Where Food Comes From Reports Q4 and Full-Year 2024 Financial Performance

Where Food Comes From, Inc. (NASDAQ: WFCF) disclosed its financial results for the three months and full year ended December 31, 2024, through a Form 8-K filing with the SEC on February 20, 2025. The filing incorporated details from a press release and an earnings conference call, providing insight into the Company’s operational performance amid a challenging market environment.

In the fourth quarter, total revenue remained essentially unchanged at $6.7 million year over year. Verification and certification services revenue edged down slightly to $5.4 million from $5.5 million, while product revenue increased 6% to $922,000. Professional services revenue declined modestly to $360,000. Despite these mixed results, the Company’s net income improved to $961,000, or $0.18 per diluted share, compared with $776,000, or $0.14 per diluted share, in the prior period. The quarterly gain was driven in part by an $80,000 increase in Progressive Beef dividend income and a $345,000 gain in the fair market value of bitcoin holdings.

For the full year, Where Food Comes From reported total revenue of $25.7 million, up 2% from $25.1 million. The revenue mix included a 6% increase in verification and certification services to $20.6 million, a 5% decline in product revenue to $3.8 million, and a decrease in professional services revenue to $1.4 million from $1.7 million in 2023. Gross profit for the year edged higher to $10.6 million, with stable gross margins. However, selling, general and administrative (SG&A) expenses increased by $530,000, primarily due to wage inflation, competitive recruiting in a tight labor market, enhanced marketing efforts, and strategic technical hires to bolster the Company’s technology platform.

Despite a modest decline in annual net income to $2.1 million, or $0.40 per diluted share, from $2.2 million, or $0.39 per diluted share, in 2023, cash flow from operations remained robust at $2.7 million. At year-end, the Company held $2.0 million in cash and cash equivalents and reported working capital of $2.4 million.

In addition to operational highlights, the filing detailed the Company’s ongoing capital return initiatives. During the full year, Where Food Comes From repurchased 273,057 shares for $3.3 million—approximately $11.98 per share. Since the inception of its current capitalization plan 21 quarters ago, the Company has repurchased a cumulative 1,191,636 shares for $13.0 million (around $10.92 per share), with 73% of all buybacks executed in the last three years. Overall, the total value returned to stockholders, through share buybacks, private purchases, and a special dividend, reached $13.9 million over that period.

During the earnings call on February 20, 2025, Company executives, including CEO John Saunders, President Leann Saunders, and CFO Dannette Henning, underscored that the cyclical decline in the traditional beef-related source and age business marked the primary challenge. However, rising demand for alternative service offerings—including CARE Certified programs, the rapidly growing Upcycled Certified program with a 17% year-over-year increase, and other certifications related to organic produce, California Prop 12 poultry audits, on-farm biosecurity, and dairy worker care standards—helped mitigate the revenue pressures.

The discussion also highlighted the Company’s long-standing evolution over 30 years, beginning with filling a niche in cattle traceability and expanding into a broad portfolio of verification services. The diversification strategy has enabled Where Food Comes From to audit more than 50 standards, allowing for bundled offerings that reduce compliance costs for customers and support lower food prices.

Looking forward, the Company intends to leverage its solid cash flows to further reduce its float while continuing to invest in innovative programs and service expansion strategies. Additional details on these initiatives are expected to be shared in the coming months.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Where Food Comes From’s 8K filing here.

Where Food Comes From Company Profile

Where Food Comes From, Inc, together with its subsidiaries, operates as a third-party food verification company in North America. The company operates through Verification and Certification, and Professional Services segments. It conducts on-site and desk audits to verify that claims being made about livestock, food, other specialty crops, and agricultural and aquaculture products are accurate, as well as offers Where Food Comes From Source Verified retail and restaurant labeling program, which connects consumers directly to the source of the food they purchase through product labeling, and web-based information sharing and education.