LAS VEGAS, Sept. 25, 2025 (GLOBE NEWSWIRE) -- HF Foods Group Inc. (NASDAQ: HFFG) (“HF Foods” or the “Company”), a leading food distributor to Asian restaurants across the United States, announced today that it has established an At-The-Market (“ATM”) equity offering program under which it may sell, from time to time, shares of its common stock for aggregate gross proceeds of up to $100 million. The shares of common stock will be offered through D.A. Davidson & Co. and Roth Capital Partners, which will serve ...

HF FOODS GROUP (NASDAQ: HFFG) INVESTOR PRESENTATION AUGUST 2025 Christine Chang General Counsel & Chief Compliance Officer Previous Experience S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L HF Foods Executive Leadership 2 Felix Lin CEO & President Cindy Yao Chief Financial Officer • 10+ years experience in manufacturing operations, supply chain, finance and accounting • Global business development in China and Middle East • Joined HF Foods' Board of Directors in 2019, appointed as permanent CEO ...

HF Foods Group (HFFG) Conference Call Summary Company Overview - HF Foods Group has been in business for nearly three decades and is a market leader in the Asian specialty food service sector, which is projected to be the fastest-growing segment within the broader food industry [2][3] - The company operates in a $15 billion market and holds approximately 16% market share [2] Industry Insights - The broader food industry consists of around 780,000 restaurants, with Asian cuisine representing about 13% of this segment, equating to approximately 94,000 restaurants [5] - The Asian specialty food service market is estimated to be a $50 billion addressable market, with HF Foods currently at $1.2 billion, indicating significant growth potential [6] Competitive Advantages - HF Foods primarily serves independently run restaurants, which make up 98-99% of its customer base, differentiating it from larger distributors like Sysco and US Foods [8][9] - The company offers over 20,000 SKUs, with over 10,000 specifically in Asian specialty products, allowing it to cater to a niche market effectively [10] Business Model and Strategy - HF Foods has a strong relationship with its independent customers, which allows for better pricing and service [12] - The company is focused on capitalizing on the growth opportunities in the Asian specialty food market, with plans for system and facility upgrades to enhance operational capabilities [16][18] M&A Strategy - M&A is a key growth strategy for HF Foods, with the company actively evaluating acquisition targets, particularly first-generation operators looking to exit [20][21] - The company aims to achieve synergies through acquisitions, focusing on businesses within its existing market to enhance customer relationships and expand market share [22] Organic Growth Opportunities - HF Foods is also pursuing organic growth through cross-selling and expanding its product offerings, particularly in frozen seafood, which currently represents a small percentage of its business in certain markets [30][33] - The company anticipates a $2.3 billion organic growth opportunity within existing customer accounts over the next three to five years [33] Financial Performance and Goals - HF Foods aims to achieve over a 5% EBITDA margin over the next three to five years, with a focus on gross profit dollars as a key performance indicator [36][50] - The company has experienced six consecutive quarters of year-over-year growth, indicating a positive trend despite macroeconomic challenges [50] Operational Enhancements - The recent implementation of a new ERP system is expected to improve operational efficiencies and reduce G&A costs over time [51][54] - HF Foods is expanding its cold storage capacity in key markets, which will allow it to better serve existing customers and increase sales of frozen seafood [38] Market Challenges - The company acknowledges challenges such as foot traffic declines and consumer spending constraints, particularly in the wake of the pandemic and changing economic conditions [41][46] - Despite these challenges, HF Foods remains optimistic about the long-term growth of the Asian restaurant sector and its ability to navigate short-term volatility [42][47] Product Mix and Sourcing - The majority of HF Foods' products are sourced domestically, with a significant portion of frozen seafood sourced internationally [64] - The company has strategically managed inventory to mitigate risks associated with tariffs and supply chain disruptions [65] E-commerce Initiatives - HF Foods is exploring e-commerce opportunities, currently piloting a platform for existing restaurant customers to order specialty goods, which has shown promising adoption rates [66][68] Capital Expenditure Plans - For 2025, HF Foods anticipates capital expenditures in the range of $15 to $20 million, primarily for facility upgrades and expansions [70][71] Conclusion - HF Foods is positioned for significant growth in the Asian specialty food service market, with a dual strategy of pursuing M&A and organic growth while enhancing operational efficiencies and expanding its product offerings [78][80]

