Thu, May 15, 9:22 PM (36 days ago)
**ReposiTrak, Inc. (TRAK) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $5.91 million, a 16% increase from Q1 2024 ($5.08 million). Nine-month revenue reached $16.85 million, up 10% from $15.27 million in 2024. - **Profit Margins:** Gross margin was approximately 84.5% for Q1 2025, with operating income at $1.81 million, a 31% increase from Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $6.76 million for the nine months ended March 31, 2025, a 38% increase from $4.91 million in 2024. - **Earnings:** Net income for Q1 2025 was $1.97 million, up from $1.55 million in Q1 2024. Nine-month net income was $5.18 million, a 19% increase from $4.38 million in 2024. **Key Metrics and Trends:** - **Subscription Growth:** Revenue growth driven by recurring subscription services, particularly in compliance, supply chain, and traceability. - **Operating Expenses:** Cost of services and product support increased by 10% due to automation and onboarding efforts. Sales and marketing expenses rose by 4%, primarily due to higher commissions and marketing investments. - **Cash Position:** Cash and cash equivalents increased by 12% to $28.13 million, reflecting higher revenue and cash receipts from customers. **Future Operations and Uncertainties:** - **Regulatory Impact:** The company is well-positioned to benefit from the Food Safety Modernization Act (FSMA) 204(d) compliance requirements, which drive demand for traceability solutions. - **Financial Strategy:** The company plans to continue redeeming Series B and B-1 Preferred Stock over three years, which commenced in August 2023. The company also declared a quarterly cash dividend of $0.01815 per share. - **Market Risks:** The company's financial results are primarily affected by U.S. economic conditions. Interest rate changes may impact investment income, but the company expects minimal material effects due to its cash management strategy. **Conclusion:** ReposiTrak, Inc. demonstrated strong financial performance in Q1 2025, with significant revenue growth and improved profitability. The company's strategic focus on regulatory compliance and traceability solutions positions it well for future growth, despite potential economic uncertainties.