Where Food Comes From, Inc. (WFCF) reported its financial results for the first quarter of 2025, revealing a total revenue of $5.3 million, a decrease of 5.5% from $5.6 million in the same period of 2024. The decline was primarily attributed to a drop in verification and certification service revenue, which fell to $4.2 million from $4.4 million year-over-year. The company's net income also decreased significantly, totaling $31,000, or $0.01 per share, compared to $178,000, or $0.03 per share, in the prior year.
The company's cost of revenues for the quarter was $3.1 million, down from $3.3 million in the previous year, leading to a gross profit of $2.2 million, slightly lower than the $2.3 million reported in 2024. Selling, general, and administrative expenses remained relatively stable at $2.1 million, compared to $2.07 million in the same quarter last year. The overall operating income for the quarter was $142,000, a decrease from $261,000 in the first quarter of 2024.
In terms of operational developments, WFCF continues to support approximately 17,500 clients, including farmers, ranchers, and retailers, through its verification services. The company has also undergone internal restructuring to consolidate its operations, which has resulted in a single reportable segment for financial reporting. This restructuring aims to enhance efficiency and align business functions more closely with its verification and certification services.
The company reported a cash balance of approximately $2.2 million at the end of the quarter, an increase from $2.0 million at the end of 2024. Net cash provided by operating activities was $632,000, a slight decrease from $700,000 in the same period last year. WFCF's employee headcount stood at 101, with 90 full-time employees, reflecting a commitment to maintaining a diverse workforce.
Looking ahead, WFCF anticipates continued challenges due to the cyclical nature of the cattle industry and external factors such as drought conditions. The company remains focused on diversifying its product offerings and exploring potential acquisitions to drive growth. Management believes that the ongoing demand for verification services will support its long-term objectives, despite the current contraction phase in the cattle cycle.
About Where Food Comes From, Inc.
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