HF Foods (US:HFFG)2025-11-10 21:17Financial Performance - Net revenue for Q3 2025 increased by 2.9% to $307.0 million compared to $298.4 million in the prior year[4] - Gross profit was $50.4 million, slightly up from $50.2 million in the same period last year, with a gross profit margin of 16.4%[5][6] - Net loss decreased by 77.2% to $0.9 million for Q3 2025, compared to a net loss of $3.8 million in Q3 2024[8] - Adjusted EBITDA rose by 41.5% to $11.7 million, up from $8.3 million in the prior year[9] - For the nine months ended September 30, 2025, the net loss was $1,894,000, a decrease of 54.4% compared to a net loss of $4,161,000 in the same period of 2024[20] - EBITDA for the nine months ended September 30, 2025, was $26,535,000, an increase of 8.2% from $24,532,000 in 2024[26] - Adjusted EBITDA for the nine months ended September 30, 2025, was $35,366,000, reflecting a 28.3% increase from $27,568,000 in 2024[26] - Non-GAAP net income attributable to HF Foods Group Inc. for the nine months ended September 30, 2025, was $14,204,000, up 81.1% from $7,838,000 in 2024[27] - The company reported a non-GAAP diluted earnings per share of $0.27 for the nine months ended September 30, 2025, compared to $0.15 in 2024, representing an 80% increase[27] Cash Flow and Expenses - Cash provided by operating activities for the nine months ended September 30, 2025, was $4.5 million, compared to $4.2 million in the prior year[10] - The company reported a net cash provided by operating activities of $4,483,000 for the nine months ended September 30, 2025, compared to $4,225,000 in 2024[20] - Cash at the end of the period was $12,328,000, an increase from $11,445,000 at the end of September 2024[20] - Distribution, selling, and administrative expenses decreased by 0.7% to $49.3 million, representing 16.1% of net revenue[7] - Interest expense, net for the nine months ended September 30, 2025, was $8,331,000, a slight decrease from $8,597,000 in 2024[26] - The net cash used in investing activities for the nine months ended September 30, 2025, was $9,862,000, compared to $9,423,000 in 2024[20] - The company incurred business transformation costs of $2,458,000 for the nine months ended September 30, 2025, compared to $1,180,000 in 2024[27] Strategic Outlook - Management expressed confidence in long-term strategic plans, including evaluating M&A opportunities for geographical expansion[3] - The increase in net revenue was primarily driven by volume increases and improved pricing in Meat & Poultry and Seafood[4] - The company aims to leverage its market leadership in Asian specialty distribution to drive sustained growth and long-term value for shareholders[3] Liquidity - The company had cash of $12.3 million and access to approximately $49.8 million in additional funds through a line of credit as of September 30, 2025[10]