HF Foods Group Inc. Reports $312M Revenue in Q1 2026, Net Income Turnaround

HF Foods Group Inc. reported a net revenue of $312.0 million for the first quarter of 2026, marking an increase of 4.5% from $298.4 million in the same period of 2025. The growth was primarily driven by volume increases and pricing improvements in the seafood segment, alongside a rise in commodity sales. Despite the revenue growth, the company's gross profit slightly decreased to $50.5 million from $51.0 million year-over-year, resulting in a gross profit margin decline from 17.1% to 16.2%. The company recorded a net income of $1.4 million, a significant turnaround from a net loss of $1.5 million in the prior year, attributed to a gain from the sale of a property in Utah and favorable changes in the fair value of interest rate swap contracts.

In terms of operational metrics, HF Foods experienced a slight decrease in income from operations, which fell to $1.0 million from $1.2 million in the previous year. Distribution, selling, and administrative expenses decreased marginally to $49.5 million, reflecting a reduction in professional fees and bad debt expenses. The company’s interest expense rose to $2.8 million, up from $2.6 million, as the average daily balance on its line of credit increased. The company also reported an adjusted EBITDA of $10.1 million, up from $9.8 million in the same quarter of 2025.

Strategically, HF Foods has been focusing on a comprehensive operational transformation plan initiated in 2024, which includes centralized purchasing, fleet and transportation improvements, digital transformation through a new ERP system, and facility upgrades. The company aims to enhance operational efficiency and responsiveness while streamlining costs. Additionally, HF Foods acquired an 18.99% ownership interest in its subsidiary, Min Food, increasing its stake from 60.25% to 79.24%, which is expected to strengthen its market position.

As of March 31, 2026, HF Foods reported total assets of $545.9 million, a slight increase from $541.5 million at the end of 2025. The company’s cash position improved to $11.1 million from $8.6 million, and it had access to approximately $55.2 million in additional funds through its $125 million line of credit. The company’s total liabilities increased to $341.2 million from $337.9 million, primarily due to an increase in accounts payable and line of credit balances. Looking ahead, HF Foods remains optimistic about its growth trajectory, driven by its strategic initiatives and the increasing demand for Asian cuisine in the U.S. foodservice market.