HF Foods Group (HFFG) investor relations material

Executive summary

• Net revenue for Q2 2026 increased 2.8% year-over-year to $323.8 million, marking the highest quarterly revenue in company history, driven by seafood and commodity volume growth and improved pricing.

• GAAP net income rose to $2.6 million from $1.2 million, aided by one-time items such as employee retention credits, tariff refunds, and favorable interest rate swap changes.

• Adjusted EBITDA for Q2 2026 was $13.6 million, down 2% year-over-year, reflecting higher operating and transformation costs.

• Announced definitive agreement to acquire Searay Foods for CAD 47.9 million (~$35 million USD), marking the first international expansion into Canada and expected to be margin-accretive.

• Transformation initiatives in sales, digital infrastructure, and facilities are progressing, supporting long-term growth.

Financial highlights

• Q2 2026 net revenue: $323.8 million (+2.8% YoY); six-month revenue: $635.8 million (+3.7% YoY).

• Q2 gross profit: $55.0 million (flat YoY); gross margin declined to 17.0% from 17.5% due to tariffs, partially offset by refunds.

• Adjusted EBITDA margin for Q2 2026: 4.2% (down from 4.4% YoY).

• Net income attributable to shareholders was $2.6 million, up from $1.2 million, aided by one-time credits and refunds.

• Adjusted EPS for Q2 2026 was $0.12, flat year-over-year; reported EPS improved to $0.05 from $0.02.

Outlook and guidance

• Searay acquisition expected to close by August 31, 2026, and be immediately accretive to margins and EPS.

• Management targets consolidated adjusted EBITDA margin of 4.5%-5%+ over the next three to five years.

• Continued focus on M&A, operational synergies, and geographic expansion, especially in high-potential markets.

• Ongoing cross-selling initiatives and capacity expansions in Southeast and Midwest regions are expected to drive future growth.

• Sufficient liquidity is anticipated for at least the next twelve months, with access to $39.7 million in additional funds under the credit facility.