Where Food Comes From, Inc. Reports 2025 First Quarter Financial Results
Where Food Comes From (WFCF), North America's leading food production verification provider, reported Q1 2025 financial results showing revenue decline to $5.3 million from $5.6 million year-over-year. The company's net income decreased to $31,000 ($0.01 per share) from $178,000 ($0.03 per share).
The decline was primarily attributed to challenges in their beef verification business, which represents about 50% of revenue. Key headwinds include smaller herd sizes, record-high beef prices, ceased beef exports to China due to tariffs, and disruptions in poultry and dairy verification due to avian influenza.
Despite challenges, WFCF maintained a stable gross margin of 41.6% and added two major food retailers to their labeling program. Their Upcycled Certified庐 program continues to be their fastest-growing verification standard. The company also continued its share buyback program, purchasing 31,345 shares for $383,000 in Q1.
Where Food Comes From (WFCF), il principale fornitore nordamericano di certificazione nella produzione alimentare, ha riportato i risultati finanziari del primo trimestre 2025 con un calo del fatturato a 5,3 milioni di dollari rispetto ai 5,6 milioni dell'anno precedente. L'utile netto dell'azienda 猫 diminuito a 31.000 dollari (0,01 dollari per azione) da 178.000 dollari (0,03 dollari per azione).
Il calo 猫 stato principalmente attribuito alle difficolt脿 nel settore della verifica della carne bovina, che rappresenta circa il 50% del fatturato. Le principali difficolt脿 includono dimensioni ridotte degli allevamenti, prezzi della carne bovina ai massimi storici, cessazione delle esportazioni di carne bovina verso la Cina a causa dei dazi, e interruzioni nella verifica di pollame e latticini a causa dell'influenza aviaria.
Nonostante le sfide, WFCF ha mantenuto un margine lordo stabile del 41,6% e ha aggiunto due importanti rivenditori alimentari al proprio programma di etichettatura. Il loro programma Upcycled Certified庐 continua a essere lo standard di verifica in pi霉 rapida crescita. L'azienda ha inoltre proseguito il programma di riacquisto di azioni, acquistando 31.345 azioni per 383.000 dollari nel primo trimestre.
Where Food Comes From (WFCF), el principal proveedor de verificaci贸n de producci贸n de alimentos en Norteam茅rica, report贸 los resultados financieros del primer trimestre de 2025 mostrando una disminuci贸n en los ingresos a 5.3 millones de d贸lares desde 5.6 millones a帽o tras a帽o. El ingreso neto de la compa帽铆a baj贸 a 31,000 d贸lares (0.01 d贸lares por acci贸n) desde 178,000 d贸lares (0.03 d贸lares por acci贸n).
La disminuci贸n se atribuy贸 principalmente a los desaf铆os en su negocio de verificaci贸n de carne de res, que representa cerca del 50% de los ingresos. Los principales obst谩culos incluyen un tama帽o reducido del ganado, precios r茅cord de la carne de res, la suspensi贸n de exportaciones de carne a China debido a aranceles, y alteraciones en la verificaci贸n de aves y l谩cteos por la influenza aviar.
A pesar de los desaf铆os, WFCF mantuvo un margen bruto estable del 41.6% y a帽adi贸 dos grandes minoristas de alimentos a su programa de etiquetado. Su programa Upcycled Certified庐 contin煤a siendo su est谩ndar de verificaci贸n de m谩s r谩pido crecimiento. La compa帽铆a tambi茅n continu贸 con su programa de recompra de acciones, comprando 31,345 acciones por 383,000 d贸lares en el primer trimestre.
Where Food Comes From(WFCF)電� 攵侂 斓滉碃鞚� 鞁濏拡 靸濎偘 瓴�歃� 鞝滉车鞐呾泊搿滌劀, 2025雲� 1攵勱赴 鞛 瓴瓣臣毳� 氚滍憸頃橂┌ 毵れ稖鞚� 鞝勲厔 霃欔赴 雽�牍� 530毵� 雼煬鞐愳劀 560毵� 雼煬搿� 臧愳唽頄堧嫟瓿� 氤搓碃頄堨姷雼堧嫟. 須岇偓鞚� 靾滌澊鞚奠潃 31,000雼煬(欤茧嫻 0.01雼煬)搿� 178,000雼煬(欤茧嫻 0.03雼煬)鞐愳劀 臧愳唽頄堨姷雼堧嫟.
