Repositrak (NYSE: TRAK) has reported its financial results for the first fiscal quarter of 2025, ended September 30, 2024. The company delivered a total revenue of $5.4 million, marking an 8% increase from the previous period's $5.1 million. Recurring revenue also grew by 6%, driven by non-recurring initial set-up fees for the increasing number of traceability customers onboarding to the system.
Quarterly operating expenses increased by 3% to $4.0 million from the previous period's $3.9 million, while the operating income rose by 23% to $1.5 million from $1.2 million. GAAP net income for the quarter increased by 21% to $1.7 million from $1.4 million, with quarterly net income to common shareholders reaching $1.6 million, up 26% from $1.2 million in the previous period. Earnings per share (EPS) for the quarter stood at $0.09, compared to $0.07 in the prior year's first fiscal quarter.
The company finished the quarter with $25.8 million in cash and no bank debt. During the quarter, Repositrak redeemed 70,093 preferred shares for a total of $749,995.
Repositrak's Chairman and CEO, Randall K. Fields, highlighted the accelerating pace of customer onboarding, driven by recent industry recalls and increased demand for food traceability, with major retailers now requiring all food to be traced. Fields expressed confidence that the current customer base and pipeline will result in a doubling of annual recurring revenue over the next three years.
In terms of financial performance, in the first fiscal quarter of 2025, total revenue increased by 8% to $5.4 million compared to the previous year's first quarter. Total operating expenses increased by 3% to $4.0 million, and GAAP net income was reported at $1.7 million compared to $1.4 million in the prior year. Net income to common shareholders was $1.6 million, or $0.09 per basic and $0.08 per fully diluted share, compared to $1.2 million, or $0.07 per basic and fully diluted share.
Repositrak also announced a quarterly cash dividend of $0.0165 per share ($0.066 per year) payable to shareholders of record on September 30, 2024. The board of directors approved a 10% increase to Repositrak’s quarterly dividend, to $0.01815 per quarter ($0.0726 per share annually) beginning with the dividend payable to shareholders of record on December 31, 2024.
The company had $25.8 million in cash and cash equivalents at September 30, 2024, compared to $25.2 million at June 30, 2024, and carries no bank debt.
Repositrak will host a conference call to discuss the results, and the webcast will be available via the investor relations section of the company’s website.
Repositrak provides retailers, suppliers, food manufacturers, and wholesalers with a suite of solutions to reduce risk, remain in compliance with regulatory requirements, enhance operational controls, and increase sales with unrivaled brand protection. Today the company's shares have moved 2.2% to a price of $22.08. For more information, read the company's full 8-K submission here.
