ReposiTrak, Inc. has recently released its 10-Q report, providing insights into the company's financial performance and operations. The company, a software-as-a-service provider, offers a range of proprietary software products, including ReposiTrak MarketPlace, Compliance and Food Safety solutions, and Supply Chain solutions. It also provides business-consulting services to suppliers, retailers in grocery, convenience, and specialty retail sectors. ReposiTrak primarily serves multi-store retail chains, wholesalers and distributors, and their suppliers.
In the report, ReposiTrak's revenue for the three months ended March 31, 2025, was $5,913,732, marking a 16% increase from the same period in 2024. The growth in revenue was attributed to the expansion of recurring subscription revenue in all lines of business, including compliance, supply chain, and traceability solutions. The company noted an increasing industry and consumer response to food contaminations and safety hazards, leading to elevated regulatory requirements and tighter mandates from retailers to suppliers, driving demand for its services.
Cost of services and product support for the same period was $911,693, representing a 10% increase from 2024. This increase was primarily due to the acceleration of automation of onboarding and support services to support the scale and expansion of the FSMA 204 initiative. Sales and marketing expense totaled $1,408,861, a 4% increase, driven by higher sales commissions and investment in marketing for the suite of services.
General and administrative expenses amounted to $1,455,602, an 8% increase, primarily due to higher employee benefit costs, general liability insurance, D&O insurance, and increased payroll taxes resulting from higher sales commissions. Depreciation and amortization expense increased by 14% to $328,723, attributed to the addition of certain assets obtained with financing arrangements to expand into a new data center in Reno, NV.
ReposiTrak reported net other income of $306,866 for the three months ended March 31, 2025, marking a 12% decrease from the same period in 2024. The decrease was primarily due to a reduction in interest income attributable to earnings on fixed income instruments. Additionally, preferred dividends accrued on the company's Preferred Stock were $85,725 for the same period, reflecting a 36% decrease from 2024.
The report also highlighted the company's strategic response to the United States Food & Drug Administration's "New Era of Smarter Food Safety" blueprint and the final rule on the Food Safety Modernization Act Section 204(d) ("FSMA 204") * Traceability for High-Risk Foods. ReposiTrak's Traceability Network ("RTN") was positioned to provide end-to-end traceability to ensure a safe food supply chain, tighten controls on food waste, and implement a food recall response that saves lives and money.
Today the company's shares have moved 0.52% to a price of $23.03. If you want to know more, read the company's complete 10-Q report here.