毵れ稖 臧愳唽電� 鞎� 50%鞚� 毵れ稖鞚� 彀頃橂姅 靻岅碃旮� 瓴�歃� 靷梾鞚� 鞏措牑鞗� 霑岆鞛呺媹雼�. 欤检殧 鞏措牑鞗�鞙茧電� 臧�於� 靾� 臧愳唽, 靷儊 斓滉碃 靾橃鞚� 靻岅碃旮� 臧�瓴�, 甏�靹鸽 鞚疙暅 欷戧淡鞙茧鞚� 靻岅碃旮� 靾橃稖 欷戨嫧, 臁半 鞚疙攲耄棓鞛� 霑岆鞐� 臧�旮堧 氚� 鞙犾牅頀� 瓴�歃濎棎 彀鞚� 氚滌儩頃� 鞝愳澊 昙巾灆雼堧嫟.
鞏措牑鞗�鞐愲弰 攵堦惮頃橁碃 WFCF電� 41.6%鞚� 鞎堨爼鞝侅澑 齑濎澊鞚惦鞚� 鞙犾頄堨溂氅�, 霊� 臧滌潣 欤检殧 鞁濏拡 靻岆Г鞐呾泊毳� 霛茧波毵� 頂勲攴鸽灗鞐� 於旉皜頄堨姷雼堧嫟. Upcycled Certified庐 頂勲攴鸽灗鞚� 臧�鞛� 牍犽ゴ瓴� 靹膘灔頃橂姅 瓴�歃� 旮办鞙茧 鞛愲Μ鞛￡碃 鞛堨姷雼堧嫟. 霕愴暅 須岇偓電� 1攵勱赴鞐� 31,345欤�毳� 383,000雼煬鞐� 鞛愳偓欤� 毵れ瀰 頂勲攴鸽灗鞚� 瓿勳啀 歆勴枆頄堨姷雼堧嫟.
Where Food Comes From (WFCF), principal fournisseur nord-am茅ricain de v茅rification de la production alimentaire, a publi茅 ses r茅sultats financiers du premier trimestre 2025, montrant une baisse du chiffre d'affaires 脿 5,3 millions de dollars contre 5,6 millions d'une ann茅e sur l'autre. Le b茅n茅fice net de la soci茅t茅 a diminu茅 脿 31 000 dollars (0,01 dollar par action) contre 178 000 dollars (0,03 dollar par action).
Cette baisse est principalement due aux difficult茅s rencontr茅es dans leur activit茅 de v茅rification du b艙uf, qui repr茅sente environ 50 % du chiffre d'affaires. Les principaux obstacles incluent une taille de troupeau r茅duite, des prix du b艙uf 脿 un niveau record, l'arr锚t des exportations de b艙uf vers la Chine en raison des tarifs douaniers, et des perturbations dans la v茅rification de la volaille et des produits laitiers dues 脿 la grippe aviaire.
Malgr茅 ces d茅fis, WFCF a maintenu une marge brute stable de 41,6 % et a ajout茅 deux grands d茅taillants alimentaires 脿 son programme d'茅tiquetage. Leur programme Upcycled Certified庐 reste leur standard de v茅rification 脿 la croissance la plus rapide. La soci茅t茅 a 茅galement poursuivi son programme de rachat d'actions, achetant 31 345 actions pour 383 000 dollars au premier trimestre.
Where Food Comes From (WFCF), Nordamerikas f眉hrender Anbieter f眉r Lebensmittelproduktionsverifizierung, meldete die Finanzergebnisse f眉r das erste Quartal 2025 mit einem Umsatzr眉ckgang auf 5,3 Millionen US-Dollar gegen眉ber 5,6 Millionen im Vorjahresvergleich. Der Nettogewinn des Unternehmens sank auf 31.000 US-Dollar (0,01 US-Dollar pro Aktie) von 178.000 US-Dollar (0,03 US-Dollar pro Aktie).
Der R眉ckgang wurde haupts盲chlich auf Herausforderungen im Bereich der Rindfleischverifizierung zur眉ckgef眉hrt, der etwa 50 % des Umsatzes ausmacht. Wichtige Gegenwinde sind kleinere Herden, rekordhohe Rindfleischpreise, der Stopp der Rindfleischexporte nach China aufgrund von Z枚llen sowie St枚rungen bei der Gefl眉gel- und Milchverifizierung durch die Vogelgrippe.
Trotz der Herausforderungen hielt WFCF eine stabile Bruttomarge von 41,6 % und nahm zwei gro脽e Lebensmittelh盲ndler in ihr Kennzeichnungsprogramm auf. Ihr Upcycled Certified庐-Programm bleibt der am schnellsten wachsende Verifizierungsstandard. Das Unternehmen setzte zudem sein Aktienr眉ckkaufprogramm fort und kaufte im ersten Quartal 31.345 Aktien f眉r 383.000 US-Dollar zur眉ck.
