HF Foods Reports Third Quarter 2026 Financial Results

Q: How did HF Foods HFFG perform in the third quarter of 2026?

HF Foods reported revenue of $319.6 million, up 4.1%, and a net loss of $4.2 million, compared with $0.9 million a year earlier. Adjusted EBITDA decreased 6.3% to $11.0 million, while adjusted net income decreased 52.1% to $2.1 million.

Q: How much did Searay Foods contribute to HF Foods’ third-quarter 2026 results?

Searay contributed $4.2 million in revenue and approximately $0.6 million in adjusted EBITDA for one month of the quarter. HF Foods completed the acquisition effective August 31, 2026, making its first expansion outside the United States.

Q: What liquidity did HF Foods HFFG have at September 30, 2026?

HF Foods had $16.4 million in cash and access to approximately $49.1 million in additional funds through its $140.0 million credit line, subject to a borrowing-base calculation. Checks issued but not presented for payment totaled $5.3 million.

Credit-line borrowings and both current and long-term debt balances increased from December 31, 2025.

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Rhea-AI Summary

HF Foods (NASDAQ: HFFG) reported third-quarter revenue growth of 4.1%, while its net loss widened from the prior-year quarter. Revenue reached $319.6 million, but the net loss increased to $4.2 million from $0.9 million. Loss per share was $0.08 versus $0.02. Gross profit rose 5.9% to $53.4 million, and gross margin improved to 16.7% from 16.4%. Distribution, selling and administrative expenses increased 11.9%, reflecting professional services, elevated fuel costs and truck lease expenses.

Adjusted EBITDA, an adjusted earnings measure excluding interest, taxes, depreciation and other items, fell 6.3% to $11.0 million. The Searay Foods acquisition, completed effective August 31, 2026, added one month of revenue totaling $4.2 million. Nine-month revenue rose 3.8% to $955.4 million, while net loss narrowed to $0.3 million from $1.9 million. Operating cash flow increased to $24.1 million from $4.5 million.

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0 major · 16 points

Hollow bars mark forward-looking points. How the balance works

Positive

Moderate pointThird-quarter revenue increased 4.1% year over year to $319.6 million.
Moderate pointThird-quarter gross profit rose 5.9% to $53.4 million; margin increased to 16.7% from 16.4%.
Moderate pointSearay Foods acquisition completed effective August 31, 2026, marking HF Foods’ first expansion outside the United States.
Moderate pointSearay’s one-month contribution totaled $4.2 million revenue and approximately $0.6 million adjusted EBITDA in the quarter.
Moderate pointNine-month revenue increased 3.8% year over year to $955.4 million.
Moderate pointNine-month gross profit increased 1.6% year over year to $159.0 million.
Moderate pointNine-month net loss narrowed to $0.3 million from $1.9 million; loss per share improved to $0.01 from $0.03.
Moderate pointNine-month operating cash flow increased to $24.1 million from $4.5 million, mainly reflecting better inventory management.
Moderate pointEmployee retention credit recognition totaled $1.8 million, including interest, during the nine-month period.
Moderate pointUtah building sale generated a $1.4 million gain during the nine-month period.
Moderate pointCash increased to $16.444 million at September 30, 2026, from $8.641 million at December 31, 2025.
Moderate pointAdditional credit availability was approximately $49.1 million at September 30, 2026, subject to a borrowing-base calculation.

2 minor points

Minor pointIEEPA tariff refunds contributed to gross profit during the quarter and nine-month period.
Minor point. Forward-looking: it has not happened yet and may not happen.Management’s operating priorities include route and warehouse efficiency, purchasing discipline and cross-selling across the Southeast and Midwest.

