Where Food Comes From, Inc. reported its financial results for the first quarter of 2025, revealing a decrease in total revenue to $5.3 million from $5.6 million in the same period of 2024. Verification and certification revenue saw a reduction to $4.2 million from $4.4 million, while product sales remained unchanged at $0.7 million. The company experienced a decline in net income, reporting $31,000 compared to $178,000 in the previous year, with diluted earnings per share decreasing from $0.03 to $0.01. The company's revenue from professional services remained flat at $0.4 million. Despite these challenges, Where Food Comes From, Inc. maintained a stable gross margin of 41.6% and kept selling, general, and administrative expenses steady at $2.1 million. Cash provided by operations was slightly lower, at $0.6 million compared to $0.7 million in the prior year. The company faced headwinds in its beef verification business due to smaller herd sizes and high beef prices, compounded by the cessation of beef exports to China caused by tariffs. Additionally, disruptions were noted in the poultry and dairy cow verification sectors due to high path avian influenza. However, the company expressed optimism about its long-term growth prospects, highlighting the addition of two major food retailers to its labeling program and the growth of its Upcycled Certified® program. Furthermore, the company continued its share buyback initiative, repurchasing 31,345 shares at a cost of $383,000.
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