HF Foods Reports Third-Quarter Results, Completes Searay Foods Acquisition

HF Foods’ third-quarter revenue climbed 4.1% to $319.6 million, but rising fuel costs and other pressures widened its net loss to $4.2 million and cut adjusted net income by more than half. Its Searay acquisition also gives the company its first foothold outside the U.S.

HF Foods Group reported higher third-quarter revenue but weaker earnings, as fuel costs pressured expenses. Net revenue rose 4.1% year over year to $319.6 million, while the company’s net loss widened to $4.2 million. Adjusted net income fell by more than half, to $2.1 million.

The quarter also included HF Foods’ completed acquisition of Searay Foods, its first expansion outside the United States. Searay contributed one month of revenue.

Third-quarter results

Revenue increased $12.6 million, or 4.1%, to $319.6 million. Seafood volume growth and better pricing in Produce and Commodity drove the increase, partly offset by lower prices in Meat & Poultry. Searay added $4.2 million in revenue after the acquisition closed on August 31.
Gross profit rose 5.9% to $53.4 million, and gross margin increased to 16.7% from 16.4% a year earlier. The company attributed the improvement to Seafood volume, added margin from Searay and tariff refunds received during the quarter.
The GAAP net loss widened to $4.2 million from $874,000 a year earlier. Loss per share was 8 cents, compared with 2 cents.
Adjusted net income declined 52.1% to $2.1 million, or 4 cents per diluted share, down from 8 cents a year earlier.
Adjusted EBITDA decreased 6.3% to $11.0 million, a decline of $740,000.

First nine months

For the first nine months of 2026, HF Foods generated $955.4 million in revenue, up $35.1 million from the prior-year period. Gross profit was $159.0 million, up $2.5 million. The company recorded a net loss of $270,000, an improvement of $1.6 million year over year. Adjusted net income was $11.9 million, down $2.3 million, while adjusted EBITDA was $34.7 million, down $643,000.

Business update

CEO Felix Lin said industry-wide fuel costs continued to weigh on operating expenses, while the company’s efficiency initiatives helped offset some of the pressure. He said Searay’s integration was progressing well and identified route and warehouse efficiency, purchasing discipline and cross-selling in the Southeast and Midwest as current priorities.

The quarter showed continued sales growth and improved gross margin, alongside a larger GAAP loss and lower adjusted earnings. Searay’s contribution to the quarter was limited to one month because the acquisition closed near the end of August.

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