CASTLE ROCK, Colo., Dec. 03, 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, proudly announces a groundbreaking collaboration with Pangea, a global supplier of premium automotive leather, as well as Prime Pursuits and Walmart. Together, all are committed to enhancing transparency within supply chains by introducing CARE Certified sustainable leather to automotive bra ...

Core Viewpoint - Shares of Where Food Comes From, Inc. (WFCF) have experienced a decline of 3.9% following the release of its fiscal first-quarter 2026 results, which is slightly worse than the S&P 500 Index's 3.2% decline during the same period, indicating cautious investor sentiment despite improved profitability [1] Earnings & Revenue Performance - In the third quarter of 2025, WFCF's revenues decreased to $7 million from $7.1 million year-over-year, with verification and certification services showing modest growth, while product and professional services revenues declined [2] - Verification and certification revenues rose to $5.6 million from $5.5 million, while product sales fell to $1.2 million from $1.3 million, and professional services revenues decreased to $257,000 from $292,000 [2] - Net income improved significantly to $1.1 million from $0.5 million, with diluted EPS increasing to 22 cents from 9 cents, largely due to a $946,000 gain from the sale of the company's Progressive Beef interest [2] Other Key Business Metrics - Gross profit was reported at $2.7 million, slightly down from $2.8 million the previous year, impacted by rising compensation, insurance, and hardware costs [3] - Selling, general and administrative expenses decreased marginally to $2.1 million from $2.2 million, attributed to lower marketing and trade-show spending [3] Year-to-Date Performance - For the first nine months of 2025, total revenues were $18.9 million compared to $19.1 million a year ago, while net income rose to $1.7 million from $1.2 million [4] - Cash generated from operations was $2.3 million, down from $2.8 million, but cash and equivalents more than doubled to $4.8 million, supported by the Progressive Beef sale [4] - Stock buyback activity was strong, with 116,547 shares repurchased in the first nine months of 2025 [4] Management Commentary - Management noted that demand for verification and certification services has largely offset ongoing weakness in beef-related activities due to tariffs and cyclical herd shrinkage [5] - Year-over-year growth was highlighted in pork, dairy, and egg verification, along with increased adoption of non-GMO, gluten-free, organic, and Upcycled certifications [5] - Customer retention remained above 90%, and bundling multiple verification services for clients provided additional benefits [5] Business Resilience - The business is becoming increasingly insulated from cattle-cycle volatility due to an expanding and diversified standards portfolio [6] - Gross margins have remained stable despite wage inflation and other cost pressures, reflecting improved efficiencies and disciplined cost management [6] Factors Influencing Revenue - The slight revenue decline was primarily due to challenges in beef-related verification and lower hardware sales linked to smaller North American cattle herds [7] - Drought conditions, trade dynamics, and the U.S.-Mexico border closure related to the screwworm issue have limited herd rebuilding efforts [7] Profitability Drivers - The significant increase in net income was driven by the $946,000 gain from the Progressive Beef divestiture, along with a $48,000 gain on digital assets and stable gross margins [8] - Operating income saw a slight dip due to modest revenue decline, but net income increased sharply due to non-operating gains [8] Future Outlook - Management indicated that beef-related revenues may remain constrained in the near term, with meaningful herd recovery potentially a year away or more [9] - Growth in non-beef certifications, including organic, dairy, poultry, and Upcycled programs, is expected to support revenue stability [9] Strategic Developments - The company completed the sale of its Progressive Beef ownership, generating $1.8 million in cash and returning 12,585 shares for cancellation, which frees up capital for reinvestment and ongoing share repurchases [11] - Total buybacks since the program's inception have exceeded 1.3 million shares, representing over $14 million returned to shareholders [11]

