NAPERVILLE, Ill., Feb. 13, 2026 (GLOBE NEWSWIRE) -- Track Group, Inc. (OTCQB: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal quarter ended December 31, 2025 (“Q1 FY26”). In Q1 FY26, the Company posted (i) total revenue of $9.1 Million (“M”), an increase of approximately 5.2% over total revenue of $8.7M for the quarter ended December 31, 2024 (“Q1 FY25”); (ii) Q1 FY26 operating income of $0.8M compared to Q1 FY25 operating income of $0.1M ...

Core Insights - Track Group, Inc. reported a total revenue of $9.1 million for Q1 FY26, marking a 5.2% increase from $8.7 million in Q1 FY25, driven primarily by growth in monitoring assignments in Florida and Illinois [1][7] - The company achieved an operating income of $0.8 million in Q1 FY26, a significant increase from $0.1 million in Q1 FY25, and net income attributable to common shareholders was $0.5 million compared to a net loss of $2.0 million in the previous year [1][7] - Despite higher costs impacting gross profit and Adjusted EBITDA, the return to net profitability indicates the effectiveness of the company's long-term strategy [2] Financial Highlights - Q1 FY26 gross profit was $4.3 million, a decrease of approximately 3.5% from $4.4 million in Q1 FY25, attributed to increased device repair and server costs [7] - Adjusted EBITDA for Q1 FY26 was $1.21 million, down from $1.25 million in Q1 FY25, with the Adjusted EBITDA margin decreasing to 13.4% from 14.4% [7][16] - The unrestricted cash balance decreased to $3.6 million in Q1 FY26 from $4.1 million in Q1 FY25, primarily due to increased capitalized software costs [7] Business Outlook - The company anticipates FY26 revenue to be between $38 million and $39 million, following a revenue of $35.2 million in FY25 [4] - The Adjusted EBITDA margin is expected to improve to between 18% and 19% in FY26, up from 16.4% in FY25 [4]

Core Insights - Track Group, Inc. reported a total revenue of $35.2 million for FY25, reflecting a decrease of approximately 5.0% compared to FY24 revenue of $36.9 million [1][6] - The company achieved an operating income of $1.2 million in FY25, a significant improvement from an operating loss of $1.9 million in FY24 [1][6] - The net loss attributable to common shareholders decreased to $1.9 million in FY25 from $3.1 million in FY24, indicating improved financial performance [1][6] Financial Highlights - Total revenue for FY25 was $35.2 million, down from $36.9 million in FY24, primarily due to a reduction in monitoring assignments in Virginia and Washington D.C., and the sale of the Chilean subsidiary [6] - Gross profit increased to $17.5 million in FY25, up approximately 2% from $17.2 million in FY24, driven by lower monitoring center and communication costs [6] - Adjusted EBITDA for FY25 was $5.8 million, an increase from $5.4 million in FY24, with the adjusted EBITDA margin rising to 16.4% from 14.6% [6][18] Business Outlook - The company anticipates revenue growth in FY26, projecting revenue between $38 million and $39 million, supported by recent contract wins and a solid pipeline [2][4] - The strategic focus on reinvestment and program expansion is expected to drive continued improvements in gross profit and operating income [4] - The preliminary outlook for FY26 includes an expected adjusted EBITDA margin of 18% to 19% [4]

Core Insights - Track Group, Inc. reported Q3 FY25 financial results showing total revenue of $9.1 million, a slight decrease of approximately 1% from $9.2 million in Q3 FY24 [1][5] - The company achieved a gross profit of $4.6 million in Q3 FY25, reflecting an 8% increase from $4.3 million in Q3 FY24 [1][3] - Operating income for Q3 FY25 was $0.8 million, a significant improvement compared to an operating loss of $0.5 million in Q3 FY24 [1][5] - Net income attributable to shareholders in Q3 FY25 was $1.4 million, compared to a net loss of $0.9 million in Q3 FY24 [1][5] Financial Performance - Total revenue for the nine months ended June 30, 2025, was $26.1 million, down approximately 4% from $27.1 million for the same period in FY24 [5] - The decrease in monitoring revenues was primarily due to fewer clients in Virginia and Washington D.C., along with the sale of the Chilean subsidiary [5] - Gross profit for the nine months ended June 30, 2025, was $13.1 million, up from $12.4 million in the same period of FY24 [5] - Adjusted EBITDA for Q3 FY25 reached $1.8 million, a 14% increase from $1.6 million in Q3 FY24 [3][5] Business Outlook - The company is entering the second half of FY25 with positive momentum from strategic initiatives, including technology reinvestments and operational streamlining [4] - The financial results validate the effectiveness of the long-term growth strategy, positioning the company for sustainable growth throughout FY25 [4] - The outlook for FY25 anticipates revenue of approximately $35.5 million [4] Cash Position - Cash balance as of June 30, 2025, was $4.9 million, a 37% increase from $3.6 million at the end of September 2024 [5] - The increase in cash was attributed to higher operating income, reduced vendor payments, and proceeds from the sale of the Chilean subsidiary [5] Shareholder Information - Net income per share for Q3 FY25 was $0.12, compared to a loss of $0.07 in Q3 FY24 [14] - The weighted average shares outstanding remained constant at 11,863,758 for both periods [14]

Core Insights - Track Group, Inc. reported a total revenue of $8.4 million for Q2 FY25, a decrease of approximately 7% compared to $9.0 million in Q2 FY24, while gross profit increased by 4% to $4.1 million [1][5] - The company achieved an operating income of $0.04 million in Q2 FY25, a significant improvement from an operating loss of $0.96 million in Q2 FY24 [1][5] - Net loss attributable to common shareholders decreased to $0.5 million in Q2 FY25 from $1.9 million in Q2 FY24, indicating improved financial performance [1][5] Financial Performance - Total revenue for the six months ended March 31, 2025, was $17.0 million, down approximately 5% from $18.0 million for the same period in FY24 [5] - Gross profit for the six months ended March 31, 2025, was $8.5 million, compared to $8.2 million for the same period in FY24, reflecting operational improvements [5] - Adjusted EBITDA for Q2 FY25 was $1.3 million, a 63% increase from $0.8 million in Q2 FY24, demonstrating effective cost management [3][5] Business Outlook - The company remains optimistic about its growth trajectory despite previous challenges, with a revenue outlook for FY25 projected at $35.5 million [4] - Track Group's strategic reinvestment in technology and new program implementations initiated in late FY24 are expected to support sustained growth throughout FY25 [4] - The company is focusing on delivering higher-value, higher-margin business, as indicated by the increase in gross profit and operating income [3][4]