ReposiTrak(TRAK)
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ReposiTrak(TRAK) - 2026 Q2 - Quarterly Results
2026-02-19 21:24
Exhibit 99.1 ReposiTrak Second Quarter Fiscal 2026 Revenue Increases 7% to $5.9 Million; Earnings Per Share Increases 13% Q2 Operating Income Increases 34% to $1.8 Million, or 31% Operating Margin; Net Income to Common Shareholders Increases 13% to $1.6 Million Salt Lake City, UT – February 17, 2026 –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 r ...
ReposiTrak, Inc. (NYSE:TRAK) Earnings Report Highlights
Financial Modeling Prep· 2026-02-18 13:05
ReposiTrak reported an EPS of $0.08, slightly below the estimated $0.09 but exceeded revenue expectations with $5.9 million.The company saw a 7% increase in total revenue, reaching $5.9 million up from $5.5 million the previous year.TRAK's financial health is solid with a P/E ratio of approximately 25.36, a low debt-to-equity ratio of 0.008, and a current ratio of approximately 5.45.ReposiTrak, Inc. (NYSE:TRAK) is a leading player in the food traceability and regulatory compliance sector. The company is kno ...
ReposiTrak(TRAK) - 2026 Q2 - Quarterly Report
2026-02-17 22:30
Revenue Performance - Revenue for the three months ended December 31, 2025, was $5,856,811, representing a 7% increase from $5,490,908 in the same period of 2024, driven by growth in recurring subscription revenue across all business lines [84]. - Revenue for the six months ended December 31, 2025, was $11,828,278, an 8% increase from $10,932,050 in 2024, driven by growth in recurring subscription revenue across all business lines [94]. Cost Management - Cost of services and product support decreased by 15% to $853,744 from $1,002,556, primarily due to capitalizing certain development costs related to enhancements and new software programs [86]. - Cost of services and product support decreased by 8% to $1,707,896 for the six months ended December 31, 2025, down from $1,861,775 in 2024, due to capitalized development costs [96]. - Depreciation and amortization expenses decreased by 27% to $223,930 from $304,712, as certain leased assets became fully amortized [90]. - Depreciation and amortization expense decreased by 20% to $467,676 for the six months ended December 31, 2025, down from $584,923 in 2024, due to certain leased assets becoming fully amortized [100]. Expenses Overview - Sales and marketing expenses increased by 3% to $1,494,342 from $1,455,036, attributed to higher sales commissions and marketing investments related to FSMA 204 traceability awareness [87]. - Sales and marketing expenses increased by 4% to $3,101,811 for the six months ended December 31, 2025, compared to $2,984,136 in 2024, primarily due to higher sales commissions and marketing investments [97]. - General and administrative expenses rose by 7% to $1,467,862 from $1,376,553, mainly due to increased employee benefit costs and higher insurance premiums [89]. - General and administrative expenses rose by 6% to $2,840,089 for the six months ended December 31, 2025, from $2,669,104 in 2024, attributed to higher employee benefit costs and insurance [98]. Cash Flow and Liquidity - Net cash provided by operating activities decreased by 29% to $3,776,672 for the six months ended December 31, 2025, compared to $5,328,630 in 2024, primarily due to an increase in accounts receivable [107]. - Cash and cash equivalents increased to $28,706,493 as of December 31, 2025, from $28,568,805 as of June 30, 2025, reflecting higher revenue and cash receipts from customers [106]. - Cash and cash equivalents amounted to $28,706,493 with an average interest rate of 4.57% as of December 31, 2025 [141]. - The Company maintains over $22 million in cash, resulting in a current ratio of over 6:1 as of March 31, 2023 [115]. - Management anticipates continued increases in cash flow from operations and working capital in future periods [117]. Dividends and Stock - The company declared a quarterly cash dividend of $0.02 per share, representing an annual yield of approximately 0.65% based on the closing prices on December 31, 2025 [77]. - The quarterly cash dividend was increased by 10% to $0.0165 per share starting December 2023, with another 10% increase to $0.01815 per share announced for September 2024 [117]. - Preferred dividends decreased by 48% to $105,368 for the six months ended December 31, 2025, from $203,498 in 2024, due to the redemption and retirement of Preferred Stock [102]. - A total of 641,865 shares of Preferred Stock have been redeemed at a price of $10.70 per share, totaling $6,867,956, with $2.10 million of Series B Preferred remaining to be redeemed [118]. Regulatory Compliance and Opportunities - The ReposiTrak Traceability Network is positioned to provide end-to-end traceability, connecting thousands of suppliers and retailers, addressing the growing demand for compliance with FSMA 204 [82]. - The compliance deadline for FSMA 204 was