ReposiTrak Delivers 16% Quarterly Revenue Growth and 27% Increase in Net Income; Third Fiscal Quarter EPS of $0.10

Growth Across All Business Lines Drives Double-Digit Increase in Revenue

SALT LAKE CITY--(BUSINESS WIRE)-- ReposiTrak (NYSE: TRAK), the world's largest food traceability and regulatory compliance network, built upon its proven inventory management and out-of-stock reduction SaaS platform, today announced financial results for the third fiscal quarter (“FQ3 2025”) ended March 31, 2025.

Third Fiscal Quarter Financial Highlights:

• Third quarter total revenue increased 16% to $5.9 million from $5.1 million.
• 98% of the revenue in the quarter was recurring.
• Quarterly operating expense increased 7% to $4.1 million from $3.8 million.
• Quarterly operating income increased 43% to $1.8 million from $1.3 million last year.
• Quarterly GAAP net income increased 27% to $2.0 million from $1.6 million last year.
• Quarterly net income to common shareholders increased 33% to $1.9 million from $1.4 million last year.
• Quarterly diluted EPS of $0.10 compared to $0.08 in the prior year third fiscal quarter.
• The Company finished the quarter with over $28.1 million in cash and no bank debt.
• During the quarter, the Company redeemed 70,093 preferred shares for the stated redemption price of $10.70 per share for a total of $749,995 and paid $331,000 in cash dividends to common shareholders.

Randall K. Fields, Chairman and CEO of ReposiTrak commented, “We again delivered growth across all business lines – traceability, compliance and supply chain – driven by accelerated cross-selling. This led to double-digit revenue increases for both the third fiscal quarter and the first nine months of the fiscal year. The onboarding of traceability customers continues to exceed our expectations and has now shifted from primarily retailers to mostly suppliers, who are ensuring their operations meet the demands of their retail customers. Downstream suppliers, once thought to have limited market potential, are now being brought in by upstream customers expanding our total addressable market or TAM.”

“Simultaneously, we continue to enhance our automation to effectively, efficiently, and accurately onboard these customers,” continued Mr. Fields. “The much-welcomed FDA delay in enforcing compliance will enable us to make certain that the onboarding process is smooth, that data is of high quality and that our customers recognize the value of our solutions. Our automation continues to drive efficiency, as more than 70% of our new traceability suppliers are now joining the ReposiTrak Traceability Network (RTN) using our automated wizard and with little or no human intervention. We continue to focus on productivity and time-saving initiatives to drive efficiency.”

“The network effect is accelerating,” concluded Mr. Fields. “Larger suppliers are bringing smaller ingredient providers into the network, and we’re driving an increase in cross-selling. Our traceability, compliance, and supply chain solutions all share a common technology platform, creating a simple, end-to-end solution that is cost-effective and simple for customers to use. Higher cross-selling and greater scale is leading to accelerating profitability and cash generation.”

Third Fiscal Quarter Financial Results (three months ended March 31, 2025, vs. three months ended March 31, 2024):

Total revenue was up 16.3% to $5.9 million as compared to $5.1 million in the prior-year third quarter. Total operating expense was $4.1 million, up 7.4% compared to $3.8 million last year. General and administrative expense increased by 7.7%, and sales and marketing expense increased 4.4%, related to investments in Traceability. GAAP net income was $2.0 million compared to $1.6 million, an increase of 26.8%. Net income to common shareholders increased 32.8% to $1.9 million, or $0.10 per diluted share, compared to $1.4 million, or $0.08 per diluted share.

Year-to-Date Financial Results (nine months ended March 31, 2025, vs. nine months ended March 31, 2024):

Total revenue was up 10.3% to $16.9 million as compared to $15.3 million in the prior-year nine-month period. Total operating expense was $12.2 million, up 5.5% compared to $11.6 million last year. General and administrative expense increased by 3.7%, and sales and marketing expense increased 6.6%. GAAP net income was $5.2 million compared to $4.4 million, an increase of 18.3%. Net income to common shareholders increased 23.8% to $4.9 million, or $0.26 per diluted share, compared to $4.0 million, or $0.21 per diluted share.

Return of Capital:

In the third quarter of fiscal 2025, the Company redeemed 70,093 preferred shares at the stated redemption price of $10.70 per share for a total of $749,995. To date, the Company has redeemed 431,586 shares of preferred stock for a total of $4.6 million. The remaining amount of the preferred shares available for redemption is $4.3 million. As announced in September of 2023, the Company anticipates redeeming all of its preferred shares issued and outstanding within three years. During the quarter, ReposiTrak did not repurchase any common shares, and the Company has approximately $7.9 million remaining of the $21 million total common share buyback authorization.

