Where Food Comes 2025 Q3 Earnings Net Income Jumps 132.9% on Asset Sale

Where Food Comes From (WFCF) delivered strong Q3 2025 results, with net income surging 132.9% year-over-year and EPS rising 144.4%. The company exceeded expectations despite a 1.3% revenue decline, driven by strategic asset sales and cost management. While no formal guidance was provided, leadership emphasized reinvestment and buybacks as key priorities.

Revenue

Where Food Comes From reported $7.01 million in revenue for Q3 2025, a 1.3% decline from $7.11 million in the prior year. Verification and certification services remained the backbone of the business, contributing $5.56 million, while product sales and professional services accounted for $1.20 million and $257,000, respectively. The shift toward diversified certification offerings, including pork, dairy, and non-GMO labels, offset weaker performance in beef verification.

Earnings/Net Income

The company’s profitability surged, with net income climbing to $1.15 million in Q3 2025, up from $492,000 in the same period last year. EPS jumped to $0.22 from $0.09, driven by a $946,000 gain from the sale of Progressive Beef and disciplined cost management. The EPS growth underscores the company’s ability to leverage operational efficiencies despite revenue headwinds.

Post-Earnings Price Action Review

Shares of Where Food Comes From declined 0.15% in the latest trading session, 2.76% over the past week, and 6.44% month-to-date. The mixed price action reflects investor caution amid macroeconomic pressures and modest revenue contraction. However, the sharp EPS and net income growth, coupled with strategic asset sales and buybacks, suggest underlying strength in the business model.

CEO Commentary

John Saunders highlighted resilience in non-beef verification segments and emphasized cost discipline as key drivers of margin stability. The sale of Progressive Beef and continued share repurchases—totaling 116,547 shares year-to-date—underscore management’s focus on capital allocation. Saunders expressed cautious optimism about market demand for certifications and operational reinvestment.

Guidance

The company plans to reinvest proceeds from the Progressive Beef sale and continue buybacks under its $14.3 million program. While no specific 2025 guidance was provided, leadership emphasized long-term sustainability through diversified service growth and cash generation.

Additional News

1. M&A Activity: WFCF sold Progressive Beef for a $946,000 gain, freeing capital for reinvestment and buybacks.

2. Buyback Strategy: The company repurchased 60,721 shares in Q3, continuing a multi-year program to return value to shareholders.

3. Strategic Expansion: Leadership cited growing demand for non-GMO, organic, and animal welfare certifications, aligning with industry trends toward transparency.

Earnings Highlights

Where Food Comes From’s Q3 results underscored its ability to generate robust profitability despite revenue challenges. The asset sale and cost management initiatives positioned the company to maintain gross margins while expanding into high-growth certification segments. Investors will watch for further reinvestment plans and progress on share repurchases.