v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting
Note 14 - Segment Information

The Company’s business consists of one operating segment, which is also its one reportable segment. The Company operates solely in the United States and derives revenues by providing sales of food and non-food to customers. The segment’s customer base consists primarily of Asian restaurants located throughout the United States. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated net income (loss) to assess financial performance and allocate resources. The Company’s measure of segment assets is total assets, as reported on the consolidated balance sheets.

The following table presents selected financial information with respect to the Company’s single operating segment for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,
(In thousands)20262025
Net revenue$312,002 $298,428 
Less:
Cost of revenue261,476 247,469 
Operating expenses:
Payroll and related labor costs24,012 24,778 
Professional fees1,648 2,590 
Depreciation3,579 2,888 
Amortization3,942 3,870 
Other segment expenses (a)
16,308 15,679 
Distribution, selling and administrative expenses49,489 49,805 
Other (income) expenses:
Interest expense2,812 2,609 
Other income, net(1,891)(177)
Change in fair value of interest rate swap contracts(843)1,184 
Income tax benefit(397)(932)
Less: net income attributable to noncontrolling interests131 115 
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HF FOODS GROUP INC.$1,225 $(1,645)
_______________
(a)Other segment expenses include distribution, selling and administrative expenses which are not provided to the CODM on a regular basis. These expenses include primarily auto & truck expense, insurance, occupancy expense and utilities.