Where Food Comes From (WFCF) Q4 2024 earnings summary

Executive summary

• Full-year 2024 revenue increased 2% to $25.7 million, with Q4 revenue flat at $6.7 million year-over-year.

• Net income for the year was $2.1 million ($0.40 per diluted share), with Q4 net income rising to $961,000 ($0.18 per diluted share).

• Growth in CARE Certified, Upcycled Certified, and other verification services offset declines in traditional beef-related business.

• $3.3 million spent on buybacks/private purchases in 2024, reducing float by 273,057 shares.

• $345,000 gain in fair market value of Bitcoin holdings contributed to quarterly net income.

Financial highlights

• Verification and certification services revenue increased 6% to $20.6 million for the year.

• Product revenue decreased 5% to $3.8 million, and professional services revenue declined to $1.4 million.

• Gross profit for the year was $10.6 million, with stable gross margins.

• SG&A expenses rose to $8.4 million, mainly due to marketing and strategic hires.

• Cash from operations was $2.7 million in 2024; year-end cash and equivalents were $2.0 million.

Segment performance

• Upcycled Certified program grew 17% year-over-year, becoming the fastest-growing service.

• CARE Certified, organic certifications, and Prop 12 audits saw increased demand.

• Verification and certification services: Q4 revenue down 2% to $5.4 million; full year up 6% to $20.6 million.

• Product sales: Q4 up 6% to $922,000; full year down 5% to $3.8 million.

• Professional services: Q4 $360,000 vs. $391,000; full year $1.4 million vs. $1.7 million.