Where Food es From(WFCF) - 2025 Q1 - Quarterly Results

Q1 2025 Financial Results Overview This section provides an overview of Where Food Comes From, Inc.'s Q1 2025 financial performance, highlighting key results, management's perspective, and detailed financial statements Management Discussion and Business Outlook Management discusses Q1 2025 challenges in beef and poultry markets, highlighting stable profitability, program expansion, and continued share repurchases - Core beef verification was negatively impacted by smaller herd sizes, high prices, and halted China exports, while poultry and dairy faced avian influenza disruptions[2] - Strategic diversification progressed with two major food retailers added to the WFCF labeling program and strong growth in the exclusive Upcycled Certified® program[3] - The company repurchased 31,345 shares for $383,000 in Q1 2025, totaling over 1.2 million shares under the program, reflecting confidence in long-term value[4][9] First Quarter Financial Highlights Q1 2025 saw total revenue decline to $5.3 million and net income drop to $31,000, while gross margin remained stable at 41.6% Q1 2025 vs. Q1 2024 Key Financials | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $5.3 million | $5.6 million | | Gross Profit | $2.2 million | $2.3 million | | Gross Margin | 41.6% | 41.7% | | Net Income | $31,000 | $178,000 | | Diluted EPS | $0.01 | $0.03 | Q1 2025 vs. Q1 2024 Revenue Mix | Revenue Source | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Verification and certification services | $4.2 million | $4.4 million | | Product revenue | $0.7 million | $0.7 million | | Professional services revenue | $0.4 million | $0.4 million | - Cash provided by operations in Q1 was $0.6 million, down from $0.7 million in the prior year period[8] Financial Statements Unaudited financial statements detail Q1 2025 performance, showing declines in total revenues and net income, alongside key balance sheet figures Statements of Income (Unaudited) Q1 2025 unaudited income statements show total revenues of $5.27 million and net income of $31,000, driven by a decline in verification services Condensed Income Statement (Unaudited, in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $5,273 | $5,582 | | Gross Profit | $2,195 | $2,329 | | Income from Operations | $142 | $261 | | Net Income | $31 | $178 | | Diluted EPS | $0.01 | $0.03 | - The revenue decline was primarily driven by a decrease in Verification and certification service revenue to $4.18 million in Q1 2025 from $4.43 million in Q1 2024[15] Balance Sheets (Unaudited) As of March 31, 2025, total assets were $15.21 million, with cash increasing to $2.24 million, while total liabilities grew and equity decreased Key Balance Sheet Items (Unaudited, in thousands) | Line Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,238 | $2,012 | | Total Assets | $15,212 | $15,306 | | Total Liabilities | $5,621 | $5,373 | | Total Equity | $9,591 | $9,933 | - Treasury stock increased from $13.46 million to $13.85 million, reflecting share buyback activity during the quarter[16] Supplementary Information This section provides investor conference call details, a corporate profile, and a cautionary statement regarding forward-looking statements and associated risks - The company supports over 17,500 food supply chain participants with its verification services and proprietary technology[12] - The report contains forward-looking statements regarding industry trends and company performance, subject to risks detailed in SEC filings[13] - A conference call was scheduled to discuss these financial results, with dial-in information provided[12]