Where Food Comes From, Inc. Reports Third Quarter Financial Results

Rhea-AI Summary

Where Food Comes From (Nasdaq: WFCF) reported third-quarter revenue of $7.3 million, up 4% from the same period in 2025. For the quarter ended September 30, 2026, verification and certification revenue rose 6% to $5.9 million. Gross margin increased to 42.1% from 38.3%, and operating income rose 68% to $966,000. Net income fell to $825,000, or $0.17 per diluted share, from $1,146,000, or $0.22; the prior-year quarter included a $946,000 asset-sale gain.

Nine-month revenue rose 2% to $19.3 million, while operating income increased 52% to $1.9 million. Net income declined to $1.3 million from $1.7 million. Operating cash flow increased to $2.8 million from $2.3 million. Cash reached $4.4 million at September 30, versus $3.2 million at year-end 2025. The company repurchased 110,651 shares year to date, including 21,170 shares for $268,000 in the third quarter.

14 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 10 points

How the balance works

Positive

• Moderate pointThird-quarter revenue rose 4% to $7.3 million from $7.0 million a year earlier.
• Moderate pointThird-quarter gross margin improved to 42.1% from 38.3% a year earlier.
• Moderate pointThird-quarter operating income increased 68% to $966,000 from $575,000.
• Moderate pointNine-month operating cash flow increased to $2.8 million from $2.3 million a year earlier.
• Minor pointThird-quarter verification and certification revenue increased 6% to $5.9 million from $5.6 million.

9 minor points

• Minor pointThird-quarter product sales increased to $1,211,000 from $1,202,000 a year earlier.
• Minor pointNine-month revenue increased 2% to $19.3 million from $18.9 million.
• Minor pointNine-month verification and certification revenue rose 4% to $15.7 million from $15.1 million.
• Minor pointNine-month gross margin increased to 40.5% from 38.9% a year earlier.
• Minor pointNine-month selling, general and administrative expenses declined 3% to $5.9 million from $6.1 million.
• Minor pointNine-month operating income increased 52% to $1.9 million from $1.3 million.
• Minor pointCash increased to $4.4 million at September 30, 2026, from $3.2 million at December 31, 2025.
• Minor pointYear-to-date repurchases totaled 110,651 shares, including 21,170 shares for $268,000 in the third quarter.
• Minor pointOrganic, non-GMO, Gluten Free and Upcycled certifications are adding hundreds of new customers, the company said.

Negative

• Moderate pointThird-quarter net income fell to $825,000 from $1,146,000; the prior-year quarter included a $946,000 asset-sale gain.
• Minor pointThird-quarter diluted earnings per share declined to $0.17 from $0.22 a year earlier.
• Minor pointNine-month net income fell to $1,330,000 from $1,739,000; the prior-year period included the $946,000 asset-sale gain.
• Minor pointNine-month diluted earnings per share declined to $0.27 from $0.34 a year earlier.
• Minor pointThird-quarter professional services revenue declined to $218,000 from $257,000 a year earlier.

5 minor points

• Minor pointNine-month professional services revenue declined to $731,000 from $912,000 a year earlier.
• Minor pointNine-month product sales declined to $2,861,000 from $2,868,000 a year earlier.
• Minor pointSmaller cattle herds have affected product sales and certain verification services, the company said.
• Minor pointNine-month digital-asset valuation produced a $28,000 loss, versus a $144,000 gain a year earlier.
• Minor pointAccrued expenses and other current liabilities rose to $2,137,000 from $655,000 at year-end 2025.

Key Figures

Q3 total revenue: $7.3M, up 4% from $7.0M Verification and certification revenue: $5.9M, up 6% from $5.6M Gross margin: 42.1%, up from 38.3% (+380 basis points) +4 more

Q3 total revenue

$7.3M, up 4% from $7.0M

Third quarter 2026 vs. 2025

Verification and certification revenue

$5.9M, up 6% from $5.6M

Third quarter 2026 vs. 2025

Gross margin

42.1%, up from 38.3% (+380 basis points)

Third quarter 2026 vs. 2025

Operating income

$1.0M, up 68% from $0.6M

Third quarter 2026 vs. 2025

Net income

$825,000, down from $1,146,000

Third quarter 2026 vs. 2025; prior-year quarter included a $946,000 gain on sale

Diluted EPS

$0.17, down from $0.22

Third quarter 2026 vs. 2025

Stock repurchase

$268,000 for 21,170 shares

Third quarter 2026

Previous Earnings Reports

1 past event · Latest: Nov 13

Same Type 1 event

1. Nov 13

   Third-quarter earnings

   24h Move

   -2.8%

   Prior-year Q3 net income included a $946,000 gain from the Progressive Beef interest sale.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

diluted eps, basis points, fair market value

3 terms

diluted eps financial

"Diluted EPS of $0.17 vs. $0.22"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

basis points financial

"gross margins rising by 380 basis points to 42.1%"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

fair market value financial

"Fair market value gain / (loss) on digital assets"

