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® 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 è diminuito a 31.000 dollari (0,01 dollari per azione) da 178.000 dollari (0,03 dollari per azione).
Il calo è stato principalmente attribuito alle difficoltà nel settore della verifica della carne bovina, che rappresenta circa il 50% del fatturato. Le principali difficoltà 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® continua a essere lo standard di verifica in più 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 verificación de producción de alimentos en Norteamérica, reportó los resultados financieros del primer trimestre de 2025 mostrando una disminución en los ingresos a 5.3 millones de dólares desde 5.6 millones año tras año. El ingreso neto de la compañía bajó a 31,000 dólares (0.01 dólares por acción) desde 178,000 dólares (0.03 dólares por acción).
La disminución se atribuyó principalmente a los desafíos en su negocio de verificación de carne de res, que representa cerca del 50% de los ingresos. Los principales obstáculos incluyen un tamaño reducido del ganado, precios récord de la carne de res, la suspensión de exportaciones de carne a China debido a aranceles, y alteraciones en la verificación de aves y lácteos por la influenza aviar.
A pesar de los desafíos, WFCF mantuvo un margen bruto estable del 41.6% y añadió dos grandes minoristas de alimentos a su programa de etiquetado. Su programa Upcycled Certified® continúa siendo su estándar de verificación de más rápido crecimiento. La compañía también continuó con su programa de recompra de acciones, comprando 31,345 acciones por 383,000 dólares en el primer trimestre.
Where Food Comes From(WFCF)는 북미 최고의 식품 생산 검증 제공업체로서, 2025년 1분기 재무 결과를 발표하며 매출이 전년 동기 대비 530만 달러에서 560만 달러로 감소했다고 보고했습니다. 회사의 순이익은 31,000달러(주당 0.01달러)로 178,000달러(주당 0.03달러)에서 감소했습니다.
매출 감소는 약 50%의 매출을 차지하는 소고기 검증 사업의 어려움 때문입니다. 주요 어려움으로는 가축 수 감소, 사상 최고 수준의 소고기 가격, 관세로 인한 중국으로의 소고기 수출 중단, 조류 인플루엔자 때문에 가금류 및 유제품 검증에 차질이 발생한 점이 꼽힙니다.
어려움에도 불구하고 WFCF는 41.6%의 안정적인 총이익률을 유지했으며, 두 개의 주요 식품 소매업체를 라벨링 프로그램에 추가했습니다. Upcycled Certified® 프로그램은 가장 빠르게 성장하는 검증 기준으로 자리잡고 있습니다. 또한 회사는 1분기에 31,345주를 383,000달러에 자사주 매입 프로그램을 계속 진행했습니다.
Where Food Comes From (WFCF), principal fournisseur nord-américain de vérification de la production alimentaire, a publié ses résultats financiers du premier trimestre 2025, montrant une baisse du chiffre d'affaires à 5,3 millions de dollars contre 5,6 millions d'une année sur l'autre. Le bénéfice net de la société a diminué à 31 000 dollars (0,01 dollar par action) contre 178 000 dollars (0,03 dollar par action).
Cette baisse est principalement due aux difficultés rencontrées dans leur activité de vérification du bœuf, qui représente environ 50 % du chiffre d'affaires. Les principaux obstacles incluent une taille de troupeau réduite, des prix du bœuf à un niveau record, l'arrêt des exportations de bœuf vers la Chine en raison des tarifs douaniers, et des perturbations dans la vérification de la volaille et des produits laitiers dues à la grippe aviaire.
Malgré ces défis, WFCF a maintenu une marge brute stable de 41,6 % et a ajouté deux grands détaillants alimentaires à son programme d'étiquetage. Leur programme Upcycled Certified® reste leur standard de vérification à la croissance la plus rapide. La société a également poursuivi son programme de rachat d'actions, achetant 31 345 actions pour 383 000 dollars au premier trimestre.
Where Food Comes From (WFCF), Nordamerikas führender Anbieter für Lebensmittelproduktionsverifizierung, meldete die Finanzergebnisse für das erste Quartal 2025 mit einem Umsatzrückgang auf 5,3 Millionen US-Dollar gegenüber 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 Rückgang wurde hauptsächlich auf Herausforderungen im Bereich der Rindfleischverifizierung zurückgeführt, der etwa 50 % des Umsatzes ausmacht. Wichtige Gegenwinde sind kleinere Herden, rekordhohe Rindfleischpreise, der Stopp der Rindfleischexporte nach China aufgrund von Zöllen sowie Störungen bei der Geflügel- und Milchverifizierung durch die Vogelgrippe.
Trotz der Herausforderungen hielt WFCF eine stabile Bruttomarge von 41,6 % und nahm zwei große Lebensmittelhändler in ihr Kennzeichnungsprogramm auf. Ihr Upcycled Certified®-Programm bleibt der am schnellsten wachsende Verifizierungsstandard. Das Unternehmen setzte zudem sein Aktienrückkaufprogramm fort und kaufte im ersten Quartal 31.345 Aktien für 383.000 US-Dollar zurück.
