HF Foods Q4 Revenue Rises 2.2% to $1.23B, EBITDA Up 6.9%
HF Foods Group reported Q4 2025 net revenue of $1.23 billion (up 2.2%), adjusted EBITDA of $45 million (up 6.9%), and improved adjusted EPS to $0.32. The company completed ERP implementation, acquired a Chicago warehouse, but saw gross margin dip to 16.9% and anticipates low single-digit growth in 2026.
1. Q4 2025 Financial Performance
HF Foods reported Q4 2025 net revenue of $1.23 billion, up 2.2% year over year, with gross profit of $207.6 million (+1.2%) and gross margin at 16.9%. Adjusted EBITDA rose 6.9% to $45 million while net loss narrowed to $38.8 million and adjusted EPS improved to $0.32.
2. Operational Improvements and Acquisitions
The company completed full ERP implementation across all distribution centers to streamline operations and enhance efficiency. It also acquired a Chicago warehouse, aiming to reduce costs and support organic growth in the Midwest starting in 2027.
3. Profitability and Expense Trends
Distribution, selling and administrative expenses increased by $3.7 million to $21.8 million due to transformation costs, while total interest expense was $11.5 million. Tariff pressures and shifts in consumer spending continue to weigh on profitability and margins.
4. Outlook and Growth Opportunities
Management expects low single-digit revenue growth for 2026 under ongoing competitive pricing pressures. Cross-selling initiatives in the Southeast and the expanded Atlanta facility with a second-phase freezer project are poised to drive volume gains in H2 2026.