ReposiTrak Revenue Jumps 9.7%, Net Income Up 13.1% in Q3

TL;DR

**TRAK is a buy; strong revenue growth and increasing profitability show its SaaS model is thriving amidst rising supply chain compliance demands.**

AI Summary

ReposiTrak, Inc. (TRAK) reported a robust financial performance for the three months ended September 30, 2025, with revenue increasing by 9.7% to $5,971,467 from $5,441,142 in the prior year. Net income applicable to common shareholders rose by 13.1% to $1,760,712, up from $1,557,273 in the same period last year. Basic income per share increased to $0.10 from $0.09. The company's cash position strengthened, with cash and cash equivalents reaching $28,794,806 as of September 30, 2025, compared to $28,568,805 at June 30, 2025. Operating expenses saw a modest increase of 2.9% to $4,077,594, primarily driven by higher sales and marketing and general and administrative costs. A significant increase in the provision for income taxes, from $150,000 in Q3 2024 to $449,999 in Q3 2025, impacted net income. The company also continued its Series B Preferred stock redemption, reducing shares outstanding from 336,098 to 266,005, and engaged in common stock buybacks totaling $149,985.

Why It Matters

ReposiTrak's strong Q3 performance, marked by significant revenue and net income growth, signals robust demand for its SaaS solutions in supply chain management, compliance, and traceability. This growth, particularly in the context of increasing regulatory requirements like FSMA 2011 Section 204d, positions TRAK favorably against competitors by offering essential tools for retailers and their suppliers. For investors, sustained profitability and a healthy cash balance suggest financial stability and potential for continued shareholder returns, despite increased tax provisions. Employees benefit from a growing company, while customers gain from enhanced platform capabilities and regulatory adherence, strengthening TRAK's market position.

Risk Assessment

Risk Level: low — The company exhibits a low risk profile, supported by a strong cash position of $28,794,806 and consistent profitability with net income of $1,819,529 for the quarter. Furthermore, the balance sheet shows total current assets of $34,114,277 significantly exceeding total current liabilities of $5,214,500, indicating robust liquidity and financial health.

Analyst Insight

Investors should consider initiating or increasing positions in TRAK. The company's consistent revenue growth, strong net income, and strategic focus on critical supply chain compliance solutions like FSMA 2011 position it well for future expansion and sustained profitability.

Financial Highlights

debt To Equity

0.11

revenue

$5,971,467

operating Margin

31.7%

total Assets

$55,609,252

total Debt

$5,439,508

net Income

$1,760,712

eps

$0.10

gross Margin

85.6%

cash Position

$28,794,806

revenue Growth

+9.7%

Revenue Breakdown

Key Numbers

• $5,971,467 — Revenue (Increased by 9.7% from $5,441,142 in Q3 2024)
• $1,760,712 — Net income applicable to common shareholders (Increased by 13.1% from $1,557,273 in Q3 2024)
• $0.10 — Basic income per share (Increased from $0.09 in Q3 2024)
• $28,794,806 — Cash and cash equivalents (As of September 30, 2025, up from $28,568,805 at June 30, 2025)
• $4,077,594 — Total operating expense (Increased by 2.9% from $3,961,081 in Q3 2024)
• $449,999 — Provision for income taxes (Increased from $150,000 in Q3 2024)
• $149,985 — Common Stock buyback/retirement (Amount spent in Q3 2025)
• $749,995 — Redemption of Series B Preferred (Consistent redemption amount in Q3 2025 and Q3 2024)
• 266,005 — Series B Preferred shares outstanding (Reduced from 336,098 shares at June 30, 2025)
• $34,114,277 — Total Current Assets (As of September 30, 2025, indicating strong liquidity)