The price a willing buyer and a willing seller would agree on for an asset or security when neither is under pressure and both have access to the same information. Think of it as the market’s neutral estimate of what something is worth, like the price two neighbors would settle on for a car after comparing similar listings. Investors care because fair market value guides buying and selling decisions, tax reporting, portfolio valuation, and how accurately company assets are reflected in financial statements.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Third Quarter Highlights – 2026 vs. 2025

• Verification and certification revenue up 6% to $5.9M from $5.6M
  
  
• Product sales flat at $1.2M
  
  
• Total revenue up 4% to $7.3M from $7.0M
  
  
• Gross margin improves to 42.1% from 38.3%
  
  
• Operating income up 68% to $1.0M from $0.6M
  
  
• Net income of $0.8M vs. $1.1M ($1.1M includes $0.9M gain on sale in year-ago Q3)
  
  
• Diluted EPS of $0.17 vs. $0.22
  
  
• Company returns $268,000 in value to stockholders through buyback of 21,170 shares
  
  
• $17.5 million in total value returned to shareholders over past seven years through buybacks and special dividend
  
  

Nine-Month Highlights – 2026 vs. 2025

• Verification and certification revenue up 4% to $15.7M from $15.1M
  
  
• Product sales flat at $2.9M
  
  
• Total revenue up 2% to $19.3M from $18.9M
  
  
• Gross margin improves to 40.5% from 38.9%
  
  
• Operating income up 52% to $1.9M from $1.3M
  
  
• Net income of $1.3M vs. $1.7M ($1.7M includes $0.9M gain on sale in year-ago Q3)
  
  
• Diluted EPS of $0.27 vs. $0.34
  
  
• Cash generated from operations of $2.8M vs. $2.3M
  
  
• Cash & cash equivalents of $4.4M at September 30 vs. $3.2M at 2025 year-end
  
  
• Stock buybacks: 110,651 shares
  
  

CASTLE ROCK, Colo., Nov. 12, 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 third quarter and nine-month period ended September 30, 2026.

“We are pleased to report strong third quarter financial results highlighted by 6% growth in our core verification and certification business that is benefitting from resurgent demand for beef-related services and growing momentum in other service offerings,” said John Saunders, Chairman and CEO. “Our profit metrics also showed continued strength with gross margins rising by 380 basis points to 42.1% and operating income growing 68% to $1.0 million from $600,000 a year ago – both reflecting the positive impact of our ongoing cost down initiatives in conjunction with accelerating revenue.

“Our ability to generate these results in the face of continued headwinds in our beef-related business underscores the importance of our diverse and growing services portfolio. Although smaller cattle herd sizes have impacted product sales and certain verification services, newly developed service offerings such as CARE and RaiseWell® Certified are growing rapidly and more than compensating. And, despite record high beef prices, cattle producers are still capturing $100-per-head premiums when they use our value-add services. Additionally, we are adding hundreds of new customers for our Organic, non-GMO, Gluten Free and Upcycled certifications, and we are benefitting from our unique ability to offer service bundling that reduces costs and audit fatigue for our customers. With market research indicating that consumer interest in sustainability, humane handling, and overall transparency in food raising practices has never been higher, our comprehensive portfolio of services ideally positions us to continue leading our industry for years to come.”

Third Quarter Results – 2026 vs. 2025

Total revenue in the third quarter ended September 30, 2026, increased 4% to $7.3 million from $7.0 million.

• Verification and certification services increased 6% to $5.9 million from $5.6 million.
• Product revenue was flat at $1.2 million.
• Professional services declined to $218,000 from $257,000.
  
  

Gross margins in the third quarter improved by 380 basis points to 42.1% from 38.3% in the same quarter last year, reflecting operational efficiencies across the business.

Selling, general and administrative expense was flat at $2.1 million, reflecting both improved efficiencies and management’s commitment to managing overhead costs.

Operating income increased 68% to $1.0 million from $0.6 million due to the impact of cost-down initiatives relative to increasing revenue.

Net income in the third quarter was $825,000, or $0.17 per diluted share, compared to net income of $1,146,000, or $0.22 per diluted share, in the same quarter last year. The decline was primarily attributable to a $946,000 gain on sale of assets in the year-ago third quarter related to the Company’s divestiture of its Progressive Beef interest.

The Company bought back 21,170 shares of its common stock in the third quarter, equating to $268,000 in value returned to stockholders in the period.

Nine-Month Results – 2026 vs. 2025

Total revenue for the nine-month period ended September 30, 2026, increased 2% to $19.3 million from $18.9 million in the same period last year.

• Verification and certification services increased 4% to $15.7 million from $15.1 million.
• Product revenue was flat $2.9 million.
• Professional services revenue declined to $731,000 from $912,000.
  
  

Gross margins in the nine-month period increased to 40.5% from 38.9%, reflecting the year-to-date impact of cost reduction initiatives.

SG&A expense decreased 3% year over year to $5.9 million from $6.1 million, reflecting management’s first quarter decision to return approximately $400,000 in 2025 bonus compensation.

