Where Food Comes From, Inc. Reports Mixed Q3 Results, Stock Buyback Continues

Where Food Comes From, Inc. (WFCF), a leading independent, third-party verification company for food production practices in North America, recently announced its financial results for the third quarter and nine months ended September 30, 2024. The company reported mixed results, with total revenue increasing 1% to $7.1 million compared to the same period last year. However, net income declined 32% to $492,000, and diluted EPS decreased to $0.09 from $0.13 in the prior year.



The company's revenue mix showed an increase in verification and certification services, up 2% to $5.5 million, while product sales rose 9% to $1.3 million. However, selling, general, and administrative expenses increased 13% to $2.2 million, contributing to the decline in net income. Operating income also decreased 36% to $0.6 million, and adjusted EBITDA was down 29% to $0.8 million.

Despite the mixed results, Where Food Comes From, Inc. continued its stock buyback program, repurchasing 66,620 shares in the third quarter and 216,039 shares year-to-date. The company also generated $2.8 million in cash from operations through nine months, up 6% from the same period last year. Cash and cash equivalents increased to $2.8 million from $2.6 million at the end of 2023.



Looking ahead, Where Food Comes From, Inc. will release its 2024 full year financial results before the market opens on Thursday, February 20, 2025, and conduct a conference call the same day at 10:00 a.m. Mountain Time (12:00 p.m. Eastern). Investors will be watching for updates on the company's strategic initiatives, including its expansion into the upcycled food products market with the acquisition of Upcycled Certified®.

In conclusion, Where Food Comes From, Inc. reported mixed results for the third quarter and nine months ended September 30, 2024. While revenue increased, net income and profitability decreased due to higher expenses. The company continued its stock buyback program and generated positive cash flow from operations. Investors should monitor the company's progress and await further updates on its strategic initiatives.