HF Foods Group (HFFG) Q4 2025 earnings summary

Executive summary

• Net revenue grew 2.2% year-over-year to $1.23 billion for 2025, driven by volume and pricing gains in seafood and meat poultry, partially offset by declines in other categories.

• Adjusted EBITDA increased 6.9% to $45.0 million for 2025, reflecting operational improvements and transformation initiatives.

• Strategic investments in digital infrastructure, facilities, and sales operations advanced the long-term transformation plan, including ERP implementation and call center consolidation.

• M&A remains a core pillar, with recent acquisitions and ongoing evaluation of new opportunities.

• Positioned as the largest player in the $50 billion U.S. Asian specialty foodservice market.

Financial highlights

• Gross profit for 2025 was $207.6 million, up from $205.2 million, with gross margin decreasing to 16.9% from 17.1%.

• Adjusted net income increased 20.9% to $16.9 million; adjusted EPS rose to $0.32 from $0.26.

• Net loss improved to $38.8 million from $48.5 million, mainly due to lower goodwill impairment.

• Distribution, selling, and administrative expenses rose to $201.8 million, but as a percentage of revenue remained stable at 16.4%.

• Cash provided by operating activities was $25.5 million, up from $22.6 million in the prior year.

Outlook and guidance

• Expecting 2026 to mirror 2025, with low single-digit growth in both top-line and bottom-line metrics.

• Management expects to drive operational efficiency, organic growth through network optimization and cross-selling, and pursue selective M&A.

• Continued focus on cross-selling, operational efficiency, and disciplined capital deployment.

• M&A and organic growth through facility expansion and network optimization remain priorities.