Where Food Comes From, Inc. Reports 2025 Second Quarter Financial Results

About this update from Where Food Comes From, Inc.

Second Quarter Highlights – 2025 vs. 2024 Six Month Highlights – 2025 vs. 2024 In Subsequent Event, Company Sells Interest in Progressive Beef for $1.8 Million in Cash and Return of 12,585 Shares of WFCF Common Stock, Further Reducing Number of Outstanding Shares CASTLE ROCK, Colo., Aug. 07, 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 second quarter and six-month period ended June 30, 2025. “Second quarter revenue was up 3% year over year despite ongoing headwinds related to smaller cattle herd sizes that have reduced beef verification activity. The revenue increase was driven by increasing demand for our other verification services, especially our CARE Certified and UpCycled programs, as well as an increase in hardware sales due to growing customer preferences for value-add tags,” said John Saunders, chairman and CEO. “Our gross margins were negatively impacted by increased compensation expense due to a very competitive labor market as well as increased costs of hardware. Second quarter net income, inclusive of a $172,000 gain in fair market value of digital assets, was up 15% year over year to $562,000, or $0.11 per share. Saunders noted several additional recent highlights, including: Second Quarter Results – 2025 vs. 2024 Total revenue in the second quarter ended June 30, 2025, increased to $6.6 million from $6.4 million. Gross profit was lower at $2.5 million vs. $2.7 million, primarily reflecting increased compensation expense and hardware costs. Selling, general and administrative expense decreased slightly to $1.9 million from $2.1 million due to lower marketing and trade show expense in the period. Net income increased to $562,000, or $0.11 per diluted share, from $489,000, or $0.09 per diluted share, due to a $172,000 gain in fair market value of digital assets. The Company bought back 24,481 shares of its common stock in the second quarter. Six Month Results – 2025 vs. 2024 Total revenue through six months decreased to $11.8 million from $12.0 million in the same period last year. Gross profit through six months declined to $4.7 million from $5.0 million. SG&A expense decreased to $4.0 million from $4.1 million. Net income year-to-date, inclusive of a $96,000 net gain in fair market value of digital assets, was $593,000, or $0.11 per diluted share, vs. net income of $667,000, or $0.12 per diluted share, in the same period last year. The Company generated $1.8 million in cash from operations in the first six months vs. $1.9 million in the same period last year. Year-to-date stock buybacks totaled 55,826 shares. 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: 13755159 Phone replay: A telephone replay of the conference call will be available through August 21, 2025, as follows: Domestic Toll Free: 1-877-660-6853 International: 1-201-612-7415 Conference Code: 13755159 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 to continue buying back stock, build AI tools and enhance the technology platform, scale efficiently and strengthen bottom line results; 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 for 2025 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 [email protected]

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