Where Food Comes From, Inc. Reports 2025 Third Quarter Financial Results

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].