WFCF

Shares of Where Food Comes From Inc. WFCF have declined 4.6% since reporting results for the second quarter of 2026 compared with a 0.3% fall in the S&P 500 over the same period. Over the past month, the stock has decreased 4%, underperforming the S&P 500’s 1.8% return. Second-quarter revenues increased 1% to $6.611 million from $6.562 million a year earlier, led by modest growth in verification and certification services. Net income fell 26.5% to $413,000 from $562,000, while diluted earnings per share declined 27.3% to 8 cents from 11 cents. Operating income, however, rose 21% to $665,000 from $549,000, reflecting improved profitability in the company’s core operations. Where Food Comes From Inc. price-consensus-eps-surprise-chart | Where Food Comes From Inc. Quote Verification and certification revenues increased 1.1% year over year to $5.389 million from $5.332 million, while professional-services revenue rose 7.1% to $285,000 from $266,000. Product sales declined 2.8% to $937,000 from $964,000. Gross profit advanced 9.1% to $2.68 million from $2.46 million, and the gross margin expanded 310 basis points to 40.6% from 37.5%. Selling, general and administrative expenses increased 5.6% to $2.02 million from $1.91 million. For the first six months, revenues increased 1.2% year over year to $11.976 million. Verification and certification revenues rose 3.1% to $9.81 million, product sales decreased 1% to $1.65 million and professional-services revenues fell 21.7% to $513,000. Gross profit increased 1.5% to $4.73 million, while operating income rose 39.4% to $963,000. Six-month net income declined 14.8% to $505,000 and EPS slipped to 10 cents from 11 cents. For the first six months of 2026, the operating cash flow decreased 19.5% to $1.460 million from $1.81 million. Cash and cash equivalents were $3.42 million as of June 30, up 6.8% from $3.20 million as of Dec. 31, 2025. Accounts receivable rose to $2.50 million from $1.68 million, while inventory increased to $989,000 from $792,000. CEO John Saunders said that record beef prices and smaller herd sizes continued to pressure the flagship beef business, which management indicated represents roughly 50% of revenues. He said that demand for premium verified beef and expansion outside beef helped offset those conditions. The company audits against more than 50 standards spanning animal proteins, wine grapes and upcycled foods. Management highlighted RaiseWell Certified, an animal-welfare, natural-practices and traceability standard adopted by Whole Foods Market for its beef supply. More than 270,000 cattle were enrolled, and the company is working to extend the program to chicken, turkey, pork, lamb and eggs. Management also cited growth in non-GMO, gluten-free, organic and upcycled certifications, a partnership with the Potato Sustainability Alliance for on-farm sustainability audits, and its role in helping USAgrichar secure USDA certification for biochar. President Leann Saunders added that the company administers activity for CattleTrace and conducts biosecurity audits and secure beef-supply planning. She also pointed to its Validus Verifications division’s on-farm Safe Quality Food audits, which support customers seeking stronger food-safety protocols across their supply chains. Cost efficiencies across verification and certification, product sales and professional services drove the gross-margin improvement and operating-income growth. The decline in reported earnings chiefly reflected a $240,000 unfavorable year-over-year swing in the fair value of digital assets: the quarter included a $68,000 loss against a $172,000 gain a year earlier. The prior-year period also included $50,000 of dividend income from Progressive Beef, an interest divested in 2025. These items reduced income before taxes to $606,000 from $772,000 despite stronger operations. For the first six months of 2026, SG&A declined to $3.76 million from $3.96 million, reflecting management’s first-quarter decision to return approximately $400,000 of 2025 bonus compensation. Six-month results also absorbed a $299,000 unfavorable swing in digital-asset fair value. The company repurchased 65,012 shares for $809,000 during the quarter and 89,481 shares in the first half of 2026. It said that buybacks and a special dividend have returned $17.2 million to shareholders over seven years. After an approximately three-year pause, management is renewing its acquisition search, prioritizing transactions that are immediately or near-term accretive, though Saunders said none was imminent. The company also planned to file a shelf registration statement to provide financing flexibility for potential acquisitions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Where Food Comes From Inc. (WFCF): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Where Food Comes From Inc.? Here are five stocks we like better. Q2 revenue rose slightly to $6.6 million, while gross profit increased 9% to $2.7 million and operating income climbed 21% to $665,000. Net income fell to $413,000, mainly due to a $240,000 unfavorable non-cash digital-asset valuation impact and the absence