- Maintained stable gross margin at 41.6%
- Added two major food retailers to WFCF labeling program
- Upcycled Certified庐 program showing strong growth
- Continued share buyback program with 31,345 shares purchased
- Generated $0.6 million in cash from operations
- Revenue declined to $5.3M from $5.6M YoY
- Net income dropped to $31,000 from $178,000 YoY
- EPS decreased to $0.01 from $0.03 YoY
- Beef verification business impacted by smaller herd sizes and high prices
- Beef exports to China ceased due to tariffs
- Disruptions in poultry and dairy verification due to avian influenza
Insights
WFCF's Q1 shows revenue/profit declines from temporary industry headwinds while maintaining margins, continuing strategic initiatives, and aggressively repurchasing shares.
Where Food Comes From's Q1 2025 results reveal notable challenges, with total revenue declining
The company's core verification and certification services, which form the backbone of their business model, decreased from
Despite these headwinds, several financial indicators suggest operational resilience. Gross margin remained perfectly stable at
Two strategic developments provide potential growth vectors: the addition of two major food retailers to WFCF's labeling program (expected to boost licensing revenue), and continued momentum in their Upcycled Certified庐 program, described as their fastest-growing verification standard.
Management's confidence is evidenced by their continued share repurchase program, buying back 31,345 shares at a cost of
First Quarter Highlights 鈥� 2025 vs. 2024
- Verification and certification revenue
$4.2 million vs.$4.4 million - Product sales flat at
$0.7 million - Total revenue
$5.3 million vs.$5.6 million - Net income
$31,000 vs.$178,000 - Diluted EPS
$0.01 vs.$0.03 - Company bought back 31,345 shares of its common stock at a cost of
$383,000
CASTLE ROCK, Colo., May 08, 2025 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (Nasdaq: WFCF), the most trusted resource for independent, third-party verification of food production practices in North America, today announced financial results for its first quarter ended March 31, 2025.
鈥淥ur beef verification business, which represents approximately one-half of revenue mix, continued to feel the effects of smaller herd sizes and record high beef prices,鈥� said John Saunders, CEO. 鈥淚n addition, beef exports to China have virtually ceased due to tariffs, a situation that鈥檚 likely to put pressure on beef verification activity until trade issues between the U.S. and China are resolved. We have also experienced disruptions in our poultry and dairy cow verification business due to high path avian influenza. We view these headwinds as temporary and, in the meantime, are pleased to have maintained gross margin stability and overall profitability due to our disciplined approach to cost management.
鈥淥n another positive note, we are making good progress in other aspects of our business that underscores the importance of our product mix diversification,鈥� Saunders added. 鈥淲e have recently added two major food retailers to our WFCF labeling program, which will boost our licensing revenue and increase our visibility among consumers of premium beef products. In addition, our exclusive Upcycled Certified庐 program remains our fastest growing verification standard as consumer demand for upcycled food products continues to grow.
鈥淏ased on our wide competitive moat and standing as the most diversified provider of food verifications, we remain confident in our long-term prospects for profitable growth. Accordingly, we continued to buy back shares in the first quarter 鈥� a total of 31,345 shares at a cost of
First Quarter Results 鈥� 2025 vs. 2024
Total revenue in the first quarter ended March 31, 2025, declined to
Revenue mix included:
- Verification and certification services revenue of
$4.2 million vs.$4.4 million . - Product revenue flat at
$0.7 million . - Professional services revenue flat at
$0.4 million .
Gross profit in the first quarter was
Selling, general and administrative expense was flat at
Net income was
Cash provided by operations in the first quarter was
The Company bought back 31,345 shares of its common stock during the first quarter at a cost of
Management will conduct a conference call today at 10:00 a.m. Mountain Time to discuss these financial results.
Dial-in numbers for the conference call:
Domestic Toll Free: 1-877-407-8289
International: 1-201-689-8341
Conference Code: 13753639
Phone replay:
A telephone replay of the conference call will be available through May 22, 2025, as follows:
Domestic Toll Free: 1-877-660-6853
International: 1-201-612-7415
Conference Code: 13753639
About Where Food Comes From, Inc.
