Third Quarter Highlights – 2026 vs. 2025

  • Verification and certification revenue up 6% to $5.9M from $5.6M

  • Product sales flat at $1.2M

  • Total revenue up 4% to $7.3M from $7.0M

  • Gross margin improves to 42.1% from 38.3%

  • Operating income up 68% to $1.0M from $0.6M

  • Net income of $0.8M vs. $1.1M ($1.1M includes $0.9M gain on sale in year-ago Q3)

  • Diluted EPS of $0.17 vs. $0.22

  • Company returns $268,000 in value to stockholders through buyback of 21,170 shares

  • $17.5 million in total value returned to shareholders over past seven years through buybacks and special dividend

Nine-Month Highlights – 2026 vs. 2025

  • Verification and certification revenue up 4% to $15.7M from $15.1M

  • Product sales flat at $2.9M

  • Total revenue up 2% to $19.3M from $18.9M

  • Gross margin improves to 40.5% from 38.9%

  • Operating income up 52% to $1.9M from $1.3M

  • Net income of $1.3M vs. $1.7M ($1.7M includes $0.9M gain on sale in year-ago Q3)

  • Diluted EPS of $0.27 vs. $0.34

  • Cash generated from operations of $2.8M vs. $2.3M

  • Cash & cash equivalents of $4.4M at September 30 vs. $3.2M at 2025 year-end

  • Stock buybacks: 110,651 shares

CASTLE ROCK, Colo., Nov. 12, 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 third quarter and nine-month period ended September 30, 2026.

“We are pleased to report strong third quarter financial results highlighted by 6% growth in our core verification and certification business that is benefitting from resurgent demand for beef-related services and growing momentum in other service offerings,” said John Saunders, Chairman and CEO. “Our profit metrics also showed continued strength with gross margins rising by 380 basis points to 42.1% and operating income growing 68% to $1.0 million from $600,000 a year ago – both reflecting the positive impact of our ongoing cost down initiatives in conjunction with accelerating revenue.

“Our ability to generate these results in the face of continued headwinds in our beef-related business underscores the importance of our diverse and growing services portfolio. Although smaller cattle herd sizes have impacted product sales and certain verification services, newly developed service offerings such as CARE and RaiseWell® Certified are growing rapidly and more than compensating. And, despite record high beef prices, cattle producers are still capturing $100-per-head premiums when they use our value-add services. Additionally, we are adding hundreds of new customers for our Organic, non-GMO, Gluten Free and Upcycled certifications, and we are benefitting from our unique ability to offer service bundling that reduces costs and audit fatigue for our customers. With market research indicating that consumer interest in sustainability, humane handling, and overall transparency in food raising practices has never been higher, our comprehensive portfolio of services ideally positions us to continue leading our industry for years to come.”

Third Quarter Results – 2026 vs. 2025

Total revenue in the third quarter ended September 30, 2026, increased 4% to $7.3 million from $7.0 million.

  • Verification and certification services increased 6% to $5.9 million from $5.6 million.
  • Product revenue was flat at $1.2 million.
  • Professional services declined to $218,000 from $257,000.

Gross margins in the third quarter improved by 380 basis points to 42.1% from 38.3% in the same quarter last year, reflecting operational efficiencies across the business.

Selling, general and administrative expense was flat at $2.1 million, reflecting both improved efficiencies and management’s commitment to managing overhead costs.

Operating income increased 68% to $1.0 million from $0.6 million due to the impact of cost-down initiatives relative to increasing revenue.

Net income in the third quarter was $825,000, or $0.17 per diluted share, compared to net income of $1,146,000, or $0.22 per diluted share, in the same quarter last year. The decline was primarily attributable to a $946,000 gain on sale of assets in the year-ago third quarter related to the Company’s divestiture of its Progressive Beef interest.

The Company bought back 21,170 shares of its common stock in the third quarter, equating to $268,000 in value returned to stockholders in the period.

Nine-Month Results – 2026 vs. 2025

Total revenue for the nine-month period ended September 30, 2026, increased 2% to $19.3 million from $18.9 million in the same period last year.

  • Verification and certification services increased 4% to $15.7 million from $15.1 million.
  • Product revenue was flat $2.9 million.
  • Professional services revenue declined to $731,000 from $912,000.

Gross margins in the nine-month period increased to 40.5% from 38.9%, reflecting the year-to-date impact of cost reduction initiatives.

SG&A expense decreased 3% year over year to $5.9 million from $6.1 million, reflecting management’s first quarter decision to return approximately $400,000 in 2025 bonus compensation.

Income from operations was $1.9 million, up 52% year over year from $1.3 million in the same period last year.