of prior-year dividend income. Growth in verification and certification services offset continued pressure on the beef business, which represents roughly 50% of revenue and is being affected by lower cattle volumes and record-high beef prices. The company is expanding programs such as RaiseWell, adopted by Whole Foods for its beef supply, into additional protein categories. Where Food Comes From repurchased nearly 89,500 shares year to date and is restarting its acquisition efforts after a roughly three-year pause. Management said it is only in the early stages of evaluating deals and may file a shelf registration to support future capital needs. Where Food Comes From (NASDAQ:WFCF) reported slightly higher second-quarter revenue and improved operating income as growth in verification and certification services helped offset continued pressure in its flagship beef business. Chief Executive Officer John Saunders said fewer cattle moving through the system and record-high beef prices continued to weigh on the company’s beef-related operations. However, he said the company’s expanding portfolio of food claims verification and certification services supported profitable growth during the quarter. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Total revenue for the second quarter increased slightly to $6.6 million. Verification and certification revenue rose to $5.4 million from $5.3 million in the prior-year quarter. Gross profit increased 9% year over year to $2.7 million from $2.5 million, while gross margin improved to 40.6% from 37.5%. Saunders attributed the margin improvement to cost efficiencies across all three business segments. Operating income rose 21% to $665,000, compared with $549,000 a year earlier. Net income was $413,000, or $0.08 per share, compared with $562,000, or $0.11 per share, in the second quarter of 2025. The company said net income was affected by a $240,000 year-over-year negative swing related to the non-cash fair-market-value impact of digital assets. The prior-year quarter also included $50,000 in dividend income associated with the company’s former ownership interest in Progressive Beef, which was divested last year. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Saunders said operating income was the company’s most representative profitability measure for the quarter given those factors affecting net income. For the first six months of 2026, total revenue increased 1% to $12 million from $11.8 million. Verification and certification revenue grew 3% to $9.8 million, while operating income increased to $963,000 from $691,000. First-half net income was $505,000, or $0.10 per share, compared with $593,000, or $0.11 per share, a year earlier. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The company generated $1.5 million in operating cash flow during the first half and ended the quarter with $3.4 million in cash and cash equivalents, up from $3.2 million at the end of 2025. Saunders said the company now audits more than 50 standards across categories including animal proteins, wine grapes and upcycled foods. Its certification offerings cover claims such as animal welfare, sustainability practices, non-GMO, gluten-free and organic. The company’s CARE Certified program focuses on animal care and environmental stewardship, while its newer RaiseWell Certified program verifies animal welfare and natural practices and provides traceability from farms through processing. Whole Foods Market became the first retailer to adopt RaiseWell during the first quarter for its beef supply, Saunders said. More than 270,000 head of cattle have been enrolled by ranchers supplying beef to Whole Foods. Where Food Comes From is working to expand RaiseWell to chicken, turkey, pork, lamb and eggs. Saunders said CARE and RaiseWell are part of the company’s service-bundling strategy, particularly alongside organic services. He said bundling is intended to create time and cost savings for customers while improving the company’s revenue and gross margins. The company also recently partnered with the Potato Sustainability Alliance to provide on-farm audits that verify and benchmark environmental sustainability metrics. The audits cover areas including greenhouse-gas emissions, water management, food waste, soil health, biodiversity and pesticide use. In May, the company helped USAgrichar become the first biochar producer in Colorado to receive U.S. Department of Agriculture certification for its product. Saunders said biochar can support soil health, water retention and nutrient efficiency while providing long-term carbon sequestration. During the question-and-answer session, President and Chief Strategy Officer Leann Saunders discussed the company’s positioning around animal disease, traceability and food safety. She said Where Food Comes From works closely with U.S. CattleTrace, a nonprofit focused on voluntary animal identification and traceability, and administers the organization’s activities. She added that all of the company’s beef programs require electronic identification and that the company has conducted biosecurity audits and developed Secure Beef