Revenue Performance - Total revenue for Q3 2025 decreased slightly to $7.0 million from $7.1 million in Q3 2024[3] - Year-to-date total revenue through nine months decreased slightly to $18.9 million from $19.1 million in the same period last year[9] Net Income - Net income increased to $1.1 million, or $0.22 per diluted share, compared to $0.5 million, or $0.09 per diluted share, in the same quarter last year[5] Revenue Breakdown - Verification and certification revenue was $5.6 million, up from $5.5 million, while product sales decreased to $1.2 million from $1.3 million[7] Gross Profit - Gross profit for Q3 2025 was $2.7 million, down from $2.8 million, primarily due to increased compensation and insurance expenses[4] Cash Position - Cash and cash equivalents more than doubled to $4.8 million from $2.0 million at the end of 2024[12] Stock Buybacks - Year-to-date stock buybacks totaled 116,547 shares, raising total buybacks since 2019 to 1.3 million shares valued at approximately $14.3 million[7] Growth Areas - The company experienced solid growth in pork, dairy, and egg verification activity in 2025, alongside increased demand for non-GMO, Gluten Free, Organic, and Upcycled certifications[2] Operating Expenses - Selling, general and administrative expenses decreased slightly to $2.1 million from $2.2 million due to lower marketing and trade show expenses[4] Cash from Operations - The company generated $2.3 million in cash from operations in the first nine months, down from $2.8 million in the same period last year[11]

Financial Data and Key Metrics Changes - Total revenue in Q3 2025 was $7 million, a decline of $92,000 compared to the same quarter last year [3] - Revenue in the verification and certification segment grew by 1% to $5.6 million, driven by increased activity across the portfolio [3] - Net income increased to $1.1 million or $0.22 per share, compared to $500,000 or $0.09 per share a year ago [5] - Operating income was $575,000, down from $608,000 in the previous year [5] - Cash and cash equivalents rose to $4.8 million from $2 million at the end of 2024, with no debt reported [6] Business Line Data and Key Metrics Changes - Hardware sales declined to $1.2 million from $1.3 million year over year, attributed to lower tag volumes due to herd shrinkage [4] - Customer retention rates remained well above 90%, contributing to revenue stability [4] - The Care Certified program and certification activities for organic, non-GMO, gluten-free, and upcycled products all showed gains [4] Market Data and Key Metrics Changes - The company reported strength in various service offerings, which offset the impact of smaller herd sizes on core beef-related verification activities [3] - The company was ranked 74th in Time Magazine's America's Growth Leaders 2026, highlighting its position among innovative public companies [8] Company Strategy and Development Direction - The company aims to remain at the forefront of the trend for verified sourcing, addressing consumer demand for transparency in food origins [8] - There is a focus on innovation with new services expected to become meaningful revenue streams, including a labeling program that has gained traction [9] - The company is exploring new growth areas and technologies, including AI initiatives to improve efficiency and customer service [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as tariffs, inflationary pressures, and smaller herd sizes impacting verification and hardware revenue [5] - There is cautious optimism regarding a potential build-up in cattle herds, although challenges remain due to border issues and drought conditions [12][13] - The company is positioned as a growth company, actively seeking opportunities to invest in new companies and technologies [25] Other Important Information - The sale of Progressive Beef generated cash proceeds of $1.8 million, contributing to a stronger balance sheet [6] - The company has returned over $14 million in value to shareholders through stock buybacks since the program's inception [6] Q&A Session Summary Question: When will product revenue see a material pickup relative to herd size growth? - Management indicated that cattle prices are starting to support herd rebuilding, but challenges remain due to border closures and other issues [12][13] Question: What other businesses and programs are expected to grow in the next year or two? - Management highlighted growth in dairy, poultry, and organic certification, as well as the unique position in upcycled certification [20] Question: How does the company view its capital structure and future growth? - Management confirmed the company is a growth-oriented entity, looking for opportunities to invest and expand while maintaining a strong balance sheet [25]

