Where Food Comes From, Inc. (Nasdaq: WFCF) reported financial results for the third quarter and nine-month periods ended September 30, 2026, filing an -K with the SEC on November 12, 2026. The company, which provides third-party verification of food production practices, announced that total revenue for the third quarter increased 4% year-over-year to $7.3 million, driven by a 6% increase in verification and certification services to $5.9 million. Product sales remained flat at $1.2 million, while professional services revenue decreased to $218,000 from $257,000 in the prior year.
Gross margins improved significantly during the third quarter, rising 380 basis points to 42.1% from 38.3% in the same period last year. This improvement was attributed to operational efficiencies and cost-down initiatives. Operating income increased 68% to $1.0 million from $0.6 million in the prior year.
Net income for the third quarter was $825,000, or $0.17 per diluted share, compared to $1.146 million, or $0.22 per diluted share, in the prior year. The company noted that the year-ago net income included a $946,000 gain on the sale of assets related to the divestiture of its Progressive Beef interest. For the nine months ended September 30, 2026, total revenue increased 2% to $19.3 million, with verification and certification services growing 4% to $15.7 million. Gross margins for the nine-month period increased to 40.5% from 38.9%, and operating income rose 52% to $1.9 million.
On the balance sheet, cash and cash equivalents totaled $4.4 million as of September 30, 2026, representing a 39% increase from $3.2 million at December 31, 2025. The company returned $268,000 in value to stockholders during the third quarter through the repurchase of 21,170 shares of common stock. Over the past seven years, the company has returned $17.5 million to shareholders through buybacks and a special dividend.