Company Overview - HF Foods Group Inc. is a leading distributor of international foodservice solutions, primarily serving Asian restaurants and other businesses across the United States [2] - The company specializes in fresh produce, frozen and dry food, and non-food products, aiming to meet the growing demand for Asian American cuisine [2] - HF Foods operates a nationwide network of distribution centers and maintains strong relationships with growers and suppliers in both the US and Asia [2] Upcoming Events - HF Foods will participate in the virtual A.G.P. Consumer Showcase on August 21, 2025, where the executive management team will host a fireside chat at 3:00 p.m. ET [1] - The fireside chat will be webcast live and available for replay on the company's Investor Relations website [1]

Core Insights - HF Foods (HFFG) reported its results, showing historically strong performance, yet the stock remains nearly 19% lower compared to the previous analysis [1] Company Performance - Despite strong historical results, HF Foods' stock has not recovered from the rally in March, indicating potential challenges in maintaining investor confidence [1]

Company Overview - HF Foods Group Inc. (NASDAQ: HFFG) is a national food distributor primarily serving independent Asian restaurants, growing through both internal operations and acquisitions [1]. Growth Strategy - The company focuses on expanding its market presence by building its own operations and acquiring other companies, indicating a dual approach to growth [1]. Market Focus - HF Foods Group targets a niche market, specifically independent Asian restaurants, which may provide unique opportunities in the food distribution sector [1].

Core Points - HF Foods Group Inc. reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.04 per share a year ago, resulting in an earnings surprise of +9.09% [1] - The company achieved revenues of $314.85 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.34% and increasing from $302.34 million year-over-year [2] - HF Foods Group has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Future Outlook - The stock's immediate price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $306.24 million, while for the current fiscal year, the estimate is $0.45 on revenues of $1.23 billion [7] - The estimate revisions trend for HF Foods Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Food - Miscellaneous industry, to which HF Foods Group belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Another company in the same industry, Flowers Foods, is expected to report quarterly earnings of $0.29 per share, reflecting a year-over-year decline of -19.4%, with revenues projected at $1.27 billion, up 3.6% from the previous year [9][10]

Financial Data and Key Metrics Changes - Net revenue increased by 4.1% year over year to $314.9 million, and gross profit increased by 5.1% to $55.1 million [5][12] - Adjusted EBITDA rose by 31.1% year over year to $13.8 million, while net income surged by 117% to $500,000 [5][14] - Gross profit margin increased by 13 basis points to 17.5% [13] Business Line Data and Key Metrics Changes - The increase in net revenue was primarily driven by volume increases and improved pricing in the meat and seafood categories [12] - Distribution, selling, and administrative expenses increased by $1.2 million to $51 million, but as a percentage of net revenue, these expenses decreased from 16.5% to 16.2% [13] Market Data and Key Metrics Changes - The company observed lower exit velocity and foot traffic towards the end of Q2 and into Q3, impacting consumer spending [6][21] - The company noted that 99% of its customers are independently run restaurants, with a mix of takeout, dine-in, and buffet types [21] Company Strategy and Development Direction - The company is committed to capital investment and growing capacity, with a focus on digital transformation and infrastructure improvements [6][16] - M&A remains a core pillar of the growth strategy, with a focus on expanding geographic footprint and capturing operational synergies [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth strategy despite short-term uncertainties, emphasizing the importance of strategic investments [6][16] - The company anticipates a lower single-digit growth rate for 2025, around 2% to 2.5%, in line with industry averages [29] Other Important Information - The company successfully deployed a new ERP application across its network, which is expected to enhance efficiency and control [7][8] - The strategic facility enhancements are expected to create organic growth opportunities through expanded cross-selling capabilities [9] Q&A Session Summary Question: How is the Asian Specialty market faring in the current environment? - Management noted that foot traffic has been impacted by recent immigration policy changes, particularly affecting buffet restaurants [20][21] Question: How to prioritize strategic investment projects? - The company is focusing on organic growth through capacity investments and is also evaluating M&A opportunities, with most projects expected to be funded through cash flow [22][25] Question: What are the growth expectations for 2025? - Management expects a growth rate of around 2% to 2.5% for 2025, with significant organic growth opportunities identified over the next three to five years [29][30] Question: What are the tariff impacts on customers? - Management indicated that while tariffs are a concern, foot traffic and consumer spending are more significant factors affecting business volume [36][39] Question: What is the expected margin benefit from the ERP implementation? - Management stated that while it is difficult to quantify exact margin expansion, the goal is to achieve a 5% EBITDA margin over the next three to five years [47]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to _______________________. 6325 South Rainbow Boulevard, Suite 420, Las Vegas, NV 89118 (Address of principal executive offices) (Zip Cod ...

[Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) HF Foods Group Inc. reports strong Q2 2025 financial results, driven by strategic initiatives and operational efficiencies [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported record net revenue and gross profit for Q2 2025, attributing success to transformation initiatives, ERP implementation, and active M&A evaluation - Reported **record quarterly net revenue and gross profit**, demonstrating momentum from transformation initiatives[3](index=3&type=chunk) - Successfully completed the implementation of its ERP system across the entire network, creating a unified platform to enhance operational efficiency[3](index=3&type=chunk) - Actively evaluating attractive M&A opportunities to expand geographic footprint and enhance product capabilities[3](index=3&type=chunk) [Second Quarter 2025 Results Summary](index=1&type=section&id=Second%20Quarter%202025%20Results%20Summary) HF Foods achieved strong Q2 2025 growth with net revenue up 4.1% to $314.9 million, gross profit up 5.1% to $55.1 million, and Adjusted EBITDA up 31.1% to $13.8 million Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $314.9M | $302.3M | +$12.6M | +4.1% | | Gross Profit | $55.1M | $52.5M | +$2.6M | +5.1% | | Gross Margin | 17.5% | 17.4% | +13 bps | - | | Net Income | $0.5M | $0.2M | +$0.3M | +117.0% | | Adjusted EBITDA | $13.8M | $10.6M | +$3.2M | +31.1% | | GAAP Diluted EPS | $0.02 | $0.00 | +$0.02 | - | | Non-GAAP Diluted EPS | $0.12 | $0.04 | +$0.08 | +200.0% | [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) Revenue growth was driven by higher volumes and pricing in Meat & Poultry and Seafood, with improved operational efficiency leading to a 117.0% increase in net income - Revenue growth was primarily driven by **volume increases and improved pricing** in Meat & Poultry and Seafood[4](index=4&type=chunk)[6](index=6&type=chunk) - Distribution, selling and administrative expenses as a percentage of net revenue decreased from **16.5% to 16.2%** year-over-year, mainly due to increased net revenue and lower professional fees[7](index=7&type=chunk) - The significant increase in net income was driven by a **$1.5 million rise in income from operations**[8](index=8&type=chunk) [Cash Flow and Liquidity](index=2&type=section&id=Cash%20Flow%20and%20Liquidity) Operating cash flow significantly increased to $10.5 million for the six months ended June 30, 2025, with strong cash reserves and available credit Cash Flow and Liquidity Summary (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $10.5M | $1.9M | | **As of June 30, 2025** | | | | Cash | $15.7M | - | | Available Line of Credit | ~$57.8M | - | [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited consolidated financial statements provide a detailed overview of the company's balance sheet, income statement, and cash flows for Q2 2025 and the six-month period [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $593.5 million by June 30, 2025, driven by inventories, while liabilities also rose due to accounts payable and line of credit increases Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$202,166** | **$178,103** | | Inventories | $127,240 | $97,783 | | **Total Assets** | **$593,537** | **$549,991** | | **Total Current Liabilities** | **$169,699** | **$145,199** | | Line of credit | $60,815 | $57,483 | | Accounts payable | $68,251 | $50,644 | | **Total Liabilities** | **$352,420** | **$308,697** | | **Total Shareholders' Equity** | **$241,117** | **$241,294** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, net revenue was $314.9 million and net income $0.5 million, while the six-month period recorded a net loss of $1.0 million Statement of Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net revenue | $314,853 | $302,342 | | Gross profit | $55,132 | $52,465 | | Income from operations | $4,119 | $2,625 | | Net Income | $510 | $235 | | Diluted EPS | $0.02 | $0.00 | Statement of Operations Summary (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net