Revenue Performance - Total revenues for the three months ended September 30, 2025, were approximately $7.015 million, a decrease of 1.3% compared to $7.107 million for the same period in 2024[103] - Verification and certification service revenue for the nine months ended September 30, 2025, was approximately $15.070 million, down from $15.172 million in 2024, reflecting a decline of 0.7%[103] - Verification and certification service revenue for Q3 2025 increased by $0.1 million compared to Q3 2024, while the nine-month revenue decreased by $0.1 million compared to the same period in 2024[104] - Product sales for Q3 2025 decreased by 9.6% and by 0.5% for the nine months compared to the same periods in 2024[105] - Professional services revenue for Q3 2025 decreased by $35,000 and by $0.1 million for the nine months compared to the same periods in 2024[106] Income and Profitability - Net income for the nine months ended September 30, 2025, was approximately $1.739 million, an increase of 50% compared to $1.159 million for the same period in 2024[103] - Net income attributable to WFCF shareholders for Q3 2025 was approximately $1.1 million, compared to $0.5 million in Q3 2024, representing a significant increase[116] - The company recorded an unrealized gain of approximately $48,000 for Q3 2025 and $144,000 for the nine months[114] - The company recognized a gain of approximately $0.9 million from the sale of its investment in Progressive Beef recorded in the Other Income/Expense section for Q3 2025[113] Cash and Assets - Cash and cash equivalents increased to approximately $4.8 million as of September 30, 2025, compared to $2.0 million at December 31, 2024[93] - Net cash provided by operating activities for the nine months ended September 30, 2025, was approximately $2.3 million, a decrease from $2.8 million during the same period in 2024[94] - The company had total assets of approximately $16.854 million as of September 30, 2025, slightly down from $16.946 million at the end of 2024[103] - The company had no off-balance sheet arrangements as of September 30, 2025[102] Expenses and Costs - The company reported total costs of revenues for the nine months ended September 30, 2025, at approximately $11.509 million, compared to $11.323 million in 2024, indicating an increase of 1.6%[103] - Gross margin for Q3 2025 was 39.7%, down from 40.1% in Q3 2024, while the nine-month gross margin decreased from 41.8% to 40.1%[107] - Other operating expenses for Q3 2025 were approximately $2.0 million, consistent with Q3 2024, while nine-month expenses decreased from $5.8 million to $5.6 million[110] - The company experienced inflationary price increases from manufacturers affecting product costs, with product costs for the nine months at approximately $1.8 million in 2025 compared to $1.7 million in 2024[108] Strategic Focus - The company plans to focus on diversification and bundling opportunities in product offerings, as well as potential acquisitions to drive growth[100] Workforce Composition - The company’s workforce comprised 101 employees, with approximately 84% being female and other minority employees[85] Dividend Income - The company received dividend income from Progressive Beef of $50,000 for Q3 2025, down from $150,000 for the same period in 2024[112]

Core Insights - Where Food Comes From, Inc. (WFCF) reported financial results for Q3 and the first nine months of 2025, highlighting a slight decrease in total revenue but an increase in net income due to strategic asset sales and cost management [3][4][5]. Third Quarter Highlights – 2025 vs. 2024 - Total revenue for Q3 2025 was $7.0 million, a slight decrease from $7.1 million in Q3 2024 [5]. - Verification and certification revenue increased to $5.6 million from $5.5 million, while product sales decreased to $1.2 million from $1.3 million [6][13]. - Net income rose to $1.1 million, or $0.22 per diluted share, compared to $0.5 million, or $0.09 per diluted share, in the same quarter last year [8][17]. - The company repurchased 60,721 shares during Q3, contributing to a total of 1.3 million shares repurchased since 2019, valued at approximately $14.3 million [4][6]. Nine Month Highlights – 2025 vs. 2024 - Total revenue for the first nine months of 2025 was $18.9 million, down from $19.1 million in the same period of 2024 [9]. - Gross profit for the nine-month period declined to $7.3 million from $7.8 million, while selling, general, and administrative expenses decreased to $6.1 million from $6.3 million [10]. - Year-to-date net income, including a $946,000 gain on asset sales, was $1.7 million, or $0.34 per diluted share, compared to $1.2 million, or $0.21 per diluted share, in the same period last year [10][17]. - Cash and cash equivalents more than doubled to $4.8 million from $2.0 million at the end of 2024, driven by solid cash generation and the sale of Progressive Beef [11][18]. Operational Insights - The company experienced growth in pork, dairy, and egg verification activities, alongside increased demand for non-GMO, Gluten Free, Organic, and Upcycled certifications [4]. - Gross margins remained stable despite challenges such as wage inflation, attributed to improved efficiencies and careful cost management [4][7]. - Cash generated from operations in the first nine months was $2.3 million, down from $2.8 million in the same period last year [10].

