ReposiTrak(TRAK) - 2025 Q2 - Quarterly Results

Earnings Release Overview Financial Highlights ReposiTrak reported strong Q2 2025 results with $5.5 million revenue and $0.08 EPS, driven by a 70% increase in deferred revenue FQ2 2025 Key Financial Metrics | Metric | FQ2 2025 | FQ2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $5.5 million | $5.1 million | +7% | | Operating Income | $1.4 million | $1.2 million | +9% | | GAAP Net Income | $1.6 million | $1.5 million | +7% | | Net Income to Common Shareholders | $1.5 million | $1.3 million | +12% | | Diluted EPS | $0.08 | $0.07 | +14.3% | | Cash Balance (End of Quarter) | $28.0 million | N/A | - | - Deferred revenue increased by 70%, reflecting substantial growth in contracted and onboarded customers, suggesting strong incremental revenue recognition over the next twelve months[2][4] Management Commentary CEO Randall K. Fields highlighted accelerating RTN supplier onboarding due to FSMA 204, expanding market demand, and efficient revenue conversion into profitability and record cash - The pace of supplier onboarding is accelerating ahead of the January 2026 FSMA 204 deadline, driving demand for the ReposiTrak Traceability Network (RTN)[4] - Retailers are pushing for traceability on all food items, significantly exceeding the scope of FDA mandates, which expands the company's addressable market[4] - The company is confident in its ability to generate double-digit top-line growth for the remainder of the fiscal year and into fiscal 2026, supported by a strong deferred revenue base[4] - ReposiTrak is effectively converting revenue growth into higher profitability and cash generation, achieving record cash balances[4] Financial Performance Analysis Second Fiscal Quarter Financial Results ReposiTrak reported Q2 2025 revenue up 7.1% to $5.5 million and net income up 11.6% to $1.5 million ($0.08 EPS), despite increased sales and marketing FQ2 2025 vs FQ2 2024 Performance (Three Months Ended Dec 31) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $5,490,908 | $5,125,751 | +7.1% | | Total Operating Expense | $4,138,857 | $3,884,900 | +6.5% | | Income from Operations | $1,352,051 | $1,240,851 | +9.0% | | Net Income | $1,551,080 | $1,451,149 | +6.9% | | Diluted EPS | $0.08 | $0.07 | +14.3% | - Sales and marketing expenses increased by 15.1% year-over-year, attributed to strategic investments in the Traceability solution[5] Year-to-Date Financial Results Year-to-date revenue increased 7.3% to $10.9 million, with GAAP net income rising 13.7% to $3.2 million and diluted EPS reaching $0.16 YTD 2025 vs YTD 2024 Performance (Six Months Ended Dec 31) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $10,932,050 | $10,185,863 | +7.3% | | Total Operating Expense | $8,099,938 | $7,745,003 | +4.6% | | GAAP Net Income | $3,216,235 | $2,829,697 | +13.7% | | Diluted EPS | $0.16 | $0.13 | +23.1% | Capital Management and Financial Position Return of Capital The company continued its capital return program in FQ2 2025, redeeming $750k preferred shares and repurchasing $100k common stock, with $7.9 million remaining for buybacks - In FQ2 2025, the company redeemed 70,093 preferred shares for a total of $749,995[8] - The company repurchased 4,074 shares of common stock for a total of $100,017[8] - There is approximately $7.9 million remaining under the $21 million total common share buyback authorization[8] Dividends The Board declared a quarterly cash dividend of $0.01815 per share, annualizing to $0.0726, payable around February 13, 2025 - A quarterly cash dividend of $0.01815 per share was declared[9] Balance Sheet and Liquidity ReposiTrak maintained a strong balance sheet with over $28.0 million in cash as of December 31, 2024, an 11.1% increase, and no bank debt - Cash and cash equivalents increased by 11.1% to $28.0 million at December 31, 2024, from $25.2 million at June 30, 2024[10] - The company has no bank debt[10] Financial Statements Consolidated Condensed Balance Sheets Total assets grew to $54.7 million as of December 31, 2024, with liabilities rising to $6.8 million due to a 70.4% increase in deferred revenue, and equity at $47.9 million Balance Sheet Summary (Unaudited) | Account | Dec 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash | $28,041,398 | $25,153,862 | | Total Current Assets | $32,394,539 | $29,300,167 | | Total Assets | $54,736,809 | $51,596,732 | | Liabilities & Equity | | | | Contract liability – deferred revenue | $4,160,207 | $2,441,234 | | Total Liabilities | $6,802,055 | $4,742,114 | | Total Stockholders' Equity | $47,934,754 | $46,854,618 | | Total Liabilities and Equity | $54,736,809 | $51,596,732 | Consolidated Condensed Statements of Operations The statement of operations shows quarterly revenue up 7.1% and six-month revenue up 7.3%, with net income at $1.55 million and $3.22 million respectively Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended Dec 31, 2024 | Six Months Ended Dec 31, 2024 | | :--- | :--- | :--- | | Revenue | $5,490,908 | $10,932,050 | | Income from Operations | $1,352,051 | $2,832,112 | | Net Income | $1,551,080 | $3,216,235 | | Net Income to Common Shareholders | $1,455,464 | $3,012,737 | | Diluted Income per Share | $0.08 | $0.16 | Consolidated Condensed Statements of Cash Flows Net cash from operations more than doubled to $5.3 million for the six months ended December 31, 2024, driven by deferred revenue, resulting in a $2.9 million cash increase Cash Flow Summary (Unaudited, Six Months Ended Dec 31) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,328,630 | $2,451,947 | | Net cash provided by (used in) investing activities | $18,869 | $(16,427) | | Net cash used in financing activities | $(2,459,963) | $(3,173,328) | | Net increase (decrease) in cash | $2,887,536 | $(737,808) | | Cash at end of period | $28,041,398 | $23,253,071 | Additional Information Conference Call Information A conference call and webcast to discuss financial results will be held on February 12, 2025, at 4:15 p.m. ET, with replay information available - Conference Call Date: Wednesday, February 12, 2025[12] - Conference Call Time: 4:15 p.m. ET (1:15 p.m. PT)[12] - A replay will be available until March 12, 2025[12] About ReposiTrak & Forward-Looking Statements ReposiTrak offers cloud-based solutions for food traceability, compliance, and supply chain management, with the report including a standard forward-looking statement disclaimer - ReposiTrak's business consists of three product families: food traceability, compliance and risk management, and supply chain solutions[13] - The document includes forward-looking statements, and readers are cautioned not to place undue reliance on them as actual results could differ materially[14]