Where Food Comes From (WFCF) Q4 2025 earnings summary

Executive summary

• Reported total revenue of $24.9 million and net income of $1.5 million, or $0.30 per share, for 2025, down from $25.7 million and $2.1 million in the prior year.

• Q4 revenue fell to $6.0 million from $6.7 million, resulting in a net loss of $0.2 million versus net income of $1.0 million in the prior year.

• Growth in new customers and non-beef revenue streams was offset by smaller herd sizes, tariffs, and record high beef prices impacting beef-related verification activity.

• Q4 revenue was notably affected by the unexpected closure of a key packing plant, impacting internal projections and resulting in executive management returning their bonus compensation.

• New programs like RaiseWell Certified and CARE Certified contributed to customer and revenue growth.

Financial highlights

• Total revenue reached $24.9 million for the year, with net income of $1.5 million and diluted EPS of $0.30.

• Verification and certification revenue was $20.1 million; product sales $3.6 million; professional services $1.2 million.

• Gross profit for the year was $9.5 million, with a gross margin of 38.2%.

• Cash from operations was $1.6 million, and cash & equivalents at year-end were $3.2 million, up 59% year-over-year.

• SG&A expense for the year was $8.3 million.

Outlook and guidance

• Indications suggest the cattle herd contraction is at or near a bottom, with industry rebuilding expected over the next few years and stabilization anticipated in late 2026.

• Expansion of services and certifications, including new programs like RaiseWell, positions the company for accelerated growth as recovery gains momentum.

• Plans to continue stock repurchases in 2026, citing optimism about business prospects.

• Continued optimism for long-term prospects in both beef and non-beef business lines.