$HFFG

HF Foods Group Inc.

CIK:0001680873|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
TOTAL NET REVENUE	$ 323,781	$ 314,853	$ 635,783	$ 613,281
TOTAL COST OF REVENUE	268,733	259,721	530,209	507,190
GROSS PROFIT	55,048	55,132	105,574	106,091
Distribution, selling and administrative expenses	52,231	51,013	101,720	100,818
INCOME FROM OPERATIONS	2,817	4,119	3,854	5,273
Interest expense	2,916	2,817	5,728	5,426
Other income, net	(2,209)	(414)	(4,100)	(591)
Change in fair value of interest rate swap contracts	(729)	685	(1,572)	1,869
INCOME (LOSS) BEFORE INCOME TAXES	2,839	1,031	3,798	(1,431)
Income tax expense (benefit)	218	521	(179)	(411)
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)	2,621	510	3,977	(1,020)
Less: net income (loss) attributable to noncontrolling interests	41	(706)	172	(591)
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HF FOODS GROUP INC.	$ 2,580	$ 1,216	$ 3,805	$ (429)
(LOSS) EARNINGS PER COMMON SHARE - BASIC (in USD per share)	$ 0.05	$ 0.02	$ 0.07	$ (0.01)
(LOSS) EARNINGS PER COMMON SHARE - DILUTED (in USD per share)	$ 0.05	$ 0.02	$ 0.07	$ (0.01)
WEIGHTED AVERAGE SHARES - BASIC (in shares)	53,429,826	52,969,037	53,242,757	52,853,982
WEIGHTED AVERAGE SHARES - DILUTED (in shares)	53,890,411	53,414,715	53,710,401	52,853,982
Third parties
TOTAL NET REVENUE	$ 322,314	$ 313,550	$ 633,273	$ 611,023
TOTAL COST OF REVENUE	267,397	258,552	527,918	505,143
Related parties
TOTAL NET REVENUE	1,467	1,303	2,510	2,258
TOTAL COST OF REVENUE	$ 1,336	$ 1,169	$ 2,291	$ 2,047

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net Income (loss)	$ 3,977	$ (1,020)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization expense	14,981	14,019
Gain from disposal of property and equipment	(1,368)	0
Credit for expected credit losses	25	618
Deferred tax benefit	(1,690)	(1,967)
Change in fair value of interest rate swap contracts	(1,572)	1,869
Stock-based compensation	892	999
Non-cash lease expense	3,540	2,488
Other non-cash expense (income)	185	(330)
Changes in operating assets and liabilities:
Accounts receivable	1,703	1,406
Accounts receivable - related parties	(449)	(170)
Inventories	(8,293)	(29,457)
Prepaid expenses and other current assets	2,491	4,723
Other long-term assets	8	541
Checks issued not presented for payment	3,911	1,302
Accounts payable	(3,825)	17,419
Accounts payable - related parties	(86)	188
Operating lease liabilities	(1,309)	(1,735)
Accrued expenses and other liabilities	910	(425)
Net cash provided by operating activities	14,031	10,468
Cash flows from investing activities:
Purchase of property and equipment	(20,324)	(6,731)
Proceeds from sale of property and equipment	4,253	139
Net cash used in investing activities	(16,071)	(6,592)
Cash flows from financing activities:
Payments for tax withholding related to vested stock awards	(77)	(156)
Proceeds from line of credit	833,415	631,713
Repayment of line of credit	(811,728)	(628,237)
Proceeds from issuance of debt	1,439	0
Repayment of long-term debt	(6,974)	(2,730)
Payment of debt financing costs	(476)	(213)
Repayment of obligations under finance leases	(3,536)	(3,070)
Proceeds from at-the-market equity offering share sales	275	0
Acquisition of noncontrolling interests	(835)	0
Net cash provided by (used in) financing activities	11,503	(2,693)
Net increase in cash	9,463	1,183
Cash at beginning of the period	8,641	14,467
Cash at end of the period	18,104	15,650
Supplemental Cash Flow Information [Abstract]
Cash paid for interest	5,769	5,492
Cash paid for income taxes	269	111
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease liabilities	0	16,542
Property acquired in exchange for finance leases	$ 2,099	$ 13,596

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS:
Cash	$ 18,104	$ 8,641
Inventories	114,922	106,629
Prepaid expenses and other current assets	7,224	9,725
Assets held for sale	0	2,768
TOTAL CURRENT ASSETS	205,208	194,000
Property and equipment, net	178,889	163,397
Operating lease right-of-use assets	22,509	26,049
Long-term investments	2,048	2,144
Customer relationships, net	120,765	126,048
Trademarks, trade names and other intangibles, net	22,832	25,440
Other long-term assets	4,345	4,451
TOTAL ASSETS	556,596	541,529
CURRENT LIABILITIES:
Checks issued not presented for payment	5,585	1,674
Line of credit	77,128	55,799
Current portion of long-term debt, net	5,211	6,683
Current portion of obligations under finance leases	6,733	6,425
Current portion of obligations under operating leases	2,957	4,334
Accrued expenses and other liabilities	15,790	14,994
TOTAL CURRENT LIABILITIES	184,478	164,768
Long-term debt, net of current portion	95,344	99,436
Obligations under finance leases, non-current	23,534	25,279
Obligations under operating leases, non-current	23,058	22,990
Deferred tax liabilities	22,118	23,808
Other long-term liabilities	246	1,662
TOTAL LIABILITIES	348,778	337,943
COMMITMENTS AND CONTINGENCIES (Note 15)
SHAREHOLDERS’ EQUITY:
Preferred Stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding	0	0
Common Stock, $0.0001 par value; 100,000,000 shares authorized; 55,472,840 and 55,041,255 shares issued and 53,900,945 and 53,043,832 shares outstanding as of June 30, 2026 and December 31, 2025, respectively	5	5
Treasury stock (included in common stock issued above), at cost; 1,571,895 shares as of June 30, 2026 and 1,997,423 as of December 31, 2025	(6,099)	(7,750)
Additional paid-in capital	605,102	605,838
Accumulated deficit	(392,237)	(396,042)
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO HF FOODS GROUP INC.	206,771	202,051
Noncontrolling interests	1,047	1,535
TOTAL SHAREHOLDERS’ EQUITY	207,818	203,586
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	556,596	541,529
Series A Preferred Stock
SHAREHOLDERS’ EQUITY:
Preferred Stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding	0	0
Series AA Preferred Stock
SHAREHOLDERS’ EQUITY:
Preferred Stock, $0.001 par value; 1,000,000 shares authorized; no shares issued and outstanding	0	0
Third parties
CURRENT ASSETS:
Accounts receivable, net of allowances of $1,087 and $1,199	63,963	65,691
CURRENT LIABILITIES:
Accounts payable	70,776	74,475
Related parties
CURRENT ASSETS:
Accounts receivable, net of allowances of $1,087 and $1,199	995	546
CURRENT LIABILITIES:
Accounts payable	$ 298	$ 384