--- title: "HF Foods | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 312 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285993812.md" datetime: "2026-05-11T20:38:48.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285993812.md) - [en](https://longbridge.com/en/news/285993812.md) - [zh-HK](https://longbridge.com/zh-HK/news/285993812.md) --- # HF Foods | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 312 M Revenue: As of FY2026 Q1, the actual value is USD 312 M, beating the estimate of USD 308.52 M. EPS: As of FY2026 Q1, the actual value is USD 0.02, beating the estimate of USD -0.02. EBIT: As of FY2026 Q1, the actual value is USD 3.233 M. HF Foods Group Inc. operates as a single reportable segment. Its total net revenue increased by $13,574 thousand, or 4.5%, to $312,002 thousand for the three months ended March 31, 2026, compared to $298,428 thousand in the same period of 2025. #### Segment Revenue by Product Category (Three Months Ended March 31, 2026 vs. 2025) - **Seafood**: Revenue increased to $116,113 thousand (37% of total) in 2026 from $105,575 thousand (35% of total) in 2025, driven by volume growth and pricing improvement. - **Meat and Poultry**: Revenue decreased to $61,552 thousand (20% of total) in 2026 from $66,025 thousand (22% of total) in 2025. - **Asian Specialty**: Revenue decreased to $54,436 thousand (17% of total) in 2026 from $60,980 thousand (21% of total) in 2025. - **Commodity**: Revenue increased to $36,103 thousand (12% of total) in 2026 from $23,816 thousand (8% of total) in 2025, primarily due to volume growth. - **Produce**: Revenue increased to $29,517 thousand (9% of total) in 2026 from $27,911 thousand (9% of total) in 2025. - **Packaging and Other**: Revenue slightly increased to $14,281 thousand (5% of total) in 2026 from $14,121 thousand (5% of total) in 2025. #### Operational Metrics - **Cost of Revenue**: Increased to $261,476 thousand in the three months ended March 31, 2026, from $247,469 thousand in the prior year period. - **Gross Profit**: Decreased by $433 thousand, or 0.8%, to $50,526 thousand in Q1 2026 from $50,959 thousand in Q1 2025. The gross profit margin declined to 16.2% in Q1 2026 from 17.1% in Q1 2025. - **Distribution, Selling and Administrative Expenses**: Decreased by $316 thousand, or 0.6%, to $49,489 thousand in Q1 2026 from $49,805 thousand in Q1 2025. As a percentage of net revenue, these expenses decreased to 15.9% in Q1 2026 from 16.7% in Q1 2025. - **Income from Operations**: Decreased by $117 thousand to $1,037 thousand in Q1 2026 from $1,154 thousand in Q1 2025. - **Interest Expense**: Increased slightly to $2,812 thousand in Q1 2026 from $2,609 thousand in Q1 2025. - **Other Income, net**: Improved significantly to - $1,891 thousand in Q1 2026 from - $177 thousand in Q1 2025. - **Change in fair value of interest rate swap contracts**: Resulted in a - $843 thousand impact in Q1 2026 compared to $1,184 thousand in Q1 2025. - **Income Tax Benefit**: Was - $397 thousand in Q1 2026 compared to - $932 thousand in Q1 2025. - **Net Income (Loss) Attributable to HF Foods Group Inc.**: Improved to $1,225 thousand in Q1 2026 from a net loss of - $1,645 thousand in Q1 2025. - **EBITDA**: Increased to $11,292 thousand in Q1 2026 from $6,905 thousand in Q1 2025. - **Adjusted EBITDA**: Increased to $10,146 thousand in Q1 2026 from $9,773 thousand in Q1 2025. - **Depreciation and Amortization Expense**: Totaled $7,521 thousand in Q1 2026 and $6,758 thousand in Q1 2025. Depreciation expense was $3.6 million in Q1 2026 and $2.9 million in Q1 2025, while amortization expense for intangible assets was $3.9 million for both periods. - **Stock-Based Compensation**: Totaled $305 thousand in Q1 2026 and $374 thousand in Q1 2025. - **Credit for Expected Credit Losses**: Was $25 thousand in Q1 2026 compared to $619 thousand in Q1 2025. - **Gain from Disposal of Property and Equipment**: Was - $1,471 thousand in Q1 2026 compared to - $10 thousand in Q1 2025. #### Cash Flow - **Net Cash Provided by Operating Activities**: Increased by $8,340 thousand to $15,288 thousand in Q1 2026 from $6,948 thousand in Q1 2025. - **Net Cash Used in Investing Activities**: Increased by $7,555 thousand to - $11,119 thousand in Q1 2026 from - $3,564 thousand in Q1 2025. - **Net Cash Used in Financing Activities**: Remained consistent at - $1,749 thousand in Q1 2026 compared to - $1,752 thousand in Q1 2025. - **Net Increase in Cash**: Was $2,420 thousand in Q1 2026, up from $1,632 thousand in Q1 2025. - **Cash at End of Period**: Totaled $11,061 thousand as of March 31, 2026, compared to $16,099 thousand as of March 31, 2025. - **Cash Paid for Interest**: Was $2,743 thousand in Q1 2026, significantly lower than $11,623 thousand in Q1 2025. - **Cash Paid (Received) for Income Taxes**: Was $225 thousand in Q1 2026 compared to - $91 thousand in Q1 2025. #### Future Outlook and Strategy HF Foods Group Inc. is implementing an operational transformation plan focused on centralized purchasing, fleet and transportation optimization, digital transformation, and facility upgrades to drive growth and cost savings. The company anticipates positive results from expanding its centralized purchasing program and improving its transportation system through a national fleet maintenance program, new truck specifications, and outsourced inbound freight logistics. The implementation of a modern ERP solution is expected to enhance operational efficiency, while facility reorganizations aim to streamline costs and capitalize on cross-selling opportunities. #### Liquidity and Capital Resources As of March 31, 2026, HF Foods Group Inc. had $11.1 million in cash and access to approximately $55.2 million in additional funds through its $125.0 million line of credit. The company believes its cash flow from operations will be sufficient to meet normal working capital needs for at least the next twelve months. #### Material Weaknesses and Remediation Material weaknesses in internal control over financial reporting persisted as of March 31, 2026, related to entity-level controls impacting control activities and monitoring components of the COSO framework. Management is executing a remediation plan to strengthen accounting controls, improve review precision, enhance evidence of review, and validate data completeness and accuracy. ### Related Stocks - [HFFG.US](https://longbridge.com/en/quote/HFFG.US.md) ## Related News & Research - [HF Foods Q4 revenue rises, profit margins decline](https://longbridge.com/en/news/279319159.md) - [HF Foods Q1 revenue rises on higher volumes, improved pricing in seafood](https://longbridge.com/en/news/285992190.md) - [Hf Foods Group (NASDAQ:HFFG) Director Dennis Lam Purchases 8,000 Shares](https://longbridge.com/en/news/279856421.md) - [Xi Lin Buys 8,367 Shares of Hf Foods Group (NASDAQ:HFFG) Stock](https://longbridge.com/en/news/279652487.md) - [Hf Foods Group (NASDAQ:HFFG) Issues Earnings Results, Misses Expectations By $0.05 EPS](https://longbridge.com/en/news/279322080.md)