Hydrofarm Holdings Group, Inc. Receives Nasdaq Delisting Notice Due to Stockholders’ Deficit

Key Points for Investors:

• On April 1, 2026, Hydrofarm Holdings Group, Inc. received a notice from Nasdaq indicating non-compliance with continued listing standards, specifically Nasdaq Listing Rule 5550(b)(1).
• The company’s reported stockholders’ deficit as of December 31, 2025, was (\$63.3 million), significantly below the required minimum of \$2.5 million in stockholders’ equity for Nasdaq Capital Market listing.
• As of March 31, 2026, Hydrofarm did not meet alternative compliance standards, including:
  • Market value of listed securities of at least \$35 million
  • Net income from continuing operations of \$500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years
• The company’s common stock will continue to trade on Nasdaq under the ticker “HYFM” while the company attempts to regain compliance.
• Hydrofarm has 45 calendar days from April 1, 2026 (until May 16, 2026) to submit a plan to Nasdaq to regain compliance. If Nasdaq accepts the plan, the company may be granted up to 180 days (until September 28, 2026) to regain compliance.
• If Nasdaq does not accept the company’s plan, Hydrofarm will have the right to appeal to a hearings panel, which would stay any suspension or delisting action until a written panel decision is issued.

What Shareholders Need to Know (Price-Sensitive Information):

• Immediate Impact: The Nasdaq notice does not result in the immediate suspension or delisting of HYFM shares. Trading continues as normal for now, but the company is officially at risk of losing its listing if compliance is not regained.
• Financial Health: The notice highlights a severe stockholders’ deficit of over \$63 million, signaling significant and ongoing financial challenges.
• Regulatory Timeline: Investors should monitor the next 45 days closely for the company’s response plan, and up to 180 days as the ultimate deadline for compliance restoration.
• Potential Outcomes:
  • If Hydrofarm cannot regain compliance, its shares could be delisted from Nasdaq, which typically results in reduced liquidity, greater volatility, and potentially significant declines in share value.
  • Even if Hydrofarm submits a plan and receives an extension, there is no guarantee that it will ultimately meet the requirements, adding ongoing uncertainty for shareholders.
• Strategic Actions: The company states it is currently evaluating various courses of action to regain compliance but has not disclosed specific details. Investors should anticipate further announcements that may impact share price, especially regarding restructuring, capital raising, asset sales, or other strategic transactions.

Forward-Looking Statements

The report contains forward-looking statements regarding Hydrofarm’s intent and ability to regain Nasdaq compliance. These statements are subject to risks and uncertainties, including the company’s financial health, market conditions, access to capital, and broader industry pressures. Investors should note that actual outcomes may differ materially from management’s current expectations. Refer to the company’s risk factors in its latest 10-K and other SEC filings for a more comprehensive assessment of risks.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. The information presented is based on filings and statements as of April 2026 and may be subject to change.

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