How did HF Foods' Q1 2026 earnings per share compare to the prior year?

HF Foods shifted from a loss to positive earnings per share in Q1 2026. According to HF Foods, GAAP EPS reached $0.02, an improvement of $0.05 per share compared with the prior-year period’s negative earnings per share.

HF Foods Reports First Quarter 2026 Financial Results

Rhea-AI Impact

(High)

Rhea-AI Sentiment

(Neutral)

Rhea-AI Summary

HF Foods (NASDAQ:HFFG) reported first quarter 2026 net revenue of $312.0 million, up 4.5% year over year. GAAP net income was $1.4 million versus a prior-year loss, while adjusted net income slipped 3.6% to $3.4 million.

Adjusted EBITDA rose 3.8% to about $10.1 million. Gross profit declined 0.8% to $50.5 million, with margin down to 16.2%. Operating cash flow increased to $15.3 million. HF Foods highlighted progress on its Chicago warehouse acquisition and near-completion of its Charlotte facility, plus improved sales call center and ERP-driven efficiencies.

Positive

Net revenue up 4.5% year over year to $312.0 million
Net income improved to $1.4 million from prior-year loss
Adjusted EBITDA increased 3.8% to about $10.1 million
Operating cash flow rose to $15.3 million from $6.9 million
Distribution, selling and administrative expense ratio fell to 15.9% of revenue
Access to approximately $55.2 million on $125.0 million credit line

Negative

Gross profit declined 0.8% to $50.5 million
Gross margin compressed from 17.1% to 16.2%
Adjusted net income decreased 3.6% to $3.35 million
GAAP earnings per share remained low at $0.02

News Market Reaction – HFFG

+11.58%

19 alerts

+11.58% Session close to close

+6.9% Peak Tracked

-20.2% Trough Tracked

$121.66M Market Cap

1.4x Rel. Volume

In the May 12 session, HFFG gained 11.58%, reflecting a significant positive market reaction. Argus tracked a peak move of +6.9% during that session. Argus tracked a trough of -20.2% from its starting point during tracking. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +11.6% in the session following this news. A strong positive reaction aligns with H...

Analysis

The stock surged +11.6% in the session following this news. A strong positive reaction aligns with HF Foods’ gradual fundamental improvement narrative. Past earnings moves averaged about 4.74%, with both rallies and pullbacks, so sharp gains have not always persisted. Investors have weighed revenue growth and better cash generation against margin compression and prior losses. Without a shelf facility noted here, potential reversal risks would more likely relate to execution, competitive pressures, or broader sector sentiment than to immediate equity dilution.

Key Figures

Net revenue: $312.0 million GAAP net income: $1.4 million Adjusted net income: $3.4 million +5 more

8 metrics

Net revenue $312.0 million Q1 2026, up 4.5% year-over-year

GAAP net income $1.4 million Q1 2026, increased 188.6% year-over-year

Adjusted net income $3.4 million Q1 2026, decreased 3.6% year-over-year

Adjusted EBITDA $10.1 million Q1 2026, increased 3.8% year-over-year

Operating cash flow $15.3 million Cash provided by operating activities, Q1 2026

Operating cash flow prior year $6.9 million Cash provided by operating activities, Q1 prior year

Cash balance $11.1 million Cash as of March 31, 2026

Credit facility availability approximately $55.2 million Additional funds accessible under $125.0 million line of credit

Previous Earnings Reports

5 past events · Latest: Nov 10 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Nov 10	Q3 2025 earnings	Positive	-4.7%	Revenue growth, sharply narrowed net loss and stronger adjusted EBITDA.
Aug 11	Q2 2025 earnings	Positive	+9.2%	Record revenue, higher gross profit, strong adjusted EBITDA and better margins.
May 12	Q1 2025 earnings	Negative	-8.7%	Modest growth but continued net loss driven by swap contract headwinds.
Mar 13	Q4/FY 2024 earnings	Negative	+29.4%	Higher revenue but significant net losses from sizeable goodwill impairment.
Nov 12	Q3 2024 earnings	Negative	-1.4%	Revenue growth offset by lower margin, net loss and weaker adjusted EBITDA.

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

Pattern Detected

Earnings releases have produced mixed reactions: strong positive moves on some reports but notable selloffs or mild declines on others, regardless of headline strength.

Recent Company History

Recent history shows HF Foods using earnings to highlight gradual revenue growth and operational transformation. Prior reports from 2024–2025 emphasized rising net revenue, improving adjusted EBITDA and narrowing GAAP losses, but also margin pressure and goodwill impairment. Market reactions were inconsistent, with both sharp gains and declines following earnings. Today’s Q1 2026 results, with higher net revenue and a shift to net income but softer gross margins, continue this theme of operational progress balanced against margin and profitability challenges.