Core Insights - Where Food Comes From, Inc. (WFCF) will release its 2025 third quarter financial results on November 13, 2025, before market opening and will hold a conference call at 10:00 a.m. Mountain Time [1] Company Overview - Where Food Comes From, Inc. is recognized as a trusted resource for independent, third-party verification of food production practices in North America [1] - The company supports over 17,500 stakeholders in the food industry, including farmers, ranchers, processors, retailers, and restaurants, through various value-added services [2] - WFCF utilizes proprietary technology and patented business processes to verify food claims, optimize production practices, and provide analytics and data-driven insights for food supply chains [2] - The company's labeling program, Where Food Comes From®, enhances consumer engagement by connecting them to the sources of their food through web-based education tools [2]

Core Insights - Where Food Comes From, Inc. (WFCF) has been recognized by TIME magazine as one of "America's Growth Leaders 2026," ranking 74th among over 4,000 public companies in the U.S. This recognition highlights WFCF's strong revenue growth and financial resilience [1][2] Company Overview - WFCF is a trusted resource for independent, third-party verification of food production practices in North America, supporting over 17,500 stakeholders in the food supply chain, including farmers, ranchers, and retailers [3] - The company utilizes proprietary technology and patented processes to verify food claims, optimize production practices, and provide analytics and data-driven insights [3] Strategic Positioning - WFCF's commitment to trust and transparency in the food supply chain is increasingly relevant, reflecting the growing importance of verified sourcing in the marketplace [2] - The company is positioned at the intersection of food integrity, certification, sustainability, and technology, which are key drivers of long-term industry growth [2]

Core Insights - Where Food Comes From, Inc. (WFCF) shares have decreased by 0.8% since the second quarter of 2025 results, underperforming the S&P 500's 0.7% growth during the same period [1] - The company reported a 3% year-over-year revenue increase to $6.6 million, driven by growth in verification services and product sales [2] - Net income rose 15% year-over-year to $562,000, aided by gains in digital assets, despite a decline in gross profit due to higher costs [3] Revenue and Sales Performance - Total revenues for the quarter ended June 30, 2025, increased to $6.6 million, with verification and certification revenues rising to $5.33 million and product sales increasing by 17.7% to $964,000 [2] - Professional services revenues fell to $266,000 from $324,000 [2] - Hardware sales grew by 18% to $1 million, driven by demand for premium identification tags and tissue sampling units [4] Profitability Metrics - Gross profit decreased to $2.5 million from $2.7 million, with gross margin narrowing to 38.4% from 42.3% due to higher labor and hardware costs [3][4] - The increase in net income to $562,000 was supported by a $172,000 gain in the fair market value of digital assets [3] Management Commentary - CEO John Saunders emphasized the strength of the diversified verification services portfolio and the positive momentum in programs like CARE Certified and Upcycled [5] - The expansion of the retail labeling program is expected to reach over 110 locations by year-end, with further growth anticipated in 2026 [6] Market Conditions and Challenges - Revenue growth occurred despite cyclical headwinds in the cattle industry, which has been in contraction since 2014 due to drought and reduced pasture availability [7] - Higher wages and inflationary pressures on hardware prices have negatively impacted margins [8] Strategic Initiatives - The company is confident in its growth initiatives, including retail labeling expansion, AI integration, and share repurchases [9] - WFCF sold its 10% interest in Progressive Beef for $1.8 million, generating an $800,000 gain on the sale [11] - The company has repurchased 55,826 shares in the first half of 