On March 21, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.01815 per quarter ($0.0726 per share annually) to shareholders of record on March 31, 2025. The cash dividends will be paid to shareholders of record on or about May 15, 2025. Subsequent dividends will be paid within 45 days of each fiscal quarter end.

Balance Sheet:

The Company had $28.1 million in cash and cash equivalents at March 31, 2025, compared to $25.2 million at June 30, 2024, an 11.9% increase. The Company has certain operating and capital leases for its headquarters and equipment; however, it carries no bank debt.

Conference Call:

The Company will host a conference call at 4:15 p.m. Eastern today to discuss the Company’s results. The conference call will also be webcast and will be available via the investor relations section of the Company’s website, www.repositrak.com.

Participant Dial-In Numbers:
Date: Thursday, May 15, 2025
Time: 4:15 p.m. ET (1:15 p.m. PT)
Toll-Free: 1-877-407-9716
Toll/International 1-201-493-6779
Conference ID: 13753662

Replay Dial-In Numbers:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Conference ID: 13753662
Replay Start: Thursday, May 15, 2025, 7:15 p.m. ET
Replay Expiry: Sunday, June 15, 2025, at 11:59 p.m. ET

About ReposiTrak:

ReposiTrak (NYSE: TRAK) provides retailers, suppliers, food manufacturers and wholesalers with a robust solution suite to help reduce risk and remain in compliance with regulatory requirements, enhance operational controls and increase sales with unrivaled brand protection. Consisting of three product families – food traceability, compliance and risk management and supply chain solutions – ReposiTrak’s integrated, cloud-based applications are supported by an unparalleled team of experts. For more information, please visit https://repositrak.com

Forward-Looking Statement

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “if”, “should” and “will” and similar expressions as they relate to ReposiTrak Inc. (“ReposiTrak”) are intended to identify such forward-looking statements. ReposiTrak may from time-to-time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see “Risk Factors” in ReposiTrak annual report on Form 10-K, its quarterly report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

REPOSITRAK, INC. Consolidated Condensed Balance Sheets (Unaudited)
	March 31,				June 30,
	2025				2024
Assets
Current Assets
Cash	$	28,134,321			$	25,153,862
Receivables, net of allowance for doubtful accounts of $231,652 and $227,573 at March 31, 2025 and June 30, 2024, respectively		3,600,712				3,678,627
Contract asset – unbilled current portion		605,717				181,680
Prepaid expense and other current assets		411,625				285,998
Total Current Assets		32,752,375				29,300,167
Property and equipment, net		746,246				513,277
Other Assets:
Deposits and other assets		22,414				22,414
Prepaid expense – less current portion		1,435				2,609
Contract asset – unbilled long-term portion		-				108,052
Operating lease – right-of-use asset		202,920				250,306
Customer relationships		32,850				131,400
Goodwill		20,883,886				20,883,886
Capitalized software costs, net		192,310				384,621
Total Other Assets		21,335,815				21,783,288
Total Assets	$	54,834,436			$	51,596,732
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	286,832			$	265,086
Accrued liabilities		1,173,033				1,554,775
Contract liability – deferred revenue		3,675,880				2,441,234
Operating lease liability – current		68,244				64,076
Notes payable and financing leases – current		230,187				217,971
Total current liabilities		5,434,176				4,543,142
Long-term liabilities
Operating lease liability – less current portion		147,432				198,972
Notes payable and financing leases – less current portion		331,762				-
Total liabilities		5,913,370				4,742,114
Commitments and contingencies
Stockholders’ equity:
Preferred Stock; $0.01 par value, 30,000,000 shares authorized;
Series B Preferred, 700,000 shares authorized; 406,191 and 616,470 shares issued and outstanding at March 31, 2025 and June 30, 2024, respectively		4,062				6,165
Common Stock, $0.01 par value, 50,000,000 shares authorized; 18,276,381 and 18,234,893 and issued and outstanding at March 31, 2025 and June 30, 2024, respectively		182,766				182,351
Additional paid-in capital		62,927,551				64,655,902
Accumulated other comprehensive loss		(12,280	)			(27,390	)
Accumulated deficit		(14,181,033	)			(17,962,410	)
Total stockholders’ equity		48,921,066				46,854,618
Total liabilities and stockholders’ equity	$	54,834,436			$	51,596,732