Supply Plans for locations over several years. Those services may become increasingly important when state animal health officials determine whether cattle can move, she said. Leann Saunders also highlighted the company’s Safe Quality Food, or SQF, auditing program through its Validus Verification Services division. She said large organizations, including Walmart, are increasingly requiring supply chains to have SQF audits and food-safety protocols in place. John Saunders said the company does not verify food safety for many leafy greens and lower-value vegetables because of the risks associated with that work. Still, he said food-safety events would likely maintain attention on food safety issues. Responding to a question on reporting revenue by beef and non-beef categories, Saunders said beef accounts for roughly 50% of company revenue. Management said it would consider providing additional disclosure to help investors assess growth in business lines outside beef. Saunders said maintaining a broad offering across protein categories remains important for serving retailers such as Whole Foods and Walmart. Where Food Comes From repurchased approximately 65,000 shares in the second quarter, bringing year-to-date repurchases to nearly 89,500 shares. Since launching its repurchase program in 2019, the company has returned more than $17.2 million in value to stockholders, Saunders said. The company is also renewing its focus on acquisitions following an approximately three-year pause since its last transaction. Saunders said the company has averaged about one acquisition annually over the past 14 years and views acquisitions as a way to add products, standards, customers, talent and revenue streams. Management said it is in the early stages of reengaging in the acquisition process and does not expect investors to infer that any transaction is imminent. The company plans to file a shelf registration statement within the next year or so to provide greater financial flexibility for potential capital raising and opportunistic acquisition activity. Separately, Jay Pfeiffer, vice president of investor relations, said the company could not identify the cause of two instances in May and July when its shares traded above $20. He said discussions with Nasdaq market surveillance personnel and investors did not identify a specific driver. Where Food Comes From, Inc (NASDAQ: WFCF) is a food traceability and certification company headquartered in Caldwell, Idaho. Established from a ranch-to-plate verification program launched in 2005, the company now offers a suite of services designed to authenticate product attributes, verify production claims and enhance supply-chain transparency for agricultural producers and food brands. The company's core offerings include third-party certification audits, program development, on-farm risk assessments and digital traceability solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Where Food Comes From Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 12 p.m. ET Investor Relations - Jay Pfeiffer Chief Executive Officer - John Saunders President and Chief Strategy Officer - Leann Saunders Chief Financial Officer - Dannette Henning Operator: Greetings, and welcome to the Where Food Comes From Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Mr. Jay Pfeiffer, Investor Relations. Thank you, sir. You may begin. Jay Pfeiffer: Good morning, and welcome to the Where Food Comes From 2026 Second Quarter Earnings Call. Joining me on the call today are CEO, John Saunders; President and Chief Strategy Officer, Leann Saunders; and CFO, Dannette Henning. During this call, we'll make forward-looking statements based on current expectations, estimates and projections that are subject to risk. Statements about financial performance, growth strategy, customers, business opportunities, market acceptance of our products and services and potential acquisitions are forward-looking statements. Listeners should not place undue reliance on these statements as there are many factors that could cause actual results to differ materially from our forward-looking statements. We encourage you to review our publicly filed documents as well as news releases and website for more information. I'll now turn the call over to John Saunders. John Saunders: Hello, and thanks for joining the call today. This morning, Where Food Comes From reported another quarter of revenue growth and solid profitability in spite of continued pressure on our flagship beef business due to fewer cattle moving through the system and record high beef prices. Once again, the reason we have been able to grow profitably in the face of persistent headwinds lies in the size and diversity of our solutions portfolio, which is constantly expanding as we introduce new standards and certifications across the food spectrum. Today, Where Food Comes From is far and away the most diverse provider of food claims verification and certification. The growth of our service offerings over the years has been driven by a combination of M&A transactions and internal development in response to consumer preferences and industry