ReposiTrak (TRAK)
NYSE:TRAK
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ReposiTrak
(NYSE:TRAK)
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Rating:71Outperform
Price Target:
$9.00
▲(25.70% Upside)
Action:ReiteratedDate:03/25/26
Strong fundamentals and earnings-call execution signals (high margins, accelerating revenue, minimal leverage, recurring-revenue transformation, and continued capital returns) support the score, but are tempered by clearly bearish technicals (price below key averages, negative MACD) and a relatively high P/E that limits valuation cushion.
Positive Factors
Recurring revenue conversion
The conversion to >98% recurring SaaS revenue meaningfully raises revenue predictability and lowers revenue volatility. Durable subscription economics support stable margins, more reliable cash flows, easier long-term planning and recurring upsell opportunities across retailer-supplier networks.
Negative Factors
High supplier data error rates
Persistently high supplier data errors force extensive manual remediation and support costs, reducing onboarding throughput and increasing customer service intensity. Over months this constrains scalable Traceability adoption and pressures operating efficiency and margin stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue conversion
The conversion to >98% recurring SaaS revenue meaningfully raises revenue predictability and lowers revenue volatility. Durable subscription economics support stable margins, more reliable cash flows, easier long-term planning and recurring upsell opportunities across retailer-supplier networks.
Read all positive factors
ReposiTrak (TRAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$130.34M
Dividend Yield0.57%
Average Volume (3M)74.89K
Price to Earnings (P/E)33.5
Beta (1Y)1.34
Revenue Growth11.05%
EPS Growth18.55%
CountryUS
Employees73
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.09
Shares Outstanding18,203,410
10 Day Avg. Volume93,616
30 Day Avg. Volume74,886
Financial Highlights & Ratios
PEG Ratio2.57
Price to Book (P/B)7.25
Price to Sales (P/S)15.87
P/FCF Ratio42.70
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue4.34
Enterprise Value/Gross Profit5.11
Enterprise Value/Ebitda11.72
Forecast
1Y Price Target
$16.00Price Target Upside123.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.4
Revenue Forecast (FY)$24.00M
ReposiTrak Business Overview & Revenue Model
Company Description
ReposiTrak, Inc., a software-as-a-service provider, designs, develops, and markets proprietary software products in North America. The company offers ReposiTrak MarketPlace, a supplier discovery and B2B e-commerce solution; ReposiTrak Compliance a...
How the Company Makes Money
ReposiTrak primarily makes money by selling subscription access to its cloud-based compliance and supply chain management platform. A core revenue stream is recurring SaaS fees tied to enabling and maintaining compliance workflows between retailer...
ReposiTrak Key Performance Indicators (KPIs)
ReposiTrak Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Positive
The call emphasized durable progress: steady revenue growth (7% Q2, 8% YTD), meaningful margin expansion (income from operations +34% Q2, +31% YTD), strong balance sheet (≈$28.7M cash, zero bank debt), continued share repurchases, dividend increases, and strategic investment in patented Touchless Traceability and AI-powered detect-and-correct capabilities. Key challenges center on high supplier data error rates (50%–70%), slower-than-ideal supplier onboarding that limits near-term Traceability revenue (currently ~8%–10%), an anticipated permanent step-up in effective tax rate (~20%), and some SG&A pressures. On balance the company presented multiple material positives (recurring revenue conversion, profitability, cash returns, IP moat, RTN scale) that outweigh the operational and market headwinds.Positive Updates
Recurring Revenue Transformation
Since 2020 the company converted over $7.0M of one-time revenue to recurring SaaS, increasing recurring revenue from 62% of total revenue to over 98%.
Negative Updates
High Supplier Data Error Rates
Supplier data error rates, especially among small suppliers, are estimated at 50%–70%, creating significant complexity and manual remediation burdens across the supply chain that slow Traceability onboarding and usability.
Read all updates
Q2-2026 Updates
Positive
Negative
Recurring Revenue Transformation
Since 2020 the company converted over $7.0M of one-time revenue to recurring SaaS, increasing recurring revenue from 62% of total revenue to over 98%.
