 [9] High Tide Inc. (HITI) - High Tide operates a retail-focused cannabis accessories business, with a strong presence in both physical and online retail [11][12] - The company has reported higher year-over-year revenue growth, benefiting from steady demand for cannabis accessories regardless of pricing pressures [12][13] - High Tide's operational stability and positive free cash flow suggest resilience, making it an appealing option for investors looking for exposure to the cannabis retail market without direct involvement in regulated cannabis sales [13][14]

Forward-Looking Statements. This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to known and unknown risks, uncertainties and other important factors that may cause actual results to be materially different from the statements made herein. All statements other than statements of historical fact included in this presentation are forward-looking statements, including, but not limited to, the Company's financial re ...