trends. Some of these solutions were developed in collaboration with customers across the food supply chain who share our passion for giving consumers maximum transparency in how their food is raised. We now audit to more than 50 standards in categories as diverse as animal proteins, wine grapes and upcycled foods. We are the leading certifier of popular food claims ranging from animal welfare and sustainable practices to non-GMO, gluten-free and organic. Our CARE Certified program is the protein industry's most advanced tool for certifying animal care and environmental stewardship. Our new RaiseWell Certified program verifies animal welfare and natural practices and provides traceability from the farm through processing. In the first quarter of this year, Whole Foods Market became the first retailer to adopt RaiseWell. This adoption was for their beef supply and has led to strong early results with more than 270,000 head of cattle now enrolled by ranchers who provide beef to Whole Foods. RaiseWell was developed to address all animal proteins, and we are now working to expand the program to include chicken, turkey, pork, lamb and eggs. By the way, both CARE and RaiseWell are figuring prominently into our service bundling strategy, particularly in conjunction with our organic services. And this provides our customers with cost and time savings while enhancing our revenue and gross margins. We are also sewing seeds on other new initiatives that we believe will grow over time and further strengthen our reputation as a one-stop shop for verifications and certifications across an ever larger spectrum. For example, we have recently partnered with the Potato Sustainability Alliance to provide on-farm audits that verify and benchmark sustainability metrics around environmental stewardship, including reducing GHG emissions, optimizing water management and minimizing food waste as well as improving soil health, supporting biodiversity and promoting responsible use of pesticides. As another example, in May, we helped USAgrichar become the first biochar producer in Colorado to achieve USDA certification for its product. Biochar is a stable carbon-rich material produced by heating organic biomass in a low oxygen environment. The resulting product support soil health through improved water retention and nutrient efficiency and has the added benefit of long-term carbon sequestration. In Colorado, similar to other Western states in this new age of drought and forest fires, biochar production has the added bonus of improving forest health and reducing wildfire risk because the raw material is often dead forest firewood. So again, we are laser-focused on expanding our portfolio with solutions that address consumer demands and help our customers differentiate their products. The size and scope of our portfolio is the cornerstone of the moat we have built for our business. Turning now to the second quarter financial results. Total revenue in the second quarter increased slightly to $6.6 million on the strength of verification and certification revenue of $5.4 million versus $5.3 million in Q2 last year. Gross profit increased 9% year-over-year to $2.7 million from $2.5 million, with gross margins rising to 40.6% compared to 37.5% in the second quarter last year. These improvements were attributable to cost efficiencies achieved in all 3 of our business segments. Operating income in Q2 increased 21% year-over-year to $665,000 from $549,000. Net income was $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. I want to emphasize that the lower net income was mostly due to the noncash impact of fair market value of digital assets that amounted to a $240,000 negative swing in the second quarter year-over-year. Additionally, the year over -- the year-ago second quarter included $50,000 in dividend income related to our ownership interest in Progressive Beef that was divested last year. So we believe our operating income up 21% year-over-year remains the most accurate measure of our profitability in the quarter. 6-month results. Total revenue increased 1% to $12 million from $11.8 million. Verification and certification revenue grew by 3% to $9.8 million from $9.5 million. Operating income through midyear increased to $963,000 from $691,000. Net income through the first 6 months of 2026 was $505,000 or $0.10 per share compared to net income of $593,000 or $0.11 per share in the same period last year. The company generated $1.5 million in cash from operations year-to-date and closed the second quarter with $3.4 million in cash and cash equivalents, up from $3.2 million at 2025 year-end. Due to our consistent ability to generate strong cash flows in combination with our belief that our own stock represents a good investment at current levels, we continued our aggressive buybacks in the second quarter, repurchasing approximately 65,000 shares and raising year-to-date buybacks to nearly 89,500 shares. Since the inception of our stock repurchase program in 2019, Where Food Comes From has returned more than $17.2 million in value to stockholders. One final topic I want to address is M&A. As you know, over