Key Players & Entities

• ReposiTrak, Inc. (company) — SaaS company operating B2B e-commerce, compliance & traceability, and supply chain management platform
• TRAK (company) — Trading symbol for ReposiTrak, Inc.
• New York Stock Exchange (regulator) — Exchange where TRAK common stock is registered
• Securities and Exchange Commission (regulator) — Regulator for financial reporting
• Park City Group, Inc. (company) — Former corporate name of ReposiTrak, Inc.
• PC Group, Inc. (company) — 98.76% owned Utah subsidiary of ReposiTrak, Inc.
• Food Safety Modernization Act of 2011 (regulator) — Key regulation driving demand for ReposiTrak's compliance solutions
• Section 204d of FSMA 2011 (regulator) — Specific federal regulatory requirement for traceability
• Nevada (regulator) — State of incorporation for ReposiTrak, Inc.
• Bloomberg (company) — Financial news outlet

FAQ

Risk Factors

• Reliance on Key Customers [medium — financial]: The company's revenue is concentrated among a few key customers. A significant loss of one or more of these customers could materially and adversely affect revenue and profitability. For example, the loss of a major customer could lead to a substantial decrease in revenue, impacting the company's ability to fund its operations and growth initiatives.
• Dependence on Technology and Infrastructure [medium — operational]: ReposiTrak's services rely heavily on its technology platform and infrastructure. Any disruption, failure, or security breach of these systems could lead to service interruptions, data loss, and reputational damage. The company's ability to maintain and upgrade its systems is critical for continued operation and customer satisfaction.
• Evolving Regulatory Landscape [low — regulatory]: The company operates in industries subject to various regulations. Changes in these regulations, or the interpretation and enforcement thereof, could impact the company's operations, compliance costs, and market access. For instance, new data privacy laws or industry-specific compliance requirements could necessitate significant adjustments to its services and processes.
• Competitive Market Pressures [medium — market]: The markets in which ReposiTrak operates are competitive, with existing and potential new competitors. Increased competition could lead to pricing pressures, reduced market share, and lower profit margins. The company must continuously innovate and differentiate its offerings to maintain its competitive position.

Industry Context

ReposiTrak operates in the supply chain and compliance management technology sector, serving industries like food and retail. The industry is characterized by increasing demand for traceability, safety, and efficiency, driven by regulatory requirements and consumer expectations. Companies in this space leverage technology to provide solutions for recall management, compliance tracking, and supply chain visibility.

Regulatory Implications

The company's operations are subject to various regulations concerning data privacy, food safety, and supply chain integrity. Compliance with these evolving regulations is crucial. Any failure to comply could result in fines, reputational damage, and operational disruptions, impacting financial performance.

What Investors Should Do

1. Monitor the trend of decreasing Series B Preferred shares and common stock buybacks.
2. Analyze the drivers behind the increase in the provision for income taxes.
3. Evaluate the sustainability of revenue growth and operating expense control.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing revenue growth and increased net income.
• 2025-06-30: End of Q2 2025 — Prior period balance sheet comparison point for cash and equity.
• 2024-09-30: End of Q3 2024 — Prior year period for comparative income statement analysis, showing revenue and net income growth.

Glossary

Accumulated deficit

The total net losses of a company since its inception, minus any net profits. It represents the cumulative loss that has not been offset by profits. (ReposiTrak has an accumulated deficit of $11,490,301 as of September 30, 2025, indicating that the company has historically incurred more losses than profits, though this deficit is decreasing.)

Contract asset – unbilled current portion

Represents revenue recognized for goods or services provided for which the company does not yet have an unconditional right to payment. (A decrease from $428,585 to $242,078 suggests a faster conversion of unbilled work into billable receivables or completed contracts.)

Contract liability – deferred revenue

Represents payments received from customers for goods or services that have not yet been provided. It is a liability because the company owes the customer the service or product. (A decrease from $3,175,908 to $2,686,197 indicates that the company has recognized more revenue from previously deferred amounts than it has received in advance for future services.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net assets. It represents the value of brand recognition, customer loyalty, and other intangible factors. (The significant goodwill of $20,883,886 suggests past acquisitions where ReposiTrak paid a premium over the fair value of the acquired assets.)

Series B Preferred

A class of preferred stock with specific rights and preferences, in this case, Series B. The company is actively redeeming these shares. (The reduction in outstanding Series B Preferred shares from 336,098 to 266,005 shows progress in simplifying the capital structure and potentially reducing future dividend obligations.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, ReposiTrak has demonstrated strong top-line growth with revenue increasing by 9.7% to $5,971,467. Net income applicable to common shareholders also saw a healthy increase of 13.1%. Operating expenses have been managed effectively, growing at a slower pace of 2.9%, leading to improved operating income. However, a notable increase in the provision for income taxes from $150,000 to $449,999 has partially offset the gains in net income. The company continues its strategic capital allocation by redeeming preferred stock and repurchasing common stock.