Negative

Moderate pointThird-quarter net loss increased 385.9% to $4.2 million; loss per share widened to $0.08 from $0.02.
Moderate pointThird-quarter adjusted net income decreased 52.1% to $2.1 million; adjusted diluted earnings per share fell to $0.04 from $0.08.
Moderate pointThird-quarter adjusted EBITDA declined 6.3% year over year to $11.0 million.
Moderate pointThird-quarter distribution, selling and administrative expenses rose 11.9%; their revenue share increased to 17.3% from 16.1%.
Moderate pointThird-quarter operating result swung to a $1.783 million loss from $1.120 million income.
Moderate pointNine-month distribution, selling and administrative expenses increased 4.5% to $156.9 million, including higher fuel and professional-service costs.
Moderate pointNine-month operating income fell to $2.071 million from $6.393 million.
Moderate pointNine-month adjusted net income declined to $11.883 million; adjusted diluted earnings per share fell to $0.22 from $0.27.
Moderate pointCredit-line borrowings increased to $80.021 million at September 30, 2026, from $55.799 million at December 31, 2025.
Moderate pointCurrent long-term debt increased to $13.395 million from $6.683 million; non-current debt rose to $118.130 million from $99.436 million.

6 minor points

Minor pointMeat & Poultry price decreases partially offset revenue growth in both the quarter and nine-month period.
Minor pointNine-month gross margin declined to 16.6% from 17.0% a year earlier.
Minor pointNine-month adjusted EBITDA decreased 1.8% year over year to $34.7 million.
Minor pointInterest expense increased to $3.430 million from $2.941 million quarterly and $9.158 million from $8.367 million year-to-date.
Minor pointThird-quarter income taxes shifted to a $174,000 expense from a $760,000 benefit.
Minor pointNine-month income tax benefit decreased to $5,000 from $1.171 million.

News Explained

In its third-quarter results, HF Foods reported $16.4 million in cash and $5.3 million in checks issued but not presented as of September 30; it also reported access to approximately $49.1 million through its $140.0 million credit line, subject to a borrowing-base calculation.

Key Figures

Third-quarter net revenue: $319.6 million, increased 4.1% Third-quarter net loss: $4.2 million, increased 385.9% Adjusted net income: $2.1 million, decreased 52.1% +4 more

Third-quarter net revenue: $319.6 million, increased 4.1%; Three months ended September 30, 2026, year over year
Third-quarter net loss: $4.2 million, increased 385.9%; Three months ended September 30, 2026, year over year
Adjusted net income: $2.1 million, decreased 52.1%; Third quarter 2026, year over year
Adjusted EBITDA: $11.0 million, decreased 6.3%; Third quarter 2026, year over year
Gross profit margin: 16.7%, compared with 16.4%; Third quarter 2026 versus prior-year period
Distribution, selling and administrative expenses: Increased $5.9 million, or 11.9%; Third quarter 2026 versus prior-year period
Cash provided by operating activities: $24.1 million, compared with $4.5 million; Nine months ended September 30, 2026 versus prior-year period

Previous Earnings Reports

2 past events · Latest: Aug 10

Same Type 2 events

Aug 10
Quarterly earnings

24h Move

+14.1%

Revenue and GAAP net income rose; adjusted EBITDA declined and gross margin compressed.
Nov 10
Quarterly earnings

24h Move

-4.7%

Revenue rose and GAAP net loss narrowed, while Adjusted EBITDA increased year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, adjusted ebitda, non-gaap, interest rate swap contracts

4 terms

gaap financial

"GAAP Net loss increased 385.9% to $4.2 million"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

adjusted ebitda financial

"Adjusted EBITDA decreased 6.3% to $11.0 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

"certain non-GAAP financial measures, including EBITDA"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

interest rate swap contracts financial

"positive change in fair value of interest rate swap contracts"

A contract where two parties agree to exchange streams of interest payments so one side takes a fixed rate and the other a variable rate tied to market interest levels; no loan principal changes hands, just the differing payment amounts. Investors care because swaps let companies and funds manage interest-rate risk or speculate on rate moves—like trading a variable mortgage for a fixed one—to stabilize borrowing costs or alter portfolio sensitivity to rising or falling rates.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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11/09/2026 - 04:05 PM EST

Net Revenue increased 4.1% to $319.6 million

GAAP Net loss increased 385.9% to $4.2 million

Adjusted Net Income decreased 52.1% to $2.1 million

Adjusted EBITDA decreased 6.3% to $11.0 million

LAS VEGAS, Nov. 09, 2026 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG) (“HF Foods” or the “Company”), a leading distributor of international foodservice solutions to Asian restaurants and other businesses across the United States and Canada, today announced results for the third quarter ended September 30, 2026.