2025, totaling over 1.24 million shares removed from the market since 2019 [12]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Introduction](index=1&type=section&id=Introduction) Where Food Comes From, Inc. (WFCF) announced its financial results for the second quarter and six-month period ended June 30, 2025, highlighting revenue growth despite cattle herd size headwinds, driven by other verification services and hardware sales. The company also reported a subsequent event involving the sale of its interest in Progressive Beef - WFCF is a trusted resource for independent, third-party verification of food production practices in North America[1](index=1&type=chunk) - The company announced financial results for Q2 and six-month period ended June 30, 2025[1](index=1&type=chunk) - A subsequent event involved the sale of interest in Progressive Beef for **$1.8 million** cash and return of **12,585 shares**[1](index=1&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) In Q2 2025, WFCF reported a **3% year-over-year revenue increase to $6.6 million**, primarily due to demand for CARE Certified and UpCycled programs and hardware sales, offsetting reduced beef verification. **Net income rose 15% to $562,000**, or **$0.11 per diluted share**, boosted by a **$172,000 gain in digital asset fair market value**, despite gross margin pressure from increased compensation and hardware costs - **Q2 revenue increased 3%** year-over-year despite headwinds from smaller cattle herd sizes[2](index=2&type=chunk) - Revenue growth was driven by increasing demand for CARE Certified and UpCycled programs, and hardware sales[2](index=2&type=chunk) - Gross margins were negatively impacted by increased compensation expense and hardware costs[2](index=2&type=chunk) Second Quarter 2025 Financial Highlights (YoY) | Metric | 2025 (Q2) ($ thousands, except EPS) | 2024 (Q2) ($ thousands, except EPS) | Change (%) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :--------- | | Verification & Certification Revenue | 5330 | 5250 | 1.5% | | Product Sales | 964 | 819 | 17.7% | | Total Revenue | 6600 | 6400 | 3.1% | | Net Income | 562 | 489 | 14.9% | | Diluted EPS | $0.11 | $0.09 | 22.2% | - The company bought back **24,481 shares** of common stock in Q2 2025[3](index=3&type=chunk) [Six Month 2025 Highlights](index=1&type=section&id=Six%20Month%202025%20Highlights) For the first six months of 2025, **total revenue slightly decreased to $11.8 million from $12.0 million** year-over-year. **Net income also saw a decline to $593,000**, or **$0.11 per diluted share**, compared to **$667,000**, or **$0.12 per diluted share**, in the prior year, despite a **$96,000 net gain in digital asset fair market value**. **Cash generated from operations remained strong at $1.8 million**, and the company continued its share repurchase program Six Month 2025 Financial Highlights (YoY) | Metric | 2025 (6 Months) ($ thousands, except EPS) | 2024 (6 Months) ($ thousands, except EPS) | Change (%) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------- | | Verification & Certification Revenue | 9500 | 9700 | -2.1% | | Product Sales | 1700 | 1600 | 6.3% | | Total Revenue | 11800 | 12000 | -1.7% | | Net Income | 593 | 667 | -11.1% | | Diluted EPS | $0.11 | $0.12 | -8.3% | | Cash from Operations | 1800 | 1900 | -5.3% | | Cash & Cash Equivalents | 3200 | 2000 (2024 YE) | 60.0% | - Year-to-date stock buybacks totaled **55,826 shares**[3](index=3&type=chunk) - Total buybacks since plan inception plus private purchases reached **1,247,462 shares**, representing approximately **$13.6 million**[3](index=3&type=chunk) - **$14.6 million in total value returned to stockholders** via buybacks, private purchases, and a special dividend since 2019[3](index=3&type=chunk) [Strategic and Operational Developments](index=1&type=section&id=Strategic%20and%20Operational%20Developments) WFCF expanded its retail labeling program, adding two major retailers featuring CARE Certified beef products across the US, with plans to reach over **110 locations** by year-end 2025. The company is also investing in Artificial Intelligence tools and technical talent to enhance efficiency, customer