ReposiTrak(TRAK) - 2025 Q4 - Annual Results

Executive Summary & Business Update ReposiTrak achieved significant revenue and net income growth in FY2025, driven by a strategic shift to a supplier-centric model and efficient operations Fiscal Year 2025 & Q4 Highlights ReposiTrak reported an 11% increase in full-year revenue to $22.6 million and a 17% increase in net income to $7.0 million for fiscal year 2025. Earnings per share grew by 21%. The company ended the fiscal year with a strong cash position of $28.6 million and no debt. Fourth-quarter results also showed an 11% revenue increase and 14% net income growth Full-Year Fiscal 2025 Financial Highlights: | Metric | FY2025 (Millions) | FY2024 (Millions) | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :--------- | | Total Revenue | $22.6 | $20.5 | 11% | | Recurring Revenue (% of total) | ~99% | N/A | N/A | | Operating Expense | $16.4 | $15.4 | 6% | | Operating Income | $6.2 | $5.0 | 24% | | GAAP Net Income | $7.0 | $6.0 | 17% | | Net Income to Common Shareholders | $6.6 | $5.4 | 22% | | Basic EPS | $0.36 | $0.30 | 20% | | Diluted EPS | $0.35 | $0.29 | 21% | | Cash from Operations | $8.4 | $6.9 | 21% | | Cash at Year-End | $28.6 | N/A | N/A | | Bank Debt | $0 | N/A | N/A | Fourth Fiscal Quarter Financial Highlights: | Metric | Q4 FY2025 (Millions) | Q4 FY2024 (Millions) | Change (%) | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Total Revenue | $5.8 | $5.2 | 11% | | Recurring Revenue (% of total) | ~99% | N/A | N/A | | Operating Expense | $4.2 | $3.9 | 8% | | Operating Income | $1.6 | $1.3 | 20% | | GAAP Net Income | $1.8 | $1.6 | 14% | | Net Income to Common Shareholders | $1.7 | $1.5 | 18% | | EPS | $0.09 | $0.08 | 12.5% | CEO Commentary & Strategic Direction CEO Randall K. Fields highlighted a strategic shift from a hub-centric to a supplier-centric traceability model, which has increased engagement and expanded the addressable market. Investments in infrastructure and automation are improving efficiency, enabling growth without increasing headcount, and enhancing cross-selling opportunities. The company aims for 10-20% average annualized revenue growth and significantly greater profitability growth - ReposiTrak shifted from a hub-centric to a supplier-centric traceability model, solving problems for individual suppliers, which has increased engagement and expanded the addressable market for compliance and supply chain solutions[5] - The company invested in infrastructure to expand automation and accelerate customer onboarding, leading to increased revenue per employee and a greater number of deals without expanding headcount[5] - ReposiTrak maintains a goal of 10-20% average annualized revenue growth and significantly greater growth in profitability, leveraging its efficient operational model and strong balance sheet[7] Company Overview ReposiTrak provides cloud-based solutions for risk management, compliance, and supply chain optimization to retailers, suppliers, and wholesalers About ReposiTrak ReposiTrak (formerly Park City Group) provides cloud-based solutions for retailers, suppliers, and wholesalers to manage risk, ensure regulatory compliance, enhance operational controls, and increase sales. Its product families include food traceability, compliance and risk management, and supply chain solutions - ReposiTrak offers a robust solution suite to help retailers, suppliers, and wholesalers reduce risk, comply with regulations, enhance operational controls, and increase sales[15] - The company's integrated, cloud-based applications are categorized into three product families: food traceability, compliance and risk management, and supply chain solutions[15] Detailed Financial Performance This section presents a comprehensive analysis of ReposiTrak's financial results for fiscal year 2025, including income statements, balance sheets, and cash flow statements Full-Year Fiscal 2025 Financial Results For the full fiscal year ended June 30, 2025, ReposiTrak reported an 11% increase in total revenue to $22.6 million. Operating expenses rose by 6% to $16.4 million, while GAAP net income increased by 17% to $7.0 million. Net income attributable to common shareholders