Financial Data and Key Metrics Changes - HF Foods reported a top-line business of over $1.2 billion, with a focus on the Asian specialty market, which represents a $50 billion addressable market [2][3] - The company has achieved a market share of approximately 16% by servicing around 15,000 accounts [3] Business Line Data and Key Metrics Changes - The frozen seafood business has grown from approximately $300 million to over $400 million in the last couple of years, indicating a 30% organic growth [4][5] - The company aims to expand its product offerings beyond Asian specialties, with Hispanic grocery being a significant area of growth [4] Market Data and Key Metrics Changes - HF Foods operates in a market with roughly 94,000 restaurants, capturing 12% of the broader food service space [2] - The company has a 95% coverage of the continental U.S., distinguishing itself from larger competitors by focusing on independent restaurants [3] Company Strategy and Development Direction - The company has rebranded its strategy to "Specialty Food is Our Specialty," aiming to become a dominant player in the specialty food sector [4] - HF Foods plans to invest significantly in capacity expansion, particularly in the Southeast and Midwest regions, to drive organic growth [7][9] - M&A is identified as a core pillar of the company's growth strategy, with a focus on acquiring smaller competitors [13][14] Management's Comments on Operating Environment and Future Outlook - Management believes that their independent restaurant customers are more resilient to economic downturns compared to chain restaurants [16][17] - The company anticipates a more stable traffic environment in 2026 as it laps previous disruptions and tariff pressures [18] - Management is optimistic about the potential for margin expansion as the company goes on the offensive to acquire new accounts [28][30] Other Important Information - HF Foods owns 10 out of 14 distribution facilities and a significant portion of its truck fleet, making replication of its assets challenging for competitors [24] - The company has historically spent $0 on marketing, relying on word of mouth, but plans to adopt a more aggressive marketing strategy moving forward [18] Q&A Session Summary Question: What is the company's strategy regarding M&A? - M&A is viewed as a core pillar for growth, with a focus on acquiring smaller players in the market [13][14] Question: How does the company plan to address capacity constraints? - The company has launched a new facility in Atlanta and plans to expand capacity in the Midwest to support growth [9][10] Question: How flexible are customers in adjusting their menus in response to tariffs? - Customers have shown resilience and flexibility in menu adjustments to offset tariff impacts, often substituting ingredients without affecting the final product significantly [27]

Financial Data and Key Metrics Changes - HF Foods reported a top-line business of over $1.2 billion, with a focus on the Asian specialty market, which represents a $50 billion addressable market [3][4] - The company has achieved a market share of approximately 16% with 15,000 accounts serviced [4] Business Line Data and Key Metrics Changes - The frozen seafood business has grown from $300 million to over $400 million in the last couple of years, indicating a 30% organic growth [5][6] - The company aims to expand its product offerings beyond Asian specialties, targeting Hispanic grocery as a significant growth area [5][6] Market Data and Key Metrics Changes - HF Foods operates in a market with roughly 94,000 restaurants, representing about 12% of the broader food service space [3] - The company has a 95% coverage of the continental U.S., distinguishing itself from larger competitors by focusing on independent restaurants [4] Company Strategy and Development Direction - The company has rebranded its strategy to "Specialty Food is Our Specialty," aiming to become a dominant player in the specialty food sector [5] - HF Foods plans to invest in capacity expansion and cross-selling opportunities, particularly in the Southeast and Midwest regions [8][10] - M&A is identified as a core pillar of the company's growth strategy, with a focus on acquiring smaller competitors [14][15] Management's Comments on Operating Environment and Future Outlook - Management believes that independent restaurants are more resilient to economic downturns compared to chain restaurants, which positions HF Foods favorably [17][18] - The company anticipates a more stable traffic environment in 2026 as it laps previous disruptions and tariff pressures [20] Other Important Information - HF Foods has completed a transition to a common ERP system, enhancing visibility and operational efficiency [12] - The company owns 10 out of 14 distribution facilities and a significant portion of its truck fleet, making replication of its assets challenging for competitors [28] Q&A Session Summary Question: What is the company's strategy regarding M&A? - The company views smaller competitors as attractive acquisition targets and is preparing an M&A playbook to capitalize on opportunities in 2026 [14][15] Question: How does the company plan to address tariff impacts? - The company has strategically managed inventory to benefit from tariffs and believes it can pass on costs to customers without significant issues [29][30] Question: What is the focus for 2026, growth or margin improvement? - The primary focus for 2026 is on acquiring new business and increasing revenue, with margin improvements expected to follow as the market stabilizes [33]

Company Overview - HF Foods is the 1 specialty food distributor to Asian restaurants, covering 95% of the contiguous U S [14, 28] - The company has $465 million in asset value and $1 2 billion in net revenue [15] - HF Foods boasts a gross margin of 17 1% and an adjusted EBITDA of $42 0 million, with a 21 6% year-over-year increase in adjusted EBITDA [15] Market and Sourcing - The Asian foodservice total addressable market (TAM) is $50 billion with a 2 5% CAGR [15] - HF Foods sources from over 1,100 vendors, with 67% of sourcing from the United States [40, 42] - The company serves over 15,000 independent restaurant customers [15] Growth Strategy - HF Foods aims to grow revenues and expand margins through cross-selling opportunities, expansion in core markets, and an e-commerce platform for retail expansion [46] - The company has a clearly defined margin expansion strategy, including centralized purchase order management, network optimization, and technology upgrades [47] - HF Foods has a proven M&A platform for geographic expansion, increasing distribution capabilities, and adding new products [48, 49] Financial Outlook - The company projects organic revenue to reach $1 4 billion to $1 5 billion+ and adjusted EBITDA to reach $60 million to $75 million+ in 3-5 years [56] - HF Foods anticipates $120 million to $150 million in inorganic revenue opportunities [56]