HF Foods Group (HFFG) Q1 2026 earnings summary

Executive summary

• Net revenue rose 4.5% year-over-year to $312.0 million, driven by volume growth and improved pricing in seafood and commodity categories.

• Net income turned positive at $1.2 million, reversing a prior year net loss, aided by a property sale gain and favorable interest rate swap changes.

• Adjusted EBITDA increased 3.8% year-over-year to $10.1 million, reflecting operational improvements and cost controls.

• Transformation initiatives, including digital infrastructure, centralized purchasing, and facility upgrades in Chicago and Charlotte, are advancing operational efficiency and long-term growth.

Financial highlights

• Gross profit decreased 0.8% to $50.5 million, with gross margin down to 16.2% from 17.1% due to higher sales of lower-margin products and increased landed costs.

• Distribution, selling, and administrative expenses fell 0.6% to $49.5 million, representing 15.9% of net revenue.

• Adjusted net income was $3.4 million, slightly down from $3.5 million year-over-year; adjusted diluted EPS was $0.06.

• Earnings per share (diluted) improved to $0.02 from a loss per share of $0.03.

• Cash provided by operating activities more than doubled to $15.3 million from $6.9 million year-over-year.

Outlook and guidance

• Management expects continued benefits from transformation initiatives, including margin expansion and operational efficiencies, despite near-term cost pressures from higher cost of goods sold and fuel prices.

• Cash flow from operations is anticipated to be sufficient for working capital needs over the next twelve months, though risks remain from market demand and supplier support.

• Focus remains on operational efficiency, organic growth, and selective M&A as core pillars for long-term growth.