HF Foods delivered record 2Q:25 results, with revenue up 4.1% year over year to $314.9 million, driven by volume growth and improved pricing in key product categories. Gross profit rose 5.1% to $55.1 million, with gross margin expanding 16 basis points (bps) to 17.51%. Adjusted net income nearly tripled to $6.38 million, supported by improved operating performance and disciplined expense management, resulting in adjusted EPS of $0.12, in line with our expectations. The company continues to navigate a fluid macro backdrop marked by inflationary pressures, evolving tariffs, and shifting consumer spending patterns, with lower traffic trends emerging since the end of 2Q:25. We maintain our 2025 adjusted EPS estimate of $0.45 and sales forecast of $1.232 billion, and our 2026 adjusted EPS estimate of $0.70 and sales forecast of $1.284 billion, reflecting steady volume growth coupled with ongoing pricing uncertainty. Our long-term thesis remains intact, as we believe HFFG's ongoing transformation, combined with its leading position in the U.S. Asian specialty foodservice market, positions the company to capitalize on volume growth, margin expansion, and unlock meaningful earnings upside in 2027 and beyond, regardless of near-term market volatility. Transformation efforts remain a strategic priority, including ERP integration, sales force optimization, and major facility investments in Charlotte and Atlanta to expand capacity and improve efficiency. HF Foods ended 2Q:25 with $15.7 million in cash and cash equivalents, providing flexibility to fund organic growth, pursue targeted M&A, and maintain financial resilience in a competitive distribution market, in our view. We maintain our $7 price target on HFFG's shares, which is based on 10x our 2026 EPS estimate of $0.70. Recent progress in the company's transformation supports our moderate risk rating.