Third Quarter 2026 Financial Results

(In thousands, except per share amounts)	Three Months Ended September 30, 2026			Change over Prior Year			Nine Months Ended September 30, 2026			Change over Prior Year

GAAP Measures
Net revenue	$	319,575		$	12,597		$	955,358		$	35,099
Gross profit	$	53,391		$	2,982		$	158,965		$	2,465
Net loss	$	(4,247	)	$	(3,373	)	$	(270	)	$	1,624
Loss per share	$	(0.08	)	$	(0.06	)	$	(0.01	)	$	0.02

Non-GAAP Measures
Adjusted EBITDA⁽¹⁾	$	11,008		$	(740	)	$	34,723		$	(643	)
Adjusted net income⁽²⁾	$	2,083		$	(2,262	)	$	11,883		$	(2,321	)
Adjusted diluted earnings per share⁽²⁾	$	0.04		$	(0.04	)	$	0.22		$	(0.05	)

________________
⁽¹⁾	Adjusted EBITDA is defined as net income (loss) before interest expense, interest income, income taxes and depreciation and amortization, further adjusted to exclude certain unusual, non-cash, or non-recurring expenses.
⁽²⁾	Adjusted net income and adjusted earnings per share are based on net income attributable to HF Foods Group Inc.

Management Commentary

“Our third quarter results reflect solid top line growth, marking our seventh consecutive quarter of year-over-year net revenue growth, even as industry-wide fuel costs continued to weigh on operating expenses,” said Felix Lin, President and Chief Executive Officer of HF Foods. “We are actively managing through this pressure by taking actions to mitigate the impact, and the efficiency programs built through our transformation continue to help offset higher costs. We also completed our acquisition of Searay Foods during the quarter, our first expansion outside the United States, and integration is progressing well. With the foundation of our transformation largely built, we are focused on route and warehouse efficiency, purchasing discipline and cross-selling across the Southeast and Midwest. We are confident in our ability to turn near-term cost pressure into long-term value for our shareholders as we strengthen our position as the leading nationwide Asian specialty food distributor.”

Third Quarter 2026 Results

Net revenue was $319.6 million for the third quarter of 2026 compared to $307.0 million in the prior year period, an increase of $12.6 million, or 4.1%. The increase was primarily attributable to volume growth in Seafood and pricing improvement in Produce and Commodity, partially offset by price decreases in Meat & Poultry. Net revenue also included $4.2 million from Searay Foods following the completion of its acquisition effective August 31, 2026, reflecting 1 month of contribution during the quarter.

Gross profit was $53.4 million for the quarter, compared to $50.4 million in the prior year period, an increase of $3.0 million, or 5.9%. The increase was primarily driven by volume growth in Seafood, incremental margin gained from Searay and IEEPA tariff refunds received during the quarter. Gross profit margin increased to 16.7% compared to 16.4% in the prior year period.

Distribution, selling and administrative expenses increased by $5.9 million, or 11.9%, compared to the prior year period, primarily driven by professional services related to the non-recurring events including amendment and increase of our revolving credit facility, the refinancing of our property portfolio, acquisition of Searay Foods and other legal expenses and an increase in auto & truck expenses reflecting elevated fuel costs and truck lease expense, partially offset by a decrease of repair & maintenance costs due to the investments into upgrading our fleet. Distribution, selling and administrative expenses as a percentage of net revenue increased to 17.3% compared to 16.1% in the prior year period.

Net loss was $4.2 million compared to a net loss of $0.9 million in the prior year period. The increase in net loss was primarily driven by a $2.9 million decrease in income from operations, reflecting margin growth of $3.0 million offset by the $5.9 million increase in distribution, selling and administrative expenses. Other expense (income) reduced by $0.5 million driven by a positive change in fair value of interest rate swap contracts of $0.9 million partially offset by higher interest expense. Income tax benefit reduced by $0.9 million compared to same period last year.

