ReposiTrak (TRAK) investor relations material

Executive summary

• Recurring SaaS revenue now exceeds 98% of total, up from 62% in 2020, after converting $7M in one-time revenue and eliminating $2M in low-margin business.

• Revenue increased 7% year-over-year for the quarter to $5.9M and 8% for the six months, driven by recurring subscription growth in compliance, supply chain, and traceability.

• Net income for the quarter was $1.7M, up 9% year-over-year, with net margin exceeding 30% and net cash nearly doubling to $29M since 2020.

• Investments focused on product innovation, patent filings, and AI-driven operational efficiency, with new patents for Touchless Traceability and automated data error correction.

• Traceability remains a key growth area, with significant network effects, a large onboarding queue, and leadership in food supply chain traceability.

Financial highlights

• Q2 revenue increased 7% year-over-year to $5.9M; year-to-date revenue up 8% to $11.8M.

• Operating income for the quarter was $1.8M, up 34% year-over-year; GAAP net income was $1.7M, up 9%.

• Q2 EPS up 13% to $0.09; year-to-date EPS up 13% to $0.19 basic.

• Operating expenses for the quarter down 2%; year-to-date expenses flat at $8.1M.

• Total cash at $28.7M as of December 31, 2025, with no bank debt.

Outlook and guidance

• Effective tax rate expected to be 20% going forward as NOLs expire.

• Management expects continued growth in recurring revenue, especially in traceability, as regulatory and retailer mandates increase.

• Anticipates acceleration in traceability onboarding as FDA deadline approaches, with significant demand expected in the next 12-18 months.

• The company believes existing cash and cash flows from operations are sufficient to fund requirements for at least the next twelve months.

• Ongoing investments in product innovation and patent filings are expected to strengthen competitive positioning.