Where Food Comes From (NASDAQ:WFCF) detailed its 2025 fourth-quarter and full-year results on its earnings call, pointing to continued customer wins and growth in non-beef verification services even as industry-wide cattle supply constraints and tariffs weighed on its beef-related activity.
Full-year results and Q4 headwinds
CEO John Saunders said the company reported 2025 total revenue of $24.9 million and net income of $1.5 million, or $0.30 per share. Saunders said steady growth from new customers and non-beef-related revenue streams was offset by declines in beef-related verification activity tied to smaller herd sizes and the impact of tariffs.
Executive bonus decision to offset forecast miss
Saunders said the packing plant closure had a significant impact on internal projections that management and the board used when determining discretionary bonuses for the year. As a result, he said executive management decided to return their bonus compensation to the company.
According to Saunders, this decision will reduce compensation expense in selling, general and administrative costs, and the company expects its income statement in the first-quarter Form 10-Q to reflect that benefit.
Cattle cycle pressures and expectations for rebuilding
Management reiterated that U.S. herd sizes have been shrinking due to drought, higher production costs, and other factors, and Saunders said the U.S. cattle supply is at a 70-year low. He noted that tight supply has led to record high beef prices and that some ranchers have reduced investment in certain verifications, impacting both the company’s verification activity and tag sales.
At the same time, Saunders said there are indications the cattle contraction phase may be at or near a bottom, and he expects the industry to begin rebuilding cattle supply over the next couple of years. He said the company has been expanding its services portfolio with new certifications and working on programs in other proteins to position itself for growth as the recovery develops.
New and expanding programs: RaiseWell, sustainable leather, and traceability
Saunders highlighted several initiatives the company believes support long-term opportunity, including a new program and partnerships aimed at broadening the company’s reach across the supply chain.
- RaiseWell Certified: The company recently launched RaiseWell Certified, which Saunders described as a new standard for animal care, verified natural raising practices, and traceable supply chains. He said the program is designed for brands, high-end retailers, and food service operators seeking differentiation based on certified production practices, including requirements such as no antibiotics or added hormones and verified source of origin. The company plans to roll out RaiseWell in stages, starting with beef and expanding over time to poultry, eggs, dairy, and pork.
- Whole Foods adoption: Saunders said Whole Foods Market became the first major retailer to adopt the RaiseWell program, calling it an important endorsement he believes could support broader retailer adoption over time.
- Integration with CARE Certified: He said RaiseWell Certified integrates with the company’s CARE Certified standard, enabling producers and retailers to bundle claims and assemble “audit-ready” packages that can include attributes such as pasture-raised, outdoor access, and grass-fed.
- Transparency in Motion (leather collaboration): Saunders also described a collaboration with global automotive leather supplier Pangea, working alongside Walmart and Prime Pursuits, to introduce CARE Certified sustainable leather to U.S. automotive brands through a program called Transparency in Motion. He said the initiative is intended to use verifiable practices to confirm how materials are raised, cared for, and processed, and described Pangea as the first leather provider in North America to achieve traceability at that level.
- Animal disease traceability (ADT): Saunders reiterated that the U.S. does not have a mandatory cattle traceability program, which he said is essential for managing and containing animal disease outbreaks. He said the company has invested significant resources to position itself for what it views as an inevitable adoption of a formal ADT program. He also said IMI Global is working closely with U.S. CattleTrace, a producer-led private industry database, and that IMI Global serves as the administrator, providing technical infrastructure and operational expertise while emphasizing producer-driven governance and data privacy. Saunders said the group is engaging with U.S. government representatives and entities to explore ways to advance and formalize an ADT solution.
Non-beef growth, service bundling, and capital return
While describing near-term disruption in the cattle industry, Saunders emphasized that the company’s non-beef business lines continued to “grow and prosper.” He said verifications for pork, dairy, and egg operations increased year-over-year, and that the CARE Certified program continued to attract new customers across multiple proteins. Saunders also said certification activity for organic, non-GMO, gluten-free, and upcycled showed gains.
He pointed to the company’s ability to bundle services as a competitive advantage that can save customers time and money while supporting revenue growth and strengthening margins.
On capital allocation, Saunders said the company believes its shares represent “an excellent value” at current levels and expects to continue repurchasing stock in 2026. He reported that in 2025 the company repurchased 183,016 shares, bringing total share buybacks and private purchases since the plan’s inception to 1,374,652 shares, representing $15.2 million in value returned to shareholders.
About Where Food Comes From (NASDAQ:WFCF)
Where Food Comes From, Inc (NASDAQ: WFCF) is a food traceability and certification company headquartered in Caldwell, Idaho. Established from a ranch-to-plate verification program launched in 2005, the company now offers a suite of services designed to authenticate product attributes, verify production claims and enhance supply-chain transparency for agricultural producers and food brands.
The company’s core offerings include third-party certification audits, program development, on-farm risk assessments and digital traceability solutions.