- Maintained stable gross margin at 41.6%
- Added two major food retailers to WFCF labeling program
- Upcycled Certified® 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® 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 – 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.
“Our 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,” said John Saunders, CEO. “In addition, beef exports to China have virtually ceased due to tariffs, a situation that’s 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.
“On another positive note, we are making good progress in other aspects of our business that underscores the importance of our product mix diversification,” Saunders added. “We 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® program remains our fastest growing verification standard as consumer demand for upcycled food products continues to grow.
“Based 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 – a total of 31,345 shares at a cost of
First Quarter Results – 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’s trusted resource for third party verification of food production practices. Through proprietary technology and patented business processes, 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. 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. In addition, the Company’s Where Food Comes From® 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.
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’s 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’s 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’s 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’s business, please refer to the Company’s SEC filings at www.sec.gov.
Company Contacts:
John Saunders
Chief Executive Officer
303-895-3002
Jay Pfeiffer
Director, Investor Relations
303-880-9000
jpfeiffer@wherefoodcomesfrom.com
| Where Food Comes From, Inc. | |||||||||||
| Statements of Income (Unaudited) | |||||||||||
| Three months ended March 31, | |||||||||||
| (Amounts in thousands, except per share amounts) | 2025 | 2024 | |||||||||
| Revenues: | |||||||||||
| Verification and certification service revenue | $ | 4,182 | $ | 4,434 | |||||||
| Product sales | 702 | 733 | |||||||||
| Professional services | 389 | 415 | |||||||||
| Total revenues | 5,273 | 5,582 | |||||||||
| Costs of revenues: | |||||||||||
| Costs of verification and certification services | 2,395 | 2,515 | |||||||||
| Costs of products | 428 | 434 | |||||||||
| Costs of professional services | 255 | 304 | |||||||||
| Total costs of revenues | 3,078 | 3,253 | |||||||||
| Gross profit | 2,195 | 2,329 | |||||||||
| Selling, general and administrative expenses | 2,053 | 2,068 | |||||||||
| Income from operations | 142 | 261 | |||||||||
| Other income/(expense): | |||||||||||
| Dividend income from Progressive Beef | 4 | 7 | |||||||||
| Loss on foreign currency exchange | (76 | ) | - | ||||||||
| Other income, net | - | (2 | ) | ||||||||
| Interest expense | (1 | ) | (1 | ) | |||||||
| Income before income taxes | 69 | 265 | |||||||||
| Income tax expense | 38 | 87 | |||||||||
| Net income | $ | 31 | $ | 178 | |||||||
| Per share - net income: | |||||||||||
| Basic | $ | 0.01 | $ | 0.03 | |||||||
| Diluted | $ | 0.01 | $ | 0.03 | |||||||
| Weighted average number of common shares outstanding: | |||||||||||
| Basic | 5,212 | 5,480 | |||||||||
| Diluted | 5,230 | 5,500 | |||||||||
| Where Food Comes From, Inc. | |||||||||||
| Balance Sheets (Unaudited) | |||||||||||
| March 31, | December 31, | ||||||||||
| (Amounts in thousands, except per share amounts) | 2025 | 2024 | |||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 2,238 | $ | 2,012 | |||||||
| Accounts receivable, net of allowance | 1,835 | 1,826 | |||||||||
| Inventory | 930 | 1,002 | |||||||||
| Prepaid expenses and other current assets | 724 | 705 | |||||||||
| Total current assets | 5,727 | 5,545 | |||||||||
| Property and equipment, net | 698 | 737 | |||||||||
| Right-of-use assets, net | 1,987 | 2,067 | |||||||||
| Equity investments | 1,191 | 1,191 | |||||||||
| Intangible and other assets, net | 1,713 | 1,810 | |||||||||
| Digital assets | 578 | 654 | |||||||||
| Goodwill, net | 2,946 | 2,946 | |||||||||
| Deferred tax assets, net | 372 | 356 | |||||||||
| Total assets | $ | 15,212 | $ | 15,306 | |||||||
| Liabilities and Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 546 | $ | 468 | |||||||
| Accrued expenses and other current liabilities | 871 | 611 | |||||||||
| Deferred revenue | 1,744 | 1,748 | |||||||||
| Current portion of finance lease obligations | 15 | 15 | |||||||||
| Current portion of operating lease obligations | 339 | 337 | |||||||||
| Total current liabilities | 3,515 | 3,179 | |||||||||
| Finance lease obligations, net of current portion | 22 | 25 | |||||||||
| Operating lease obligation, net of current portion | 2,084 | 2,169 | |||||||||
| Total liabilities | 5,621 | 5,373 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity: | |||||||||||
| Common stock | 7 | 7 | |||||||||
| Additional paid-in-capital | 11,391 | 11,381 | |||||||||
| Treasury stock | (13,845 | ) | (13,462 | ) | |||||||
| Retained earnings | 12,038 | 12,007 | |||||||||
| Total equity | 9,591 | 9,933 | |||||||||
| Total liabilities and stockholders' equity | $ | 15,212 | $ | 15,306 | |||||||
FAQ
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