Core Insights - Where Food Comes From, Inc. (WFCF) reported a 3% year-over-year revenue increase in Q2 2025, reaching $6.6 million, driven by demand for verification services and hardware sales despite challenges from smaller cattle herd sizes [3][4][7] - The company achieved a net income of $562,000, or $0.11 per diluted share, reflecting a 15% increase compared to the previous year, aided by a gain in the fair market value of digital assets [3][8] - WFCF sold its 10% interest in Progressive Beef for $1.8 million, enhancing its balance sheet and providing financial flexibility for growth initiatives [5][6] Financial Performance - Q2 2025 total revenue was $6.6 million, up from $6.4 million in Q2 2024 [4][7] - Gross profit decreased to $2.5 million from $2.7 million, primarily due to increased compensation and hardware costs [8] - Year-to-date revenue for the first six months of 2025 was $11.8 million, down from $12.0 million in the same period last year [10] Revenue Breakdown - Verification and certification services revenue in Q2 2025 was $5.33 million, slightly up from $5.25 million [4][13] - Product sales increased to $964,000 from $819,000 in Q2 2024 [4][13] - Professional services revenue decreased to $266,000 from $324,000 in Q2 2024 [13] Stock Buybacks and Shareholder Returns - The company repurchased 24,481 shares in Q2 2025, contributing to a total of 1,247,462 shares bought back since 2019 [9][6] - Total value returned to shareholders through buybacks and dividends since 2019 amounts to $14.6 million [6] Strategic Initiatives - Expansion of the retail labeling program includes partnerships with two major retailers, increasing the availability of CARE Certified beef products [5] - Investment in artificial intelligence tools aims to enhance operational efficiency and customer experience [5]