HF Foods Group Inc. reported its financial results for the third quarter of 2025, revealing a total net revenue of $306.978 million, a 2.9% increase from $298.389 million in the same period last year. For the nine months ended September 30, 2025, the company achieved net revenue of $920.259 million, up from $896.385 million in the prior year, marking a growth of 2.7%. The gross profit for the third quarter was $50.409 million, slightly up from $50.163 million year-over-year, while the gross profit margin decreased to 16.4% from 16.8% due to a higher proportion of sales from lower-margin products.
The company reported a net loss of $1.116 million for the third quarter, an improvement from a loss of $3.940 million in the same quarter of 2024. For the nine-month period, the net loss was $1.545 million, compared to a loss of $4.617 million in the previous year. The increase in income from operations, which rose to $1.120 million from $511,000 year-over-year, contributed to this improvement. Adjusted EBITDA for the third quarter was $11.748 million, up from $8.305 million in the prior year, reflecting a positive trend in operational efficiency.
HF Foods has been actively pursuing strategic initiatives to enhance its operational capabilities. The company has implemented a centralized purchasing program, which has shown positive results in margin expansion, particularly in seafood and poultry products. Additionally, the company has completed the rollout of a modern ERP solution across its distribution centers, aimed at improving operational efficiency and data-driven decision-making. The company is also focusing on upgrading its facilities to streamline costs and enhance cross-selling opportunities.
Operationally, HF Foods has seen a slight increase in customer engagement, with a focus on expanding its distribution network. The company has maintained a steady employee headcount, which supports its operational needs as it continues to serve a growing customer base primarily in the Asian restaurant sector across the United States. As of September 30, 2025, the company had cash reserves of approximately $12.3 million and access to an additional $49.8 million through its line of credit, indicating a solid liquidity position.
Looking ahead, HF Foods remains optimistic about its growth trajectory, driven by ongoing improvements in operational efficiency and strategic initiatives. The company is committed to addressing its material weaknesses in internal controls and enhancing its financial reporting processes. Management believes that the steps taken will position the company for long-term success, although it acknowledges the potential risks associated with market conditions and operational challenges.
About HF Foods Group Inc.
HF Foods Group Inc. is a leading distributor of Asian food products and non-food supplies to restaurants across the U.S. It offers over 2,000 items, including seafood, meats, produce, and specialty ingredients, supported by a broad supplier network and extensive logistics. Serving primarily Asian restaurants, the company emphasizes cultural understanding, customized service, and efficient supply chain management to provide competitive pricing and reliable delivery.
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