Net income through nine months was $1.3 million, or $0.27 per diluted share, compared to net income of $1.7 million, or $0.34 per diluted share, in the same period last year. The year-ago total of $1.7 million included a $946,000 gain on sale of the Progressive Beef interest.

The Company generated $2.8 million in cash from operations year-to-date, up from $2.3 million in the comparable period last year.

Cash and cash equivalents increased 39% at September 30 to $4.4 million from $3.2 million at December 31, 2025.

The Company has bought back a total of 110,651 shares year-to-date in 2026. Over the past seven years, the Company has returned $17.5 million in value to stockholders through buybacks and a special dividend.

The Company will conduct a conference call today at 10:00 a.m. Mountain Time.

Call-in numbers for the conference call:
Domestic Toll Free: 1-877-407-8289
International: 1-201-689-8341
Conference Code: 13763641

Phone replay:
A telephone replay of the conference call will be available through November 26, 2026, as follows:
Domestic Toll Free: 1-877-660-6853
International: 1-201-612-7415
Conference Code: 13763641

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 plans for industry leadership; customers’ ability to capture sales premiums for cattle verified by the Company; ability to continue adding new customers; expectations that consumer interest in the Company’s services will continue; 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:

John Saunders
Chief Executive Officer
303-895-3002

Jay Pfeiffer
Director Investor Relations
303-880-9000
jpfeiffer@wherefoodcomesfrom.com


Where Food Comes From, Inc.
Statements of Operations (Unaudited)
            
    Three months ended September 30, Nine months ended September 30, 
(Amounts in thousands, except per share amounts) 2026   2025  2026   2025  
Revenues:        
 Verification and certification service revenue$5,897  $5,556 $15,710  $15,070  
 Product sales 1,211   1,202  2,861   2,868  
 Professional services 218   257  731   912  
  Total revenues 7,326   7,015  19,302   18,850  
Costs of revenues:        
 Costs of verification and certification services 3,400   3,348  9,321   9,025  
 Costs of products 681   781  1,682   1,826  
 Costs of professional services 159   200  487   658  
  Total costs of revenues 4,240   4,329  11,490   11,509  
 Gross profit 3,086   2,686  7,812   7,341  
Selling, general and administrative expenses 2,120   2,111  5,883   6,075  
Income from operations 966   575  1,929   1,266  
Other income/(expense):        
 Dividend income -   50  -   100  
 Interest income 17   7  32   16  
 (Loss) / gain on sale of assets (2)  946  15   946  
 Fair market value gain / (loss) on digital assets 175   48  (28)  144  
 Loss on foreign currency exchange (1)  -  (1)  (3) 
 Interest expense -   -  (1)  (2) 
Income before income taxes 1,155   1,626  1,946   2,467  
Income tax expense 330   480  616   728  
 Net income$825  $1,146 $1,330  $1,739  
            
Per share - net income:        
 Basic $0.17  $0.22 $0.27  $0.34  
 Diluted$0.17  $0.22 $0.27  $0.34  
            
Weighted average number of common shares outstanding:       
 Basic  4,973   5,284  5,014   5,124  
 Diluted 4,986   5,297  5,027   5,137  
            


Where Food Comes From, Inc.
 
Balance Sheets
 
          
      September 30, December 31, 
(Amounts in thousands, except per share amounts)
  2026   2025  
Assets
(Unaudited) (Audited) 
Current assets:
    
 Cash and cash equivalents
$4,433  $3,200  
 Accounts receivable, net of allowance
 2,674   1,678  
 Inventory
 869   792  
 Prepaid expenses and other current assets
 384   605  
  Total current assets 8,360   6,275  
Property and equipment, net
 615   648  
Right-of-use assets, net
 316   498  
Equity investments
 200   200  
Intangible and other assets, net
 1,154   1,420  
Digital assets
 585   613  
Goodwill, net
 2,946   2,946  
Deferred tax assets, net
 195   299  
Total assets
$14,371  $12,899  
          
Liabilities and Equity
    
Current liabilities:
    
 Accounts payable
$621  $451  
 Accrued expenses and other current liabilities
 2,137   655  
 Deferred revenue
 1,618   1,545  
 Current portion of finance lease obligations
 13   12  
 Current portion of operating lease obligations
 422   422  
  Total current liabilities 4,811   3,085  
Finance lease obligations, net of current portion
 3   13  
Operating lease obligation, net of current portion
 178   496  
Total liabilities
 4,992   3,594  
          
Commitments and contingencies
    
          
Equity:
     
 Common stock
 5   5  
 Additional paid-in-capital
 137   23  
 Treasury stock
 (3,153)  (1,783) 
 Retained earnings
 12,390   11,060  
Total equity
 9,379   9,305  
Total liabilities and stockholders' equity
$14,371  $12,899