Adjusted EBITDA decreased 6.3% to $11.0 million compared to $11.7 million in the prior year period, which was mainly due to the increase in net loss and various other items noted in the Adjusted EBITDA table included in “Appendix A - Non-GAAP Financial Measures” of this earnings release. Searay contributed approximately $0.6 million of Adjusted EBITDA reflecting 1 month of contribution for the quarter following the completion of the acquisition on August 31, 2026.

Nine Months 2026 Results

Net revenue was $955.4 million for the nine months ended September 30, 2026, compared to $920.3 million in the prior year period, an increase of $35.1 million, or 3.8%. The increase was primarily due to volume growth and pricing improvement in Seafood and pricing improvement in Commodity and Produce, partially offset by price decreases in Meat & Poultry. Net revenue for the nine months ended September 30, 2026 includes $4.2 million from Searay, which was acquired on August 31, 2026.

Gross profit slightly increased by 1.6% to $159.0 million, compared to $156.5 million in the prior year period. Margin increase included IEEPA tariff refunds received during the period and incremental margin gained from newly acquired Searay. Gross profit margin decreased to 16.6% compared to 17.0% in the prior year period.

Distribution, selling and administrative expenses increased by $6.8 million, or 4.5% to $156.9 million, compared to the prior year period, mainly due to increases in auto & truck expense reflecting elevated fuel costs partially offset by repair & maintenance savings from investments in upgrading our fleet, non-recurring professional services related to the renewal and upsizing of our revolver facility, refinancing of our property portfolio and the acquisition of Searay Foods, and depreciation expenses. Distribution, selling and administrative expenses as a percentage of net revenue increased slightly to 16.4% compared to 16.3% in the prior year period.

Net loss was $0.3 million compared to a net loss of $1.9 million in the prior year period. The improvement was primarily attributable to a favorable year-over-year change in fair value of interest rate swap of $4.4 million, the recognition of employee retention credit of $1.8 million, including interest, and a gain from the Utah building sale of $1.4 million. These favorable variances were partially offset by a $4.3 million decrease in operating income and a $1.2 million unfavorable change in income taxes.

Adjusted EBITDA decreased 1.8% to $34.7 million compared to $35.4 million in the prior year period, which was due to various items noted in the Adjusted EBITDA table included in “Appendix A - Non-GAAP Financial Measures” of this earnings release.

Cash Flow and Liquidity

Cash provided by operating activities was $24.1 million for the nine months ended September 30, 2026, compared to cash provided by operating activities of $4.5 million in the prior year period. Net cash provided by operating activities increased by $19.6 million mainly driven by better inventory management. Net cash provided by financing activities also increased by $40.1 million as a result of refinancing. The cash generated through operating and financing activities were mainly used for Capital Expenditure and acquisition. As of September 30, 2026, the Company had cash of $16.4 million, checks issued not presented for payment of $5.3 million and access to approximately $49.1 million in additional funds through the $140.0 million line of credit, subject to a borrowing base calculation. The Company has funded working capital and other capital requirements primarily by cash flow from operations and bank loans, including lines of credit. Cash is required to pay purchase costs for inventory, salaries, fuel and trucking expenses, selling expenses, rental expenses, income taxes, other operating expenses and to service debts.

Earnings Call and Webcast

HF Foods’ management team will host a live conference call to discuss its financial results today at 1:30 p.m. PT (4:30 p.m. ET). The link to the webcast will be available on the “Events” section of the Company’s Investor Relations website at https://investors.hffoodsgroup.com. Those interested in participating in the live call can dial 1-877-407-0752 or 1-201-389-0912. The webcast will be archived and available for replay.

About HF Foods Group Inc.

HF Foods Group Inc. is a leading marketer and distributor of fresh produce, frozen and dry food, and non-food products to primarily Asian restaurants and other foodservice customers throughout the United States and Canada through the acquisition of Searay. HF Foods aims to supply the increasing demand for Asian American restaurant cuisine, leveraging its nationwide network of distribution centers and its strong relations with growers and suppliers of fresh, high-quality specialty restaurant food products and supplies in the US and Asia. References to Searay includes Searay Foods Inc., Morgan Foods and, the U.S. inventory and customer contracts of an affiliate, Searay Foods USA Inc.. HF Foods, headquartered in Las Vegas, Nevada, trades on Nasdaq under the symbol “HFFG”. For more information, please visit www.hffoodsgroup.com.

