Where Food Comes From, Inc. Q1 FY2025 earnings call

• Total revenue declined 6% YoY in Q1 2025 due to headwinds. Verification and certification services segment hit by fewer cattle and drought. - Beef prices at record highs, but may affect customer engagement though retention rates high. - Net income $31,000 vs $178,000 YoY, but adjusted basis satisfied due to cost management. - Bought back 31,345 shares at $383,000. - Upcycled Certified program growing rapidly, global food market for upcycling expected to grow. - Retail labeling program added two retailers, CARE Certified program supports sustainability and enhances brand visibility.

Total revenue declined by approximately 6% year-over-year. The verification and certification services segment saw revenue $252,000 lower than Q1 last year, with beef verification business representing roughly 50% of revenue mix. Poultry and dairy cow verification businesses were disrupted by avian influenza outbreaks but offset by increased demand for biosecurity services. Upcycled Certified program, the fastest-growing service offering, had total certifications grow 70% year-over-year in 2024 and 10% in Q1 2025, with 111 companies and 628 products certified. Fee-based retail labeling program added two prominent retailers, with initial launch at 20 stores and expectation of adding 111 locations during the year, potentially more depending on rollout success.

• Retail labeling program initial launch with two customers at 20 stores, expects 111 more locations in 2025. - Potential for hundreds more stores from one customer depending on 2025 rollout success.

• Cyclical herd size reduction and drought affecting verification and certification services. - Avian influenza outbreaks disrupting poultry and dairy cow verification. - Yahoo Finance policy causing issues with news release mention of Bitcoin, as their policy doesn't publish news with cryptocurrency-related terms.

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