Where Food Comes From, Inc. Q1 FY2026 earnings call

• Overall Financial Performance

  • The company returned to profitability in Q1 2026 and achieved low single-digit year-over-year total revenue growth despite ongoing industry headwinds including tariffs and reduced national cattle herd sizes.
  • Growth was driven by consistent new customer acquisition, fueled by rising market demand for the company's range of food verification and certification services, with many new customers coming from the beef segment despite industry challenges.

• New Product Launch: Raise Well Program

  • The company launched the new Raise Well responsible livestock verification program in Q1 2026, designed for premium protein brands, high-end retailers, and foodservice operators targeting consumers seeking source-verified, responsibly raised protein.
  • The program requires no antibiotics, no added hormones, and compliance with strict animal welfare standards throughout the animal's lifecycle, and is available for beef, pork, bison, lamb, poultry, eggs, and dairy.
  • Whole Foods Market signed on as the first major retail adopter of the program for its beef supply, and the program is already generating meaningful revenue for the company.

• Diversified Business Growth

  • Non-beef verification and certification lines continued solid growth momentum in Q1 2026, including pork, dairy, and egg operations. Growth was also seen in organic, non-GMO, gluten-free, and upcycled food certifications.
  • The company leverages its broad solutions portfolio through customer bundling incentives that save customers time and money, supporting cross-segment growth.

• Product Segment Operations

  • While product sales volumes were lower in line with reduced cattle herd sizes and temporary tag subsidies for ranchers, average selling prices increased due to higher demand for premium, feature-rich cattle tags preferred by ranchers, leading to a slight net year-over-year revenue increase.

• Capital Return Program

  • The company continues its active stock repurchase program. It repurchased 24,469 common shares in Q1 2026 at a total cost of $293,000. Cumulative repurchases since program inception (including private purchases) total 1,399,121 shares at a cost of approximately $15.5 million.

Where Food Comes From operates two primary business segments: Verification and Certification, and Product Sales. For Q1 2026:

1. Verification and Certification: Revenue grew 6% year-over-year to $4.4 million, representing 81.5% of the company's total Q1 2026 revenue.
2. Product Sales: Revenue increased slightly year-over-year to $713,000, representing 13.2% of the company's total Q1 2026 revenue. Total company revenue for Q1 2026 was $5.4 million, a nearly 2% increase year-over-year.

Management reaffirmed long-term optimism for profitable sustainable growth of the business and confirmed that the existing stock repurchase program will continue. No specific short-term or medium-term quantitative financial guidance was provided, nor were any upward or downward revisions to prior guidance announced.

• Persistent industry headwinds: ongoing tariff impacts and sustained smaller national cattle herd sizes that reduce volumes for beef-related products and services.
• Animal disease outbreak risk: the New World screwworm outbreak in the Mexican cattle industry is moving northward and now affects Mexican states bordering Texas. There is risk of cross-border spread into the U.S. that could disrupt the U.S. cattle industry.

There were no investor or analyst questions submitted during the Q&A portion of the earnings call.