SALT LAKE CITY, UT - ReposiTrak, the world's largest food traceability and regulatory compliance network, built upon its proven inventory management and out-of-stock reduction SaaS platform, announced financial results for the second fiscal quarter ended December 31, 2024.

Second Fiscal Quarter Financial Highlights:

• Second quarter total revenue increased 7% to $5.5 million from $5.1 million.
• Recurring revenue increased 5%, reflecting a significant amount of setup fees earned during the quarter due to the number of customers onboarding to the system.
• Quarterly operating expense increased 7% to $4.1 million from $3.9 million.
• Quarterly operating income increased 9% to $1.4 million from $1.2 million last year.
• Quarterly GAAP net income increased 7% to $1.6 million from $1.5 million last year.
• Quarterly net income to common shareholders increased 12% to $1.5 million from $1.3 million last year.
• Quarterly EPS of $0.08 compared to $0.07 in the prior year second fiscal quarter.
• The Company finished the quarter with over $28.0 million in cash and no bank debt.
• During the quarter, the Company redeemed 70,093 preferred shares for the stated redemption price of $10.70 per share for a total of $749,995 and repurchased 4,074 common shares at an average price of $24.55 for a total of $100,017.

In a recent press release, Randall K. Fields, Chairman and CEO of ReposiTrak commented, “As we anticipated, the pace of onboarding suppliers continues to accelerate as we approach the FSMA 204 January 2026 deadline. The 70% increase in deferred revenue reflected on our balance sheet represents growth in all lines of business, including the ReposiTrak Traceability Network or RTN. These customers are contracted, have been onboarded, and the substantial increase in deferred revenue represents more incremental revenue that we will recognize over the next twelve months. With close to $4.2 million, or more than 75% of our current quarterly revenue run-rate, we are more confident in our ability to generate double-digit top-line growth for the balance of the fiscal year and well into fiscal 2026. ReposiTrak is exceedingly well-positioned in the market, with industry endorsements and partnerships, driving demand as retailers push adoption of food safety, compliance, and supply chain initiatives.”

“Simultaneously, the pipeline for Traceability continues to expand rapidly, and overall demand continues to exceed our expectations,” continued Mr. Fields. “Retailers are driving adoption ahead of the FDA deadlines, and, more importantly, demanding that all food be traced, far exceeding the FDA mandates. Continued food recalls, increased legal exposure, and the commitment to food safety by major retailers are all contributing to increased adoption, and this is translating to growing interest and an expanding customer base from suppliers in our cost-effective solution.”

“The positive impact of Traceability on our business is increasingly apparent, atop the established compliance and supply chain we have in place,” continued Mr. Fields. “We continue to convert higher revenues into greater profitability and cash generation, ending the quarter with record cash balances even as we return robust capital to shareholders.”