Key Terms

adjusted ebitda, non-gaap, earnings per share, interest rate swap contracts, +1 more

5 terms

adjusted ebitda financial

"Adjusted EBITDA increased 3.8% to $ $10.1 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

"Non-GAAP Measures Adjusted EBITDA (1)"

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

"driven by a $2.0 million favorable 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.

line of credit financial

"through the $125.0 million line of credit, subject to a borrowing base calculation"

A line of credit is a flexible borrowing arrangement that lets a company draw money up to a preset limit, repay it, and borrow again as needed—similar to a business credit card or an emergency tap on a savings account. It matters to investors because it shows how a firm manages short-term cash needs and growth funding without taking a single large loan; access, cost, and attached conditions can affect liquidity, interest expenses and financial risk.

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

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05/11/2026 - 04:05 PM

Net Revenue increased 4.5% to $312.0 million
GAAP Net Income increased 188.6% to $1.4 million
Adjusted Net Income decreased 3.6% to $3.4 million
Adjusted EBITDA increased 3.8% to $ $10.1 million

LAS VEGAS, May 11, 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, today announced results for the first quarter ended March 31, 2026.

First Quarter 2026 Financial Results

(In thousands, except per share amounts)	Three Months Ended March 31, 2026		Change over Prior Year

GAAP Measures
Net revenue	$	312,002	$	13,574
Gross profit	$	50,526	$	(433	)
Net income	$	1,356	$	2,886
Earnings per share	$	0.02	$	0.05

Non-GAAP Measures
Adjusted EBITDA⁽¹⁾	$	10,146	$	373
Adjusted net income⁽²⁾	$	3,350	$	(126	)
Adjusted diluted earnings per share⁽²⁾	$	0.06	$	(0.01	)

________________
⁽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 first quarter performance demonstrated continued momentum from our transformation initiatives even as the broader foodservice industry navigated ongoing headwinds,” said Felix Lin, President and Chief Executive Officer of HF Foods. “Our results reflect meaningful progress across our strategic priorities, including the operational benefits we are realizing from our consolidated sales call center structure, continued advancement of our digital infrastructure following our full ERP implementation, and significant milestones in our facilities expansion program. The recent acquisition of our Chicago warehouse and the near-completion of our Charlotte facility position us to unlock substantial cross-selling opportunities in high-growth markets across the Southeast and Midwest. We remain focused on driving operational efficiency, capturing organic growth through network optimization and cross-selling, and selectively pursuing M&A opportunities that strengthen our unmatched competitive position as the leading nationwide distributor in the Asian specialty food category. While near-term cost pressures persist, we are confident in our long-term growth trajectory and our ability to create sustained value for our shareholders as we execute against our strategic vision.”

First Quarter 2026 Results

Net revenue was $312.0 million for the quarter compared to $298.4 million in the prior year period, an increase of $13.6 million, or 4.5%. The increase was primarily due to volume growth and pricing improvement in Seafood followed by volume growth for Commodity.

Gross profit slightly decreased by 0.8% to $50.5 million for the period, compared to $51.0 million in the prior year period. The decrease was primarily due to increased sales in lower margin products like Seafood and an uptick in landed costs. Gross profit margin decreased to 16.2% compared to 17.1% in the prior year period.

Distribution, selling and administrative expenses decreased by $0.3 million, or 0.6% to $49.5 million, compared to the prior year period mainly due to increased net revenue and a decrease in professional fees and bad debt expense, partially offset by an increase in auto & truck expenses and depreciation. Distribution, selling and administrative expenses as a percentage of net revenue decreased to 15.9%, compared to 16.7% in the prior year period.

Net income was $1.4 million compared to net loss of $1.5 million in the prior year period. The improvement was primarily driven by a $2.0 million favorable change in fair value of interest rate swap contracts and a $1.7 million increase in other income mainly related to sale of a property. These favorable items were partially offset by a decrease in income tax benefit of $0.5 million.

Adjusted EBITDA increased 3.8% to $10.1 million compared to $9.8 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 $15.3 million for the three months ended March 31, 2026, compared to cash provided by operating activities of $6.9 million in the prior year period. Net cash provided by operating activities increased by $8.3 million primarily due to an increase in non-cash expense add-backs and increases in accounts payable balances, offset by the timing of working capital outlays mainly for inventory purchases and increases in our accounts receivable balances. As of March 31, 2026, the Company had cash of $11.1 million, checks issued not presented for payment of $5.0 million and access to approximately $55.2 million in additional funds through the $125.0 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. 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. 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. Headquartered in Las Vegas, Nevada, HF Foods 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, 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)