experience, and scale operations for improved bottom-line results - Expanded retail labeling program with two new major retailers featuring CARE Certified beef products[4](index=4&type=chunk) - Rollout expected to include over **110 retail locations** by year-end 2025, with potential for more in 2026[4](index=4&type=chunk) - Continued buildout of Artificial Intelligence tools to improve efficiency and enhance customer experiences[4](index=4&type=chunk) - Investing in technical talent to transform business operations and customer solutions, aiming for efficient scaling and stronger bottom-line results[4](index=4&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) [Second Quarter 2025 Results](index=2&type=section&id=Second%20Quarter%202025%20Results) For the second quarter of 2025, **total revenue increased to $6.6 million**, driven by growth in verification and certification services and product sales. Gross profit, however, **declined to $2.5 million** due to higher compensation and hardware costs. **Net income improved to $562,000**, or **$0.11 per diluted share**, primarily benefiting from a **$172,000 gain in digital asset fair market value**, while SG&A expenses slightly decreased Second Quarter 2025 Key Financials (YoY) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | Total Revenue | 6,562 | 6,395 | 2.6% | | Gross Profit | 2,460 | 2,658 | -7.5% | | Selling, General & Admin Expense | 1,911 | 2,075 | -7.9% | | Net Income | 562 | 489 | 14.9% | | Diluted EPS | 0.11 | 0.09 | 22.2% | - Net income was positively impacted by a **$172,000 gain in fair market value of digital assets**[6](index=6&type=chunk) - The Company bought back **24,481 shares** of its common stock in the second quarter[7](index=7&type=chunk) [Revenue Breakdown (Q2)](index=2&type=section&id=Revenue%20Breakdown%20(Q2)) Second Quarter Revenue by Service Type (YoY) | Revenue Type | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | Change (%) | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | Verification & Certification Services | 5,332 | 5,252 | 1.5% | | Product Sales | 964 | 819 | 17.7% | | Professional Services | 266 | 324 | -17.9% | [Six Month 2025 Results](index=2&type=section&id=Six%20Month%202025%20Results) For the first six months of 2025, **total revenue decreased slightly to $11.8 million**, with a decline in verification and certification services partially offset by growth in product sales. **Gross profit also decreased to $4.7 million**. **Net income for the period was $593,000**, or **$0.11 per diluted share**, down from the prior year, despite a **$96,000 net gain from digital assets**. **Cash generated from operations was $1.8 million**, and the company continued its share repurchase activities Six Month 2025 Key Financials (YoY) | Metric | 6 Months 2025 ($ thousands) | 6 Months 2024 ($ thousands) | Change (%) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Total Revenue | 11,835 | 11,977 | -1.2% | | Gross Profit | 4,655 | 4,987 | -6.7% | | Selling, General & Admin Expense | 3,964 | 4,143 | -4.3% | | Net Income | 593 | 667 | -11.1% | | Diluted EPS | 0.11 | 0.12 | -8.3% | | Cash from Operations | 1,800 | 1,900 | -5.3% | | Cash & Cash Equivalents | 3,200 | 2,000 (2024 YE) | 60.0% | - Net income year-to-date included a **$96,000 net gain in fair market value of digital assets**[10](index=10&type=chunk) - **Cash generated from operations was $1.8 million**, slightly down from **$1.9 million** in the prior year[11](index=11&type=chunk) - Year-to-date stock buybacks totaled **55,826 shares**[12](index=12&type=chunk) [Revenue Breakdown (6 Months)](index=2&type=section&id=Revenue%20Breakdown%20(6%20Months)) Six Month Revenue by Service Type (YoY) | Revenue Type | 6 Months 2025 ($ thousands) | 6 Months 2024 ($ thousands) | Change (%) | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Verification & Certification Services | 9,514 | 9,686 | -1.8% | | Product Sales | 1,666 | 1,552 | 7.4% | | Professional Services | 655 | 739 | -11.4% | [Subsequent Events](index=2&type=section&id=Subsequent%20Events) [Sale of Progressive Beef Interest](index=2&type=section&id=Sale%20of%20Progressive%20Beef%20Interest) On