HF Foods 2025 Q2 Earnings Surging Net Income Drives Strong Performance

HF Foods (HFFG) delivered a solid performance in its fiscal 2025 Q2 earnings report, showcasing a significant surge in net income despite mixed post-earnings stock performance. The company’s strategic initiatives, including supply chain diversification and digital transformation, contributed to a resilient quarter amid macroeconomic headwinds.

HF Foods reported total revenue of $314.85 million in Q2 2025, a 4.1% increase from $302.34 million in the same period in 2024, driven by steady growth across its key segments. Seafood remained the largest contributor at $112.08 million, followed by Meat and Poultry at $71.77 million. Asian Specialty and Commodity segments generated $57.12 million and $31.30 million, respectively, while Produce and Packaging and Other segments brought in $27.61 million and $14.98 million.

The company’s profitability improved significantly, with net income climbing 117% year-over-year to $510,000. Earnings per share (EPS) surged by 6,566.7% to $0.02, rising from $0.00 in Q2 2024. Despite these positive earnings, post-earnings price action was underwhelming, with a buy-and-hold strategy resulting in a -41.90% return over 30 days, compared to a 45.70% benchmark return. The strategy recorded a CAGR of -17.07% over three years, with a Sharpe ratio of -0.26 and a volatility of 65.52%, reflecting its high-risk profile.

CEO Xi Lin attributed the company’s strong performance to strategic cost rationalization, facility expansions, and disciplined M&A. He expressed confidence in unlocking $200–300 million in organic growth over the next 3–5 years and achieving a 5% EBITDA margin target. While HF Foods does not provide formal 2025 guidance, Lin expects full-year revenue growth in the lower single-digit range (2–2.5%), aligning with industry trends.

In related news, several non-earnings developments over the past three weeks included:
- M&A activity: HF Foods announced its interest in disciplined M&A targeting small, first-generation operators to drive long-term growth.
- C-Level changes: CEO Xi Lin outlined a long-term expansion strategy, focusing on facility expansions in Charlotte and Atlanta and leveraging ERP-driven cost efficiencies.
- Capital allocation: The company emphasized reinvestment in operational expansion and infrastructure to support margin growth.

Revenue
HF Foods posted $314.85 million in total revenue for Q2 2025, a 4.1% year-over-year increase. Seafood led the way with $112.08 million, followed by Meat and Poultry at $71.77 million. Asian Specialty and Commodity segments contributed $57.12 million and $31.30 million, respectively, while Produce and Packaging and Other segments added $27.61 million and $14.98 million.

Earnings/Net Income
Net income surged 117% year-over-year to $510,000, with EPS rising by 6,566.7% to $0.02. This marked a significant improvement in profitability despite challenging macroeconomic conditions.

Price Action
HF Foods’ stock edged up 2.35% during the latest trading day and rose 9.32% during the most recent full trading week. However, it declined 5.57% month-to-date.

Post Earnings Price Action Review
The strategy of purchasing HF Foods shares after its Q2 revenue increase and holding for 30 days underperformed, resulting in a -41.90% return compared to a 45.70% benchmark. Over three years, the strategy had a CAGR of -17.07%, a maximum drawdown of 0.00%, a Sharpe ratio of -0.26, and a volatility of 65.52%, highlighting its high-risk nature.

CEO Commentary
Xi Lin highlighted the company’s Q2 performance, emphasizing supply chain resilience, pricing discipline, and digital transformation. He outlined a strategy focused on facility expansions in Charlotte and Atlanta, ERP-driven cost rationalization, and disciplined M&A targeting small operators. Lin remained optimistic about achieving a 5% EBITDA margin and unlocking $200–300 million in organic growth over 3–5 years.

Guidance
HF Foods does not provide formal 2025 guidance, but the CEO anticipates full-year revenue growth in the lower single-digit range (2–2.5%), aligning with industry trends.

Additional News
HF Foods is pursuing strategic M&A to complement organic growth while prioritizing cash flow-funded initiatives. The company plans to reinvest in infrastructure and operational efficiency to support long-term margin expansion and value creation.