Where Food Comes From Q1 Revenue Rises to $5.4M, Net Income $92K
First-quarter revenue rose to $5.4 million from $5.3 million, with certification services revenue climbing to $4.4 million. Net income increased to $92,000, or $0.02 per share, from $31,000, and the company repurchased 24,469 shares for $293,000, totaling 1.4 million shares bought back for $15.5 million.
1. First Quarter Financial Results
Where Food Comes From reported total Q1 revenue of $5.4 million versus $5.3 million a year earlier, with verification and certification services contributing $4.4 million and product sales rising to $713,000. Professional services revenue declined to $228,000, as net income increased to $92,000, or $0.02 per share, from $31,000, or $0.01 per share.
2. Margins and Expenses
Gross margin contracted to 39% from 42% due to higher insurance and personnel costs. Selling, general and administrative expenses fell 15% to $1.7 million from $2.1 million after management forewent 2025 bonuses, while operating cash flow totaled $523,000 compared to $632,000.
3. Share Repurchase Program
The company repurchased 24,469 common shares for $293,000 in the quarter, bringing total repurchases since plan inception to 1,399,121 shares at a cost of approximately $15.5 million, reflecting continued capital return efforts.
4. Growth Initiatives and Outlook
Management highlighted securing Whole Foods Market’s adoption of the RaiseWell™ Certified program for beef in Q1 and plans to extend it to poultry, eggs, dairy and pork. The firm is also growing its Upcycled Certified service and adding new customers across various food verification offerings, underscoring bullish growth prospects.