10-Q · May 11, 2026
HF Foods reported Q1 2026 revenue of $312.0 million, exceeding estimates by 1.2%, with EPS matching expectations at $0.06. Despite gross profit declining to $50.5 million, net income saw a significant improvement,…
Earnings analysis · 10-Q
HFFG earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
HF Foods reported $323.781 million of revenue and $0.12 of adjusted diluted EPS, with revenue up 3.8% sequentially and 2.7% year over year and EPS improving from $0.02 in both comparison periods. Gross margin improved…
Read full summary
HF Foods reported $323.781 million of revenue and $0.12 of adjusted diluted EPS, with revenue up 3.8% sequentially and 2.7% year over year and EPS improving from $0.02 in both comparison periods. Gross margin improved sequentially to 17.0% but remained below the prior-year 17.5%, while the filing does not provide operating margin or free-cash-flow figures. The outlook remains unprovided, and unresolved material weaknesses, a 50.3% increase in diesel prices, and the new 15% stockholder rights plan are key concerns.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.12
- Gross margin
- 17.0%
What stood out
-
Revenue increased sequentially and year over year
Revenue was $323.781 million, up from $312 million in the prior quarter and $315 million in the prior-year quarter, increases of approximately 3.8% and 2.7%, respectively.
-
EPS improved to $0.12
Reported adjusted diluted EPS was $0.12, compared with $0.02 in both 2026 Q1 and 2025 Q2.
-
Gross margin recovered sequentially
Gross margin was 17.0%, improving from 16.2% in the prior quarter but declining from 17.5% a year earlier.
-
Fuel supply remained adequate
Management stated that average diesel fuel prices increased 50.3% in Q2 2026 versus Q2 2025, while adequate fuel supplies remained available.
-
Internal-control remediation continued
Management continued remediation during Q2 2026, including controls over revenue recognition, accounts receivable, leases, long-lived-asset impairment, and journal-entry review.
What to watch
-
Material weaknesses remain unresolved
Disclosure controls were not effective as of June 30, 2026 because material weaknesses continued in controls over revenue and accounts receivable, journal entries, new leases, and long-lived-asset impairment analysis.
-
Fuel inflation threatens margins
Average diesel fuel prices increased 50.3% year over year in Q2 2026. The company does not actively hedge general diesel-price fluctuations, creating exposure to higher cost of goods sold and delivery costs.
-
Rights plan may deter takeovers
The stockholder rights plan generally becomes exercisable if an unapproved person or group acquires 15% or more of the company, and it is scheduled to expire on June 10, 2027. The plan could deter or delay a change of control and limit takeover-related premiums.
-
Interest-rate exposure remains material
Floating-rate debt outstanding without hedging was $79.2 million, or 44.5% of total debt, and a 1% rate change would affect annual interest expense by approximately $0.8 million.
Management's outlook
No quantitative revenue or EPS outlook was provided in the 10-Q. The filing does not provide updated forward guidance.
Earlier filings 4
10-K · March 16, 2026
HF Foods positions itself as a specialty distributor to Asian restaurants with a cultural/language moat, a national logistics footprint (16 distribution centers and 4 cross-docks) and a product portfolio focused on…
10-K · March 17, 2025
HF Foods presents a focused niche-distribution strategy to Asian restaurants supported by 16 distribution centers, ~1.3 million sq. ft. of warehousing and a fleet of over 400 vehicles, serving approximately 15,000…
10-K · March 26, 2024
HF Foods positions itself as a leading niche foodservice distributor to Asian/Chinese restaurants with 18 distribution centers, a fleet of over 400 refrigerated vehicles and coverage of 46 states (approximately 95% of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.