Shares of Where Food Comes From, Inc. (WFCF) have declined 13.5% since the company reported its earnings for the first quarter of 2025. This compares to the S&P 500 index’s 0.5% rise over the same time frame. Over the past month, the stock has declined 19.1% against the S&P 500’s 4.4% increase.Earnings & Revenue PerformanceFor the first quarter ended March 31, 2025, WFCF reported total revenues of $5.27 million, marking a 5.5% decline from $5.58 million in the same period of 2024. The revenue contraction wa ...

Exhibit 99.1 Where Food Comes From, Inc. Reports 2025 First Quarter Financial Results First Quarter Highlights – 2025 vs. 2024 CASTLE ROCK, Colo., May 08, 2025 (GLOBE NEWSWIRE) — Where Food Comes From, Inc. (WFCF) (Nasdaq: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced financial results for its first quarter ended March 31, 2025. "Our beef verification business, which represents approximately one-half of revenue mix, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File No. 001-40314 WHERE FOOD COMES FROM, INC. (exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Colorado 43-1802805 (I.R.S. Employer Identification No.) 202 6 Street, Suite 400 Castle Rock, CO 80104 (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (303) 895-3002 Indicate by check mark ...

Financial Data and Key Metrics Changes - The company reported an approximate 6% year-over-year decline in total revenue for Q1 2025, primarily due to a decrease in the Verification and Certification Services segment, which saw revenue drop by $252,000 compared to Q1 last year [4] - Net income for the quarter was $31,000 or $0.01 per diluted share, down from $178,000 or $0.03 per diluted share in the same quarter last year, with more than half of the decline attributed to a $76,000 non-cash charge on digital assets [6] - Gross margins remained stable at 41.6%, attributed to disciplined cost management, with SG&A expenses flat year-over-year at $2,100,000 [6] Business Line Data and Key Metrics Changes - The beef verification business, which represents roughly 50% of the revenue mix, was significantly impacted by fewer cattle moving through the system due to cyclical herd size reduction and severe drought conditions [4] - The upcycled certified program, the world's first and largest certification standard for upcycled food, is the fastest-growing service offering, with total certifications growing 70% year-over-year in 2024 and 10% growth in Q1 2025 [9] - The fee-based retail labeling program for protein products is expanding, with new partnerships with two prominent retailers to display Care certified labeling, potentially increasing visibility and brand enhancement [10][11] Market Data and Key Metrics Changes - The global food market for upcycling is currently valued at $46 billion and is expected to grow to nearly $75 billion by 2029, indicating a significant market opportunity [8] - The company noted disruptions in poultry and dairy cow verification businesses due to avian influenza outbreaks, impacting customer operations [5] Company Strategy and Development Direction - The company views the current herd size reduction as a cyclical and temporary situation, expecting a rebound in the future [5] - The focus on upcycled certified products aligns with global trends to reduce food waste and lower carbon footprints, appealing to environmentally conscious consumers [8] - The CARES certified program aims to meet growing consumer expectations for responsibly sourced products, enhancing the company's licensing revenue stream [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the headwinds faced in the first quarter but expressed satisfaction with the adjusted bottom line given the challenges [6] - The CEO highlighted that despite the decline in certain verification activities, there is growth in other business aspects, particularly in biosecurity services and upcycled certifications [6][8] Other Important Information - The company continues to buy back shares, purchasing a total of 376,000 shares at a cost of $383,000 during the first quarter [7] - The company has faced challenges in communicating its digital asset investments due to media policies, which may affect investor perception [7][8] Q&A Session Summary Question: What are the expectations regarding the herd size reduction? - Management views the herd size reduction as cyclical and expects it to swing back in the future [5] Question: How is the company addressing the disruptions in poultry verification? - The company is experiencing disruptions due to avian influenza but is offsetting some impacts with increased demand for biosecurity services [5][6] Question: What is the growth outlook for the upcycled certified program? - The upcycled certified program is the fastest-growing service, with significant growth expected as it aligns with global trends in sustainability [9][8]

Where Food Comes From (WFCF) Q1 2025 Earnings Call May 08, 2025 12:00 PM ET Speaker0 Greetings, and welcome to the Where Food Comes From First Quarter Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Pfeiffer of Investor Relations. Please go ahead. Speaker1 Good morning, and welcome to the Where Food Comes From twenty t ...