REPOSITRAK, INC. Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited)
	Three Months Ended								Nine Months Ended
	March 31,								March 31,
	2025				2024				2025				2024
Revenue	$	5,913,732			$	5,084,866			$	16,845,782			$	15,270,729
Operating expense:
Cost of revenue and product support		911,693				831,912				2,773,468				2,571,533
Sales and marketing		1,408,861				1,349,838				4,392,997				4,119,716
General and administrative		1,455,602				1,352,197				4,124,706				3,978,798
Depreciation and amortization		328,723				288,576				913,646				897,479
Total operating expense		4,104,879				3,822,523				12,204,817				11,567,526
Income from operations		1,808,853				1,262,343				4,640,965				3,703,203
Other income (expense):
Interest income		326,388				350,691				1,030,554				925,297
Interest expense		(12,817	)			(8,036	)			(35,022	)			(21,956	)
Unrealized gain (loss) on short term investments		(6,705	)			5,429				(2,438	)			48,071
Income before income taxes		2,115,719				1,610,427				5,634,059				4,654,615
(Provision) for income taxes:		(149,931	)			(60,000	)			(452,036	)			(274,491	)
Net income		1,965,788				1,550,427				5,182,023				4,380,124
Dividends on preferred stock		(85,725	)			(134,345	)			(289,223	)			(427,567	)
Net income applicable to common shareholders	$	1,880,063			$	1,416,082			$	4,892,800			$	3,952,557
Weighted average shares, basic		18,254,000				18,194,000				18,249,000				18,194,000
Weighted average shares, diluted		19,143,000				18,954,000				19,122,000				18,874,000
Basic income per share	$	0.10			$	0.08			$	0.27			$	0.22
Diluted income per share	$	0.10			$	0.08			$	0.26			$	0.21
Comprehensive income:
Net income	$	1,965,788			$	1,550,427			$	5,182,023			$	4,380,124
Other comprehensive gain:
Unrealized gain (loss) on available-for-sale securities		(3,759	)			(25,102	)			15,110				(31,006	)
Total comprehensive income	$	1,962,029			$	1,525,325			$	5,197,133			$	4,349,118

REPOSITRAK, INC. Consolidated Condensed Statements of Cash Flows (Unaudited)
	Nine Months Ended
	March 31,
	2025				2024
Cash flows from operating activities:
Net income	$	5,182,023			$	4,380,124
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		913,646				897,479
Amortization of operating right of use asset		47,386				45,070
Stock compensation expense		302,251				260,853
Bad debt expense		450,000				225,000
(Increase) decrease in:
Accounts receivables		(796,122	)			(1,439,014	)
Long-term receivables, prepaids and other assets		(208,916	)			751
Increase (decrease) in:
Accounts payable		21,746				79,025
Operating lease liability		(47,372	)			(43,417	)
Accrued liabilities		(335,917	)			(58,391	)
Deferred revenue		1,234,646				563,261
Net cash provided by operating activities		6,763,371				4,910,741
Cash flows from investing activities:
Purchase of property and equipment		(8,795	)			(17,532	)
Sale (purchase) of marketable securities		15,110				(31,006	)
Net cash provided by (used in) investing activities		6,315				(48,538	)
Cash flows from financing activities:
Common Stock buyback/retirement		(100,016	)			(1,515,574	)
Redemption of Series B Preferred		(2,249,975	)			-
Redemption of Series B-1 Preferred		-				(1,499,990	)
Proceeds from exercise of warrants		79,120				-
Proceeds from employee stock plan		134,345				111,839
Dividends paid		(1,342,235	)			(1,286,657	)
Payments on notes payable and capital leases		(310,466	)			(210,020	)
Net cash used in financing activities		(3,789,227	)			(4,400,402	)
Net increase (decrease) in cash and cash equivalents		2,980,459				461,801
Cash and cash equivalents at beginning of period		25,153,862				23,990,879
Cash and cash equivalents at end of period	$	28,134,321			$	24,452,680
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	375,119			$	317,944
Cash paid for interest	$	7,769			$	11,711
Cash paid for operating leases	$	56,244			$	54,606
Supplemental disclosure of non-cash investing and financing activities:
Common stock to pay accrued liabilities	$	259,302			$	445,980
Dividends accrued on preferred stock	$	289,223			$	427,567
Right-of-use asset	$	654,444			$	-

 

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Investor Relations Contact:

John Merrill, CFO

Investor-relations@repositrak.com

Or

FNK IR

Rob Fink

646.809.4048

rob@fnkir.com

Source: ReposiTrak Inc.