extended to July 20, 2028, indicating a significant opportunity for the company to support clients in meeting regulatory requirements [81]. - The company continues to focus on recurring subscription revenue, deemphasizing non-recurring transactional revenue to enhance long-term financial stability [85]. Debt and Obligations - The Company had zero bank debt as of December 31, 2025, and chose not to renew the Revolving Credit Agreement due to a strong financial position [116]. - The balance of the revolving credit facility was zero as of March 31, 2024, following an amendment that increased liquidity requirements [115]. - Total contractual obligations as of December 31, 2025, include lease payments of $425,262, net of imputed interest [120]. - The effective annual percentage rate (APR) for capital leases is fixed at 4.55%, with total lease obligations costing less than $400,000 [140]. - Net cash used in financing activities increased by 47% to $3,618,646 for the six months ended December 31, 2025, compared to $2,459,963 in 2024, due to increased stock buybacks and continued redemption of Preferred Stock [110].
ReposiTrak(TRAK) - 2026 Q2 - Earnings Call Transcript
2026-02-17 22:17
Financial Data and Key Metrics Changes - The company converted over $7 million in one-time revenue to recurring SaaS, increasing recurring revenue from 62% to over 98% of total revenue [4] - Net margin grew from 8% to over 30% since 2020 [5] - GAAP net income for Q2 2026 was $1.7 million, up 9% from $1.6 million last year [9] - Total revenue for fiscal 2026 year-to-date increased 8% from $10.9 million to $11.8 million [11] - Earnings per share for the quarter was $0.09 basic and diluted, reflecting a 13% year-over-year growth [10] Business Line Data and Key Metrics Changes - The company is experiencing growth across all lines of business, with cross-selling initiatives contributing to momentum [12] - Traditional sales are growing, and the focus on customer care and execution remains paramount [12] Market Data and Key Metrics Changes - The traceability segment accounted for between 8% and 10% of total revenue [32] - The company is positioned to benefit from increasing consumer awareness regarding food safety, driven by trends like MAHA and organic food movements [38] Company Strategy and Development Direction - The company aims to maintain a focus on customer care, grow recurring revenue, and return capital to shareholders through dividends and stock buybacks [12] - Investments are being made in product development, including the filing of two patents for Touchless Traceability [7][24] - The company is preparing for an expected surge in demand for traceability solutions as FDA deadlines approach [49] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges of data accuracy in traceability, with error rates from suppliers ranging from 50% to 70% [18] - The company believes that its AI-driven solutions for error detection and correction will provide a competitive advantage [22][35] - Management is cautious about the impact of food inflation on business but has not seen immediate effects [42] Other Important Information - The company has repurchased approximately 80,000 common shares for $1.1 million during Q2 2026 [13] - The board declared a quarterly dividend of $0.02 per share, marking the third 10% increase since the dividend was established [16] Q&A Session Summary Question: What is the current revenue contribution from traceability? - The revenue contribution from traceability is estimated to be between 8% and 10% [32] Question: Can AI improve the accuracy of traceability data? - AI can indeed improve accuracy by detecting and correcting errors in data, which is a significant advantage over traditional methods [34][35] Question: Is there any impact from MAHA on the business? - MAHA increases consumer awareness of food safety, which indirectly benefits the company [38] Question: Can the company provide updates on traceability by ingredients? - The company is capable of tracking products and ingredients, allowing for detailed specifications and compliance with FDA regulations [40] Question: Does food inflation impact the business? - Food inflation has an indirect impact, potentially leading to margin squeezes for supermarkets, which could affect the company's pricing [42] Question: How is investment spending reflected in the results? - Investment spending is more targeted, with less in marketing and more in development, leading to an overall reduction in aggregate spending [44][45] Question: What are the current thoughts on strategic M&A? - The company is focused on existing initiatives and does not see M&A as a priority at this time, although they remain open to opportunities [47][50]
ReposiTrak(TRAK) - 2026 Q2 - Earnings Call Transcript
2026-02-17 22:17
