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HF Foods Reports Second Quarter 2025 Financial Results

Reports Quarterly Record Net Revenue and Gross Profit

LAS VEGAS, Aug. 11, 2025 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG) (鈥淗F Foods鈥� or the 鈥淐ompany鈥�), a leading distributor of international foodservice solutions to Asian restaurants and other businesses across the United States, reported its unaudited financial results for the quarter ended June 30, 2025.

Second Quarter 2025 Financial Results

• Net revenue increased 4.1% to $314.9 million compared to $302.3 million in the prior year period.
• Gross profit increased 5.1% to $55.1 million compared to $52.5 million in the prior year period. Gross profit margin increased 13 basis points to 17.5% compared to the prior year period.
• Net income increased 117.0% to $0.5 million compared to net income of $0.2 million in the prior year period.
• Adjusted EBITDA increased 31.1% to $13.8 million compared to $10.6 million in the prior year period.
• GAAP diluted EPS increased to $0.02 compared to $0.00 in the prior year period. Non-GAAP diluted EPS increased to $0.12 compared to $0.04 in the prior year period.
  

Management Commentary

鈥淲e are pleased to report record net revenue and gross profit for HF Foods in the second quarter,鈥� said Felix Lin, President and Chief Executive Officer of HF Foods. 鈥淥ur results demonstrate the continued momentum of our transformation initiatives and our disciplined execution against our strategic priorities, even amid a dynamic and uncertain macro environment. The successful completion of our ERP implementation across our entire network has established a unified platform that will drive breakthrough levels of efficiency and unlock the full potential of our operations. We remain confident in our long-term strategy and are actively evaluating attractive M&A opportunities as we are focused on expanding our geographic footprint and enhancing our product capabilities. Through our strategic investments, operational excellence, and market leadership in the Asian specialty distribution landscape, we believe HF Foods is positioned to drive sustained growth and create long-term value for our shareholders.鈥�

Second Quarter 2025 Results

Net revenue was $314.9 million for the second quarter of 2025 compared to $302.3 million in the prior year period, an increase of $12.5 million, or 4.1%. The increase was primarily attributable to volume increases and improved pricing in Meat & Poultry and Seafood.

Gross profit was $55.1 million for the three months ended June 30, 2025, compared to $52.5 million in the prior year period, an increase of $2.7 million, or 5.1%. The increase was primarily attributable to an increase in volume and improved pricing in Meat & Poultry and Seafood during the quarter. Gross profit margin increased to 17.5% compared to 17.4% in the same period in 2024.

Distribution, selling and administrative expenses increased by $1.2 million, or 2.4%, for the three months ended June 30, 2025. Distribution, selling and administrative expenses as a percentage of net revenue decreased from 16.5% in the prior year to 16.2% for the three months ended June 30, 2025, primarily due to increased net revenue and lower professional fees, partially offset by increased payroll, rental and other expenses.

Net income increased 117.0% to $0.5 million for the three months ended June 30, 2025, compared to net income of $0.2 million for the three months ended June 30, 2024. The improvement was primarily driven by an increase in income from operations of $1.5 million compared to the prior year period; however, the prior year鈥檚 results included a one-time gain from lease guarantee income offset by an SEC settlement, which did not recur in the current year, thereby partially offsetting the year-over-year improvement.

Adjusted EBITDA increased 31.1% to $13.8 million compared to $10.6 million in the prior year, which was due to various items noted in the Adjusted EBITDA table below.听听听听听听听听

Cash Flow and Liquidity

Cash provided by operating activities was $10.5 million for the six months ended June 30, 2025, compared to cash provided by operating activities of $1.9 million in the prior year period. Net cash provided by operating activities increased by $8.5 million primarily due to an increase in non-cash expense add-backs. As of June 30, 2025, the Company had cash of $15.7 million, checks issued not presented for payment of $7.0 million and access to approximately $57.8 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鈥� 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 鈥淓vents鈥� section of the Company鈥檚 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 鈥淗FFG鈥�. For more information, please visit www.hffoodsgroup.com.

Investor Relations Contact:

ICR

Investors: Anna Kate Heller

Media: Michael Wolfe

[email protected]

Forward-Looking Statements

All statements in this news release other than statements of historical facts are, or may be deemed to be, 鈥渇orward-looking statements鈥� 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 鈥渁ims,鈥� 鈥渃ontinues,鈥� 鈥渆xpects,鈥� 鈥減lans,鈥� 鈥渨ill,鈥� 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鈥檚 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 鈥淩isk Factors鈥� in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings with 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.

Non-GAAP Financial Measures

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 (鈥渆arnings per share鈥�), 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.

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