Key Financial Figures

• $0.01 — registered Common stock, par value $0.01 per share TRAK New York Stock Excha

Filing Documents

• trak20250930_10q.htm (10-Q) — 911KB
• ex_863145.htm (EX-31.1) — 11KB
• ex_863146.htm (EX-31.2) — 11KB
• ex_863147.htm (EX-32.1) — 5KB
• ex_863148.htm (EX-32.2) — 5KB
• 0001437749-25-034896.txt ( ) — 4318KB
• trak-20250930.xsd (EX-101.SCH) — 30KB
• trak-20250930_cal.xml (EX-101.CAL) — 30KB
• trak-20250930_def.xml (EX-101.DEF) — 211KB
• trak-20250930_lab.xml (EX-101.LAB) — 215KB
• trak-20250930_pre.xml (EX-101.PRE) — 235KB
• trak20250930_10q_htm.xml (XML) — 673KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 1 Consolidated Condensed Balance Sheets as of September 30, 2025 and June 30, 2025 (Unaudited) 1 Consolidated Condensed Statements of Operations and Comprehensive Income for the Three months Ended September 30, 2025 and 2024 (Unaudited) 2 Consolidated Condensed Statements of Cash Flows for the Three months Ended September 30, 2025 and 2024 (Unaudited) 3 Consolidated Condensed Statements of Stockholders' Equity for the Three months Ended September 30, 2025 and 2024 (Unaudited) 4 Notes to Consolidated Condensed Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 21 Item 4.

Controls and Procedures

Controls and Procedures 21

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 22 Item 1A.

Risk Factors

Risk Factors 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22 Item 3. Defaults Upon Senior Securities 22 Item 5. Other Information 22 Item 6. Exhibits 22

Signatures

Signatures 23 Table of Contents PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS REPOSITRAK, INC. Consolidated Condensed Balance Sheets (Unaudited) September 30, June 30, 2025 2025 Assets Current Assets Cash $ 28,794,806 $ 28,568,805 Receivables, net of allowance for doubtful accounts of $ 249,903 and $ 242,437 at September 30, 2025 and June 30, 2025, respectively 4,339,972 4,133,026 Contract asset – unbilled current portion 242,078 428,585 Prepaid expense and other current assets 737,421 555,384 Total Current Assets 34,114,277 33,685,800 Property and equipment, net 519,086 602,172 Other Assets: Deposits and other assets 22,414 22,414 Prepaid expense – less current portion 5,486 6,568 Goodwill 20,883,886 20,883,886 Capitalized software costs, net 64,103 128,207 Total Other Assets 20,975,889 21,041,075 Total Assets $ 55,609,252 $ 55,329,047 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 309,626 $ 282,146 Accrued liabilities 1,986,381 1,841,839 Contract liability – deferred revenue 2,686,197 3,175,908 Notes payable and financing leases – current 232,296 231,225 Total current liabilities 5,214,500 5,531,118 Long-term liabilities Notes payable and financing leases – less current portion 225,008 278,748 Total liabilities 5,439,508 5,809,866 Commitments and contingencies Stockholders' equity: Preferred Stock; $ 0.01 par value, 30,000,000 shares authorized; Series B Preferred, 700,000 shares authorized; 266,005 and 336,098 shares issued and outstanding at September 30, 2025 and June 30, 2025, respectively 2,660 3,361 Common Stock, $ 0.01 par value, 50,000,000 shares authorized; 18,283,904 and 18,282,805 and issued and outstanding at September 30, 2025 and June 30, 2025, respectively 182,841 182,830 Additional paid-in capital 61,494,409 62,181,156 Accumulated other comprehensive loss ( 19,865 ) ( 11,256 ) Accumulated deficit ( 11,490,301 ) ( 12,836,910 ) Total stockholders' equity 50,169

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