the past 14 years, we've averaged 1 acquisition per year, adding products, services, standards, customers, new talent and accretive revenue streams to our business. We successfully integrated each of these transactions into our business and are pleased to say that each has added value. The industry we compete in is still in its early innings and changing dynamics due to geopolitical and regulatory events, evolving consumer demands and other factors are giving rise to new opportunities. As a result, after a roughly 3-year pause since our last transaction, we are renewing our focus on M&A as a means of accelerating growth, strengthening our business and building shareholder value. As always, a key criterion in this process is whether a given transaction would be immediately or at least near term accretive to our overall business. To be clear, we are now just beginning to reengage in this process, and I'm not indicating any transactions are imminent. I just want to let you know we are dusting off the playbook and renewing our focus in this area. With that in mind, Where Food Comes From will file a shelf registration statement in the next day or so to be better positioned as a company for potential M&A activity. Shelf registrations provide companies with maximum financial flexibility and much quicker time to market to access capital growth. They are particularly effective in executing opportunistic M&A transactions. Shelf registrations are becoming more common for companies of all sizes and are considered to be good corporate governance. As an aside, in the first half of 2026, once in May and once more in July, we had 2 occasions where our stock traded over $20 per share. With that in mind, it makes even more sense to have a shelf that could add value to the company and its stockholders during periods of extreme volatility. So with that, I'll open the call to questions. Operator? Operator: [Operator Instructions] Our first question comes from the line of Terry Thompson, private investor. Unknown Attendee: Congratulations on another consistent quarter. Did anybody have any idea of what caused those 2 price spikes up to over $20 this last year? John Saunders: I'll let Jay answer that one. Jay Pfeiffer: Yes, that's the million-dollar question. And the short answer is no. We've worked with NASDAQ and their market surveillance department, and we've talked to investors and unfortunately, we just can't pinpoint it. It's somebody that felt from the speculative side of things, all we can deduce is somebody that felt that they want to own the stock and they're willing to bid it up to own it. So that's the good news. We just don't know who it is. Unknown Attendee: Okay. I kind of figured that would be the answer, but I had to ask. Again, thanks to all and nice to hear from you all. Operator: Our next question comes from the line of Chris Brown with [Technical Difficulty] Financial. Unknown Analyst: I really had 2 quick questions. The first one is with respect to the headlines out in the food world with respect to Cyclospora and earlier the screwworm issue, kind of, what you guys are doing to take advantage of a renewed focus on food safety? Second would be if you'd ever consider breaking out the non-beef certification business from the beef to allow investors to understand a little bit better the growth in the non-beef area and understand how patient we need to be to wait for beef to rebound? John Saunders: Great questions, Chris. I'm going to let Leann answer the first one. Leann Saunders: Chris, so I'll attempt to answer it. We feel like we've positioned ourselves as well as we possibly could in the instance of an animal disease issue like screwworm. I think the challenge with screwworm, in particular, is that it's caused by flies. So we -- as we talk to people in the industry, it's hard to electronically identify flies, right? So there's mitigation things that are happening with the USDA. But I think where we've been well positioned is -- we have an ongoing relationship with CattleTrace, which CattleTrace is a nonprofit organization that's been really working on voluntary methods of animal identification and traceability. And we work with them very closely. In fact, we administer their activity. And then also just in the world of biosecurity, we've been doing biosecurity audits and building out what are called secure beef supply plans now for a number of years for locations, which is becoming more and more important as you look at state animal health officials deciding when cattle can and cannot move. And all of our programs on the beef side require an electronic identification means. All of that becomes part of the solution in the event of an animal disease. So I think we've positioned ourselves well to be at the topic of conversation and have had multiple conversations actually with the USDA on the front -- on that front, particularly. When it comes to food safety, similarly, across our platforms, across all of our divisions, we -- our Validus Verifications division has a program called Safe Quality Food. And so we are a leader -- that division is a leader in SQF audits on