HF Foods reported 1Q:26 sales of $312.0 million, $9.1 million (or 3.0%) ahead of our $302.9 million estimate and up 4.5% versus the prior year period. Adjusted EPS of $0.06 was in line with our estimate and compared to $0.07 in 1Q:25. Gross profit of $50.5 million was modestly ahead of our estimate but declined 0.8% year over year as seafood mix and higher landed costs compressed gross margin to 16.2% from 17.1% in the prior year quarter. DS&A improved to 15.9% of net revenue from 16.7% in 1Q:25, an early but meaningful signal, in our view, that the operational efficiency work embedded in the transformation is beginning to show up in the cost structure. We raise our 2026 and 2027 sales estimates to $1.260 billion and $1.305 billion, reflecting growth of 2.6% and 3.6% year over year, respectively, in response to the 1Q:26 revenue beat. We maintain our 2026 and 2027 adjusted EPS estimates of $0.35 and $0.60. HF Foods continued advancing its transformation in 1Q:26, with the sales force consolidation complete, ERP-enabled purchasing and route optimization underway, and key facility investments on track. Charlotte remains on track for late 2Q:26 or early 3Q:26 pending final permits, and Phase 2 of Atlanta's cold storage expansion is now underway. M&A remains a core pillar of HF Foods' growth strategy, and management's optimism on the pipeline has increased meaningfully, as smaller competitors face simultaneous pressure from elevated inventory costs and rising fuel expenses. We maintain our $6 price target on HFFG's shares, based on 10x our 2027 EPS estimate of $0.60. Our multiple is below the average of HFFG's six closest peers and reflects our view that the peer set consists of traditional food distributors with larger footprints and histories of sustained earnings power. Recent progress in the company's transformation, improved purchasing scale, and estimated long-term earnings power support our moderate risk rating.