Where Food Comes From, Inc. Reports Second Quarter Financial Results
Rhea-AI Summary
Where Food Comes From (Nasdaq: WFCF) reported Q2 2026 revenue of $6.61M, up 1% year over year, driven by verification and certification revenue of $5.39M and product sales of $0.94M. Professional services contributed $0.29M.
Gross profit rose 9% to $2.68M, lifting gross margin to 40.6% from 37.5%. Operating income increased 21% to $0.67M. Net income declined to $0.41M, or $0.08 diluted EPS, mainly due to a non-cash $240K negative fair value swing in digital assets and prior-year dividend income.
For the first half of 2026, revenue was $11.98M, operating income $0.96M (up 39%), and net income $0.51M, or $0.10 per diluted share. Cash from operations totaled $1.46M and cash and equivalents were $3.42M at June 30. The company repurchased 65,012 shares in Q2 and 89,481 year to date, returning $809K in Q2 and $17.2M over seven years to stockholders.
Positive
- Total Q2 2026 revenue $6.61M, up 1% year over year
- Gross margin expansion to 40.6% in Q2 from 37.5% year over year
- Q2 operating income $665K, up 21% from $549K
- Six-month operating income $963K, up 39% versus $691K
- Cash from operations $1.46M year-to-date; cash balance $3.42M, up 7%
- Shareholder returns $809K Q2 buybacks; $17.2M returned over seven years
Negative
- Q2 net income down to $413K from $562K; EPS $0.08 vs $0.11
- Six-month net income $505K vs $593K; EPS $0.10 vs $0.11
- Non-cash digital asset impact $240K negative swing in Q2; $299K year-to-date
- Professional services revenue down to $513K six-month vs $655K prior year
- Cash from operations declined to $1.46M from $1.81M year-to-date
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 14 | First-quarter earnings | Positive | -4.1% | Revenue and net income improved, but the stock posted a negative 24-hour reaction. |
| Feb 26 | Annual earnings | Negative | -2.7% | Full-year revenue and net income declined amid beef-market headwinds and lower fourth-quarter results. |
| Nov 13 | Third-quarter earnings | Negative | -2.8% | Revenue declined despite higher net income supported partly by a gain on asset sale. |
| Aug 07 | Second-quarter earnings | Positive | -0.9% | Revenue and net income increased, while the stock recorded a slightly negative reaction. |
| Aug 05 | Earnings call scheduling | Neutral | +0.5% | The company scheduled its second-quarter results release and conference call. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged announcements were followed by negative 24-hour reactions in four of five available events, including results with improved profitability.
Key Terms
diluted eps financial
fair market value financial
deferred revenue financial
right-of-use assets financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter Highlights – 2026 vs. 2025
- Verification and certification revenue:
$5,389,000 vs.$5,332,000 - Product sales:
$937,000 vs.$964,000 - Total revenue:
$6,611,000 vs.$6,562,000 - Income from operations:
$665,000 vs.$549,000 - Net income:
$413,000 vs.$562,000 - Diluted EPS:
$0.08 vs.$0.11 - Company returns
$809,000 in value to stockholders through buyback of 65,012 shares $17.2 million in total value returned to shareholders over past seven years through buybacks and special dividend
Six-Month Highlights – 2026 vs. 2025
- Verification and certification revenue:
$9,813,000 vs.$9,514,000 - Product sales:
$1,650,000 vs.$1,666,000 - Total revenue:
$11,976,000 vs.$11,835,000 - Operating income:
$963,000 vs.$691,000 - Net income:
$505,000 vs.$593,000 - Diluted EPS:
$0.10 vs.$0.11 - Cash generated from operations:
$1.5M vs.$1.8M - Cash & cash equivalents:
$3,417,000 at June 30 vs.$3,200,000 at 2025 year-end - Stock buybacks: 89,481 shares
CASTLE ROCK, Colo., Aug. 06, 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 second quarter and six-month period ended June 30, 2026.
“We are pleased to report another quarter of modest revenue growth and solid profitability despite continued economic and industry headwinds,” said John Saunders, Chairman and CEO. “Pressure on our beef business related to record high beef prices and smaller herd sizes has been largely offset by growing consumer demand for premium verified beef products and our introduction of RaiseWell® Certified, a new standard that addresses consumer and retailer demand for responsibly raised proteins. Adopted by Whole Foods Market as an approved animal welfare certification for its beef supply, the RaiseWell program is showing solid growth with more than 270,000 head of cattle now enrolled. In addition, our non-beef verification programs – including non-GMO, Gluten Free, Organic, Upcycled and others – continue to grow and augment our traditional beef revenue streams.
“Total revenue grew
Second Quarter Results – 2026 vs. 2025
Total revenue in the second quarter ended June 30, 2026, increased
- Verification and certification services increased to
$5,389,000 from$5,332,000 . - Product revenue decreased to
$937,000 from$964,000 . - Professional services was up slightly to
$285,000 from$266,000 .
Gross profit in the second quarter increased
Selling, general and administrative expense increased
Operating income increased
The Company reported net income in the second quarter of
The Company bought back 65,012 shares of its common stock in the second quarter, resulting in
Six Month Results – 2026 vs. 2025
Total revenue for the six-month period ended June 30, 2026, increased slightly to
- Verification and certification services was
$9,813,000 vs.$9,514,000 . - Product revenue was
$1,650,000 vs.$1,666,000 . - Professional services revenue was
$513,000 vs.$655,000 .