revenue | $613,281 | $597,996 | | Gross profit | $106,091 | $102,876 | | Income from operations | $5,273 | $2,540 | | Net Loss | $(1,020) | $(324) | | Diluted EPS | $(0.01) | $(0.01) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $10.5 million for the six months ended June 30, 2025, resulting in a $1.2 million net increase in cash Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,468 | $1,941 | | Net cash used in investing activities | $(6,592) | $(6,331) | | Net cash (used in) provided by financing activities | $(2,693) | $3,126 | | **Net increase (decrease) in cash** | **$1,183** | **$(1,264)** | | Cash at end of the period | $15,650 | $13,968 | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains and reconciles non-GAAP financial measures, including EBITDA, Adjusted EBITDA, non-GAAP net income, and EPS, to GAAP results [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures like Adjusted EBITDA and non-GAAP EPS provide investors with a clearer view of core operating performance by excluding non-recurring items - The company uses non-GAAP measures to provide additional tools for investors to evaluate ongoing operating results and trends[15](index=15&type=chunk) - Adjusted EBITDA is used to measure operating performance, excluding items like interest, taxes, depreciation, amortization, and other non-recurring or non-cash expenses[16](index=16&type=chunk) - Non-GAAP net income and EPS exclude items not reflective of core operating performance to facilitate period-over-period comparisons[17](index=17&type=chunk) [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 increased to $13.8 million, reconciled from net income by adjusting for interest, taxes, D&A, and specific non-recurring items Adjusted EBITDA Reconciliation for Q2 (in thousands) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income** | **$510** | **$235** | | Interest expense, net | $2,775 | $3,119 | | Income tax expense | $521 | $1,599 | | Depreciation and amortization | $7,261 | $6,590 | | **EBITDA** | **$11,067** | **$11,543** | | Lease guarantee income | — | $(5,433) | | SEC settlement | — | $3,900 | | Executive transition | $829 | — | | **Adjusted EBITDA** | **$13,845** | **$10,561** | [Reconciliation to Non-GAAP Net Income and EPS](index=8&type=section&id=Reconciliation%20to%20Non-GAAP%20Net%20Income%20and%20EPS) Non-GAAP net income for Q2 2025 was $6.4 million, leading to a Non-GAAP diluted EPS of $0.12, after adjusting for various non-core items Non-GAAP Net Income & EPS Reconciliation for Q2 (in thousands, except per share) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income attributable to HF Foods** | **$1,216** | **$17** | | Amortization of intangibles | $4,021 | $4,070 | | Lease guarantee income | — | $(5,433) | | SEC settlement | — | $3,900 | | **Non-GAAP net income** | **$6,383** | **$2,329** | | **GAAP diluted EPS** | **$0.02** | **$0.00** | | **Non-GAAP diluted EPS** | **$0.12** | **$0.04** | [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) This section provides an overview of HF Foods Group Inc.'s business and includes important disclosures regarding forward-looking statements [Company Overview](index=2&type=section&id=Company%20Overview) HF Foods Group Inc. is a leading distributor of food and non-food products to Asian restaurants across the United States - HF Foods is a leading distributor of foodservice products to primarily Asian restaurants throughout the United States[12](index=12&type=chunk) - The company aims to supply the increasing demand for Asian American restaurant cuisine via its nationwide distribution network[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties, and readers are cautioned against undue reliance - The report includes forward-looking statements based on current expectations, which are subject to risks and uncertainties[14](index=14&type=chunk) - Key risks include the ability to execute the operational transformation plan, impacts of demographic trends, and potential tariff-related costs[14](index=14&type=chunk)