Core Insights - Where Food Comes From, Inc. (WFCF) reported a decline in total revenue for the first quarter of 2025, with total revenue at $5.3 million compared to $5.6 million in the same period of 2024 [5][7] - The beef verification business, which constitutes about half of the company's revenue, is facing challenges due to smaller herd sizes and high beef prices, alongside a halt in beef exports to China due to tariffs [3][4] - Despite these challenges, the company has maintained gross margin stability at 41.6% and overall profitability through disciplined cost management [3][6] Financial Performance - Verification and certification services revenue decreased to $4.2 million from $4.4 million, while product sales remained flat at $0.7 million [7][8] - Gross profit for the quarter was $2.2 million, down from $2.3 million, with selling, general, and administrative expenses remaining flat at $2.1 million [6][12] - Net income fell to $31,000, or $0.01 per diluted share, compared to $178,000, or $0.03 per diluted share in the previous year [6][11] Strategic Developments - The company has added two major food retailers to its labeling program, which is expected to enhance licensing revenue and visibility among consumers [4] - The Upcycled Certified® program is noted as the fastest-growing verification standard, reflecting increasing consumer demand for upcycled food products [4] - The company continues to repurchase shares, having bought back 31,345 shares at a cost of $383,000 during the first quarter, totaling over 1.2 million shares since the inception of the buyback program [5][6]

CASTLE ROCK, Colo., May 05, 2025 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (Nasdaq: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced it will release its 2025 first quarter financial results before the market opens on Thursday May 8, 2025, and conduct a conference call the same day at 10:00 a.m. Mountain Time (12:00 p.m. Eastern). Dial-in numbers for the conference call: Domestic Toll Free: 1-877-407-8289 ...

Financial Performance - Total revenue for 2024 increased by 2% to $25.7 million compared to $25.1 million in 2023[9] - Net income for 2024 was $2.1 million, or $0.40 per diluted share, down slightly from $2.2 million, or $0.39 per diluted share in 2023[11] - Verification and certification services revenue for the full year rose by 6% to $20.6 million from $19.4 million[15] - Gross profit for the full year increased slightly to $10.6 million from $10.5 million[10] - Cash generated from operations in 2024 was $2.7 million, compared to $2.8 million in 2023[12] - In Q4 2024, total revenue was flat at $6.7 million, with verification and certification revenue at $5.4 million, down from $5.5 million in Q4 2023[4][6] - Gross profit in Q4 2024 declined by 7% to $2.8 million from $3.0 million in Q4 2023[5] Expenses and Shareholder Returns - Selling, general and administrative expenses for 2024 increased to $8.4 million from $7.8 million, primarily due to higher marketing and personnel costs[11] - The company repurchased a total of 273,057 shares for $3.3 million in 2024, with a total of $13.9 million returned to shareholders since the buyback program began[3] Future Outlook - The company expects to continue utilizing solid cash flows to reduce share float while investing in new programs and services to strengthen its beef business[3]

