Thu, May 8, 5:38 PM (4 days ago)
**Where Food Comes From, Inc. (WFCF) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue for Q1 2025 was $5,273,000, down from $5,582,000 in Q1 2024. - **Verification and certification service revenue:** $4,182,000 (down from $4,434,000). - **Product sales:** $702,000 (down from $733,000). - **Professional services:** $389,000 (down from $415,000). - **Profit Margins:** Gross profit margin was 41.6% in Q1 2025, down from 41.7% in Q1 2024. Operating margin was 2.7% in Q1 2025, down from 4.7% in Q1 2024. - **Net Income:** Net income was $31,000, down from $178,000 in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $632,000, down from $700,000 in Q1 2024. Net cash used in investing activities was $29,000, down from $24,000 in Q1 2024. Net cash used in financing activities was $377,000, down from $1,435,000 in Q1 2024. - **Earnings Changes:** Earnings per share (EPS) was $0.01, down from $0.03 in Q1 2024. **Trends and Uncertainties:** - **Seasonality:** WFCF's business is subject to seasonal fluctuations, with significant revenue typically realized during late May through early October. - **Cyclical Industry:** The cattle industry, a significant part of WFCF's business, is cyclical and subject to factors like drought and pasture conditions. - **Inflation and Labor Market:** Increased costs due to inflation and a tight labor market have impacted profit margins. - **Avian Influenza:** Delayed poultry audits due to Avian Influenza have negatively impacted revenue. **Future Operations and Impact:** - **Growth Strategy:** WFCF plans to focus on diversification, bundling opportunities, and potential acquisitions for growth. - **Liquidity:** WFCF has adequate liquidity to finance current operations, with cash and cash equivalents of $2,238,000 as of March 31, 2025. - **Debt Facility:** WFCF's revolving line of credit matured on April 12, 2025, with no amounts outstanding as of March 31, 2025. - **Stock Buyback:** WFCF repurchased 31,345 shares under its Stock Buyback Plan during Q1 2025.