Read all positive updates
Company Guidance
Management's guidance emphasized continued SaaS conversion, capital returns and disciplined spending: since 2020 they converted >$7M of one‑time revenue to recurring and grew recurring revenue from 62% to >98%, paid down >$6M of bank debt, cut annual operating expense from ~$19M to $16M and expanded net margin from 8% to north of 30%; near‑term financials showed Q2 revenue +7% to $5.9M, Q2 operating income +34% to $1.8M, Q2 GAAP net income $1.7M (EPS $0.09 on 18.2M basic / 19.1M diluted), FYTD revenue +8% to $11.8M and FYTD operating income +31% to $3.7M. They expect a ~20% effective tax rate going forward, no meaningful incremental cash OpEx or CapEx for AI/patent work, continued balance‑sheet strength (net cash up from $13.7M in 2020 to ~ $29M in 2025 with $28.7M cash and 0 bank debt), ongoing buybacks (Q2 repurchased ~80k shares for $1.1M; 2.22M total repurchased for $14.5M; ~$6.7M authorization remaining), preferred redemptions at ~$750k/quarter with ~196k shares (~$2.1M) left targeted to be retired by Dec 2026, a quarterly dividend of $0.02 (third consecutive 10% raise) and a goal to return ~50% of annual cash from operations to shareholders while preparing for FDA‑driven acceleration of Traceability onboarding (~18 months to the deadline by year‑end).ReposiTrak Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
93
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jun 2025 | Sep 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.50M | 22.61M | 20.45M | 19.10M | 18.05M | 21.01M |
| Gross Profit | 19.97M | 18.92M | 17.04M | 15.79M | 14.86M | 13.10M |
| EBITDA | 8.71M | 8.95M | 7.61M | 7.11M | 5.38M | 5.41M |
| Net Income | 7.27M | 6.98M | 5.96M | 5.59M | 4.00M | 4.12M |
Balance Sheet | ||||||
| Total Assets | 56.31M | 55.33M | 51.60M | 50.58M | 49.32M | 55.05M |
| Cash, Cash Equivalents and Short-Term Investments | 28.71M | 28.57M | 25.15M | 23.99M | 21.46M | 24.07M |
| Total Debt | 403.84K | 509.97K | 545.10K | 747.11K | 2.97M | 6.70M |
| Total Liabilities | 6.59M | 5.81M | 4.74M | 4.70M | 6.42M | 9.91M |
| Stockholders Equity | 49.72M | 49.52M | 46.85M | 45.88M | 42.90M | 45.14M |
Cash Flow | ||||||
| Free Cash Flow | 6.84M | 8.40M | 6.89M | 7.96M | 6.05M | 5.08M |
| Operating Cash Flow | 6.87M | 8.42M | 6.96M | 8.86M | 6.10M | 5.40M |
| Investing Cash Flow | -18.06K | 169.00 | -100.71K | -903.19K | 1.32M | -318.87K |
| Financing Cash Flow | -6.16M | -5.01M | -5.70M | -5.43M | -10.03M | -1.36M |
ReposiTrak Technical Analysis
Negative
7.16
Price Trends
8.68
Negative
10.63
Negative
13.62
Negative
Market Momentum
-0.39
Negative
31.11
Neutral
34.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRAK, the sentiment is Negative. The current price of 7.16 is below the 20-day moving average (MA) of 7.61, below the 50-day MA of 8.68, and below the 200-day MA of 13.62, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 31.11 is Neutral, neither overbought nor oversold. The STOCH value of 34.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRAK.
ReposiTrak Risk Analysis
ReposiTrak disclosed 26 risk factors in its most recent earnings report. ReposiTrak reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ReposiTrak Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $130.34M | 33.51 | 14.66% | 0.57% | 11.05% | 18.55% | |
69 Neutral | $260.67M | 6.24 | -38.92% | 14.78% | -19.17% | 308.81% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $241.02M | 13.24 | -2.93% | ― | 0.25% | 92.10% | |
54 Neutral | $271.04M | -6.33 | -25.34% | ― | -24.30% | -181.62% |
* Technology Sector Average
TRAK
ReposiTrak
7.16
-12.66
-63.88%
EGHT
8X8
1.73
0.02
1.17%
MKTW
MarketWise
16.23
3.25
25.01%
SMRT
SmartRent
1.41
0.68
93.15%
ReposiTrak Corporate Events
Dividends
ReposiTrak Initiates Regular Quarterly Cash Dividend Program
Positive
Mar 24, 2026
On March 20, 2026, ReposiTrak, Inc. announced it had declared a quarterly cash dividend of $0.02 per share, equivalent to $0.08 per share on an annualized basis, on its common stock. The dividend is payable on or about May 15, 2026 to stockholders...
Business Operations and StrategyPrivate Placements and Financing
ReposiTrak Subsidiary Extends $4 Million Note to SPAR
Positive
Mar 20, 2026
On March 16, 2026, PC Group, Inc., a subsidiary of ReposiTrak, Inc., extended a senior unsecured promissory note of up to $4 million to SPAR Marketing Force, Inc., structured as a $3 million initial advance and an additional $1 million tranche ava...
Business Operations and StrategyExecutive/Board Changes
ReposiTrak Strengthens Board With Return of Industry Veteran
Positive
Mar 17, 2026
On March 17, 2026, ReposiTrak announced that James R. Gillis, CEO of MA advisory firm Gillis Associates Inc., rejoined its board of directors effective March 13, 2026, bringing more than 35 years of experience in retail supply chain management, M...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
ReposiTrak posts strong Q2 growth and dividend hike
Positive
Feb 19, 2026
For the second fiscal quarter ended December 31, 2025, ReposiTrak reported a 7% revenue increase to $5.9 million and a 34% jump in operating income to $1.8 million, lifting operating margin to 31%. GAAP net income rose to $1.7 million, with net in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.