v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2026 and 2025:

Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2026202520262025
Net revenue$323,781 $314,853 $635,783 $613,281 
Less:
Cost of revenue268,733 259,721 530,209 507,190 
Operating expenses:
Payroll and related labor costs24,373 25,644 48,425 50,423 
Professional fees2,503 2,138 4,150 4,728 
Depreciation3,511 3,241 7,090 6,129 
Amortization3,949 4,021 7,891 7,890 
Other segment expenses (a)
17,895 15,969 34,164 31,648 
Distribution, selling and administrative expenses52,231 51,013 101,720 100,818 
Other (income) expenses:
Interest expense2,916 2,817 5,728 5,426 
Other income, net(2,209)(414)(4,100)(591)
Change in fair value of interest rate swap contracts(729)685 (1,572)1,869 
Income tax expense (benefit)218 521 (179)(411)
Less: net income (loss) attributable to noncontrolling interests41 (706)172 (591)
NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HF FOODS GROUP INC.$2,580 $1,216 $3,805 $(429)
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(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.