Exhibit 99.1 Where Food Comes From, Inc. Reports 2025 First Quarter Financial Results First Quarter Highlights – 2025 vs. 2024 CASTLE ROCK, Colo., May 08, 2025 (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 first quarter ended March 31, 2025. "Our beef verification business, which represents approximately one-half of revenue mix, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File No. 001-40314 WHERE FOOD COMES FROM, INC. (exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Colorado 43-1802805 (I.R.S. Employer Identification No.) 202 6 Street, Suite 400 Castle Rock, CO 80104 (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (303) 895-3002 Indicate by check mark ...

Where Food Comes From (WFCF) Q1 2025 Earnings Call May 08, 2025 12:00 PM ET Speaker0 Greetings, and welcome to the Where Food Comes From First Quarter Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jay Pfeiffer of Investor Relations. Please go ahead. Speaker1 Good morning, and welcome to the Where Food Comes From twenty t ...

First Quarter Highlights – 2025 vs. 2024 Verification and certification revenue $4.2 million vs. $4.4 millionProduct sales flat at $0.7 millionTotal revenue $5.3 million vs. $5.6 millionNet income $31,000 vs. $178,000Diluted EPS $0.01 vs. $0.03Company bought back 31,345 shares of its common stock at a cost of $383,000 CASTLE ROCK, Colo., May 08, 2025 (GLOBE NEWSWIRE) -- Where Food Comes From, Inc. (WFCF) (Nasdaq: WFCF), the most trusted resource for independent, third-party verification of food production p ...

CASTLE ROCK, Colo., May 05, 2025 (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 it will release its 2025 first quarter financial results before the market opens on Thursday May 8, 2025, and conduct a conference call the same day at 10:00 a.m. Mountain Time (12:00 p.m. Eastern). Dial-in numbers for the conference call: Domestic Toll Free: 1-877-407-8289 ...

Financial Performance - Total revenue for 2024 increased by 2% to $25.7 million compared to $25.1 million in 2023[9] - Net income for 2024 was $2.1 million, or $0.40 per diluted share, down slightly from $2.2 million, or $0.39 per diluted share in 2023[11] - Verification and certification services revenue for the full year rose by 6% to $20.6 million from $19.4 million[15] - Gross profit for the full year increased slightly to $10.6 million from $10.5 million[10] - Cash generated from operations in 2024 was $2.7 million, compared to $2.8 million in 2023[12] - In Q4 2024, total revenue was flat at $6.7 million, with verification and certification revenue at $5.4 million, down from $5.5 million in Q4 2023[4][6] - Gross profit in Q4 2024 declined by 7% to $2.8 million from $3.0 million in Q4 2023[5] Expenses and Shareholder Returns - Selling, general and administrative expenses for 2024 increased to $8.4 million from $7.8 million, primarily due to higher marketing and personnel costs[11] - The company repurchased a total of 273,057 shares for $3.3 million in 2024, with a total of $13.9 million returned to shareholders since the buyback program began[3] Future Outlook - The company expects to continue utilizing solid cash flows to reduce share float while investing in new programs and services to strengthen its beef business[3]

Core Viewpoint - Where Food Comes From, Inc. (WFCF) reported a mixed performance in Q4 2024, with earnings growth driven by bitcoin investments, but overall revenues remained flat, reflecting challenges in its beef-related verification services [1][2][10]. Earnings Overview - WFCF's diluted earnings per share for Q4 2024 were 18 cents, a 28.6% increase from 14 cents in the same quarter last year, primarily due to a $345,000 gain in bitcoin holdings [2][11]. - Total quarterly revenues were $6.7 million, unchanged from the previous year, while gross profit decreased by 7% to $2.8 million from $3 million [2]. Segmental Performance - Revenues from verification and certification services, which constitute the majority of WFCF's business, fell by 2% to $5.4 million, attributed to lower volumes in beef-related source and age verification due to cyclical herd contractions [3][10]. - Product sales increased by 6% year over year to $922,000, driven by demand for bundled verification solutions and new programs like CARE Certified and Upcycled Certified [4]. - Professional services revenues decreased to $360,000 from $391,000, indicating reduced demand for consulting services [4]. Key Business Metrics - The company maintained a stable gross margin despite changes in revenue composition. SG&A expenses decreased to $2 million from $2.1 million, attributed to higher marketing and personnel costs [5]. - Cash flow from operations was $2.7 million in 2024, slightly down from $2.8 million in 2023, while cash and cash equivalents fell to $2 million from $2.6 million [6]. Management Commentary - CEO John Saunders noted the impact of herd contractions on beef-related verification services but highlighted strong performance in newer offerings like CARE Certified and Upcycled, with the latter seeing a 17% revenue increase [7]. - Management emphasized ongoing investments in marketing and technology to support growth, despite an increase in SG&A expenses [8]. Factors Influencing Results - The decline in beef-related verification revenues was linked to external factors in the cattle industry, but management expects this to be temporary, with demand for other verification programs helping to offset losses [10]. - The company's net income benefited from a fair market value gain of $345,000 from its bitcoin investment, which had an initial investment of $178,000 [11]. Other Developments - WFCF continued its share repurchase program, buying back 57,018 shares in Q4, and has repurchased a total of 1.2 million shares since the program's inception [12]. - Management reiterated its long-term strategy of expanding verification services through organic growth and strategic acquisitions [12]. Outlook - WFCF anticipates continued demand for its verification programs and aims to leverage its unique positioning in the food verification space [13]. - The company plans further share buybacks and investments in technology to support expected customer growth, while remaining open to potential acquisitions [14].

