Park City Group, Inc.(PCYG) - 2026 Q2 - Quarterly Results

Financial Performance - Total revenue for Q2 fiscal 2026 increased by 7% to $5.9 million compared to $5.5 million in Q2 fiscal 2025[4] - Operating income rose 34% to $1.8 million, resulting in a 31% operating margin[1] - Net income to common shareholders increased by 13% to $1.6 million, or $0.09 per diluted share, compared to $1.5 million, or $0.08 per diluted share, in the prior year[5] - Revenue for the three months ended December 31, 2025, was $5,856,811, representing an increase of 6.6% compared to $5,490,908 for the same period in 2024[16] - Net income applicable to common shareholders for the six months ended December 31, 2025, was $3,400,201, up 12.9% from $3,012,737 in 2024[16] - Basic income per share for the six months ended December 31, 2025, was $0.19, compared to $0.17 for the same period in 2024, reflecting a 11.8% increase[16] Cash and Assets - The company finished the quarter with $28.7 million in cash and no bank debt[9] - Cash generated from operations for the first six months of fiscal 2026 was $3.8 million[5] - Total assets increased to $56.3 million as of December 31, 2025, compared to $55.3 million at June 30, 2025[15] - Cash flows from operating activities for the six months ended December 31, 2025, were $3,776,672, down from $5,328,630 in 2024[18] - Cash and cash equivalents at the end of the period were $28,706,493, an increase from $28,041,398 at the end of December 31, 2024[18] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.02 per share, marking the third 10% increase since the dividend was established[8] - Dividends paid during the six months ended December 31, 2025, totaled $827,412, slightly down from $831,898 in 2024[18] - Approximately $6.5 million remains on the $21 million total common share buyback authorization[7] - The company redeemed 70,093 preferred shares for a total of $749,995 during the quarter[6] Expenses and Losses - Total operating expenses for the three months ended December 31, 2025, were $4,039,878, a decrease of 2.4% from $4,138,857 in 2024[16] - The company reported a net cash used in financing activities of $3,618,646 for the six months ended December 31, 2025, compared to $2,459,963 in 2024[18] - The company incurred a bad debt expense of $450,000 for the six months ended December 31, 2025, compared to $300,000 in 2024[18] - The company reported an unrealized loss on short-term investments of $68,974 for the three months ended December 31, 2025[16] Innovation and Development - ReposiTrak is developing and filing for multiple patents on Touchless Traceability™, enhancing its competitive advantage in the market[3]