HF Foods Group Reports $323.8M Revenue and $2.6M Net Income for Q2 2026

HF Foods Group Inc. reported a total net revenue of $323.8 million for the three months ended June 30, 2026, marking an increase of 2.8% from $314.9 million in the same period of the previous year. For the first half of 2026, the company achieved net revenue of $635.8 million, up 3.7% from $613.3 million in the first half of 2025. Despite the revenue growth, the company experienced a decline in gross profit, which fell to $55.0 million for the second quarter, down from $55.1 million year-over-year. The gross profit margin also decreased to 17.0% from 17.5%, attributed to increased tariffs and other cost pressures.

In terms of profitability, HF Foods reported a net income of $2.6 million for the second quarter of 2026, a significant increase from $510,000 in the same quarter of 2025. For the first half of 2026, net income reached $4.0 million, compared to a net loss of $429,000 in the prior year. The improvement in net income was driven by various factors, including a $1.8 million employee retention credit and a $1.1 million tariff refund. However, income from operations decreased to $2.8 million from $4.1 million year-over-year, reflecting rising operational costs.

Operationally, HF Foods has made strategic moves to enhance its market position, including the acquisition of an 18.99% stake in its subsidiary, Min Food, increasing its ownership from 60.25% to 79.24%. The company also announced plans to acquire Searay Foods Inc. for approximately CAD$47.9 million, which will expand its operations into Canada. This acquisition is expected to close by August 31, 2026, and will mark HF Foods' first international expansion outside the United States.

The company reported a total of 55.5 million shares outstanding as of June 30, 2026, with a slight increase in cash reserves to $18.1 million from $8.6 million at the end of 2025. HF Foods also noted a rise in its line of credit to $77.1 million, reflecting increased borrowing to support operational needs. The company’s employee headcount remained stable, and it continues to focus on enhancing its distribution network and operational efficiencies through a comprehensive transformation plan initiated in 2024.

Looking ahead, HF Foods aims to leverage its recent acquisitions and operational improvements to drive future growth. The company is focused on expanding its product offerings and enhancing customer engagement while managing costs effectively. Despite the challenges posed by market conditions and rising operational expenses, HF Foods remains optimistic about its growth trajectory and the potential for increased profitability in the coming quarters.