HF Foods Group Continues to Power Through Industry Headwinds with Record Revenue and Strategic Expansion

HF Foods Group, a leading food service provider in the Asian specialty market in the U.S., reported strong second quarter 2026 earnings despite facing industry-wide challenges. The company's net revenue increased by 2.8% year-over-year to $323.8 million, representing its highest-ever quarterly revenue.

Despite rising fuel costs and softer foot traffic, HF Foods Group continued to make progress on its long-term transformation plan. This included investments in sales operations, digital infrastructure, and facilities upgrades aimed at building a stronger foundation for sustainable growth. The company's adjusted EBITDA was $13.6 million, down 2% year-over-year but still representing a 4.2% margin.

A key highlight of the quarter was the announcement of HF Foods Group's definitive agreement to acquire Searay Foods, a leading Canadian importer and distributor of ethnic and specialty frozen seafood. This transaction marks the company's first outside the U.S. and extends its M&A playbook into a new geography. The acquisition brings six proprietary brands into HF Foods Group's seafood category, which already accounts for 36% of its net revenue.

"The clearest proof point of our strategy came on July 17th, when we entered into a definitive agreement to acquire Searay Foods," said Felix Lin, President and CEO of HF Foods Group. "Searay brings a margin profile well above our current company and becomes a meaningful part of our growth story in the market for years to come."

The acquisition is expected to be accretive to both margins and EPS from close, supporting the company's consolidated adjusted EBITDA margin target of 4.5% to 5% plus over the next three to five years.

HF Foods Group remains committed to its growth strategy through M&A. The company believes it is the only scaled food service provider in the Asian specialty market in the U.S., making it the strategic acquirer of choice within its space. It is focused on expanding its geographic footprint, capturing operational synergies, broadening its customer base, and enhancing product and service capabilities.

With this acquisition and continued investment in its long-term transformation plan, HF Foods Group demonstrates its resilience and commitment to growth despite industry-wide challenges. As it continues to navigate the complexities of the food service market, the company is well-positioned for future success."