HF Foods Group, Inc. (HFFG)

The stock price was $1.73 as of March 27, 2026, a 57.50% decline from $4.16 per share on March 24, 2025. In 2025, HF Foods fully impaired its goodwill, recording a $38.8 million charge. Management identified material weaknesses in internal control over financial reporting as of December 31, 2025. The company experienced leadership turnover, with a new CEO in January 2025 and a new CFO in January 2026. In September 2025, HF Foods announced an ATM equity offering program to sell up to $100 million worth of its common stock. The company reported a 2.2% increase in net revenue for Q4 2025 and a 6.9% increase in adjusted EBITDA for the full year 2025, but continued to face profitability challenges.

HF Foods Group experiences demand seasonality, with a natural pullback associated with the third quarter.

HF Foods Group, Inc. operates in the Consumer Defensive sector, specifically in the Food Distribution industry, distributing fresh produce, frozen and dry food, and non-food products. Major product categories include meat, poultry, seafood (36% of 2025 sales), sauces and oils, takeout items, raw ingredients, cleaning supplies, and rice and grains. The company focuses on value-added fresh and frozen offerings catering to Hispanic and other global cuisines.

HF Foods Group, Inc. has a substantial geographic footprint across the United States, operating through 16 distribution centers and four cross-docks, with a fleet of over 400 vehicles, serving approximately 15,000 customer locations in 46 states, covering about 95% of the contiguous United States. Its corporate headquarters are located in Las Vegas, Nevada, and it has a new 182,000 square foot distribution center near Atlanta.

HF Foods Group has historically relied on its reputation and word-of-mouth for customer acquisition, emphasizing cultural understanding and communication with customers in their primary language, leading to high customer retention rates. However, material weaknesses in internal control, goodwill impairment, and stock price decline could have impacted its reputation. The company is now actively pursuing marketing efforts to acquire new accounts and expand into Asian groceries and adjacent ethnic categories.

The ownership structure of HF Foods Group (HFFG) is a mix of institutional, retail, and individual investors. Individual investors held a substantial 52% stake as of July 31, 2025. Institutional investors collectively owned 24.11% of the shares as of August 19, 2025, with key institutional players including BlackRock, Inc., Vanguard Group Inc., Geode Capital Management, LLC, State Street Corp, Dimensional Fund Advisors Lp, Morgan Stanley, and Northern Trust Corp. Insider ownership was approximately 1.07% as of April 2025, with CEO Lin Xi being a prominent insider. Former Chairman Zhou Min Ni beneficially owns about 22% of common stock.