Where Food Comes From, Inc. (WFCF) has introduced RaiseWell Certified, a new third-party verification standard designed to elevate expectations for animal care, responsible raising practices, and supply-chain transparency across North America’s protein markets. Positioned as a comprehensive certification program, RaiseWell Certified is intended to serve brands, premium retailers and foodservice operators seeking credible, verified claims that align with growing consumer interest in ethically raised and trac ...

Core Insights - Where Food Comes From, Inc. (WFCF) has launched the RaiseWell® Certified cattle verification standard, with the first certified cattle sold at the Superior Livestock Auction in Oklahoma City [1] - The RaiseWell Certified standard aims to meet the increasing consumer and retailer demand for responsibly raised proteins, providing verified claims for brands and retailers [2] - The standard emphasizes responsible animal raising practices, including no antibiotics or added growth hormones, and ensures traceability back to the source of origin [3] Company Overview - Where Food Comes From, Inc. is a trusted resource for third-party verification of food production practices, supporting over 17,500 stakeholders in the food supply chain [5] - The company utilizes proprietary technology and patented processes to verify food claims and optimize production practices, enhancing consumer engagement through educational tools [5]

Core Insights - Where Food Comes From, Inc. (WFCF) has launched RaiseWell® Certified, a new standard for animal care and verified natural raising practices aimed at enhancing transparency in supply chains [1][6] - The certification responds to increasing consumer and retailer demand for responsibly raised proteins, providing verified claims for brands and foodservice operators [2][3] Group 1: Certification Details - RaiseWell Certified mandates responsible animal raising practices throughout the animal's life, prohibiting antibiotics and added growth hormones, and ensuring traceability back to the source of origin [3][4] - The certification aims to align with consumer values, offering clarity on food sourcing and production practices [3][4] Group 2: Integration and Market Impact - RaiseWell Certified can be integrated with WFCF's existing CARE Certified standard, which focuses on animal care, environmental stewardship, and community [5] - This integration allows producers and retailers to bundle claims, creating a comprehensive, audit-ready package that includes various verified livestock-raising attributes [5][6] Group 3: Market Position and Services - The introduction of RaiseWell Certified represents a strategic expansion of WFCF's verification solutions, supporting growth in value-added protein markets and the demand for ethically raised products [6] - WFCF supports over 17,500 stakeholders in the food production industry, providing verification services and analytics to enhance production practices and consumer engagement [7]

Core Viewpoint - Where Food Comes From, Inc. (WFCF) has announced a collaboration with Pangea, Prime Pursuits, and Walmart to enhance transparency in supply chains by introducing CARE Certified sustainable leather to automotive brands, while also providing beef producers with an additional way to add value [1][2][3] Group 1: Initiative Overview - The joint initiative, "Transparency in Motion," aims to leverage data-driven practices to confirm the sourcing and processing of materials, making Pangea the first in North America to achieve such traceability [2] - The CARE Certified program promotes sustainable practices throughout the beef supply chain, offering ranchers an innovative opportunity to enhance the value of their herds and connect with consumers focused on sustainability [2][3] Group 2: Industry Challenges and Opportunities - The beef industry is facing challenges such as declining hide values due to synthetic leather alternatives, prompting WFCF to seek innovative ways to add value for beef producers [3] - By becoming CARE Certified, ranchers can enhance the value of their cattle and appeal to consumers who prioritize sustainable and ethical sourcing [3] Group 3: Collaboration Impact - The collaboration is designed to transform the beef and leather industries, providing automotive manufacturers with the opportunity to lead in sustainable sourcing by incorporating CARE Certified leather into their products [4] - This initiative aims to reduce waste by promoting leather as a natural byproduct of the beef industry, creating new marketing avenues for ranchers [4][5] Group 4: Commitment to Sustainability - WFCF is committed to partnering with all segments of the supply chain to drive innovation and transparency, creating connections between farmers, ranchers, and consumers [5] - The initiative aligns the interests of ranchers, consumers, and manufacturers in a shared vision for sustainability and quality, benefiting American ranching families [6]

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]