HFFG · HF Foods Group Inc.

HF Foods Group Inc. delivered first quarter 2026 results showing revenue growth of 4.5% to $312.0 million, primarily from volume increases and pricing gains in Seafood, complemented by Commodity volume growth. However, gross profit dipped slightly to $50.5 million with margin compression to 16.2% from 17.1%, attributed to a higher mix of lower-margin Seafood sales and elevated landed costs. Distribution, selling, and administrative expenses edged down 0.6% to $49.5 million, or 15.9% of revenue versus 16.7% prior year, supporting operating income stability at $1.0 million. Net income swung to a $1.4 million profit from a $1.5 million loss, boosted by a $2.0 million favorable shift in interest rate swap fair value and $1.7 million other income from property sales, though offset by reduced tax benefits. Adjusted EBITDA rose 3.8% to $10.1 million, underscoring core operational progress. CEO Felix Lin highlighted momentum from sales call center consolidation, full ERP rollout, and facilities expansion, including the Chicago warehouse acquisition and nearing Charlotte completion, positioning for cross-selling in high-growth regions. Cash flow from operations strengthened significantly to $15.3 million from $6.9 million, driven by non-cash add-backs and payables growth despite inventory and receivables timing. Balance sheet as of March 31 shows cash at $11.1 million, $55.2 million revolver availability under $125.0 million facility, and steady leverage. No forward guidance provided, but management expressed confidence in long-term growth via efficiency, organic expansion, and M&A in Asian specialty foods.