Where Food Comes From, Inc. Reports 2026 First Quarter Financial Results

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. 2025
Total 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: 1-877-407-8289
International: 1-201-689-8341
Conference Code: 13760621

Phone replay:
A telephone replay of the conference call will be available through May 28, 2026, as follows:
Domestic Toll Free: 1-877-660-6853
International: 1-201-612-7415
Conference 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 Pfeiffer
Director, Investor Relations
303-880-9000
jpfeiffer@wherefoodcomesfrom.com

Where Food Comes From, Inc.
Statements of Income (Unaudited)
		Three months ended March 31,
(Amounts in thousands, except per share amounts)			2026				2025
Revenues:
Verification and certification service revenue		$	4,424			$	4,182
Product sales			713				702
Professional services			228				389
Total revenues			5,365				5,273
Costs of revenues:
Costs of verification and certification services			2,721				2,395
Costs of products			438				428
Costs of professional services			163				255
Total costs of revenues			3,322				3,078
Gross profit			2,043				2,195
Selling, general and administrative expenses			1,745				2,053
Income from operations			298				142
Other income/(expense):
Interest income			6				4
Fair market value loss on digital assets			(135	)			(76	)
Gain on sale of assets			17				-
Interest expense			(1	)			(1	)
Income before income taxes			185				69
Income tax expense			93				38
Net income		$	92			$	31
Per share - net income:
Basic		$	0.02			$	0.01
Diluted		$	0.02			$	0.01
Weighted average number of common shares outstanding:
Basic			5,057				5,212
Diluted			5,070				5,230

Where Food Comes From, Inc.
Balance Sheets (Unaudited)
	March 31, 2026				December 31, 2025
(Amounts in thousands, except per share amounts)
Assets
Current assets:
Cash and cash equivalents	$	3,281			$	3,200
Accounts receivable, net of allowance		2,056				1,678
Inventory		842				792
Prepaid expenses and other current assets		648				605
Total current assets		6,827				6,275
Property and equipment, net		739				648
Right-of-use assets, net		437				498
Equity investments		200				200
Intangible and other assets, net		1,332				1,420
Digital assets		478				613
Goodwill, net		2,946				2,946
Deferred tax assets, net		267				299
Total assets	$	13,226			$	12,899
Liabilities and Equity
Current liabilities:
Accounts payable	$	569			$	451
Accrued expenses and other current liabilities		1,088				655
Deferred revenue		1,532				1,545
Current portion of finance lease obligations		12				12
Current portion of operating lease obligations		422				422
Total current liabilities		3,623				3,085
Finance lease obligations, net of current portion		10				13
Operating lease obligation, net of current portion		393				496
Total liabilities		4,026				3,594
Commitments and contingencies
Equity:
Common stock		5				5
Additional paid-in-capital		119				23
Treasury stock		(2,076	)			(1,783	)
Retained earnings		11,152				11,060
Total equity		9,200				9,305
Total liabilities and stockholders' equity	$	13,226			$	12,899

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