Financial Data and Key Metrics Changes - For the second fiscal quarter of 2026, revenue increased by 7% from $5.5 million to $5.9 million [8] - Year-to-date total revenue increased by 8% from $10.9 million to $11.8 million [11] - GAAP net income for the second fiscal quarter was $1.7 million, up 9% from $1.6 million last year [9] - Earnings per share for the quarter was $0.09, reflecting a 13% year-over-year growth [10] - Total cash increased to $28.7 million from $28.6 million at the end of the previous quarter, with zero bank debt [10] Business Line Data and Key Metrics Changes - The company has converted over $7 million in one-time revenue to recurring SaaS, increasing recurring revenue from 62% to over 98% of total revenue [4] - Income from operations increased by 34% to $1.8 million compared to $1.4 million [9] - The company has experienced growth across all lines of business, with cross-selling initiatives delivering continued momentum [12] Market Data and Key Metrics Changes - Traceability revenue is estimated to be between 8% and 10% of total revenue, indicating growth in this segment [32] - The company is positioned to benefit from increasing consumer awareness regarding food safety, driven by trends like MAHA and organic food movements [38] Company Strategy and Development Direction - The long-term strategy focuses on converting revenue streams to SaaS, paying down debt, and increasing contribution margins [4] - The company is investing in product development, including new solutions for tracking accuracy and operational cost reduction [6] - The filing of two patents for Touchless Traceability aims to create a competitive moat around the business [7][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges of achieving consistent accuracy in supplier data, with error rates between 50% and 70% [18] - The company anticipates increased demand for traceability solutions as the FDA deadline approaches, which is expected to accelerate onboarding and interest in their offerings [26][49] - Management remains confident in the company's ability to provide unique solutions that address data quality issues in traceability [22] Other Important Information - The company has repurchased approximately 80,000 common shares for $1.1 million during the second quarter [13] - A quarterly dividend of $0.02 per share was declared, marking the third 10% increase since the dividend was established [16] Q&A Session Summary Question: What is the current percentage of revenue from traceability? - Management indicated that traceability revenue is between 8% and 10% of total revenue [32] Question: Can AI improve the accuracy of traceability data? - Management confirmed that their AI tools can detect and correct errors in traceability data, enhancing accuracy [34][35] Question: What is the impact of MAHA on the business? - Management noted that increased consumer awareness of food safety due to MAHA positively impacts their business [38] Question: Can the company provide traceability on a by-ingredient basis? - Management confirmed that their system can track products and ingredients, allowing for detailed traceability [40] Question: Does food inflation impact the business? - Management acknowledged that food inflation indirectly affects their business, particularly if supermarkets face margin squeezes [42] Question: How is investment spending reflected in the results? - Management explained that investment spending is more targeted, with less in marketing and more in development, affecting overall expenses [44][45] Question: What are the current thoughts on strategic M&A? - Management stated that while they are open to opportunities, their current focus is on existing projects and preparing for upcoming demand in traceability [47][50]
ReposiTrak(TRAK) - 2026 Q2 - Earnings Call Transcript
2026-02-17 22:15
Financial Data and Key Metrics Changes - The company converted over $7 million in one-time revenue to recurring SaaS, increasing recurring revenue from 62% to over 98% of total revenue since 2020 [4] - Net margin grew from 8% to over 30% during the same period [5] - GAAP net income for Q2 2026 was $1.7 million, up 9% from $1.6 million last year [9] - Fiscal 2026 year-to-date total revenue increased 8% from $10.9 million to $11.8 million [11] - Total cash increased to $28.7 million from $28.6 million at June 30, with zero bank debt [10] Business Line Data and Key Metrics Changes - The company is experiencing growth in all lines of business, with cross-selling initiatives delivering continued momentum [12] - Traditional sales are growing, and the focus on customer care and flawless execution remains paramount [12] Market Data and Key Metrics Changes - The ReposiTrak Traceability Network (RTN) is the industry leader, with a growing queue to join the network [16] - The company is addressing the challenge of data accuracy in traceability, with error rates from suppliers ranging between 50% and 70% [17] Company Strategy and Development Direction - The company aims to drive cash and return capital to