HF Foods 2025 Q3 Earnings Revenue Beats Expectations, Net Loss Narrows 77.2%

HF Foods Group (HFFG) reported fiscal 2025 Q3 earnings on Nov 11, 2025, with revenue exceeding estimates and a significant reduction in net losses. The stock’s post-earnings performance and strategic initiatives highlight growth potential, though investors should monitor industry risks.

Revenue

HF Foods’ total revenue rose 2.9% year-over-year to $306.98 million, driven by volume and pricing gains in seafood, meat, and poultry segments. Seafood revenue reached $108.75 million, while meat and poultry contributed $70.07 million. Asian specialty and packaging segments added $52.83 million and $13.91 million, respectively. Produce and commodity segments accounted for $27.83 million and $33.59 million. The diversified revenue streams underscore operational resilience amid macroeconomic challenges.

Earnings/Net Income

The company narrowed its net loss to $-874,000 in Q3 2025, a 77.2% improvement from $-3.84 million in Q3 2024. Earnings per share improved to -$0.02 from -$0.07, reflecting enhanced cost management and operational efficiency. Despite a $0.01 EPS miss, the substantial reduction in losses signals progress toward profitability.

Post-Earnings Price Action Review

The strategy of buying HFFG shares on revenue beats and holding for 30 days shows promise, supported by Q3’s 2.9% revenue growth and 41.5% adjusted EBITDA increase. While the EPS miss introduces short-term uncertainty, the stock’s 4.7% after-hours surge and analyst optimism—median price target of $7.00—suggest long-term potential. Strategic investments in Chicago warehouse acquisitions and Atlanta capacity expansions aim to boost efficiency and frozen seafood sales. However, risks like tariff pressures and EPS volatility require careful monitoring. Investors should balance the company’s operational momentum with sector-specific challenges.

CEO Commentary

Felix Lin emphasized “transformation initiatives” and “operational discipline” as key drivers of Q3 performance. He highlighted infrastructure investments, digital transformation milestones, and M&A opportunities to expand HF Foods’ geographical footprint. The CEO’s confidence in long-term growth and shareholder value creation aligns with the company’s focus on Asian specialty distribution leadership.

Guidance

HF Foods did not provide specific quantitative guidance for future quarters but expressed confidence in its strategic plan, including M&A evaluations and capacity expansions. Forward-looking statements emphasize operational improvements and alignment with strategic objectives, subject to macroeconomic risks.

Additional News

Recent developments include the acquisition of a Chicago warehouse to enhance operational efficiency and reduce costs, alongside renovations in Charlotte and Atlanta to double cold storage capacity in the Southeast. Interim CFO Paul McGarry’s appointment marks a leadership transition, reinforcing financial discipline. The company also announced a $100 million at-the-market equity offering to fund strategic initiatives. These moves underscore HF Foods’ commitment to expanding its infrastructure and capitalizing on growth opportunities in the Asian foodservice sector.