farm. And that is becoming the mechanism for large organizations like a Walmart, for example, that are starting to say they want their supply chains to have those SQF audits in place, which are food safety protocols. John Saunders: And specifically, in the case of Cyclospora, I think what we've talked about many times in the past is that we do not verify food safety relative to specifically a lot of leafy greens and lower-value vegetables, primarily because there is a lot of risk relative to it. And I think that what we're seeing right now is obviously something that's going to impact our business in the sense that there will continue to be a focus on the food safety issue specifically. Relative to the beef question, that's a great point to mention, Chris, and we've talked about the long-term future of the cattle industry in the U.S. I think one of the things that we believe very strongly, and you're seeing it with RaiseWell specifically, is our ability to meet the needs of a company like Whole Foods across all of the proteins that they sell. So the one danger in us divesting of any particular species or product is our inability to continue to provide that type of full range complementary service to, again, a company like Whole Foods or Walmart. Unknown Analyst: I appreciate that. My question is more just breaking out your results from the businesses, but I understand your answer. John Saunders: Okay. I didn't understand that. I'll -- Dan, do you want to take a shot at that one? Unknown Analyst: If you need me to explain, it's more just if we can see clearly your growth in some of those other businesses versus your -- what you've historically called the cyclical beef business? It might help investors understand all the investments and growth you're getting away from beef. Jay Pfeiffer: Yes. Chris, this is Jay. Sorry, we -- everybody misunderstood your question, but I think we're on it now. But just to clarify, you're asking, can we break out what percentage of our revenue is beef versus non-beef-related verification certification activity? Unknown Analyst: Yes, it's more just to allow investors to understand these other areas you've been investing in away from what's been a very cyclical beef category. That's exactly right. And you guys probably know better than us. So that was more of an open-ended question for you to consider. John Saunders: Understood. Sorry for the misunderstanding. No, that's a great comment. I think that is -- we will definitely take that under consideration. We can definitely do it. It's just how we do it. Yes. And just so it's clear, beef is roughly 50% of our revenue, Chris. Operator: Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Saunders for final comments. John Saunders: Once again, thank you all for your time and your commitment. Have a great day, and we'll talk to you in 3 months. Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Where Food Comes From, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Where Food Comes From wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,502!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Where Food Comes From. The Motley Fool has a disclosure policy. WFCF Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

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: 1-877-407-8289International: 1-201-689-8341Conference Code: 13762085 Phone replay:A telephone replay of the conference call will be available through August 20, 2026, as follows:Domestic Toll Free: 1-877-660-6853International: 1-201-612-7415Conference 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 SaundersChief Executive Officer303-895-3002 Jay PfeifferDirector Investor [email protected]

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Where Food Comes From Inc (NASDAQ:WFCF) reported a return to profitability in the first quarter of 2026. Verification and certification revenue increased by 6% to $4.4 million, indicating strong demand for their services. The RaiseWell program, launched in Q1 2026, has been successful, securing Whole Foods Market as a major retailer. The company is experiencing solid growth in non-beef business lines, including pork, dairy, and egg verifications. WFCF continues to leverage its solutions portfolio through bundling incentives, saving customers time and money. The company faces persistent headwinds from tariffs and a smaller herd size, impacting overall growth. Product sales volumes are lower due to fewer cattle being processed and temporary tag subsidies. The cattle industry is experiencing disruption, which poses challenges despite presenting opportunities. There is a potential risk from the New World Screw Worm outbreak in the Mexican cattle industry, which could spread. Technical difficulties during the earnings call led to a temporary loss of connection with the CEO, impacting communication. Warning! GuruFocus has detected 3 Warning Signs with WFCF. Is WFCF fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of the financial performance for the first quarter of 2026? A: CEO John Saunders reported a year-over-year growth and a return to profitability. Verification and certification