Contact:

ICR

Anna Kate Heller

hffoodsgroup@icrinc.com

Forward-Looking Statements

All statements in this news release other than statements of historical facts are, or may be deemed to be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and contain our current expectations about our future results. We have attempted to identify any forward-looking statements by using words such as “aims,” “continues,” “expects,” “plans,” “will,” and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company’s actual results, events or financial positions to differ materially from those included within or implied by such forward-looking statements. Such factors include, but are not limited to, risks relating to our ability to consummate our operational transformation plan as anticipated, risks relating to the impact of our operational plan on our sales and efficiencies, risks relating to the impact of demographic trends on demand for the products we distribute, risks related to potential increases in tariff-related costs, risks related to the integration of Searay and the realization of anticipated benefits, synergies and margin accretion from the acquisition, risks related to the Company’s expansion into international markets, including Canada, and other risks associated with cross-border operations, statements of assumption underlying any of the foregoing, and other factors including those disclosed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 and other filings with the Securities and Exchange Commission (the “SEC”). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements.


HF FOODS GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	September 30, 2026			December 31, 2025
ASSETS
CURRENT ASSETS:
Cash	$	16,444		$	8,641
Accounts receivable, net		68,511			66,237
Inventories		134,864			106,629
Prepaid expenses and other current assets		11,297			9,725
Assets held for sale		—			2,768
TOTAL CURRENT ASSETS		231,116			194,000
Property and equipment, net		177,949			163,397
Operating lease right-of-use assets		26,298			26,049
Long-term investments		2,139			2,144
Customer relationships, net		137,710			126,048
Trademarks, trade names and other intangibles, net		24,453			25,440
Goodwill		13,219			—
Other long-term assets		4,518			4,451
TOTAL ASSETS	$	617,402		$	541,529
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Checks issued not presented for payment	$	5,275		$	1,674
Line of credit		80,021			55,799
Accounts payable		85,370			74,859
Current portion of long-term debt, net		13,395			6,683
Current portion of obligations under finance leases		6,733			6,425
Current portion of obligations under operating leases		3,123			4,334
Accrued expenses and other liabilities		17,198			14,994
TOTAL CURRENT LIABILITIES		211,115			164,768
Long-term debt, net of current portion		118,130			99,436
Obligations under finance leases, non-current		22,102			25,279
Obligations under operating leases, non-current		26,744			22,990
Deferred tax liabilities		29,674			23,808
Other long-term liabilities		6,587			1,662
TOTAL LIABILITIES		414,352			337,943
Commitments and contingencies
SHAREHOLDERS’ EQUITY:
Preferred stock		—			—
Common stock		5			5
Treasury stock		(6,099	)		(7,750	)
Additional paid-in capital		605,957			605,838
Accumulated deficit		(396,459	)		(396,042	)
Accumulated other comprehensive loss		(1,376	)		—
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO HF FOODS GROUP INC.		202,028			202,051
Noncontrolling interests		1,022			1,535
TOTAL SHAREHOLDERS’ EQUITY		203,050			203,586
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	617,402		$	541,529


HF FOODS GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except share and per share data) (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
		2026			2025			2026			2025
Net revenue	$	319,575		$	306,978		$	955,358		$	920,259
Cost of revenue		266,184			256,569			796,393			763,759
Gross profit		53,391			50,409			158,965			156,500

Distribution, selling and administrative expenses		55,174			49,289			156,894			150,107
Income (loss) from operations		(1,783	)		1,120			2,071			6,393

Other expenses (income):
Interest expense		3,430			2,941			9,158			8,367
Other income, net		(243	)		(234	)		(4,343	)		(825	)
Change in fair value of interest rate swap contracts		(897	)		47			(2,469	)		1,916
Total other expenses (income), net		2,290			2,754			2,346			9,458
Loss before income taxes		(4,073	)		(1,634	)		(275	)		(3,065	)

