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

About this update from Where Food Comes From, Inc.

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 1% in the second quarter but gross profit grew by 9% due to cost efficiencies in all three business segments, which resulted in gross margins of 40.6% in Q2, up from 37.5% in the same quarter last year. Operating income increased 21% year over year to $665,000 from $549,000 . We experienced a non-cash negative swing of $240,000 in fair market value of our digital assets in Q2, which lowered reported net income to $413,000 , or $0.08 per share, compared to net income of $562,000 , or $0.11 per share, in the same quarter last year. Finally, we continued to aggressively buy back our shares in the quarter and are pleased to report that since 2019 we have returned more than $17 million in value to stockholders through buybacks and a special dividend.” Second Quarter Results – 2026 vs. 2025 Total revenue in the second quarter ended June 30, 2026 , increased 1% to $6,611,000 from $6,562,000 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 9% to $2,683,000 compared to $2,460,000 in the same quarter last year. Selling, general and administrative expense increased 6% to $2,018,000 from $1,911,000 . Operating income increased 21% quarter-over-quarter to $665,000 from $549,000 due to improved gross margins across all three revenue streams. The Company reported net income in the second quarter of $413,000 , or $0.08 per diluted share, compared to net income of $562,000 , or $0.11 per diluted share, in the same quarter last year. The decline was primarily attributable a non-cash $240,000 negative swing in fair market value of digital assets. The year-ago second quarter also included $50,000 in dividend income related to the ownership interest in Progressive Beef that was divested in 2025. The Company bought back 65,012 shares of its common stock in the second quarter, resulting in $809,000 in value returned to stockholders in the period. Six Month Results – 2026 vs. 2025 Total revenue for the six-month period ended June 30, 2026 , increased slightly to $11,976,000 from $11,835,000 in the same period last year. 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 1.5% to $4,726,000 from $4,655,000 . SG&A expense decreased to $3,763,000 from $3,964,000 , reflecting management’s first quarter decision to return approximately $400,000 in 2025 bonus compensation. As a result of that transaction as well as improved first quarter margins, operating income through six months increased 39% to $963,000 from $691,000 . Net income through six months was $505,000 , or $0.10 per diluted share, vs. net income of $593,000 , or $0.11 per diluted share, in the same period last year. The decline reflected a non-cash $299,000 negative swing in fair market value of digital assets. The Company generated $1,460,000 in cash from operations year-to-date, down from $1,813,000 in the comparable period last year. Cash and cash equivalents increased 7% year over year to $3,417,000 from $3,200,000 . 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 $17.2 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: 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 [email protected] 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               Source: Where Food Comes From 2026 GlobeNewswire, Inc., source Press Releases

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