Where Food Comes From (WFCF) Q2 2026 earnings summary

Executive summary

• Achieved modest revenue growth and solid profitability in Q2 2026 despite ongoing pressure in the beef segment due to fewer cattle and record high beef prices, with total revenue up 1% year-over-year to $6.61M and gross profit up 9% to $2.68M.

• Growth driven by expanding a diverse portfolio of verification and certification solutions, including new standards and certifications such as RaiseWell Certified, which was adopted by Whole Foods and is planned for expansion to other proteins.

• Provides third-party verification and certification services for food production practices, serving over 17,500 customers, including farmers, ranchers, processors, and retailers, primarily in the United States.

• Strategic partnerships and new initiatives, such as with the Potato Sustainability Alliance and USDA biochar certification, are broadening the company's reach.

• Business is subject to seasonal and cyclical fluctuations, particularly tied to the cattle industry.

Financial highlights

• Q2 2026 total revenue: $6.61M (+1% YoY); verification and certification revenue at $5.39M (+1.1% YoY); six-month revenue: $12.0M (+1.2% YoY); verification and certification revenue: $9.81M (+3.1% YoY).

• Q2 gross profit: $2.68M (+9% YoY); gross margin improved to 40.6% from 37.5% YoY.

• Q2 operating income: $665K (+21% YoY); six-month operating income: $963K (+39% YoY).

• Q2 net income: $413K ($0.08/share) vs. $562K ($0.11/share) YoY, impacted by a $240K non-cash digital asset loss; six-month net income: $505K ($0.10/share) vs. $593K ($0.11/share) YoY, with a $299K non-cash digital asset loss.

• Cash and equivalents at June 30, 2026 were $3.42M, up from $3.2M at year-end 2025; cash from operations YTD was $1.46M, down from $1.81M YoY.

Outlook and guidance

• Management expects current cash and cash flow from operations to be sufficient for capital and working capital needs for at least the next twelve months.

• Renewed focus on M&A to accelerate growth after a three-year pause, with a shelf registration planned to enable financial flexibility for future transactions; no imminent M&A deals but preparing to act opportunistically.

• Ongoing focus on profitability, long-term capital solutions, and potential acquisitions or divestitures.

• Management remains optimistic about growth in premium verified beef and non-beef programs, with RaiseWell Certified gaining traction and more than 270,000 cattle enrolled.

• Industry headwinds include cattle supply contraction, inflation, tariffs, and weather-related risks.