	March 31, 2026			December 31, 2025
ASSETS
CURRENT ASSETS:
Cash	$	11,061		$	8,641
Accounts receivable, net		67,616			66,237
Inventories		107,183			106,629
Prepaid expenses and other current assets		6,096			9,725
Assets held for sale		—			2,768
TOTAL CURRENT ASSETS		191,956			194,000
Property and equipment, net		176,504			163,397
Operating lease right-of-use assets		23,864			26,049
Long-term investments		2,096			2,144
Customer relationships, net		123,407			126,048
Trademarks, trade names and other intangibles, net		24,139			25,440
Other long-term assets		3,916			4,451
TOTAL ASSETS	$	545,882		$	541,529
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Checks issued not presented for payment	$	5,035		$	1,674
Line of credit		61,791			55,799
Accounts payable		76,887			74,859
Current portion of long-term debt, net		5,144			6,683
Current portion of obligations under finance leases		6,572			6,425
Current portion of obligations under operating leases		3,243			4,334
Accrued expenses and other liabilities		13,786			14,994
TOTAL CURRENT LIABILITIES		172,458			164,768
Long-term debt, net of current portion		95,560			99,436
Obligations under finance leases, non-current		24,586			25,279
Obligations under operating leases, non-current		24,053			22,990
Deferred tax liabilities		23,675			23,808
Other long-term liabilities		863			1,662
TOTAL LIABILITIES		341,195			337,943
Commitments and contingencies
SHAREHOLDERS’ EQUITY:
Preferred stock		—			—
Common stock		5			5
Treasury stock		(7,750	)		(7,750	)
Additional paid-in capital		606,243			605,838
Accumulated deficit		(394,817	)		(396,042	)
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO HF FOODS GROUP INC.		203,681			202,051
Noncontrolling interests		1,006			1,535
TOTAL SHAREHOLDERS’ EQUITY		204,687			203,586
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	545,882		$	541,529


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

	Three Months Ended March 31,
		2026			2025
Net revenue	$	312,002		$	298,428
Cost of revenue		261,476			247,469
Gross profit		50,526			50,959

Distribution, selling and administrative expenses		49,489			49,805
Income from operations		1,037			1,154

Other expenses (income):
Interest expense		2,812			2,609
Other income, net		(1,891	)		(177	)
Change in fair value of interest rate swap contracts		(843	)		1,184
Total other expenses, net		78			3,616
Income (loss) before income taxes		959			(2,462	)

Income tax benefit		(397	)		(932	)
Net income (loss)		1,356			(1,530	)
Less: net income attributable to noncontrolling interests		131			115
Net income (loss) attributable to HF Foods Group Inc.	$	1,225		$	(1,645	)

Earnings (loss) per common share - basic	$	0.02		$	(0.03	)
Earnings (loss) per common share - diluted	$	0.02		$	(0.03	)

Weighted average shares - basic		53,053,610			52,737,650
Weighted average shares - diluted		53,933,051			52,737,650


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

	Three Months Ended March 31,
		2026			2025
Cash flows from operating activities:
Net income (loss)	$	1,356		$	(1,530	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense		7,521			6,758
Gain from disposal of property and equipment		(1,471	)		(10	)
Credit for expected credit losses		25			619
Deferred tax benefit		(133	)		(1,084	)
Change in fair value of interest rate swap contracts		(843	)		1,184
Stock-based compensation		305			374
Non-cash lease expense		2,185			1,220
Other non-cash expense (income)		96			(119	)
Changes in operating assets and liabilities:
Accounts receivable		(1,334	)		(4,314	)
Accounts receivable - related parties		(70	)		(96	)
Inventories		(554	)		(8,265	)
Prepaid expenses and other current assets		3,612			3,665
Other long-term assets		409			283
Checks issued not presented for payment		3,361			(696	)
Accounts payable		2,141			11,653
Accounts payable - related parties		(113	)		337
Operating lease liabilities		(28	)		(913	)
Accrued expenses and other liabilities		(1,177	)		(2,118	)
Net cash provided by operating activities		15,288			6,948
Cash flows from investing activities:
Purchase of property and equipment		(15,333	)		(3,574	)
Proceeds from sale of property and equipment		4,214			10
Net cash used in investing activities		(11,119	)		(3,564	)
Cash flows from financing activities:
Proceeds from line of credit		393,818			315,008
Repayment of line of credit		(387,795	)		(313,714	)
Proceeds from issuance of debt		19			—
Repayment of long-term debt		(5,389	)		(1,366	)
Payment of debt financing costs		(69	)		(213	)
Repayment of obligations under finance leases		(1,773	)		(1,467	)
Proceeds from ATM sale		275			—
Acquisition of noncontrolling interests		(835	)		—
Net cash used in financing activities		(1,749	)		(1,752	)
Net increase in cash		2,420			1,632
Cash at beginning of the period		8,641			14,467
Cash at end of the period	$	11,061		$	16,099

