Exhibit 99.1

 

Where Food Comes From, Inc. Reports Third Quarter Financial Results

 

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 
   (Unaudited)   (Audited) 
Assets          
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