July 22, 2025, WFCF sold its **10% interest in Progressive Beef for $1.8 million** in cash and the return of **12,585 shares** of WFCF common stock. This transaction, which generated an **$0.8 million gain on sale**, strengthens WFCF's balance sheet, provides financial flexibility for growth initiatives, and supports its stock buyback program. Progressive Beef will continue to be a customer for WFCF's auditing services - On July 22, 2025, WFCF sold its **10% interest in Progressive Beef**[13](index=13&type=chunk) - Sale proceeds were **$1.8 million in cash** and the return of **12,585 shares** of WFCF common stock[13](index=13&type=chunk) - The sale resulted in an **$0.8 million gain on sale of investment** and strengthens WFCF's balance sheet, providing financial flexibility[13](index=13&type=chunk) - Progressive Beef, which paid WFCF **$1.6 million in dividends** since 2018, will remain a customer for auditing services[13](index=13&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) [About Where Food Comes From, Inc.](index=3&type=section&id=About%20Where%20Food%20Comes%20From,%20Inc.) Where Food Comes From, Inc. is a leading third-party verification resource for food production practices in America, supporting over **17,500 clients** with value-added services and a retail labeling program that connects consumers to food sources - WFCF is America's trusted resource for third-party verification of food production practices[15](index=15&type=chunk) - Supports over **17,500 farmers, ranchers, processors, retailers, and other clients** with value-added services[15](index=15&type=chunk) - Solutions verify food claims, optimize production practices, and enable food supply chains with analytics and data-driven insights[15](index=15&type=chunk) - The 'Where Food Comes From®' labeling program connects consumers to food sources, increasing engagement[15](index=15&type=chunk) [Cautionary Statement](index=3&type=section&id=Cautionary%20Statement) This news release contains forward-looking statements subject to risks and uncertainties, and readers are cautioned not to place undue reliance on them, as actual events may differ materially from predictions - The news release contains forward-looking statements subject to inherent uncertainties and risks[16](index=16&type=chunk) - Important factors that could cause actual events to vary include capital availability, competition, governmental regulation, and market conditions[16](index=16&type=chunk) - Readers should not place undue reliance on these statements, and the Company assumes no obligation to update them[16](index=16&type=chunk) [Investor Contacts](index=3&type=section&id=Investor%20Contacts) Contact information for investor relations is provided, including John Saunders (Chief Executive Officer) and Jay Pfeiffer (Director Investor Relations) - Contact information for John Saunders, CEO, and Jay Pfeiffer, Director Investor Relations, is provided for inquiries[17](index=17&type=chunk) [Unaudited Financial Statements](index=4&type=section&id=Unaudited%20Financial%20Statements) [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) The unaudited Statements of Operations detail financial performance for the three and six months ended June 30, 2025, covering revenues, costs, gross profit, expenses, income, and EPS, with comparisons to 2024 Statements of Operations (Unaudited) - Three Months Ended June 30 | (Amounts in thousands, except per share amounts) | 2025 | 2024 | | :----------------------------------------------- | :--- | :--- | | **Revenues:** | | | | Verification and certification service revenue | 5,332 | 5,252 | | Product sales | 964 | 819 | | Professional services | 266 | 324 | | **Total revenues** | **6,562** | **6,395** | | **Costs of revenues:** | | | | Costs of verification and certification services | 3,282 | 3,028 | | Costs of products | 617 | 469 | | Costs of professional services | 203 | 240 | | **Total costs of revenues** | **4,102** | **3,737** | | **Gross profit** | **2,460** | **2,658** | | Selling, general and administrative expenses | 1,911 | 2,075 | | **Income from operations** | **549** | **583** | | **Other