revenue increased by 6% to $4.4 million, while product sales rose slightly to $713,000. Total revenue saw a nearly 2% increase to $5.4 million, driven by new customer wins and demand for certifications. Q: What is the RaiseWell program, and how has it performed since its launch? A: John Saunders explained that RaiseWell is a program offering verification for premium protein products, ensuring they are responsibly raised without antibiotics or added hormones. The program has been successful, securing Whole Foods Market as a major retailer and generating meaningful revenue. It is available for various proteins, including beef, pork, and poultry. Q: How is the company positioned to respond to the New World Screw Worm outbreak in the Mexican cattle industry? A: CFO Danette Henning stated that Where Food Comes From is well-positioned to manage the response due to its advanced animal traceability system and partnership with CattleTrace. This enables quick deployment of contact tracing systems to identify livestock exposed to disease. Q: What growth trends are being observed in non-beef business lines? A: Danette Henning noted solid growth in verifications for pork, dairy, and egg operations, as well as certification activities for organic, non-GMO, gluten-free, and upcycled products. The company leverages its solutions portfolio through bundling incentives to save customers time and money. Q: Can you provide details on the stock repurchase program? A: Danette Henning mentioned that the company repurchased 24,469 shares of common stock in the first quarter at a cost of $293,000. Since the inception of the plan, total buybacks amount to 1,399,121 shares at a cost of approximately $15.5 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Shares of Where Food Comes From, Inc. WFCF have gained 17.4% since the company reported its earnings for the first quarter of 2026, outperforming the S&P 500 Index’s 0.3% decline over the same period. However, the stock has lagged the broader market over the past month, rising 4.9% compared to the S&P 500’s 5.3% gain. Where Food Comes From reported first-quarter 2026 revenues of $5.4 million, up from $5.3 million in the prior-year quarter, driven primarily by growth in verification and certification services. Verification and certification revenues increased 6% year over year to $4.4 million from $4.2 million, while product sales edged up to $713,000 from $702,000. Professional services revenues declined to $228,000 from $389,000. Net income rose to $92,000, or 2 cents per diluted share, from $31,000, or 1 cent per diluted share, in the year-ago quarter. Where Food Comes From Inc. price-consensus-eps-surprise-chart | Where Food Comes From Inc. Quote Gross profit declined to $2.04 million from $2.20 million in the prior-year quarter as gross margin contracted to 39% from 42%. Management attributed the lower margin primarily to higher insurance and personnel costs. Total costs of revenues increased to $3.32 million from $3.08 million a year earlier. Selling, general and administrative expenses fell 15% year over year to $1.7 million from $2.1 million. The company said that the decrease reflected management’s decision to forgo 2025 bonus compensation following fourth-quarter results. Operating income improved to $298,000 from $142,000 in the prior-year period. Cash provided by operations totaled $523,000 during the quarter compared with $632,000 a year earlier. On the balance sheet, cash and cash equivalents increased slightly to $3.28 million as of March 31, 2026 from $3.20 million as of Dec. 31, 2025. Accounts receivable rose to $2.06 million from $1.68 million, while total assets increased to $13.23 million from $12.90 million at year-end 2025. Management pointed to steady customer additions and increasing demand for food verification and certification services as key contributors to the quarter’s growth. CEO John Saunders said that the company continued to face headwinds tied to smaller cattle herd sizes and tariffs but added that customer wins in beef-related services helped offset some of those pressures. A major focus during the quarter was the launch of the RaiseWell program, a certification initiative designed to verify responsibly raised protein products. Whole Foods Market adopted the RaiseWell Certified program for its beef supply during the quarter, marking the first major retailer participation. Saunders said that the company plans to expand RaiseWell into poultry, eggs, dairy and pork categories over time. Management also highlighted momentum in non-beef categories. Verification activity for pork, dairy and egg operations continued to grow during the quarter, while certifications tied to organic, non-GMO, gluten-free and upcycled products also increased. Executives described Upcycled Certified as the company’s fastest-growing service line. Product sales growth remained modest because of lower cattle volumes and temporary tag subsidies for ranchers. Even so, the company reported stronger demand for premium livestock tags with enhanced features, which helped offset some volume pressure. Executives said that the cattle industry remains