Where Food Comes From, Inc. is America鈥檚 trusted resource for third party verification of food production practices.听听Through proprietary technology and patented business processes,听the Company estimates that it supports more than 17,500 farmers, ranchers, vineyards, wineries, processors, retailers, distributors, trade associations, consumer brands and restaurants with a wide variety of value-added services.听 Where Food Comes From solutions are used to verify food claims, optimize production practices and enable food supply chains with analytics and data driven insights.听In addition, the Company鈥檚 Where Food Comes From庐 retail and restaurant labeling program uses web-based customer education tools to connect consumers to the sources of the food they purchase, increasing meaningful consumer engagement for our clients.听
CAUTIONARY STATEMENT
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Forward-looking statements are inherently uncertain, and actual events could differ materially from the Company鈥檚 predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this news release about industry leadership, expectations for a resolution to trade and tariff issues, ability to continue positive gross margins and net income, and to maintain a wide competitive moat, and demand for, and impact and efficacy of, the Company鈥檚 products and services on the marketplace are forward-looking statements that are subject to a variety of factors, including availability of capital, personnel and other resources; competition; governmental regulation of the agricultural industry; the market for beef and other commodities; and other factors. Financial results and the Company鈥檚 pace of stock buybacks are not necessarily indicative of future results. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update its forward-looking statements to reflect new information or developments. For a more extensive discussion of the Company鈥檚 business, please refer to the Company鈥檚 SEC filings at .
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Director, Investor Relations
303-880-9000
| Where Food Comes From, Inc. | 听 | 听 | 听 | 听 | |||||||
| Statements of Income (Unaudited) | 听 | 听 | 听 | 听 | |||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | 听 | 听 | 听 | Three months ended March 31, | 听 | ||||||
| (Amounts in thousands, except per share amounts) | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | |||
| Revenues: | 听 | 听 | 听 | 听 | |||||||
| 听 | Verification and certification service revenue | $ | 4,182 | 听 | 听 | $ | 4,434 | 听 | 听 | ||
| 听 | Product sales | 听 | 702 | 听 | 听 | 听 | 733 | 听 | 听 | ||
| 听 | Professional services | 听 | 389 | 听 | 听 | 听 | 415 | 听 | 听 | ||
| 听 | 听 | Total revenues | 听 | 5,273 | 听 | 听 | 听 | 5,582 | 听 | 听 | |
| Costs of revenues: | 听 | 听 | 听 | 听 | |||||||
| 听 | Costs of verification and certification services | 听 | 2,395 | 听 | 听 | 听 | 2,515 | 听 | 听 | ||
| 听 | Costs of products | 听 | 428 | 听 | 听 | 听 | 434 | 听 | 听 | ||
| 听 | Costs of professional services | 听 | 255 | 听 | 听 | 听 | 304 | 听 | 听 | ||
| 听 | 听 | Total costs of revenues | 听 | 3,078 | 听 | 听 | 听 | 3,253 | 听 | 听 | |
| 听 | Gross profit | 听 | 2,195 | 听 | 听 | 听 | 2,329 | 听 | 听 | ||
| Selling, general and administrative expenses | 听 | 2,053 | 听 | 听 | 听 | 2,068 | 听 | 听 | |||
| Income from operations | 听 | 142 | 听 | 听 | 听 | 261 | 听 | 听 | |||
| Other income/(expense): | 听 | 听 | 听 | 听 | |||||||
| 听 | Dividend income from Progressive Beef | 听 | 4 | 听 | 听 | 听 | 7 | 听 | 听 | ||
| 听 | Loss on foreign currency exchange | 听 | (76 | ) | 听 | 听 | - | 听 | 听 | ||
| 听 | Other income, net | 听 | - | 听 | 听 | 听 | (2 | ) | 听 | ||
| 听 | Interest expense | 听 | (1 | ) | 听 | 听 | (1 | ) | 听 | ||
| Income before income taxes | 听 | 69 | 听 | 听 | 听 | 265 | 听 | 听 | |||