Provision (benefit) for income taxes		174			(760	)		(5	)		(1,171	)
Net loss		(4,247	)		(874	)		(270	)		(1,894	)
Less: net income (loss) attributable to noncontrolling interests		(25	)		242			147			(349	)
Net loss attributable to HF Foods Group Inc.	$	(4,222	)	$	(1,116	)	$	(417	)	$	(1,545	)

Loss per common share - basic	$	(0.08	)	$	(0.02	)	$	(0.01	)	$	(0.03	)
Loss per common share - diluted	$	(0.08	)	$	(0.02	)	$	(0.01	)	$	(0.03	)

Weighted average shares - basic		53,900,945			53,031,801			53,321,163			52,913,907
Weighted average shares - diluted		53,900,945			53,031,801			53,321,163			52,913,907


HF FOODS GROUP INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Nine Months Ended September 30,
		2026			2025
Cash flows from operating activities:
Net loss	$	(270	)	$	(1,894	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense		22,575			21,269
Gain from disposal of property and equipment		(1,373	)		—
Provision (credit) for expected credit losses		25			(357	)
Deferred tax benefit		(214	)		(2,856	)
Change in fair value of interest rate swap contracts		(2,189	)		1,916
Stock-based compensation		1,747			1,618
Non-cash lease expense		4,320			3,745
Other non-cash expense (income)		470			(548	)
Changes in operating assets and liabilities:
Accounts receivable		3,581			939
Accounts receivable - related parties		(349	)		(367	)
Inventories		(16,954	)		(37,713	)
Prepaid expenses and other current assets		(811	)		5,091
Other long-term assets		145			682
Checks issued not presented for payment		3,601			(3,561	)
Accounts payable		9,686			21,820
Accounts payable - related parties		126			511
Operating lease liabilities		(2,024	)		(2,905	)
Accrued expenses and other liabilities		2,036			(2,907	)
Net cash provided by operating activities		24,128			4,483
Cash flows from investing activities:
Purchase of property and equipment		(22,335	)		(10,014	)
Proceeds from sale of property and equipment		4,260			152
Acquisition of business, net of cash acquired		(41,770	)		—
Settlement of interest rate swap contracts		279			—
Net cash used in investing activities		(59,566	)		(9,862	)
Cash flows from financing activities:
Payments for tax withholding related to vested stock awards		(77	)		(156	)
Proceeds from line of credit		1,246,442			1,033,577
Repayment of line of credit		(1,221,952	)		(1,023,791	)
Proceeds from issuance of debt		43,536			3,275
Repayment of long-term debt		(17,591	)		(4,776	)
Payment of debt financing costs		(1,124	)		(213	)
Repayment of obligations under finance leases		(5,323	)		(4,676	)
Proceeds from ATM sale		275			—
Acquisition of noncontrolling interests		(835	)		—
Net cash provided by financing activities		43,351			3,240
Effect of exchange rate changes on cash		(110	)		—
Net increase (decrease) in cash		7,803			(2,139	)
Cash at beginning of the period		8,641			14,467
Cash at end of the period	$	16,444		$	12,328

Appendix A
Non-GAAP Financial Measures
Three and Nine Months Ended September 30, 2026 and 2025
(Unaudited)

Discussion of our financial results includes certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, non-GAAP net income (loss) attributable to HF Foods Group Inc. and non-GAAP EPS (“earnings (loss) per share”), that we believe provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial performance with other companies in the same industry, many of which present similar non-GAAP financial measures to investors. The definitions of EBITDA, Adjusted EBITDA, non-GAAP net income (loss) attributable to HF Foods Group Inc. and non-GAAP EPS may not be the same as similarly titled measures used by other companies in the industry. EBITDA, Adjusted EBITDA, non-GAAP net income (loss) attributable to HF Foods Group Inc. and non-GAAP EPS are not defined under GAAP and are subject to important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our financial results as reported under GAAP.

We use non-GAAP financial measures to supplement our GAAP financial results. Management uses EBITDA, defined as net income (loss) before interest expense, interest income, income taxes, and depreciation and amortization to measure operating performance. In addition, management uses Adjusted EBITDA, defined as net income (loss) before interest expense, interest income, income taxes, and depreciation and amortization, further adjusted to exclude certain unusual, non-cash, or non-recurring expenses. We believe that Adjusted EBITDA is less susceptible to variances in actual performance resulting from non-recurring expenses, and other non-cash charges, provides useful information for our investors and is more reflective of other factors that affect our operating performance.