Appendix A
Non-GAAP Financial Measures
Three Months Ended March 31, 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 INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (In thousands) (Unaudited)

	Three Months Ended March 31,
		2026			2025		Change
Net income (loss)	$	1,356		$	(1,530	)	$	2,886
Interest expense, net		2,812			2,609			203
Income tax benefit		(397	)		(932	)		535
Depreciation and amortization		7,521			6,758			763
EBITDA		11,292			6,905			4,387
Change in fair value of interest rate swap contracts		(843	)		1,184			(2,027	)
Stock-based compensation expense		305			374			(69	)
Business transformation costs⁽¹⁾		393			237			156
Other non-routine (income) expense⁽²⁾		(1,218	)		100			(1,318	)
Executive transition and organizational redesign⁽³⁾		217			973			(756	)
Adjusted EBITDA	$	10,146		$	9,773		$	373

________________
⁽¹⁾	Represents costs associated with the launch and continued implementation of strategic projects including supply chain management. improvements and technology infrastructure initiatives.
⁽²⁾	Includes the gain on the sale of Utah facility in 2026, as well as legal and consulting costs related to various corporate projects and other strategic initiatives.
⁽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 INCOME (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 months ended March 31, 2026 and 2025 respectively, as well as reconciliations of each measure to their nearest GAAP equivalents:

	Three Months Ended March 31,
		2026			2025		Change
Net income (loss) attributable to HF Foods Group Inc.	$	1,225		$	(1,645	)	$	2,870
Amortization of intangibles and deferred financing costs		3,942			3,870			72
Change in fair value of interest rate swaps		(843	)		1,184			(2,027	)
Stock-based compensation expense		305			374			(69	)
Business transformation costs⁽¹⁾		393			237			156
Other non-routine (income) expense⁽²⁾		(1,218	)		100			(1,318	)
Executive transition and organizational redesign⁽³⁾		217			973			(756	)
Aggregate adjustment for income taxes⁽⁴⁾		(671	)		(1,617	)		946
Non-GAAP net income attributable to HF Foods Group Inc.	$	3,350		$	3,476		$	(126	)
GAAP diluted earnings (loss) per common share attributable to HF Foods	$	0.02		$	(0.03	)	$	0.05
EPS difference⁽⁵⁾		0.04			0.10			(0.06	)
Non-GAAP diluted earnings per common share attributable to HF Foods⁽⁵⁾	$	0.06		$	0.07		$	(0.01	)
Non-GAAP diluted weighted average number of shares (in thousands)⁽⁵⁾		53,528			52,992

________________
⁽¹⁾	Represents costs associated with the launch and continued implementation of strategic projects including supply chain management improvements and technology infrastructure initiatives.
⁽²⁾	Includes the gain on the sale of Utah facility in 2026, as well as legal and consulting costs related to various corporate projects and other strategic initiatives.
⁽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 first 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

How did HF Foods (NASDAQ:HFFG) perform financially in Q1 2026?

HF Foods reported higher revenue and a return to profitability in Q1 2026. According to HF Foods, net revenue rose 4.5% to $312.0 million and GAAP net income reached $1.4 million, compared with a net loss in the prior-year quarter.

What were HF Foods' Q1 2026 adjusted EBITDA and adjusted net income?

HF Foods posted modest growth in adjusted profitability in Q1 2026. According to HF Foods, adjusted EBITDA increased 3.8% to about $10.1 million, while adjusted net income declined 3.6% to roughly $3.35 million, reflecting mixed trends in underlying operating performance.

How did HF Foods' margins and expenses change in Q1 2026?

HF Foods experienced lower gross margins but better cost leverage in Q1 2026. According to HF Foods, gross margin fell to 16.2% from 17.1%, while distribution, selling and administrative expenses decreased to 15.9% of net revenue, helped by higher sales and lower professional fees.

What was HF Foods' operating cash flow and liquidity position in Q1 2026?

HF Foods generated stronger operating cash flow and maintained solid liquidity in Q1 2026. According to HF Foods, operating cash flow increased to $15.3 million, with $11.1 million in cash and access to about $55.2 million under a $125.0 million credit facility.

What strategic initiatives did HF Foods highlight with its Q1 2026 results?

HF Foods emphasized network expansion and operational upgrades alongside Q1 2026 results. According to HF Foods, it acquired a Chicago warehouse, neared completion of its Charlotte facility, advanced its ERP-driven digital infrastructure, and continued leveraging a consolidated sales call center to support growth and efficiency.