Core Viewpoint - Where Food Comes From, Inc. (WFCF) reported a mixed performance in Q4 2024, with earnings growth driven by bitcoin investments, but overall revenues remained flat, reflecting challenges in its beef-related verification services [1][2][10]. Earnings Overview - WFCF's diluted earnings per share for Q4 2024 were 18 cents, a 28.6% increase from 14 cents in the same quarter last year, primarily due to a $345,000 gain in bitcoin holdings [2][11]. - Total quarterly revenues were $6.7 million, unchanged from the previous year, while gross profit decreased by 7% to $2.8 million from $3 million [2]. Segmental Performance - Revenues from verification and certification services, which constitute the majority of WFCF's business, fell by 2% to $5.4 million, attributed to lower volumes in beef-related source and age verification due to cyclical herd contractions [3][10]. - Product sales increased by 6% year over year to $922,000, driven by demand for bundled verification solutions and new programs like CARE Certified and Upcycled Certified [4]. - Professional services revenues decreased to $360,000 from $391,000, indicating reduced demand for consulting services [4]. Key Business Metrics - The company maintained a stable gross margin despite changes in revenue composition. SG&A expenses decreased to $2 million from $2.1 million, attributed to higher marketing and personnel costs [5]. - Cash flow from operations was $2.7 million in 2024, slightly down from $2.8 million in 2023, while cash and cash equivalents fell to $2 million from $2.6 million [6]. Management Commentary - CEO John Saunders noted the impact of herd contractions on beef-related verification services but highlighted strong performance in newer offerings like CARE Certified and Upcycled, with the latter seeing a 17% revenue increase [7]. - Management emphasized ongoing investments in marketing and technology to support growth, despite an increase in SG&A expenses [8]. Factors Influencing Results - The decline in beef-related verification revenues was linked to external factors in the cattle industry, but management expects this to be temporary, with demand for other verification programs helping to offset losses [10]. - The company's net income benefited from a fair market value gain of $345,000 from its bitcoin investment, which had an initial investment of $178,000 [11]. Other Developments - WFCF continued its share repurchase program, buying back 57,018 shares in Q4, and has repurchased a total of 1.2 million shares since the program's inception [12]. - Management reiterated its long-term strategy of expanding verification services through organic growth and strategic acquisitions [12]. Outlook - WFCF anticipates continued demand for its verification programs and aims to leverage its unique positioning in the food verification space [13]. - The company plans further share buybacks and investments in technology to support expected customer growth, while remaining open to potential acquisitions [14].

Financial Data and Key Metrics Changes - Total revenue in Q4 2024 was flat at $6.7 million year-over-year [6] - Gross profit in Q4 declined 7% to $2.8 million from $3 million [7] - Net income increased to $961,000 or $0.18 per diluted share from $776,000 or $0.14 per diluted share [7] - Full year total revenue increased 2% to $25.7 million from $25.1 million [9] - Net income for the year was down slightly to $2.1 million or $0.40 per diluted share versus $2.2 million or $0.39 per diluted share in 2023 [15] Business Line Data and Key Metrics Changes - Verification and certification services revenue was down slightly at $5.4 million versus $5.5 million [6] - Product revenue increased 6% to $922,000 from $871,000 [6] - Professional services revenue was $360,000 versus $391,000 [6] - Full year verification and certification services revenue was up 6% to $20.6 million from $19.4 million [9] - Product revenue for the full year was down 5% to $3.8 million from $4 million [10] Market Data and Key Metrics Changes - The traditional beef-related source and age business has been impacted by cyclical herd size reductions [10] - Rising demand in other service offerings has offset lower source and age activities [11] - The Upcycled Certified program saw a 17% year-over-year increase in 2024, becoming the fastest-growing service [13] Company Strategy and Development Direction - The company is focused on enhancing its technology platform and expanding its services portfolio [14][20] - Plans to continue investing in new programs and services to strengthen the beef business and accelerate growth in other offerings [17] - The company aims to leverage its position as a provider for producers, CPGs, distributors, and retailers [22] Management Comments on Operating Environment and Future Outlook - Management believes the decline in beef source and age verifications is a temporary cyclical occurrence [11] - The company is supported by consumer trends around food safety, traceability, and claims verification [21] - Management expressed confidence in the potential for strong growth in individual standards and new offerings [23] Other Important Information - The company repurchased a total of 273,057 shares for $3.3 million or approximately $11.97 per share [16] - Total value returned to stockholders via buybacks and dividends over the past 21 quarters totaled $13.9 million [17] - The company celebrated its 30th anniversary, highlighting its evolution and growth in the industry [18] Q&A Session Summary - No specific questions or answers were documented in the provided content.