in an unusual period of disruption caused by multiple factors, including reduced herd sizes and trade-related pressures. However, management indicated that such disruptions could create opportunities for the company’s traceability and verification capabilities. During the earnings call, management discussed a potential opportunity linked to the spread of New World screwworm in Mexico. The company noted that its IMI Global unit and partnership with CattleTrace position it to support animal traceability and disease-response efforts should the outbreak spread across borders into the United States. Executives said that the company’s traceability systems could assist animal health officials with contact tracing and livestock exposure identification. Management also reiterated confidence in long-term growth prospects, citing rising consumer demand for transparency in food production and supply chains. Saunders said that the company remains “bullish” on industry growth trends and the broader adoption of verification services. Where Food Comes From continued its stock repurchase program during the quarter, buying back 24,469 shares for approximately $293,000. Since the inception of the repurchase plan, including private purchases, the company has repurchased 1.4 million shares at a total cost of roughly $15.5 million. Management said that it plans to continue repurchasing shares as part of its broader capital allocation strategy. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Where Food Comes From Inc. (WFCF): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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. 2025Total revenue in the first quarter ended March 31, 2026, increased to $5.4 million from $5.3 million. 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 39% versus 42% year over year due to higher insurance and personnel costs. Selling, general and administrative expense was 15% lower at $1.7 million compared to $2.1 million due to management’s decision to forego 2025 bonus compensation following fourth quarter results. Net income in the first quarter was $92,000, or $0.02 per diluted share, vs. $31,000, or $0.01per diluted share. Cash provided by operations in the first quarter was $523,000 vs. $632,000. The Company bought back 24,469 shares of its common stock during the first quarter at a cost of $293,000. Total buybacks since plan inception (including private purchases) are 1,399,121 shares at a cost of approximately $15.5 million. 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: 1-877-407-8289International: 1-201-689-8341Conference Code: 13760621 Phone replay:A telephone replay of the conference call will be available through May 28, 2026, as follows:Domestic Toll Free: 1-877-660-6853International: 1-201-612-7415Conference 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 PfeifferDirector, Investor [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a return to profitability and 6% growth in verification revenue despite persistent headwinds from high tariffs and a shrinking national cattle herd. Launched the 'Raise Well' program to capture demand for premium protein products verified for animal care and antibiotic-free status, securing Whole Foods Market as the first major retail partner. Mitigated lower cattle volumes in product sales by shifting the mix toward premium tags with advanced features, resulting in a slight year-over-year revenue increase. Leveraged a bundling strategy across the solutions portfolio to incentivize customers to adopt multiple certifications, improving cost and time efficiency for producers. Diversified revenue streams through solid growth in non-beef business lines, specifically within pork, dairy, egg operations, and specialty certifications like organic and upcycled. Positioned the company as a critical infrastructure partner for animal disease response, citing the potential to deploy traceability systems if the Mexican screwworm outbreak crosses into the U.S. Anticipates long-term profitable growth by continuing to scale the 'Raise Well' program across additional protein categories including bison, poultry, and dairy. Maintains readiness to support USDA and animal health officials with contact tracing systems via the IMI Global unit and CattleTrace partnership in the event of a domestic disease outbreak. Commits to ongoing capital return through the stock repurchase program, following the buyback of 24,469 shares in the first quarter. Expects continued momentum in non-GMO, gluten-free, and upcycled certifications as consumer demand for transparent food sourcing remains a primary market driver. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The cattle industry continues to face an 'unusual period of disruption' caused by a confluence of macro factors and temporary tag subsidies offered to ranchers. Management highlighted the New World screwworm outbreak in Mexico as a significant regional risk that could necessitate rapid deployment of the company's traceability technology. Total capital returned to shareholders via buybacks since plan inception reached approximately $15.5 million for 1,399,121 shares.