ReposiTrak Second Quarter Fiscal 2026 Revenue Increases 7% to $5.9 Million; Earnings Per Share Increases 13%

SALT LAKE CITY--( BUSINESS WIRE)--ReposiTrak (NYSE: TRAK), the world's largest food traceability and regulatory compliance network, built upon its proven inventory management and out-of-stock reduction SaaS platform, today announced financial results for the second fiscal quarter ended December 31, 2025.

Second Fiscal Quarter Financial Highlights:

Randall K. Fields, Chairman and CEO of ReposiTrak commented, “Building upon our industry-leading ReposiTrak Traceability Network (RTN), the leading solution for automating the exchange of traceability data between trading partners, and leveraging more than two decades of expertise in the food safety industry, we have developed and filed for multiple patents on Touchless Traceability™. This is an advanced solution, augmenting the RTN, which enables retailers, wholesalers and distributors to produce accurate, compliant Key Data Element (KDE) records at scale while reducing operational costs. This patent protection for this unique innovation is expected to not only create a durable competitive advantage for data error correction and related processes, but also establish yet another moat around our business.”

“Demand for our solutions continues to grow, and our growing presence with smaller ingredient providers for traceability solutions is facilitating deeper cross-selling opportunities across all business lines,” continued Mr. Fields. “We are now driving cross-selling across all solutions. Our structural profitability continues to enable us to invest in our business, develop additional innovative solutions like Touchless Traceability™, and pursue patents for our innovations to build a moat around our business. We are making these investments while continuing to expand our cash balance, streamlining our capital structure and returning meaningful capital to shareholders.”

Second Fiscal Quarter Financial Results (three months ended December 31, 2025, vs. three months ended December 31, 2024):

Total revenue was up 7% to $5.9 million as compared to $5.5 million in the prior-year second quarter. Total operating expense was $4.0 million, down 2% compared to $4.1 million last year. SG&A expense was $3.0 million, up 5% from $2.8 million last year. GAAP net income was $1.7 million compared to $1.6 million. Net income to common shareholders was $1.6 million, or $0.09 per diluted share, compared to $1.5 million, or $0.08 per diluted share, an increase of 13%.

Return of Capital:

In the second quarter of fiscal 2026, the Company redeemed 70,093 preferred shares at the stated redemption price of $10.70 per share for a total of $749,995. As of December 31, 2025, a total of 195,912 shares of Series B preferred were issued and outstanding. Since inception, a total of 641,865 preferred shares, including Series B and Series B-1 preferred, at the redemption price of $10.70 per share have been redeemed for a total of $6.9 million. All Series B-1 preferred shares have been redeemed. The remaining amount available for future preferred redemptions is $2.1 million, At the current rate of redemption, the Company anticipates redeeming all of its preferred shares issued and outstanding on or before September of 2026.

During the second quarter of fiscal 2026, the Company repurchased 79,927 common shares for a total of $1,098,608 or an average of $13.75 per share. The Company has approximately $6.5 million remaining on the $21 million total common share buyback authorization.

On December 19, 2025 the Board declared a quarterly dividend of $0.02 per share to shareholders of record as of December 31, 2025, payable on or about February 14, 2026. This represents the third 10% increase in the Company’s dividend since the dividend was established in September 2022. Subsequent dividends will be paid within 45 days of each fiscal quarter end.

Balance Sheet:

The Company had $28.7 million in cash and cash equivalents at December 31, 2025, compared to $28.6 million at June 30, 2025. As of December 31, 2025, the Company had no bank debt.

Conference Call:

The Company will host a conference call at 4:15 p.m. Eastern today to discuss the Company’s results. The conference call will also be webcast and will be available via the investor relations section of the Company’s website, www.parkcitygroup.com.

Participant Dial-In Numbers:

Date: Tuesday, February 17, 2026

Time: 4:15 p.m. ET (1:15 p.m. PT)

Toll-Free: 1-877-407-9716

Toll/International 1-201-493-6779

Conference ID: 13757946

Replay Dial-In Numbers:

Toll Free: 1-844-512-2921

Toll/International: 1-412-317-6671

Conference ID: 13757946

Replay Start: Tuesday, February 17, 2026, 7:15 p.m. ET

Replay Expiry: Tuesday, March 17, 2026 at 11:59 p.m. ET

About ReposiTrak

ReposiTrak (NYSE: TRAK) provides retailers, suppliers, food manufacturers and wholesalers with a robust solution suite to help reduce risk and remain in compliance with regulatory requirements, enhance operational controls and increase sales with unrivaled brand protection. Consisting of three product families – food traceability, compliance and risk management and supply chain solutions – ReposiTrak’s integrated, cloud-based applications are supported by an unparalleled team of experts. For more information, please visit https://repositrak.com

Forward-Looking Statement

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “if”, “should” and “will” and similar expressions as they relate to ReposiTrak Inc., Park City Group d/b/a ReposiTrak, or Park City Group, Inc. (“ReposiTrak”) are intended to identify such forward-looking statements. ReposiTrak may from time-to-time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see “Risk Factors” in ReposiTrak annual report on Form 10-K, its quarterly report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

REPOSITRAK, INC.