We believe non-GAAP net income (loss) attributable to HF Foods Group Inc. and non-GAAP EPS are useful measures of operating performance because these measures exclude certain items not reflective of our core operating performance. Non-GAAP net income (loss) attributable to HF Foods Group Inc. is defined as net income (loss) attributable to HF Foods Group Inc. adjusted for amortization of intangibles, change in fair value of interest rate swaps, stock based compensation, transaction related costs, transformational project costs and certain unusual, non-cash, or non-recurring expenses. We believe that non-GAAP net income (loss) attributable to HF Foods Group Inc. and non-GAAP EPS facilitates period-over-period comparisons and provides additional clarity for investors to better evaluate our operating results. We present EBITDA, Adjusted EBITDA, non-GAAP net income (loss) attributable to HF Foods Group Inc. and non-GAAP EPS in order to provide supplemental information that we consider relevant for the readers of our consolidated financial statements included elsewhere in its reports filed with the SEC, including its most recent Annual Report on Form 10-K, and such information is not meant to replace or supersede U.S. GAAP measures. Reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures are included in the schedules attached to this press release.


HF FOODS GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (In thousands) (Unaudited)

	Three Months Ended September 30,
		2026			2025		Change
Net loss	$	(4,247	)	$	(874	)	$	(3,373	)
Interest expense, net		3,375			2,947			428
Income tax expense		174			(760	)		934
Depreciation and amortization		7,594			7,250			344
EBITDA		6,896			8,563			(1,667	)
Change in fair value of interest rate swap contracts		(897	)		47			(944	)
Stock-based compensation expense		855			619			236
Business transformation costs⁽¹⁾		454			1,592			(1,138	)
Other non-routine expense⁽²⁾		3,656			339			3,317
Executive transition and organizational redesign⁽³⁾		44			588			(544	)
Adjusted EBITDA	$	11,008		$	11,748		$	(740	)

	Nine Months Ended September 30,
		2026			2025		Change
Net loss	$	(270	)	$	(1,894	)	$	1,624
Interest expense, net		8,403			8,331			72
Income tax (benefit) expense		(5	)		(1,171	)		1,166
Depreciation and amortization		22,575			21,269			1,306
EBITDA		30,703			26,535			4,168
Change in fair value of interest rate swap contracts		(2,469	)		1,916			(4,385	)
Stock-based compensation expense		1,747			1,618			129
Business transformation costs⁽¹⁾		957			2,458			(1,501	)
Other non-routine expense⁽²⁾		3,213			449			2,764
Executive transition and organizational redesign⁽³⁾		572			2,390			(1,818	)
Adjusted EBITDA	$	34,723		$	35,366		$	(643	)

________________
⁽¹⁾	Represents costs associated with the launch and continued implementation of strategic projects including supply chain management improvements and technology infrastructure initiatives.
⁽²⁾	Includes legal and consulting costs related to various corporate projects and other strategic initiatives. For the nine months ended September 30, 2026, it also includes the gain on the sale of the Utah building.
⁽³⁾	Includes severance and related expenses for the Company’s transition of executive officers and organizational redesign.

HF FOODS GROUP INC. AND SUBSIDIARIES
RECONCILIATION OF NET LOSS ATTRIBUTABLE TO HF FOODS GROUP INC.
TO NON-GAAP NET INCOME AND NON-GAAP EPS ATTRIBUTABLE TO HF FOODS GROUP INC.
(In thousands, except per share amounts)
(Unaudited)

The following tables present our non-GAAP net income (loss) and non-GAAP EPS for the three and nine months ended September 30, 2026 and 2025 respectively, as well as reconciliations of each measure to their nearest GAAP equivalents:

