Where Food Comes From, Inc. reported third‑quarter 2025 revenue of $7.0 million, a 1% decline from the $7.1 million earned in the same period last year. The drop is largely attributable to a 4% decline in its core beef‑verification segment, which was hit by cyclical herd downsizing, drought conditions, and new USDA electronic‑tag regulations. Growth in the company’s broader certification services—particularly in pork, dairy, and eggs—helped offset the weakness in the beef line.
Gross profit for the quarter was $2.7 million, essentially flat year‑over‑year, indicating that the company maintained its gross‑margin profile despite the revenue dip. The company’s cost‑control program, which has been in place since 2023, helped keep operating expenses in line with revenue changes.
Net income rose to $1.1 million, or $0.22 per diluted share, up from $0.5 million and $0.09 a year ago. The increase is driven almost entirely by a $946,000 gain from the sale of the company’s Progressive Beef interest, a one‑time event that lifted earnings while operating profitability remained steady. Management noted that the asset sale was part of a broader strategy to streamline the business and strengthen the balance sheet.
Over the nine‑month period ending September 30, 2025, the company generated $18.9 million in revenue and $1.7 million in net income, or $0.34 per diluted share. Cash and cash equivalents climbed to $4.8 million, largely due to the proceeds from the Progressive Beef sale and healthy operating cash flow. Share repurchases totaled 60,721 shares in the quarter, bringing the year‑to‑date total to 116,547 shares, a sign of management’s confidence in the company’s valuation.
Segment data show that verification and certification revenue accounted for $5.6 million of the quarter’s top line, while other services contributed $1.4 million. CEO John Saunders said, “We continue to grow our top line and generate solid profitability despite headwinds impacting our core beef‑verification business.” The company’s diversification into other food‑verification markets is expected to help offset the challenges in the beef segment.
The company did not provide forward guidance in this release, so investors will need to monitor future communications for updates on revenue expectations and margin targets.
The earnings release underscores the company’s ability to generate cash and maintain profitability even as its core business faces headwinds, while the asset sale provides a one‑time boost to earnings and strengthens the balance sheet.
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