Financial Data and Key Metrics Changes - Total revenue in Q4 2024 was flat at $6.7 million year-over-year [6] - Gross profit in Q4 declined 7% to $2.8 million from $3 million [7] - Net income increased to $961,000 or $0.18 per diluted share from $776,000 or $0.14 per diluted share [7] - Full year total revenue increased 2% to $25.7 million from $25.1 million [9] - Net income for the year was down slightly to $2.1 million or $0.40 per diluted share versus $2.2 million or $0.39 per diluted share in 2023 [15] Business Line Data and Key Metrics Changes - Verification and certification services revenue was down slightly at $5.4 million versus $5.5 million [6] - Product revenue increased 6% to $922,000 from $871,000 [6] - Professional services revenue was $360,000 versus $391,000 [6] - Full year verification and certification services revenue was up 6% to $20.6 million from $19.4 million [9] - Product revenue for the full year was down 5% to $3.8 million from $4 million [10] Market Data and Key Metrics Changes - The traditional beef-related source and age business has been impacted by cyclical herd size reductions [10] - Rising demand in other service offerings has offset lower source and age activities [11] - The Upcycled Certified program saw a 17% year-over-year increase in 2024, becoming the fastest-growing service [13] Company Strategy and Development Direction - The company is focused on enhancing its technology platform and expanding its services portfolio [14][20] - Plans to continue investing in new programs and services to strengthen the beef business and accelerate growth in other offerings [17] - The company aims to leverage its position as a provider for producers, CPGs, distributors, and retailers [22] Management Comments on Operating Environment and Future Outlook - Management believes the decline in beef source and age verifications is a temporary cyclical occurrence [11] - The company is supported by consumer trends around food safety, traceability, and claims verification [21] - Management expressed confidence in the potential for strong growth in individual standards and new offerings [23] Other Important Information - The company repurchased a total of 273,057 shares for $3.3 million or approximately $11.97 per share [16] - Total value returned to stockholders via buybacks and dividends over the past 21 quarters totaled $13.9 million [17] - The company celebrated its 30th anniversary, highlighting its evolution and growth in the industry [18] Q&A Session Summary - No specific questions or answers were documented in the provided content.

