- ReposiTrak (TRAK, Financial) reports a 16% revenue increase in the third fiscal quarter, reaching $5.9 million.
- Net income rose by 27% to $2.0 million, and diluted EPS improved to $0.10 from $0.08.
- The company maintains strong cash reserves at $28.1 million with no bank debt.
ReposiTrak, Inc. (TRAK), the leading food traceability and compliance network, reported robust financial results for its third fiscal quarter ending March 31, 2025. The company achieved a 16% increase in total revenue, rising to $5.9 million from $5.1 million in the same quarter last year, with 98% of this revenue being recurring. This growth was spurred by strong performance across all business lines, including traceability, compliance, and supply chain.
Operating expenses increased by 7% to $4.1 million, while operating income soared by 43% to $1.8 million, highlighting the company's efficiency in managing costs relative to its revenue growth. ReposiTrak’s net income witnessed a 27% uplift, reaching $2.0 million compared to $1.6 million in the same quarter of the previous year. Notably, the earnings per share (EPS) rose from $0.08 to $0.10, underscoring the profitability improvement.
CEO Randall K. Fields emphasized the successful expansion of the ReposiTrak Traceability Network (RTN), noting that 70% of new traceability suppliers are now onboarded with minimal human intervention, thanks to the company’s automated solutions. The delay in FDA compliance enforcement also provides an opportunity for the company to enhance its onboarding processes further.
ReposiTrak redeemed 70,093 preferred shares for $749,995 during the quarter and distributed $331,000 in cash dividends to common shareholders. The company's robust financial position is buoyed by $28.1 million in cash reserves and zero bank debt. The strategic focus on cross-selling and automation is driving increased profitability and cash flow generation.
The company's next earnings conference call is scheduled for today at 4:15 p.m. ET, where further insights into the quarter's performance and future outlook will be discussed. Interested parties can access the webcast via ReposiTrak's investor relations webpage.
