The return to profitability and 6% growth in verification revenue are modest positives, but gross margin compression and declining operating cash flow temper the outlook. Monitor Q2 for RaiseWell revenue contribution and whether gross margins stabilize. The stock's micro-cap nature means any news flow on the cattle disease traceability opportunity could drive outsized moves.
Price Chart
Executive Summary
Where Food Comes From reported Q1 2026 revenue of $5.4M (+1.7% YoY) and net income of $92K ($0.02/diluted share), recovering from a net loss in Q4 2025. Verification & certification revenue grew 6% to $4.4M, driven by new customer wins and the RaiseWell program launch with Whole Foods Market. However, gross margins compressed to 39% from 42% due to higher insurance and personnel costs, and operating cash flow declined to $523K from $632K.
Key Financial Metrics
Key Facts
- Total revenue $5.4M vs $5.3M YoY (+1.7%)
- Net income $92K ($0.02/diluted) vs $31K ($0.01/diluted) YoY
- Verification & certification revenue $4.4M vs $4.2M YoY (+6%)
- Gross margin declined to 39% from 42% YoY
- SG&A reduced 15% to $1.7M from $2.1M (management waived 2025 bonuses)
- Operating cash flow $523K vs $632K YoY
- Bought back 24,469 shares for $293K in Q1
- RaiseWell program launched with Whole Foods Market as first major retailer
Financial Impact
Revenue up ~$92K YoY; net income up $61K; gross profit down $152K
Risk Factors
- Continued beef industry headwinds from tariffs and small herd sizes
- Gross margin pressure from higher insurance and personnel costs
- Declining operating cash flow ($523K vs $632K)
- Low revenue growth rate (~2%) limits upside without a catalyst
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-023412 |
| Exhibit: ex99-2.htm | 0001493152-26-023412 |
| Document: form8-k.htm | 0001493152-26-023412 |
| Document: 0001493152-26-023412-index-headers.html | 0001493152-26-023412 |
| Document: 0001493152-26-023412-index.html | 0001493152-26-023412 |
| Document: 0001493152-26-023412.txt | 0001493152-26-023412 |
| 8-K Data (Synthetic) | 0001493152-26-023412 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 5, 2026 21d ago | Press Release | $12.76 $13.36 | ▲ +4.70% | ▲ +4.28% | $14.76 (+15.67%) |
Oct 1, 2026 25d ago | EFFECT | $12.94 $13.99 | ▲ +8.11% | ▲ +6.81% | $14.76 (+14.06%) |
Sep 25, 2026 4w ago | S-3/A | $10.79 $12.73 | ▲ +17.96% | ▲ +18.18% | $14.76 (+36.77%) |
Sep 22, 2026 4w ago | S-3/A | $11.70 $10.90 | ▼ −6.84% | ▼ −5.65% | $14.76 (+26.15%) |
Sep 18, 2026 5w ago | S-3/A | $11.03 $10.79 | ▼ −2.16% | ▼ −3.43% | $14.76 (+33.82%) |
Sep 15, 2026 5w ago | 10-Q/A | $13.00 $11.03 | ▼ −15.15% | ▼ −15.97% | $14.76 (+13.54%) |
Sep 9, 2026 6w ago | 10-K/A | $12.70 $13.10 | ▼ −3.15% | ▼ −4.24% | $14.76 (−16.22%) |
Aug 10, 2026 11w ago | 8-K | $12.56 $12.34 | ▼ −1.71% | ▼ −1.67% | $14.76 (+17.56%) |
Aug 6, 2026 11w ago | S-3 | $12.69 $12.50 | ▼ −1.50% | ▼ −2.71% | $14.76 (+16.31%) |
Aug 6, 2026 11w ago | Press Release | $12.69 $12.50 | ▼ −1.50% | ▼ −2.71% | $14.76 (+16.31%) |
US Market Status
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