Company: HFFG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001680873-25-000074
Chunk: 52

Company: HF Foods Group Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 2
Chunk 52
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 Group, Inc. was $1.1 million for the three months ended September 30, 2025, compared to net loss of $3.9 million for the three months ended September 30, 2024. The improvement was primarily driven by an increase in income from operations of $0.6 million compared to the prior year period and a decrease in change in fair value of interest rate swap contracts by $3.2 million compared to 2024.

EBITDA and Adjusted EBITDA

The following table reconciles EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure:

Three Months Ended September 30, ($ in thousands)20252024ChangeNet loss$(874)$(3,837)$2,963Interest expense, net2,9472,644303Income tax benefit(760)(1,254)494Depreciation and amortization7,2506,666584EBITDA8,5634,2194,344Change in fair value of interest rate swap contracts473,290(3,243)Stock-based compensation expense619701(82)Business transformation costs (1)1,592771,515Other non-routine expense (2)33918321Executive transition and organizational redesign (3)588—588Adjusted EBITDA $11,748$8,305$3,443

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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.

Results of Operations

Comparison of Nine Months Ended September 30, 2025 to Nine Months Ended September 30, 2024

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

Nine Months Ended September 30, ($ in thousands)20252024 ChangeNet revenue$920,259 $896,385 $23,874 Cost of revenue763,759 743,346 20,413 Gross profit156,500 153,039 3,461 Distribution, selling and administrative expenses150,107