Where Food Comes From (WFCF) Q1 2026 earnings summary

Executive summary

• Total revenue for Q1 2026 increased to $5.4 million from $5.3 million year-over-year, driven by growth in verification and certification services and new customer wins, including the launch and expansion of the RaiseWell program.

• Net income rose to $92,000 ($0.02 per share) from $31,000 ($0.01 per share) year-over-year, reflecting improved operating income and lower operating expenses.

• The company returned to profitability and continues to focus on long-term growth, capital solutions, and potential acquisitions or divestitures.

• RaiseWell program secured Whole Foods Market as a major client and expanded to other proteins, generating meaningful revenue.

• Strong demand for Upcycled Certified and other certification services contributed to growth.

Financial highlights

• Verification and certification revenue rose to $4.4 million from $4.2 million year-over-year.

• Product sales increased slightly to $713,000 from $702,000; professional services revenue declined to $228,000 from $389,000.

• Gross profit for Q1 2026 was $2.0 million, down from $2.2 million, as gross margin declined to 39% from 42% due to higher costs.

• Operating income increased to $298,000 from $142,000 year-over-year, aided by reduced SG&A expenses.

• Repurchased 24,469 shares for $293,000 in Q1; total buybacks since inception at 1,399,121 shares for $15.5 million.

Outlook and guidance

• Management remains optimistic about long-term profitable growth, citing consumer demand for transparency and plans to expand RaiseWell Certified to new food categories.

• Current cash and cash flow from operations are expected to be sufficient for capital and working capital needs for at least the next twelve months.

• Ongoing challenges include cattle industry contraction and inflationary pressures.