ReposiTrak Reports 16% Revenue Growth to $5.9 Million for Q1 2025

ReposiTrak, Inc. reported a notable increase in financial performance for the three months ended March 31, 2025, with revenue reaching $5.9 million, a 16% rise from $5.1 million in the same period last year. For the nine months ending March 31, 2025, total revenue was $16.8 million, reflecting a 10% increase compared to $15.3 million for the prior year. The growth in revenue was primarily attributed to an increase in recurring subscription revenue across all business lines, particularly in compliance, supply chain, and traceability services, driven by heightened regulatory requirements and consumer demand for food safety.

Operating expenses also saw an increase, with total operating expenses for the three months ending March 31, 2025, amounting to $4.1 million, up from $3.8 million in the previous year. The increase was largely due to higher costs in sales and marketing, which rose by 4% to $1.4 million, and general and administrative expenses, which increased by 8% to $1.5 million. The company also reported a net income of $1.9 million for the quarter, compared to $1.6 million in the same quarter of the previous year, resulting in a basic earnings per share of $0.10, up from $0.08.

In terms of operational developments, ReposiTrak's customer base continues to expand, with a focus on enhancing its traceability solutions in response to regulatory changes such as the Food Safety Modernization Act (FSMA) 204. The company has positioned its ReposiTrak Traceability Network as a key offering, connecting thousands of suppliers and retailers to facilitate compliance with new traceability requirements. The company’s cash and cash equivalents increased by 12% to $28.1 million as of March 31, 2025, compared to $25.2 million at the end of the previous fiscal year, reflecting strong cash flow from operations.

Strategically, ReposiTrak has been active in redeeming its Series B Preferred Stock, with a total of $2.2 million redeemed during the nine months ended March 31, 2025. This initiative is part of a broader plan to retire all outstanding preferred shares over a three-year period, which began in August 2023. The company also declared a quarterly cash dividend of $0.01815 per share, reflecting its commitment to returning value to shareholders.

Looking ahead, ReposiTrak anticipates continued growth driven by the increasing demand for its compliance and traceability solutions. The company expects to leverage its strong financial position to invest in further product development and marketing efforts, particularly as the industry prepares for the upcoming regulatory deadlines associated with FSMA 204. Management remains optimistic about the company's ability to enhance cash flow and working capital in the coming periods, despite the ongoing challenges in the broader economic environment.