Where Food Comes From, Inc. Reports 2026 First Quarter Financial Results
Rhea-AI Summary
Where Food Comes From (Nasdaq: WFCF) reported Q1 2026 revenue of $5.4M, up from $5.3M in 2025. Verification and certification revenue rose to $4.4M, product revenue to $713K, while professional services fell to $228K. Net income increased to $92K ($0.02/share) from $31K ($0.01/share).
Gross margin declined to 39% from 42% on higher insurance and personnel costs, but SG&A fell 15% to $1.7M. Operating cash flow was $523K. The Company repurchased 24,469 shares for $293K; cumulative buybacks reached 1,399,121 shares costing about $15.5M.
Positive
- Total revenue increased to $5.4M from $5.3M year over year
- Verification and certification revenue grew to $4.4M from $4.2M
- Net income rose to $92K or $0.02 per share from $31K
- SG&A expense declined 15% to $1.7M from $2.1M
- Operating cash flow of $523K generated in Q1 2026
- Repurchased 24,469 shares in Q1; total 1,399,121 shares since inception
Negative
- Professional services revenue declined to $228K from $389K
- Gross margin decreased to 39% from 42% on higher costs
- Operating cash flow decreased to $523K from $632K year over year
News Market Reaction – WFCF
In the May 14 session, WFCF declined 4.09%, reflecting a moderate negative market reaction. Argus tracked a peak move of +10.3% during that session. Argus tracked a trough of -13.6% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| 2026-02-26 | Annual earnings | Negative | -2.7% | Full-year 2025 revenue and net income declined versus 2024. |
| 2025-11-13 | Q3 2025 earnings | Positive | -2.8% | Q3 2025 net income jumped, aided by gain on Progressive Beef sale. |
| 2025-08-07 | Q2 2025 earnings | Positive | -0.9% | Q2 2025 revenue and net income both increased year over year. |
| 2025-08-05 | Earnings call notice | Neutral | +0.5% | Scheduled Q2 2025 earnings release and conference call details. |
| 2025-05-08 | Q1 2025 earnings | Negative | -0.3% | Q1 2025 revenue and net income declined amid beef segment headwinds. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related headlines have typically produced modest moves, often slightly negative, regardless of mixed or even positive fundamentals.
Over the past year, earnings news for WFCF has shown a pattern of modest stock pressure even when results were stable or improving. Prior reports highlighted flat to slightly lower revenue in 2025, net income fluctuations, and ongoing share repurchases above 1.3M shares cumulatively. The Q1 2025 release noted revenue and earnings declines amid beef-related headwinds. Today’s Q1 2026 update contrasts with a return to profitability and slight revenue growth while continuing the buyback program, yet the share price reaction is much more negative than past earnings moves.
AI-generated analysis. How Rhea-AI works. Not financial advice.
First Quarter Highlights – 2026 vs. 2025
- Verification and certification revenue increased to
$4.4 million from$4.2 million - Product sales increased slightly to
$713,000 from$702,000 - Total revenue increased to
$5.4 million from$5.3 million - Net income of
$92,000 , or$0.02 per share, up from$31,000 , or$0.01 per share - Company bought back 24,469 shares of its common stock at a cost of
$293,000 - Total buybacks since plan inception (including private purchases): 1,399,121 shares at a cost of approximately
$15.5 million
CASTLE ROCK, Colo., May 14, 2026 (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, 2026.
“We are pleased with our year-over-year revenue growth and return to profitability in the first quarter,” said John Saunders, CEO. “Despite continued headwinds related to smaller herd sizes and tariffs, we are adding new customers for beef-related services and making good progress with our new RaiseWell™ Certified program that Whole Foods Market adopted in the first quarter for its beef supply. We will expand RaiseWell over time to support poultry, eggs, dairy, and pork production as well. We are also adding customers for non-beef related services such as Upcycled Certified – our fastest growing service – and a variety of certifications for other food categories. Based on growing consumer demand for more information and transparency in the food supply chain, we remain bullish about future growth prospects and the overall trajectory of our industry.”
