Where Food Comes From, Inc. Reports Q2 2025 Financial Results with Revenue Increase but Net Income Decrease

Where Food Comes From, Inc. (WFCF) reported its financial results for the second quarter and first half of 2025, revealing a slight increase in total revenues but a decrease in net income compared to the same periods in 2024. For the three months ended June 30, 2025, the company generated total revenues of $6.56 million, up from $6.40 million in the prior year. However, net income for the quarter rose to $562,000, or $0.11 per share, compared to $489,000, or $0.09 per share, in the same quarter of 2024. For the six months ended June 30, 2025, total revenues were $11.84 million, down from $11.98 million, with net income decreasing to $593,000 from $667,000 in the previous year.

The company experienced notable changes in its revenue streams. Verification and certification service revenue increased slightly to $5.33 million for the second quarter, while product sales surged by 17.7% to $964,000. However, professional services revenue declined by 18% to $266,000 for the quarter. The overall decrease in professional services revenue was attributed to project-based nature and timing issues related to customer engagements. Additionally, the company noted that its gross profit margin decreased, reflecting higher costs associated with verification services and inflationary pressures on product costs.

In terms of operational developments, WFCF reported a total employee count of 104 as of June 30, 2025, with 90 being full-time employees. The company has also undergone internal restructuring to enhance efficiency and unify its brand identity following several acquisitions. This restructuring has led to the consolidation of its professional services under the verification and certification segment, streamlining operations and reporting. The company continues to support approximately 17,500 clients, including farmers, ranchers, and retailers, across North America.

Looking ahead, WFCF remains cautious about market conditions, particularly in the cattle industry, which is currently in a contraction phase. The company anticipates that its revenue growth will be influenced by external factors such as drought conditions and the timing of audits. Despite these challenges, WFCF is focused on diversifying its product offerings and exploring potential acquisitions to drive future growth. The company also reported a cash balance of $3.2 million as of June 30, 2025, an increase from $2.0 million at the end of 2024, indicating a stable liquidity position to support ongoing operations.