income/(expense):** | | | | Dividend income | 50 | 100 | | Interest income | 5 | 7 | | Fair market value gain on digital assets | 172 | - | | Loss on foreign currency exchange | (3) | (2) | | Interest expense | (1) | (1) | | **Income before income taxes** | **772** | **687** | | Income tax expense | 210 | 198 | | **Net income** | **562** | **489** | | **Per share - net income:** | | | | Basic | 0.11 | 0.09 | | Diluted | 0.11 | 0.09 | | Weighted average number of common shares outstanding: | | | | Basic | 5,272 | 5,371 | | Diluted | 5,283 | 5,388 | Statements of Operations (Unaudited) - Six Months Ended June 30 | (Amounts in thousands, except per share amounts) | 2025 | 2024 | | :----------------------------------------------- | :--- | :--- | | **Revenues:** | | | | Verification and certification service revenue | 9,514 | 9,686 | | Product sales | 1,666 | 1,552 | | Professional services | 655 | 739 | | **Total revenues** | **11,835** | **11,977** | | **Costs of revenues:** | | | | Costs of verification and certification services | 5,677 | 5,543 | | Costs of products | 1,045 | 903 | | Costs of professional services | 458 | 544 | | **Total costs of revenues** | **7,180** | **6,990** | | **Gross profit** | **4,655** | **4,987** | | Selling, general and administrative expenses | 3,964 | 4,143 | | **Income from operations** | **691** | **844** | | **Other income/(expense):** | | | | Dividend income | 50 | 100 | | Interest income | 9 | 14 | | Fair market value gain on digital assets | 96 | - | | Loss on foreign currency exchange | (3) | (4) | | Interest expense | (2) | (2) | | **Income before income taxes** | **841** | **952** | | Income tax expense | 248 | 285 | | **Net income** | **593** | **667** | | **Per share - net income:** | | | | Basic | 0.11 | 0.12 | | Diluted | 0.11 | 0.12 | | Weighted average number of common shares outstanding: | | | | Basic | 5,227 | 5,426 | | Diluted | 5,240 | 5,444 | [Balance Sheets](index=5&type=section&id=Balance%20Sheets) The unaudited Balance Sheets present WFCF's financial position as of June 30, 2025, detailing assets, liabilities, and equity, with **total assets increasing to $16.6 million from $15.3 million** Balance Sheets (Unaudited) | (Amounts in thousands, except per share amounts) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :----------------------------------------------- | :------------------------ | :-------------------------- | | **Assets** | | | | Current assets: | | | | Cash and cash equivalents | 3,201 | 2,012 | | Accounts receivable, net of allowance | 2,060 | 1,826 | | Inventory | 1,112 | 1,002 | | Prepaid expenses and other current assets | 742 | 705 | | **Total current assets** | **7,115** | **5,545** | | Property and equipment, net | 681 | 737 | | Right-of-use assets, net | 2,017 | 2,067 | | Equity investments | 1,191 | 1,191 | | Intangible and other assets, net | 1,612 | 1,810 | | Digital assets | 750 | 654 | | Goodwill, net | 2,946 | 2,946 | | Deferred tax assets, net | 312 | 356 | | **Total assets** | **16,624** | **15,306** | | **Liabilities and Equity** | | | | Current liabilities: | | | | Accounts payable | 749 | 468 | | Accrued expenses and other current liabilities | 1,053 | 611 | | Deferred revenue | 2,371 | 1,748 | | Current portion of finance lease obligations | 14 | 15 | | Current portion of operating lease obligations | 360 | 337 | | **Total current liabilities** | **4,547** | **3,179** | | Finance lease obligations, net of current portion | 19 | 25 | | Operating lease obligation, net of current portion | 2,087 | 2,169 | | **Total liabilities** | **6,653** | **5,373** | | Commitments and contingencies | | | | **Equity:** | | | | Common stock | 5 | 7 | | Additional paid-in-capital | 60 | 11,381 | | Treasury stock | (251) | (13,462) | | Retained earnings | 10,157 | 12,007 | | **Total equity** | **9,971** | **9,933** | | **Total liabilities and stockholders' equity** | **16,624** | **15,306** | - **Total assets increased to $16.624 million** as of June 30, 2025, from **$15.306 million** at December 31, 2024[19](index=19&type=chunk) - **Cash and cash equivalents significantly increased to $3.201 million from $2.012 million**[19](index=19&type=chunk)