Scotts Miracle-Gro Reports Increased Q1 Net Loss Driven by $104.8M Hawthorne Impairment
SMG sits 42% above its 52-week low of $45.61.
Summary
Scotts Miracle-Gro reported a significantly increased net loss for Q1 fiscal 2026, largely driven by a $104.8 million non-cash impairment charge for its Hawthorne business, now classified as discontinued operations. The company also detailed new $2.0 billion credit facilities and previously announced capital actions.
Key Events · Earnings and Guidance · SMG
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Increased Q1 Net Loss
The company reported a net loss of $(125.0) million for the three months ended December 27, 2025, a significant increase from $(69.5) million in the prior year period.
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Hawthorne Impairment Charge
A non-cash pre-tax charge of $104.8 million was recorded as a valuation adjustment for the Hawthorne business, now classified as a discontinued operation.
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New Credit Facilities Secured
Scotts Miracle-Gro entered into a Seventh Amended and Restated Credit Agreement on November 21, 2025, providing $2.0 billion in senior secured loan facilities.
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Share Repurchase Program Authorized
The Board of Directors authorized a new share repurchase program of up to $500.0 million of Common Shares on December 19, 2025, following a prior 8-K announcement.
Analysis · SMG · Industrial Applications And Services
Scotts Miracle-Gro's Q1 fiscal 2026 results show a significant increase in net loss, primarily due to a substantial non-cash impairment charge related to its Hawthorne business. The formal classification of Hawthorne as a discontinued operation, initially announced in a recent 8-K filing, is now fully detailed in the financial statements, revealing a $104.8 million valuation adjustment. While the company also secured new $2.0 billion credit facilities to enhance liquidity and manage debt, and shareholders approved an increase in the long-term incentive plan share pool, these positive capital actions are overshadowed by the considerable financial losses and the strategic divestiture's impact on the quarter's performance.
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In the 30 days to Sep 12, 2026, 35.9% of the 1612 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.19%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SMG was trading at $64.70 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $3.8B. The 52-week trading range was $45.61 to $70.67. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.