Hf Foods Group (NASDAQ:HFFG) executives told investors the company made “steady progress” in 2025 despite headwinds for the broader foodservice industry, citing tariff pressure and lower foot traffic. On the company’s fourth-quarter and full-year earnings call, President and CEO Felix Lin highlighted growth in revenue and profitability measures, along with progress on a multi-year transformation plan focused on sales operations, digital infrastructure, and distribution facilities.
2025 results: modest revenue growth and higher Adjusted EBITDA
Chief Financial Officer Paul McGarry reported that net revenue for the year ended December 31, 2025 increased 2.2% to $1.23 billion from $1.2 billion in 2024. McGarry said the increase was driven primarily by volume growth and pricing improvement in seafood and meat/poultry, along with volume growth in commodity, partially offset by volume decreases in other categories.
Distribution, selling and administrative (DS&A) expenses increased $3.7 million to $201.8 million, which management said was primarily due to higher depreciation, occupancy, and non-recurring transformation expenses, partially offset by lower professional fees. DS&A as a percentage of net revenue was 16.4%, compared with 16.5% in the prior year.
Adjusted EBITDA increased 6.9% to $45 million from $42 million. Interest expense was $11.5 million, slightly above $11.4 million in 2024.
Net loss attributable to HF Foods was $38.8 million, improving from a $48.5 million net loss in 2024. McGarry said the year-over-year improvement primarily reflected a lower goodwill impairment charge and improved operating results, partially offset by the absence of a prior-year gain on lease guarantee liability termination and a year-over-year change in the fair value of interest rate swaps. He also noted that, “following the 2025 impairment, we have no remaining goodwill, so this item will not affect results going forward.”
On a non-GAAP basis, adjusted net income attributable to HF Foods rose $2.9 million, or 20.9%, to $16.9 million. Loss per share improved to $0.73 from $0.92, while adjusted earnings per share increased to $0.32 from $0.26.
Transformation plan updates: sales consolidation, ERP rollout, and IT controls
Lin said the company continued to execute its long-term transformation plan and pointed to tangible actions taken during 2025. On sales operations, he said HF Foods consolidated two sales call center operations into one in late December. Management said the move should provide better control over the sales process, improve customer service, and reduce costs while maintaining customer connections based on understanding customer language and product needs.
On digital initiatives, Lin said HF Foods completed a full ERP implementation across all distribution centers. He said the system is intended to enable higher purchasing and operational efficiencies over time. Lin cautioned that as part of the implementation the company re-categorized many SKUs, which can create variability in year-over-year sales comparisons by category; he said comparisons should “clean” once the company laps the implementation in the second half of 2026.
Lin also said the company fully remediated IT general controls-related deficiencies as of year-end 2025, calling it a “significant milestone.” McGarry echoed that completion of the ERP rollout and IT general controls remediation were key steps in positioning the business for more scalable execution and operating leverage.
Facility investments: Charlotte, Atlanta, and Chicago
Management described multiple facility initiatives intended to optimize the distribution network and support organic growth opportunities such as cross-selling.
- Charlotte: Lin said renovation of the Charlotte location is largely complete, with final permits “imminent.” The company expects the site to be operational in the second quarter of 2026 and to shorten seafood distribution routes in the Southeast.
- Atlanta: Lin said phase one construction of a new Atlanta distribution center is complete and the facility became operational in January 2026. He said the company plans to begin phase two cold-storage expansion in the second quarter of 2026, targeting a launch in the second half of 2026. Once completed, management expects cold-storage capacity in the Atlanta market to nearly double from 10,000 square feet to 20,000 square feet.
- Chicago: Lin said HF Foods announced the acquisition of its Chicago warehouse in September. He described the deal as supporting transformation efforts by improving operational efficiency, reducing costs, and strengthening organic growth through cross-selling, including by enabling the company to exit a lease early and invest to increase capacity and consolidation opportunities.
2026 outlook: low single-digit growth and continued cross-selling ramp
Looking ahead, Lin said that based on current trends the company expects 2026 to resemble 2025, with “low single-digit growth” for net revenue as well as for both adjusted EBITDA and gross profit. He said this outlook reflects a strategy to ramp cross-selling opportunities over time, focusing on increasing share of customer wallet while managing competitive pricing pressure in the short term, alongside continued macro headwinds such as tariffs and shifting consumer spending behaviors.
During the Q&A, Lin emphasized cross-selling as a major organic growth opportunity, particularly in the Southeast as the company ramps the new Atlanta facility. He said the second phase freezer construction in Atlanta is expected to begin in the second quarter of 2026, and that it will likely be the second half of the year before the company sees “meaningful incremental frozen seafood volume” for the Southeast. He added that investments tied to the Chicago facility are intended to position the company for “meaningful cross-selling, organic growth” in the Midwest region in 2027 and beyond.
Asked about early-year traffic and trends, Lin said the company has been working with strategic vendors on promotional campaigns beginning in late third quarter and fourth quarter 2025, describing the initiatives as impactful in the second half of 2025 and continuing into the first quarter of 2026. He said he saw the potential for a “meaningful uptick” in volume so far in the first quarter versus 2025, while noting the quarter was still in progress.
M&A remains a core pillar
Lin reiterated that M&A is a central part of HF Foods’ growth strategy, describing the company as the only scale foodservice provider in the Asian specialty market in the U.S. and positioning it as a potential “strategic acquirer of choice” in the space. He said the company is focused on expanding its geographic footprint in high-potential markets and remains “disciplined but optimistic” about opportunities in 2026 and beyond, including tuck-in acquisitions.
In closing remarks, Lin said 2025 was a year of strategic investment and that 2026 would be a continuation of the momentum built on 2025 results, with management spending significant time evaluating inbound M&A opportunities while continuing to improve operational efficiency.
About Hf Foods Group (NASDAQ:HFFG)
HF Foods Group, Inc, together with its subsidiaries, manufactures, imports and distributes a variety of ethnic and specialty food products primarily for retail and foodservice customers in the United States. The company focuses on value‐added fresh and frozen offerings that cater to growing consumer interest in Hispanic and other global cuisines. Its vertically integrated operations include in‐house manufacturing, procurement of specialty ingredients, and third‐party distribution partnerships.
The company’s product portfolio spans a broad range of categories, including fresh and frozen tamales, enchiladas, empanadas, tortillas and quesadillas, as well as shelf‐stable salsas, sauces, dips, spreads and snack items.
