Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 95

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 8
Chunk 95
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(3,900)Business transformation costs (1)629130499Other non-routine expense (2)10260(250)Executive transition and organizational redesign (3)829—829Adjusted EBITDA $13,845$10,561$3,284

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(1)    Represents costs associated with the launch and continued implementation of strategic projects including supply chain management improvements and technology infrastructure initiatives. 

(2)    Includes contested proxy and related legal and consulting costs and facility closure costs. 

(3)    Includes severance and related expenses for the Company’s transition of executive officers and organizational redesign.

24

Results of Operations

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

The following table sets forth a summary of our consolidated results of operations for the six 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.

Six Months Ended June 30, ($ in thousands)20252024 ChangeNet revenue$613,281 $597,996 $15,285 Cost of revenue507,190 495,120 12,070 Gross profit106,091 102,876 3,215 Distribution, selling and administrative expenses100,818 100,336 482 Income from operations5,273 2,540 2,733 Interest expense5,426 5,953 (527)Other expense (income), net(591)3,372 (3,963)Change in fair value of interest rate swap contracts1,869 (2,331)4,200Lease guarantee income— (5,548)5,548 Income (loss) before income taxes(1,431)1,094 (2,525)Income tax expense (benefit)(411)1,418 (1,829)Net loss and comprehensive loss(1,020)(324)(696)Less: net income (loss) attributable to noncontrolling interests(591)353 (944)Net loss and comprehensive loss attributable to HF Foods Group Inc.$(429)$(677)$248 

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

Six Months Ended June 30,20252024Net revenue100.0 %100