Where Food Comes From (WFCF) Q2 2025 earnings summary

Executive summary

• Second quarter revenue rose 3% year-over-year to $6.6 million, driven by demand for CARE Certified and Upcycled programs and increased hardware sales, despite pressure from smaller beef herd sizes.

• Net income for Q2 increased 15% year-over-year to $562,000 ($0.11 per share), aided by a $172,000 gain in digital assets.

• Six-month revenue was $11.8 million, slightly down from $12.0 million year-over-year, with net income at $593,000 ($0.11 per share).

• Expansion of retail labeling programs to major retailers, with CARE Certified beef in over 110 locations by year-end, increased brand visibility and licensing revenue.

• Sale of 10% interest in Progressive Beef for $1.8 million cash and return of 12,585 shares, strengthening the balance sheet and resulting in an $800,000 gain on sale.

Financial highlights

• Q2 revenue: $6.6 million (up from $6.4 million); net income: $562,000 ($0.11 per share); Q2 verification and certification revenue: $5.33 million; product sales: $964,000.

• Six-month revenue: $11.8 million (down from $12.0 million); net income: $593,000 ($0.11 per share); product sales: $1.67 million.

• Q2 gross profit: $2.5 million (down from $2.7 million); gross margin: 37.5%–38.4%, impacted by higher compensation and hardware costs.

• Cash and cash equivalents at June 30, 2025: $3.2 million, up from $2.0 million at year-end 2024.

• Year-to-date stock buybacks: 55,826 shares; total buybacks and private purchases since 2019: 1,247,462 shares, returning $14.6 million to shareholders.

Outlook and guidance

• Management anticipates further expansion of retail labeling and CARE Certified beef products, with potential for additional stores in 2026.

• Ongoing investments in AI tools and technical talent are expected to drive efficiency and scalability.

• Sale proceeds from Progressive Beef to support growth initiatives and stock buyback program.

• Management expects continued impact from cattle cycle contraction and inflationary pressures.

• Growth strategy includes diversification, bundling, and potential acquisitions.