Where Food Comes From, Inc. Reports 2024 Third Quarter and Nine-Month Financial Results

Core Insights - Where Food Comes From, Inc. reported a 1% increase in total revenue for Q3 2024, reaching $7.1 million compared to $7.0 million in Q3 2023, despite a 32% decline in net income to $492,000 from $723,000 [1][4][5] Q3 Highlights - Verification and certification revenue rose 2% to $5.5 million from $5.4 million [1][4] - Product sales increased by 9% to $1.3 million from $1.2 million [1][4] - Adjusted EBITDA decreased by 29% to $0.8 million from $1.2 million [1][5] - The company repurchased 66,620 shares of stock in Q3 at a cost of $734,000 [1][6] Nine Month Highlights - Total revenue for the nine months ended September 30, 2024, increased by 4% to $19.1 million from $18.4 million [1][6] - Verification and certification revenue grew by 9% to $15.2 million from $13.9 million [1][6] - Product sales declined by 8% to $2.9 million from $3.1 million [1][6] - Net income decreased by 16% to $1.2 million, or $0.21 per diluted share, compared to $1.4 million, or $0.24 per diluted share, in the prior year [1][8] - Cash generated from operations increased by 6% to $2.8 million from $2.6 million [1][8] Management Commentary - The CEO noted that while growth rates for beef verification have slowed due to cyclical herd contraction, other service offerings have compensated as consumer demand for verifications across multiple food groups continues to rise [2] - The company is optimistic about enrolling more cattle into its verification programs due to a recent USDA rule requiring electronic tags for certain classes of cattle [3]