First Quarter Results – 2026 vs. 2025
Total revenue in the first quarter ended March 31, 2026, increased to
Revenue mix included:
- Verification and certification services revenue of
$4.4 million vs.$4.2 million . - Product revenue up slightly to
$713,000 from$702,000 . - Professional services revenue declined to
$228,000 from$389,000 .
Gross margins were lower at
Selling, general and administrative expense was
Net income in the first quarter was
Cash provided by operations in the first quarter was
The Company bought back 24,469 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: 13760621
Phone replay:
A telephone replay of the conference call will be available through May 28, 2026, as follows:
Domestic Toll Free: 1-877-660-6853
International: 1-201-612-7415
Conference Code: 13760621
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 growth of the business and industry, 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:
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) | 2026 | 2025 | |||||||
| Revenues: | |||||||||
| Verification and certification service revenue | $ | 4,424 | $ | 4,182 | |||||
| Product sales | 713 | 702 | |||||||
| Professional services | 228 | 389 | |||||||
| Total revenues | 5,365 | 5,273 | |||||||
| Costs of revenues: | |||||||||
| Costs of verification and certification services | 2,721 | 2,395 | |||||||
| Costs of products | 438 | 428 | |||||||
| Costs of professional services | 163 | 255 | |||||||
| Total costs of revenues | 3,322 | 3,078 | |||||||
| Gross profit | 2,043 | 2,195 | |||||||
| Selling, general and administrative expenses | 1,745 | 2,053 | |||||||
| Income from operations | 298 | 142 | |||||||
| Other income/(expense): | |||||||||
| Interest income | 6 | 4 | |||||||
| Fair market value loss on digital assets | (135 | ) | (76 | ) | |||||
| Gain on sale of assets | 17 | - | |||||||
| Interest expense | (1 | ) | (1 | ) | |||||
| Income before income taxes | 185 | 69 | |||||||
| Income tax expense | 93 | 38 | |||||||
| Net income | $ | 92 | $ | 31 | |||||
| Per share - net income: | |||||||||
| Basic | $ | 0.02 | $ | 0.01 | |||||
| Diluted | $ | 0.02 | $ | 0.01 | |||||
| Weighted average number of common shares outstanding: | |||||||||
| Basic | 5,057 | 5,212 | |||||||
| Diluted | 5,070 | 5,230 | |||||||
| Where Food Comes From, Inc. | |||||||
| Balance Sheets (Unaudited) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| (Amounts in thousands, except per share amounts) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 3,281 | $ | 3,200 | |||
| Accounts receivable, net of allowance | 2,056 | 1,678 | |||||
| Inventory | 842 | 792 | |||||
| Prepaid expenses and other current assets | 648 | 605 | |||||
| Total current assets | 6,827 | 6,275 | |||||
| Property and equipment, net | 739 | 648 | |||||
| Right-of-use assets, net | 437 | 498 | |||||
| Equity investments | 200 | 200 | |||||
| Intangible and other assets, net | 1,332 | 1,420 | |||||
| Digital assets | 478 | 613 | |||||
| Goodwill, net | 2,946 | 2,946 | |||||
| Deferred tax assets, net | 267 | 299 | |||||
| Total assets | $ | 13,226 | $ | 12,899 | |||
| Liabilities and Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 569 | $ | 451 | |||
| Accrued expenses and other current liabilities | 1,088 | 655 | |||||
| Deferred revenue | 1,532 | 1,545 | |||||
| Current portion of finance lease obligations | 12 | 12 | |||||
| Current portion of operating lease obligations | 422 | 422 | |||||
| Total current liabilities | 3,623 | 3,085 | |||||
| Finance lease obligations, net of current portion | 10 | 13 | |||||
| Operating lease obligation, net of current portion | 393 | 496 | |||||
| Total liabilities | 4,026 | 3,594 | |||||
| Commitments and contingencies | |||||||
| Equity: | |||||||
| Common stock | 5 | 5 | |||||
| Additional paid-in-capital | 119 | 23 | |||||
| Treasury stock | (2,076 | ) | (1,783 | ) | |||
| Retained earnings | 11,152 | 11,060 | |||||
| Total equity | 9,200 | 9,305 | |||||
| Total liabilities and stockholders' equity | $ | 13,226 | $ | 12,899 | |||