Income from operations was $1.9 million, up 52% year over year from $1.3 million in the same period last year.

Net income through nine months was $1.3 million, or $0.27 per diluted share, compared to net income of $1.7 million, or $0.34 per diluted share, in the same period last year. The year-ago total of $1.7 million included a $946,000 gain on sale of the Progressive Beef interest.

The Company generated $2.8 million in cash from operations year-to-date, up from $2.3 million in the comparable period last year.

Cash and cash equivalents increased 39% at September 30 to $4.4 million from $3.2 million at December 31, 2025.

The Company has bought back a total of 110,651 shares year-to-date in 2026. Over the past seven years, the Company has returned $17.5 million in value to stockholders through buybacks and a special dividend.

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: 13763641

Phone replay:
A telephone replay of the conference call will be available through November 26, 2026, as follows:
Domestic Toll Free: 1-877-660-6853
International: 1-201-612-7415
Conference Code: 13763641

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 plans for industry leadership; customers’ ability to capture sales premiums for cattle verified by the Company; ability to continue adding new customers; expectations that consumer interest in the Company’s services will continue; 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 September 30,							Nine months ended September 30,
(Amounts in thousands, except per share amounts)					2026				2025			2026				2025
Revenues:
	Verification and certification service revenue			$	5,897			$	5,556		$	15,710			$	15,070
	Product sales				1,211				1,202			2,861				2,868
	Professional services				218				257			731				912
		Total revenues			7,326				7,015			19,302				18,850
Costs of revenues:
	Costs of verification and certification services				3,400				3,348			9,321				9,025
	Costs of products				681				781			1,682				1,826
	Costs of professional services				159				200			487				658
		Total costs of revenues			4,240				4,329			11,490				11,509
	Gross profit				3,086				2,686			7,812				7,341
Selling, general and administrative expenses					2,120				2,111			5,883				6,075
Income from operations					966				575			1,929				1,266
Other income/(expense):
	Dividend income				-				50			-				100
	Interest income				17				7			32				16
	(Loss) / gain on sale of assets				(2	)			946			15				946
	Fair market value gain / (loss) on digital assets				175				48			(28	)			144
	Loss on foreign currency exchange				(1	)			-			(1	)			(3	)
	Interest expense				-				-			(1	)			(2	)
Income before income taxes					1,155				1,626			1,946				2,467
Income tax expense					330				480			616				728
	Net income			$	825			$	1,146		$	1,330			$	1,739
Per share - net income:
	Basic			$	0.17			$	0.22		$	0.27			$	0.34
	Diluted			$	0.17			$	0.22		$	0.27			$	0.34
Weighted average number of common shares outstanding:
	Basic				4,973				5,284			5,014				5,124
	Diluted				4,986				5,297			5,027				5,137

Where Food Comes From, Inc.
Balance Sheets
						September 30,				December 31,
(Amounts in thousands, except per share amounts)							2026				2025
Assets						(Unaudited)				(Audited)
Current assets:
	Cash and cash equivalents					$	4,433			$	3,200
	Accounts receivable, net of allowance						2,674				1,678
	Inventory						869				792
	Prepaid expenses and other current assets						384				605
		Total current assets					8,360				6,275
Property and equipment, net							615				648
Right-of-use assets, net							316				498
Equity investments							200				200
Intangible and other assets, net							1,154				1,420
Digital assets							585				613
Goodwill, net							2,946				2,946
Deferred tax assets, net							195				299
Total assets						$	14,371			$	12,899
Liabilities and Equity
Current liabilities:
	Accounts payable					$	621			$	451
	Accrued expenses and other current liabilities						2,137				655
	Deferred revenue						1,618				1,545
	Current portion of finance lease obligations						13				12
	Current portion of operating lease obligations						422				422
		Total current liabilities					4,811				3,085
Finance lease obligations, net of current portion							3				13
Operating lease obligation, net of current portion							178				496
Total liabilities							4,992				3,594
Commitments and contingencies
Equity:
	Common stock						5				5
	Additional paid-in-capital						137				23
	Treasury stock						(3,153	)			(1,783	)
	Retained earnings						12,390				11,060
Total equity							9,379				9,305
Total liabilities and stockholders' equity						$	14,371			$	12,899

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Where Food Comes From’s third-quarter 2026 earnings?

Where Food Comes From earned $825,000, or $0.17 per diluted share, in the quarter ended September 30, 2026. A year earlier, net income was $1,146,000, or $0.22 per diluted share. The prior-year quarter included a $946,000 gain related to the sale of its Progressive Beef interest.

Why did Where Food Comes From’s nine-month administrative expenses decrease in 2026?

Nine-month selling, general and administrative expenses decreased 3% to $5.9 million from $6.1 million, reflecting management’s first-quarter decision to return approximately $400,000 in 2025 bonus compensation.

How much has Where Food Comes From returned to shareholders over the past seven years?

Where Food Comes From returned $17.5 million to shareholders over the past seven years through share buybacks and a special dividend.