shareholders while investing in product development and innovation [5][6] - Recent investments include filing for two patents related to Touchless Traceability, enhancing the company's competitive moat [6][23] - The focus on cross-selling and expanding the RTN is expected to generate significant traction [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges of data accuracy in traceability and the need for complex process changes across the supply chain [17] - The looming FDA deadline for traceability is expected to accelerate interest in the company's solutions [25][47] - The company is preparing for increased demand for traceability solutions as the deadline approaches [48] Other Important Information - The company has repurchased approximately 80,000 common shares for $1.1 million during Q2 2026 [13] - The board declared a quarterly dividend of $0.02 per share, marking the third 10% increase since the dividend was established [15] Q&A Session Summary Question: What is the current revenue contribution from traceability? - Management indicated that traceability contributes between 8% and 10% of total revenue [31] Question: Can AI improve the accuracy of traceability data? - AI is utilized to detect and correct errors in traceability data, enhancing accuracy significantly [32][34] Question: What impact does MAHA have on the business? - MAHA increases public awareness of food safety, which indirectly benefits the company [37] Question: Can the company provide updates on traceability by ingredients? - The company is capable of tracking products and ingredients, allowing for detailed specifications [39] Question: Does food inflation impact the business? - Food inflation indirectly affects the business as supermarkets face margin squeezes [41] Question: How is investment spending reflected in the results? - Investment spending is more targeted, with less in marketing and more in development [42][43] Question: What are the current thoughts on strategic M&A? - The company is focused on existing initiatives and is not actively pursuing M&A at this time [45][48]
ReposiTrak Announces Second Patent-Pending Within Its Enterprise Platform for Touchless Traceability™ Technology
Businesswire· 2026-02-12 12:00
Core Insights - ReposiTrak has announced that its Touchless Traceability™ solution is patent pending, marking a significant innovation in food traceability and regulatory compliance [1] - The Touchless Traceability™ solution is a key feature of the ReposiTrak Enterprise Platform, allowing for automated, end-to-end food traceability without the need for manual case scanning or changes to existing warehouse management systems (WMS) [1] - This solution addresses a major challenge related to compliance with FSMA 204, which is crucial for food safety regulations [1]
CORRECTING and REPLACING ReposiTrak and National Grocers Association Deepen Partnership to Strengthen Independent Grocers' Profitability and Compliance Readiness
Businesswire· 2026-01-28 15:42
Core Insights - ReposiTrak and the National Grocers Association are enhancing their partnership to improve the profitability and compliance readiness of independent grocers [1] Group 1 - The collaboration aims to provide exclusive education and tools for independent grocers [1] - The initiative focuses on helping independent grocers unlock cash, reduce risk, and stay ahead of regulatory changes [1]
ReposiTrak: Better Business, Fairer Price, Still Not A Buy
Seeking Alpha· 2026-01-13 17:26
Company Overview - ReposiTrak, Inc. (TRAK) is a microcap SaaS (software-as-a-service) company that provides technology solutions for retailers and suppliers to comply with supply chain regulations, enhance food safety, and monitor product tracking throughout the supply chain [1] Investment Focus - The analysis primarily concentrates on small- to mid-cap companies, which are often overlooked by many investors, while occasionally reviewing large-cap companies to provide a comprehensive view of the broader equity markets [1]
Why ReposiTrak’s $2M 10b5-1 Buyback Signals Strategic Shareholder Support
Yahoo Finance· 2025-12-09 10:01
Group 1 - ReposiTrak, Inc. has initiated a $2 million share repurchase under a Rule 10b5-1 trading plan, part of a broader $21 million stock buyback program [1][2] - The company had approximately $7.6 million remaining under its total repurchase authorization as of December 1 [2] - ReposiTrak specializes in compliance, safety, and supply chain automation platforms for the food, retail, and healthcare sectors, with a customer network across North America [3] Group 2 - The share repurchase will be conducted by the company's broker, depending on market conditions and legal requirements, with no specific target share count or expiration period disclosed [2] - The company did not elaborate on the strategic intent or timing of the new buyback tranche, indicating it will proceed under SEC Rules 10b5-1 and 10b-18 [2]