| Income tax expense | 听 | 38 | 听 | 听 | 听 | 87 | 听 | 听 | |||
| 听 | Net income | $ | 31 | 听 | 听 | $ | 178 | 听 | 听 | ||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Per share - net income: | 听 | 听 | 听 | 听 | |||||||
| 听 | Basic | 听 | $ | 0.01 | 听 | 听 | $ | 0.03 | 听 | 听 | |
| 听 | Diluted | $ | 0.01 | 听 | 听 | $ | 0.03 | 听 | 听 | ||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Weighted average number of common shares outstanding: | 听 | 听 | 听 | 听 | |||||||
| 听 | Basic | 听 | 听 | 5,212 | 听 | 听 | 听 | 5,480 | 听 | 听 | |
| 听 | Diluted | 听 | 5,230 | 听 | 听 | 听 | 5,500 | 听 | 听 | ||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Where Food Comes From, Inc. | 听 | ||||||||||
| Balance Sheets (Unaudited) | 听 | ||||||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | 听 | 听 | 听 | March 31, | 听 | December 31, | 听 | ||||
| (Amounts in thousands, except per share amounts) | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | |||
| Assets | 听 | 听 | 听 | 听 | |||||||
| Current assets: | 听 | 听 | 听 | 听 | |||||||
| 听 | Cash and cash equivalents | $ | 2,238 | 听 | 听 | $ | 2,012 | 听 | 听 | ||
| 听 | Accounts receivable, net of allowance | 听 | 1,835 | 听 | 听 | 听 | 1,826 | 听 | 听 | ||
| 听 | Inventory | 听 | 930 | 听 | 听 | 听 | 1,002 | 听 | 听 | ||
| 听 | Prepaid expenses and other current assets | 听 | 724 | 听 | 听 | 听 | 705 | 听 | 听 | ||
| 听 | 听 | Total current assets | 听 | 5,727 | 听 | 听 | 听 | 5,545 | 听 | 听 | |
| Property and equipment, net | 听 | 698 | 听 | 听 | 听 | 737 | 听 | 听 | |||
| Right-of-use assets, net | 听 | 1,987 | 听 | 听 | 听 | 2,067 | 听 | 听 | |||
| Equity investments | 听 | 1,191 | 听 | 听 | 听 | 1,191 | 听 | 听 | |||
| Intangible and other assets, net | 听 | 1,713 | 听 | 听 | 听 | 1,810 | 听 | 听 | |||
| Digital assets | 听 | 578 | 听 | 听 | 听 | 654 | 听 | 听 | |||
| Goodwill, net | 听 | 2,946 | 听 | 听 | 听 | 2,946 | 听 | 听 | |||
| Deferred tax assets, net | 听 | 372 | 听 | 听 | 听 | 356 | 听 | 听 | |||
| Total assets | $ | 15,212 | 听 | 听 | $ | 15,306 | 听 | 听 | |||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Liabilities and Equity | 听 | 听 | 听 | 听 | |||||||
| Current liabilities: | 听 | 听 | 听 | 听 | |||||||
| 听 | Accounts payable | $ | 546 | 听 | 听 | $ | 468 | 听 | 听 | ||
| 听 | Accrued expenses and other current liabilities | 听 | 871 | 听 | 听 | 听 | 611 | 听 | 听 | ||
| 听 | Deferred revenue | 听 | 1,744 | 听 | 听 | 听 | 1,748 | 听 | 听 | ||
| 听 | Current portion of finance lease obligations | 听 | 15 | 听 | 听 | 听 | 15 | 听 | 听 | ||
| 听 | Current portion of operating lease obligations | 听 | 339 | 听 | 听 | 听 | 337 | 听 | 听 | ||
| 听 | 听 | Total current liabilities | 听 | 3,515 | 听 | 听 | 听 | 3,179 | 听 | 听 | |
| Finance lease obligations, net of current portion | 听 | 22 | 听 | 听 | 听 | 25 | 听 | 听 | |||
| Operating lease obligation, net of current portion | 听 | 2,084 | 听 | 听 | 听 | 2,169 | 听 | 听 | |||
| Total liabilities | 听 | 5,621 | 听 | 听 | 听 | 5,373 | 听 | 听 | |||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Commitments and contingencies | 听 | 听 | 听 | 听 | |||||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Equity: | 听 | 听 | 听 | 听 | 听 | ||||||
| 听 | Common stock | 听 | 7 | 听 | 听 | 听 | 7 | 听 | 听 | ||
| 听 | Additional paid-in-capital | 听 | 11,391 | 听 | 听 | 听 | 11,381 | 听 | 听 | ||
| 听 | Treasury stock | 听 | (13,845 | ) | 听 | 听 | (13,462 | ) | 听 | ||
| 听 | Retained earnings | 听 | 12,038 | 听 | 听 | 听 | 12,007 | 听 | 听 | ||
| Total equity | 听 | 9,591 | 听 | 听 | 听 | 9,933 | 听 | 听 | |||
| Total liabilities and stockholders' equity | $ | 15,212 | 听 | 听 | $ | 15,306 | 听 | 听 | |||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
FAQ
What were WFCF's Q1 2025 earnings per share?
How much revenue did Where Food Comes From (WFCF) generate in Q1 2025?
How many shares did WFCF buy back in Q1 2025?
What factors affected WFCF's beef verification business in Q1 2025?
What was WFCF's gross margin in Q1 2025?
