Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 92

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 8
Chunk 92
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 the significant interest expense, or the cash requirements, necessary to service our debt.

For additional information on EBITDA and Adjusted EBITDA and a reconciliation to their most directly comparable U.S. GAAP financial measures, see “Results of Operations — EBITDA and Adjusted EBITDA” below.

Results of Operations

Comparison of Three Months Ended June 30, 2025 to Three Months Ended June 30, 2024

The following table sets forth a summary of our consolidated results of operations for the three months ended June 30, 2025 and 2024. The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

Three Months Ended June 30,($ in thousands)20252024ChangeNet revenue$314,853 $302,342 $12,511 Cost of revenue259,721 249,877 9,844 Gross profit55,132 52,465 2,667 Distribution, selling and administrative expenses51,013 49,840 1,173 Income from operations4,119 2,625 1,494 Interest expense2,817 3,119 (302)Other (income) expense, net(414)3,466 (3,880)Change in fair value of interest rate swap contracts685 (361)1,046Lease guarantee income— (5,433)5,433Income before income taxes1,031 1,834 (803)Income tax expense521 1,599 (1,078)Net income and comprehensive income510 235 275 Less: net (loss) income attributable to noncontrolling interests(706)218 (924)Net income and comprehensive income attributable to HF Foods Group Inc.$1,216 $17 $1,199 

22

The following table sets forth the components of our consolidated results of operations expressed as a percentage of net revenue for the periods indicated:

Three Months Ended June 30,20252024Net revenue100.0 %100.0 %Cost of revenue82.5 %82.6 %Gross profit17.5 %17.4 %Distribution, selling and administrative expenses16.2 %16.5 %Income from operations1.3 %0.9 %Interest expense0.9 %1.0 %Other expense (income), net(0.1