The beat on adjusted EPS is significant, but the underlying operational deterioration (declining operating income, falling gross margins, and lower Adjusted EBITDA) creates a mixed picture. The Searay Foods acquisition adds a new growth vector but also integration risk. Monitor the Q3 2026 earnings call for updates on tariff impacts, margin recovery, and the acquisition timeline.
Price Chart
Executive Summary
HF Foods reported Q2 2026 revenue of $323.8M (+2.8% YoY), slightly above consensus, and GAAP EPS of $0.05. Adjusted diluted EPS of $0.12 beat the $0.06 consensus estimate by 100%. However, gross margin contracted 50bps to 17.0% due to tariffs, and Adjusted EBITDA declined 2.0% to $13.6M. Operating income fell 31.6% to $2.8M, with net income boosted by non-recurring items like an employee retention credit and tariff refunds. The company also announced an agreement to acquire Searay Foods, a Canadian seafood distributor, marking its first international expansion.
Key Financial Metrics
Key Facts
- Q2 2026 net revenue of $323.8M, up 2.8% YoY, a record high.
- GAAP net income of $2.6M vs $0.5M a year ago, boosted by $1.8M employee retention credit and $1.1M tariff refund.
- Adjusted EBITDA decreased 2.0% to $13.6M from $13.8M.
- Gross profit margin fell to 17.0% from 17.5% due to incremental tariffs.
- Income from operations declined 31.6% to $2.8M from $4.1M.
- Announced agreement to acquire Searay Foods, a Canadian importer and distributor of ethnic and specialty seafood.
- Cash from operations was $14.0M for the six months ended June 30, 2026, up from $10.5M.
- Line of credit balance increased to $77.1M from $55.8M at year-end 2025.
Financial Impact
Revenue beat consensus by ~$3.3M; adjusted EPS beat consensus by $0.06 (100% surprise). Gross margin compression of 50bps and a 2.0% decline in Adjusted EBITDA signal underlying operational pressure.
Risk Factors
- Tariff headwinds continuing to compress gross margins.
- Integration risk associated with the Searay Foods acquisition and first international expansion.
- Declining operating income and Adjusted EBITDA despite revenue growth.
- Elevated leverage with line of credit balance increasing to $77.1M.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001680873-26-000058 |
| Document: hffg-20260810.htm | 0001680873-26-000058 |
| Document: 0001680873-26-000058-index-headers.html | 0001680873-26-000058 |
| Document: 0001680873-26-000058-index.html | 0001680873-26-000058 |
| Document: 0001680873-26-000058.txt | 0001680873-26-000058 |
| 8-K Data (Synthetic) | 0001680873-26-000058 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 2, 2026 24d ago | 8-K | $1.60 | awaiting T+20 | — | $1.48 (−7.50%) |
Sep 18, 2026 5w ago | 8-K | $1.51 $1.50 | ▼ −0.66% | ▲ +0.25% | $1.48 (−1.99%) |
Sep 3, 2026 7w ago | 8-K | $1.77 $1.63 | ▼ −7.65% | ▼ −6.46% | $1.48 (−16.15%) |
Aug 10, 2026 11w ago | 8-K | $1.78 $1.71 | ▼ −3.93% | ▼ −2.87% | $1.48 (−16.85%) |
Jul 23, 2026 13w ago | 8-K | $1.52 $1.84 | ▲ +21.05% | ▲ +17.74% | $1.48 (−2.63%) |
Jun 12, 2026 19w ago | 8-K | $1.80 $1.69 | ▼ −6.11% | ▼ −5.36% | $1.48 (−17.78%) |
Jun 11, 2026 19w ago | 8-K | $1.90 $1.64 | ▼ −13.68% | ▼ −15.46% | $1.48 (−22.11%) |
May 11, 2026 24w ago | Press Release | $2.12 $1.91 | ▲ +9.91% | ▲ +8.18% | $1.48 (+30.19%) |
Apr 27, 2026 26w ago | Press Release | $1.96 | awaiting T+20 | — | $1.48 (−24.49%) |
Apr 3, 2026 29w ago | 8-K | $2.01 $1.83 | ▼ −8.96% | ▼ −17.94% | $1.48 (−26.37%) |
US Market Status
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