ReposiTrak (TRAK) investor relations material

Executive summary

• Fiscal 2026 focused on shifting revenue mix toward recurring SaaS revenue, improving operating cost structure, and expanding offerings with SPAR Group.

• Net income rose 8% to $7.6 million and diluted EPS reached $0.39 for the year; Q4 net income up 16% and EPS up 20%.

• Major new initiative, Touchless Merchandising, launched with SPAR Group, expected to drive significant revenue in 2027 and beyond.

• Strong cash generation and ongoing return of capital to shareholders through buybacks, dividends, and preferred share redemptions totaling $5.3 million.

• Ended fiscal year with $27.3 million in cash and no bank debt, maintaining a strong liquidity position.

Financial highlights

• Total revenue for fiscal 2026 increased 3% to $23.3 million; recurring revenue grew 4%.

• Operating expenses declined 6% to $15.4 million, driving a 26% increase in operating income to $7.8 million.

• Operating margin expanded to 33.7% from 27.5%, a 620 basis point increase.

• Q4 2026 revenue was $5.6 million, down 3% year-over-year; Q4 operating income up 19% to $1.9 million.

• Q4 GAAP net income to common shareholders up 16% to $2.1 million; diluted EPS up 20% to $0.11.

Outlook and guidance

• Expect increased customer activity as the FDA traceability compliance deadline approaches in 2028.

• Anticipate Touchless Merchandising to generate meaningful revenue in 2027 and beyond.

• Confident in continued growth of traceability and Touchless Merchandising offerings over the next fiscal year.

• Expects continued investment in technology and growth initiatives while maintaining capital returns to shareholders.