HF Foods Group (HFFG) investor relations material

Executive summary

• Net revenue for Q2 2026 rose 2.8% year-over-year to $323.8 million, marking the sixth consecutive quarter of growth and a record high, driven by seafood and commodity volume growth and improved pricing.

• GAAP net income surged to $2.6 million from $1.2 million, aided by one-time credits, tariff refunds, and favorable interest rate swap changes.

• Adjusted EBITDA was $13.6 million, down 2% year-over-year, with a margin of 4.2%.

• Announced a definitive agreement to acquire Searay Foods for CAD 47.9 million (~$35 million USD), marking the first international expansion into Canada and expected to be margin-accretive.

• The company continues to execute a transformation plan focused on centralized purchasing, fleet optimization, digital upgrades, and facility improvements.

Financial highlights

• Q2 2026 net revenue: $323.8 million (+2.8% YoY); six-month revenue: $635.8 million (+3.7% YoY).

• Gross profit for Q2 2026 was $55.0 million, nearly flat year-over-year, with gross margin declining to 17.0% from 17.5% due to tariffs, partially offset by refunds.

• Adjusted net income was $6.4 million, flat year-over-year; EPS improved to $0.05 from $0.02.

• Adjusted EBITDA margin was 4.2%, down from 4.4% in the prior year quarter.

• Cash flow from operations for the first half of 2026 was $14.0 million, up from $10.5 million in 2025.

Outlook and guidance

• Searay acquisition expected to close by August 31, 2026, and is anticipated to be accretive to margins and EPS, supporting a consolidated adjusted EBITDA margin target of 4.5%-5%+ over the next 3-5 years.

• Management expects continued benefits from operational transformation, including margin expansion from centralized purchasing and efficiency gains from digital and fleet upgrades.

• Sufficient liquidity is anticipated for at least the next twelve months, with access to $39.7 million in additional funds under the credit facility as of June 30, 2026.

• Ongoing cross-selling initiatives in Southeast and Midwest regions are expected to drive future growth.

• Anticipates further volume growth and margin improvement as Searay is integrated and capacity expansions come online.