Consolidated Condensed Balance Sheets (Unaudited)

December 31,

June 30,

2025

Assets

Current Assets

Cash

28,706,493

28,568,805

Receivables, net of allowance for doubtful accounts of $247,545 and $242,437 at December 31, 2025 and June 30, 2025, respectively

4,853,895

4,133,026

Contract asset – unbilled current portion

481,908

428,585

Prepaid expense and other current assets

927,600

555,384

Total Current Assets

34,969,896

33,685,800

Property and equipment, net

430,887

602,172

Other Assets:

Deposits and other assets

22,414

Prepaid expense – less current portion

4,404

6,568

Goodwill

20,883,886

Capitalized software costs, net

128,207

Total Other Assets

20,910,704

21,041,075

Total Assets

56,311,487

55,329,047

Liabilities and Shareholders’ Equity

Current liabilities

Accounts payable

189,226

282,146

Accrued liabilities

2,351,560

1,841,839

Contract liability – deferred revenue

3,646,520

3,175,908

Notes payable and financing leases – current

233,401

231,225

Total current liabilities

6,420,707

5,531,118

Long-term liabilities

Notes payable and financing leases – less current portion

170,442

278,748

Total liabilities

6,591,149

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; 195,912 and 336,098 shares issued and outstanding at December 31, 2025 and June 30, 2025, respectively

1,959

3,361

Common Stock, $0.01 par value, 50,000,000 shares authorized; 18,211,681 and 18,282,805 and issued and outstanding at December 31, 2025 and June 30, 2025, respectively

182,119

182,830

Additional paid-in capital

59,819,578

62,181,156

Accumulated other comprehensive loss

(19,845

)

(11,256

)

Accumulated deficit

(10,263,473

)

(12,836,910

)

Total stockholders’ equity

49,720,338

49,519,181

Total liabilities and stockholders’ equity

56,311,487

55,329,047

REPOSITRAK, INC.

Consolidated Condensed Statements of Operations and Comprehensive Income (Unaudited)

Three Months Ended

Six Months Ended

December 31,

2025

2024

2025

2024

Revenue

5,856,811

5,490,908

11,828,278

10,932,050

Operating expense:

Cost of revenue and product support

853,744

1,002,556

1,707,896

1,861,775

Sales and marketing

1,494,342

1,455,036

3,101,811

2,984,136

General and administrative

1,467,862

1,376,553

2,840,089

2,669,104

Depreciation and amortization

223,930

304,712

467,676

584,923

Total operating expense

4,039,878

4,138,857

8,117,472

8,099,938

Income from operations

1,816,933

1,352,051

3,710,806

2,832,112

Other income (expense):

Interest income

397,493

354,633

760,902

704,166

Interest expense

(9,412

)

(12,033

)

(20,739

)

(22,205

)

Realized gain (loss) on short term investments

(20,246

)

Unrealized gain (loss) on short term investments

(68,974

)

8,534

(25,155

)

4,267

Income before income taxes

2,136,040

1,703,185

4,405,568

3,518,340

(Provision) for income taxes:

(450,000

)

(152,105

)

(899,999

)

(302,105

)

Net income

1,686,040

1,551,080

3,505,569

3,216,235

Dividends on preferred stock

(46,551

)

(95,616

)

(105,368

)

(203,498

)

Net income applicable to common shareholders

1,639,489

1,455,464

3,400,201

3,012,737

Weighted average shares, basic

18,269,000

18,254,000

18,279,000

18,249,000

Weighted average shares, diluted

19,053,000

19,143,000

19,094,000

19,122,000

Basic income per share

0.09

0.08

0.19

0.17

Diluted income per share

0.09

0.08

0.18

0.16

Comprehensive income:

Net income

1,686,040

1,551,080

3,505,569

3,216,235

Other comprehensive gain:

Unrealized gain (loss) on available-for-sale securities

(15,217

)

(8,589

)

18,869

Total comprehensive income

1,686,060

1,535,863

3,496,980

3,235,104

REPOSITRAK, INC.

Consolidated Condensed Statements of Cash Flows (Unaudited)

Six Months Ended

December 31,

2025

2024

Cash flows from operating activities:

Net income

3,505,569

3,216,235

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

467,676

584,923

Amortization of operating right of use asset

31,352

Stock compensation expense

257,056

202,987

Bad debt expense

450,000

300,000

(Increase) decrease in:

Accounts receivables

(1,224,192

)

(460,270

)

Long-term receivables, prepaids and other assets

(526,487

)

(54,102

)

Increase (decrease) in:

Accounts payable

(92,920

)

26,786

Operating lease liability

(31,218

)

Accrued liabilities

469,358

(207,036

)

Deferred revenue

470,612

1,718,973

Net cash provided by operating activities

3,776,672

5,328,630

Cash flows from investing activities:

Purchase of property and equipment

(11,749

)

Sale (purchase) of marketable securities

(8,589

)

18,869

Net cash provided by (used in) investing activities

(20,338

)

18,869

Cash flows from financing activities:

Common Stock buyback/retirement

(1,248,593

)

(100,016

)

Redemption of Series B Preferred

(1,499,990

)

(1,499,980

)

Proceeds from exercise of warrants

79,120

Proceeds from employee stock plan

63,479

64,352

Dividends paid

(827,412

)

(831,898

)

Payments on notes payable and capital leases

(106,130

)

(171,541

)

Net cash used in financing activities

(3,618,646

)

(2,459,963

)

Net increase (decrease) in cash and cash equivalents

137,688

2,887,536

Cash and cash equivalents at beginning of period

28,568,805

25,153,862

Cash and cash equivalents at end of period

28,706,493

28,041,398

Supplemental disclosure of cash flow information:

Cash paid for income taxes

708,943

375,119

Cash paid for interest

7,430

4,832

Cash paid for operating leases

37,371

Supplemental disclosure of non-cash investing and financing activities:

Common stock to pay accrued liabilities

223,144

137,440

Dividends accrued on preferred stock

105,368

203,498

Right-of-use asset

654,444