ReposiTrak (TRAK) investor relations material

Executive summary

• Achieved a strategically important quarter with a focus on touchless traceability, filing two new patents and deploying solutions at major grocery and wholesale customers, reinforcing competitive moats and expanding the patent portfolio to nine U.S. patents.

• Transitioned to a highly scalable SaaS platform with over 98% recurring revenue, improving predictability and quality of earnings, and recurring revenue grew across all business lines.

• Formed a collaboration with SPAR Group to extend capabilities from issue identification to in-store remediation, addressing a key industry bottleneck and enhancing supply chain solutions.

• Net income for the quarter was $2 million, essentially flat year-over-year, with operating income up 24% and a continued focus on recurring subscription revenue.

• Traceability solutions are a key growth driver, supported by regulatory changes and industry mandates.

Financial highlights

• Q3 fiscal 2026 revenue was $5.9 million, flat year-over-year, with nine-month revenue up 5% to $17.7 million.

• Operating expenses decreased 12% year-over-year to $3.6 million; income from operations rose 24% to $2.3 million.

• GAAP net income for the quarter was $2 million; nine-month net income reached $5.5 million, up 6% year-over-year.

• Ended the quarter with $26.4 million in cash and zero bank debt; working capital at $26.3 million.

• Operating cash flow for the first nine months was $5.9 million.

Outlook and guidance

• Priorities remain on disciplined execution, recurring revenue growth, profitability expansion, prudent capital allocation, and long-term shareholder value.

• Management expects continued growth in recurring subscription revenue and traceability demand, driven by regulatory and commercial adoption.

• Expect financial impact from the SPAR partnership to be visible in six to nine months.

• Ongoing preferred share redemptions expected to be completed by December 2026.

• Modeling an effective tax rate of approximately 20% going forward.