Gross profit for the six-month period increased
SG&A expense decreased to
As a result of that transaction as well as improved first quarter margins, operating income through six months increased
Net income through six months was
The Company generated
Cash and cash equivalents increased
The Company bought back a total of 89,481 shares in the first half of 2026. Over the past seven years, the Company has returned
The Company will conduct a conference call today at 10:00 a.m. Mountain Time.
Call-in numbers for the conference call:
Domestic Toll Free: 1-877-407-8289
International: 1-201-689-8341
Conference Code: 13762085
Phone replay:
A telephone replay of the conference call will be available through August 20, 2026, as follows:
Domestic Toll Free: 1-877-660-6853
International: 1-201-612-7415
Conference Code: 13762085
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 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 Operations (Unaudited) | |||||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
| (Amounts in thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| Revenues: | |||||||||||||||||||
| Verification and certification service revenue | $ | 5,389 | $ | 5,332 | $ | 9,813 | $ | 9,514 | |||||||||||
| Product sales | 937 | 964 | 1,650 | 1,666 | |||||||||||||||
| Professional services | 285 | 266 | 513 | 655 | |||||||||||||||
| Total revenues | 6,611 | 6,562 | 11,976 | 11,835 | |||||||||||||||
| Costs of revenues: | |||||||||||||||||||
| Costs of verification and certification services | 3,200 | 3,282 | 5,921 | 5,677 | |||||||||||||||
| Costs of products | 563 | 617 | 1,001 | 1,045 | |||||||||||||||
| Costs of professional services | 165 | 203 | 328 | 458 | |||||||||||||||
| Total costs of revenues | 3,928 | 4,102 | 7,250 | 7,180 | |||||||||||||||
| Gross profit | 2,683 | 2,460 | 4,726 | 4,655 | |||||||||||||||
| Selling, general and administrative expenses | 2,018 | 1,911 | 3,763 | 3,964 | |||||||||||||||
| Income from operations | 665 | 549 | 963 | 691 | |||||||||||||||
| Other income/(expense): | |||||||||||||||||||
| Dividend income | - | 50 | - | 50 | |||||||||||||||
| Interest income | 9 | 5 | 15 | 9 | |||||||||||||||
| Gain on sale of assets | - | - | 17 | - | |||||||||||||||
| Fair market value (loss) / gain on digital assets | (68 | ) | 172 | (203 | ) | 96 | |||||||||||||
| Loss on foreign currency exchange | - | (3 | ) | - | (3 | ) | |||||||||||||
| Interest expense | - | (1 | ) | (1 | ) | (2 | ) | ||||||||||||
| Income before income taxes | 606 | 772 | 791 | 841 | |||||||||||||||
| Income tax expense | 193 | 210 | 286 | 248 | |||||||||||||||
| Net income | $ | 413 | $ | 562 | $ | 505 | $ | 593 | |||||||||||
| Per share - net income: | |||||||||||||||||||
| Basic | $ | 0.08 | $ | 0.11 | $ | 0.10 | $ | 0.11 | |||||||||||
| Diluted | $ | 0.08 | $ | 0.11 | $ | 0.10 | $ | 0.11 | |||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||
| Basic | 5,018 | 5,272 | 5,044 | 5,227 | |||||||||||||||
| Diluted | 5,031 | 5,283 | 5,056 | 5,240 | |||||||||||||||
| Where Food Comes From, Inc. | |||||||||||
| Balance Sheets | |||||||||||
| June 30, | December 31, | ||||||||||
| (Amounts in thousands, except per share amounts) | 2026 | 2025 | |||||||||
| Assets | (Unaudited) | (Audited) | |||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 3,417 | $ | 3,200 | |||||||
| Accounts receivable, net of allowance | 2,501 | 1,678 | |||||||||
| Inventory | 989 | 792 | |||||||||
| Prepaid expenses and other current assets | 566 | 605 | |||||||||
| Total current assets | 7,473 | 6,275 | |||||||||
| Property and equipment, net | 677 | 648 | |||||||||
| Right-of-use assets, net | 376 | 498 | |||||||||
| Equity investments | 200 | 200 | |||||||||
| Intangible and other assets, net | 1,242 | 1,420 | |||||||||
| Digital assets | 410 | 613 | |||||||||
| Goodwill, net | 2,946 | 2,946 | |||||||||
| Deferred tax assets, net | 255 | 299 | |||||||||
| Total assets | $ | 13,579 | $ | 12,899 | |||||||
| Liabilities and Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 669 | $ | 451 | |||||||
| Accrued expenses and other current liabilities | 1,471 | 655 | |||||||||
| Deferred revenue | 1,888 | 1,545 | |||||||||
| Current portion of finance lease obligations | 13 | 12 | |||||||||
| Current portion of operating lease obligations | 422 | 422 | |||||||||
| Total current liabilities | 4,463 | 3,085 | |||||||||
| Finance lease obligations, net of current portion | 6 | 13 | |||||||||
| Operating lease obligation, net of current portion | 288 | 496 | |||||||||
| Total liabilities | 4,757 | 3,594 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity: | |||||||||||
| Common stock | 5 | 5 | |||||||||
| Additional paid-in-capital | 137 | 23 | |||||||||
| Treasury stock | (2,885 | ) | (1,783 | ) | |||||||
| Retained earnings | 11,565 | 11,060 | |||||||||
| Total equity | 8,822 | 9,305 | |||||||||
| Total liabilities and stockholders' equity | $ | 13,579 | $ | 12,899 | |||||||