	Three Months Ended September 30,
		2026			2025		Change
Net loss attributable to HF Foods Group Inc.	$	(4,222	)	$	(1,116	)	$	(3,106	)
Amortization of intangibles and deferred financing costs		3,993			4,001			(8	)
Change in fair value of interest rate swaps		(897	)		47			(944	)
Stock-based compensation expense		855			619			236
Business transformation costs⁽¹⁾		454			1,592			(1,138	)
Other non-routine expense⁽²⁾		3,656			339			3,317
Executive transition and organizational redesign⁽³⁾		44			588			(544	)
Aggregate adjustment for income taxes⁽⁴⁾		(1,800	)		(1,725	)		(75	)
Non-GAAP net income (loss) attributable to HF Foods Group Inc.	$	2,083		$	4,345		$	(2,262	)
GAAP diluted loss per common share attributable to HF Foods	$	(0.08	)	$	(0.02	)	$	(0.06	)
EPS difference⁽⁵⁾		0.12			0.10			0.02
Non-GAAP diluted earnings (loss) per common share attributable to HF Foods⁽⁵⁾	$	0.04		$	0.08		$	(0.04	)
Non-GAAP diluted weighted average number of shares (in thousands)⁽⁵⁾		54,451			53,387

	Nine Months Ended September 30,
		2026			2025		Change
Net loss attributable to HF Foods Group Inc.	$	(417	)	$	(1,545	)	$	1,128
Amortization of intangibles and deferred financing costs		11,973			11,891			82
Change in fair value of interest rate swaps		(2,469	)		1,916			(4,385	)
Stock-based compensation expense		1,747			1,618			129
Business transformation costs⁽¹⁾		957			2,458			(1,501	)
Other non-routine expense⁽²⁾		3,213			449			2,764
Executive transition and organizational redesign⁽³⁾		572			2,390			(1,818	)
Aggregate adjustment for income taxes⁽⁴⁾		(3,693	)		(4,973	)		1,280
Non-GAAP net income attributable to HF Foods Group Inc.	$	11,883		$	14,204		$	(2,321	)
GAAP diluted earnings (loss) per common share attributable to HF Foods	$	(0.01	)	$	(0.03	)	$	0.02
EPS difference⁽⁵⁾		0.23			0.30			(0.07	)
Non-GAAP diluted earnings per common share attributable to HF Foods⁽⁵⁾	$	0.22		$	0.27		$	(0.05	)
Non-GAAP diluted weighted average number of shares (in thousands)⁽⁵⁾		53,850			53,290

________________
⁽¹⁾	Represents costs associated with the launch and continued implementation of strategic projects including supply chain management improvements and technology infrastructure initiatives.
⁽²⁾	Includes legal and consulting costs related to various corporate projects and other strategic initiatives. For the nine months ended September 30, 2026, it also includes the gain on the sale of the Utah building.
⁽³⁾	Includes severance and related expenses for the Company’s transition of executive officers and organizational redesign.
⁽⁴⁾	Represents the income tax impact of non-GAAP adjustments, calculated using a normalized annual effective tax rate of 24% applied to adjusted pre-tax earnings for the third quarters of 2026 and 2025, excluding permanent items.
⁽⁵⁾	EPS difference and diluted non-GAAP earnings per share are calculated by dividing our non-GAAP net income attributable to HF Foods by our non-GAAP diluted weighted average number of shares.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did HF Foods HFFG perform in the third quarter of 2026?

HF Foods reported revenue of $319.6 million, up 4.1%, and a net loss of $4.2 million, compared with $0.9 million a year earlier. Adjusted EBITDA decreased 6.3% to $11.0 million, while adjusted net income decreased 52.1% to $2.1 million.

How much did Searay Foods contribute to HF Foods’ third-quarter 2026 results?

Searay contributed $4.2 million in revenue and approximately $0.6 million in adjusted EBITDA for one month of the quarter. HF Foods completed the acquisition effective August 31, 2026, making its first expansion outside the United States.

What liquidity did HF Foods HFFG have at September 30, 2026?

HF Foods had $16.4 million in cash and access to approximately $49.1 million in additional funds through its $140.0 million credit line, subject to a borrowing-base calculation. Checks issued but not presented for payment totaled $5.3 million.

HF Foods Reports Third Quarter 2026 Financial Results