Revenue and Income - Verification and certification service revenue for the year ended December 31, 2024 increased approximately $1.1 million, or 5.9%, compared to 2023[126] - Product sales for the year ended December 31, 2024 decreased approximately $0.2 million, or 5.0%, compared to 2023, attributed to a decline in beef cow herd size[128] - Total revenues for the year ended December 31, 2024 were $25.746 million, compared to $25.135 million in 2023[124] - Net income for the year ended December 31, 2024, was approximately $2.1 million or $0.40 per share, a slight decrease from $2.2 million or $0.39 per share in 2023[137] - Dividend income from Progressive Beef, LLC for the year ended December 31, 2024 was $400,000, compared to $320,000 in 2023[134] Costs and Expenses - Costs of revenues for the verification and certification segment for the year ended December 31, 2024 were approximately $14.2 million compared to approximately $13.3 million in 2023[129] - Gross margin for the verification and certification segment for the year ended December 31, 2024 decreased to 41.9% compared to 43.4% in 2023[129] - Selling, general and administrative expenses for the verification and certification segment for the year ended December 31, 2024 increased approximately $0.7 million compared to 2023[130] - Professional services revenue for the year ended December 31, 2024 decreased approximately $0.3 million compared to 2023[131] - Gross margin for the professional services segment improved to 26.5% from 21.3% in 2023[132] Cash Flow and Working Capital - Cash and cash equivalents as of December 31, 2024, were approximately $2.0 million, down from $2.6 million in 2023; working capital decreased from approximately $3.2 million to $2.4 million[138] - Net cash provided by operating activities in 2024 was approximately $2.7 million, compared to $2.8 million in 2023, primarily due to a decline in gross margins in the Verification and Certification Segment[139] - Net cash used in investing activities during 2024 was approximately $0.2 million, a decrease from $0.6 million in 2023, with $0.2 million allocated for the acquisition of Blue Trace in 2023[140] - Net cash used in financing activities was approximately $3.2 million in 2024, down from $3.9 million in 2023, mainly for share repurchases[141] Deferred Revenue and Credit Facilities - Deferred revenue as of December 31, 2024, was approximately $1.7 million, up from $1.4 million in 2023, primarily related to annual certification for third-party audits[154] - The company has a revolving line of credit agreement providing for $75,080 in working capital, with an effective interest rate of 9.0% as of December 31, 2024[147] Industry and Market Conditions - The company is currently in a contraction phase of the cattle industry cycle, which began in 2014, with significant impacts expected from drought and pasture conditions[157] - The company plans to focus on diversification in product offerings and potential acquisitions to capitalize on growing consumer demand[146] Goodwill and Intangible Assets - As of December 31, 2024, the company had approximately $2.9 million of goodwill, with no impairment losses recognized during the year[171] - The company acquired trademarks/tradenames in the Validus acquisition, which were determined to no longer have an indefinite life and will now be amortized over their remaining useful life[181] - The excess of the purchase price over the fair value of net assets acquired in business combinations is recorded as goodwill[186] Accounting Policies and Valuation - The company implemented ASU 2023-08 effective January 1, 2024, requiring digital assets to be measured at fair value with changes recognized in net income each reporting period[184] - Digital assets were previously held as indefinite-lived intangible assets and were recorded at cost, net of impairment losses, as of December 31, 2023[185] - Business combinations are part of the company's growth strategy, with the purchase price allocated to tangible and intangible assets based on estimated fair values at the date of purchase[186] - The company uses various recognized valuation methods, including present value modeling, to determine the fair values of assets acquired and liabilities assumed in business combinations[187] - ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term[177] - The company has ownership and control over its digital assets, which are included in non-current assets on the balance sheet[182] - Indefinite-lived intangible assets are tested for impairment annually, or more frequently if circumstances indicate potential impairment[180] - The company evaluates the remaining useful life of intangible assets not being amortized each reporting period[179]

Core Insights - Where Food Comes From, Inc. (WFCF) reported a 2% increase in total revenue for 2024, reaching $25.7 million compared to $25.1 million in 2023, despite challenges in the beef sector due to herd contraction [4][9] - The company achieved a net income of $2.1 million, or $0.40 per diluted share, slightly down from $2.2 million, or $0.39 per diluted share in the previous year [10] - The company continued its stock buyback program, repurchasing 273,057 shares at a cost of $3.3 million, contributing to a total of $13.9 million returned to shareholders since the program's inception [5][11] Fourth Quarter Highlights - Total revenue for the fourth quarter was flat at $6.7 million, with verification and certification revenue slightly down to $5.4 million from $5.5 million [6][7] - Net income for the fourth quarter increased to $961,000, or $0.18 per diluted share, compared to $776,000, or $0.14 per diluted share in the same quarter of 2023, aided by a $345,000 gain in the fair market value of bitcoin [8][10] - Gross profit in the fourth quarter declined by 7% to $2.8 million from $3.0 million [8] Full Year Highlights - Gross profit for the full year increased slightly to $10.6 million from $10.5 million, while selling, general and administrative expenses rose to $8.4 million from $7.8 million [10] - Cash generated from operations was $2.7 million in 2024, down from $2.8 million in 2023 [10] - The company reported a decrease in cash and cash equivalents to $2.0 million at year-end 2024, compared to $2.6 million at the end of 2023 [19] Revenue Breakdown - Verification and certification services revenue for the full year increased by 6% to $20.6 million from $19.4 million, while product sales decreased by 5% to $3.8 million from $4.0 million [14] - Professional services revenue for the full year was down 19% to $1.4 million from $1.7 million [14]