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Repositrak Inc

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)--May 15, 2025-- 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 (ninemonths 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

 

 

$

-

 

 

Investor Relations Contact:
John Merrill, CFO
Investor-relations@repositrak.com

Or
FNK IR
Rob Fink
646.809.4048
rob@fnkir.com

Source: ReposiTrak Inc.