grew by 22% to $6.6 million, resulting in diluted EPS of $0.35 Full-Year Financial Results (YoY Comparison): | Metric | FY2025 (Millions) | FY2024 (Millions) | Change (%) | | :-------------------------------- | :---------------- | :---------------- | :--------- | | Total Revenue | $22.6 | $20.5 | 11% | | Total Operating Expense | $16.4 | $15.4 | 6% | | GAAP Net Income | $7.0 | $6.0 | 17% | | Net Income to Common Shareholders | $6.6 | $5.4 | 22% | | Diluted EPS | $0.35 | $0.29 | 21% | Fourth Fiscal Quarter Financial Results In the fourth fiscal quarter ended June 30, 2025, total revenue increased 11% to $5.8 million. Total operating expense grew 8% to $4.2 million, with SG&A expense up 7% to $2.9 million. GAAP net income reached $1.8 million, and net income to common shareholders increased 18% to $1.7 million, translating to $0.09 per diluted share Fourth Fiscal Quarter Financial Results (YoY Comparison): | Metric | Q4 FY2025 (Millions) | Q4 FY2024 (Millions) | Change (%) | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Total Revenue | $5.8 | $5.2 | 11% | | Total Operating Expense | $4.2 | $3.9 | 8% | | SG&A Expense | $2.9 | $2.7 | 7% | | GAAP Net Income | $1.8 | $1.6 | 14% | | Net Income to Common Shareholders | $1.7 | $1.5 | 18% | | Diluted EPS | $0.09 | $0.08 | 12.5% | Consolidated Balance Sheets As of June 30, 2025, ReposiTrak maintained a strong balance sheet with $28.6 million in cash and cash equivalents and no bank debt. Total assets increased to $55.3 million from $51.6 million in the prior year, while total liabilities also increased to $5.8 million from $4.7 million. Total stockholders' equity grew to $49.5 million Consolidated Balance Sheet Highlights: | Metric | June 30, 2025 (Dollars) | June 30, 2024 (Dollars) | | :-------------------------------- | :---------------------- | :---------------------- | | Cash | $28,568,805 | $25,153,862 | | Total Current Assets | $33,685,800 | $29,300,167 | | Total Assets | $55,329,047 | $51,596,732 | | Total Current Liabilities | $5,531,118 | $4,543,142 | | Total Liabilities | $5,809,866 | $4,742,114 | | Total Stockholders' Equity | $49,519,181 | $46,854,618 | - The company reported $28.6 million in cash and cash equivalents at June 30, 2025, an increase from $25.2 million at June 30, 2024, and had no bank debt[13] Consolidated Statements of Operations The Consolidated Statements of Operations show a robust increase in revenue and profitability for fiscal year 2025. Revenue grew to $22.6 million, leading to an income from operations of $6.2 million, up 24%. Net income reached $7.0 million, and diluted EPS was $0.35, reflecting strong operational efficiency and financial performance Consolidated Statements of Operations (FY2025 vs. FY2024): | Metric | FY2025 (Dollars) | FY2024 (Dollars) | | :-------------------------------- | :--------------- | :--------------- | | Revenue | $22,606,066 | $20,453,320 | | Total Operating Expense | $16,378,923 | $15,429,089 | | Income from Operations | $6,227,143 | $5,024,231 | | Net Income | $6,978,127 | $5,958,290 | | Net Income Applicable to Common Shareholders | $6,617,821 | $5,408,645 | | Basic Earnings Per Share | $0.36 | $0.30 | | Diluted Earnings Per Share | $0.35 | $0.29 | Consolidated Statements of Cash Flows Cash flows from operating activities significantly increased by 21% to $8.4 million in fiscal 2025, demonstrating strong operational cash generation. Investing activities resulted in a net cash inflow of $169, a notable improvement from a net outflow in the prior year. Financing activities used $5.0 million, primarily due to preferred share redemptions and dividends paid, leading to a net increase in cash and cash equivalents of $3.4 million Consolidated Statements of Cash Flows (FY2025 vs. FY22024): | Cash Flow Activity | FY2025 (Dollars) | FY2024 (Dollars) | | :-------------------------------- | :--------------- | :--------------- | | Net Cash Provided by Operating Activities | $8,420,132 | $6,964,401 | | Net Cash (Used in) Provided by Investing Activities | $169 | $(100,707) | | Net Cash Used in Financing Activities | $(5,005,358) | $(5,700,711) | | Net (Decrease) Increase in Cash and Cash Equivalents | $3,414,943 | $1,162,983 | | Cash and Cash Equivalents at End of Period | $28,568,805 | $25,153,862 | - Cash from operations increased 21% to $8.4 million from $6.9 million last year, reflecting efficient operational performance[6] Capital Allocation & Shareholder Returns ReposiTrak demonstrates its commitment to shareholder value through preferred share redemptions, common share buybacks, and consistent dividend increases Preferred Share Redemption ReposiTrak continued its program of returning capital to shareholders by redeeming 70,093 preferred shares for $749,995 in Q4 fiscal 2025. Cumulatively, the company has redeemed 501,679 preferred shares totaling $5.4 million, with an anticipated full redemption of remaining preferred shares by December 2026 - In Q4 FY2025, ReposiTrak redeemed 70,093 preferred shares for $749,995. For the full fiscal year, 280,372 preferred shares were redeemed for $3 million[6][10] - Since inception, the company has redeemed 501,679 preferred shares for a total of $5.4 million, with $3.6 million remaining to be redeemed by December 2026[10] Common Share Buyback During fiscal 2025, ReposiTrak repurchased 8,681 common shares for approximately $200,033 at an average price of $23.13 per share. The company still has approximately $8 million remaining under its $21 million common share buyback authorization - During fiscal 2025, the Company repurchased 8,681 common shares for a total of $200,033, at an average of $23.13 per share[11] - Approximately $8 million remains of the $21 million total common share buyback authorization[11] Dividends The Board of Directors declared a quarterly dividend of $0.02 per share ($0.08 annually), payable around November 14, 2025. This marks the third 10% increase in ReposiTrak's dividend since its establishment, demonstrating a commitment to returning capital to shareholders - On September 19, 2025, the board declared a quarterly dividend of $0.02 per quarter ($0.08 per share annually), representing the third 10% increase since the dividend was established[6][12] - The cash dividends will be paid to shareholders of record on or about November 14, 2025, for those on record as of September 30, 2025[6][12] Corporate Information & Disclosures This section provides essential corporate communications, forward-looking statements, and investor contact details Conference Call Details ReposiTrak hosted a conference call on September 29, 2025, at 4:15 p.m. ET to discuss the financial results. Details for live participation and replay access were provided, including dial-in numbers and a webcast link via the company's investor relations website - A conference call was hosted on Monday, September 29, 2025, at 4:15 p.m. ET to discuss the company's results, with a webcast available on www.parkcitygroup.com[14](index=14&type=chunk)[15] Conference Call Access Information: | Type | Detail | | :---------------- | :-------------------------------- | | Date | Monday, September 29, 2025 | | Time | 4:15 p.m. ET (1:15 p.m. PT) | | Toll-Free Dial-In | 1-877-407-9716 | | International Dial-In | 1-201-493-6779 | | Conference ID | 13755695 | | Replay Toll-Free | 1-844-512-2921 | | Replay International | 1-412-317-6671 | | Replay Expiry | Wednesday, October 29, 2025, 11:59 PM ET | Forward-Looking Statement The document includes a standard forward-looking statement disclaimer, cautioning readers that any non-historical statements are subject to risks and uncertainties. It advises against undue reliance on these statements and refers to SEC filings for a discussion of risk factors - Statements not historical facts are forward-looking, identified by words like 'anticipate,' 'believe,' 'estimate,' and 'expect,' and are subject to change and material differences from final reported results[16] - Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of their making dates, and should refer to SEC filings for risk factors[16] Investor Relations Contact Contact information for investor relations is provided for inquiries, including the CFO's email and details for FNK IR - Investor relations inquiries can be directed to John Merrill, CFO, via investor-relations@repositrak.com, or to Rob Fink of FNK IR at 646.809.4048 or rob@fnkir.com[17]