ReposiTrak Inc (TRAK) Q2 2026 Earnings Call Highlights: Transforming Revenue Streams and …

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Thu, February 19, 2026 at 10:02 AM GMT+9 2 min read

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TRAK

-8.82%

This article first appeared on GuruFocus.

Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

ReposiTrak Inc (NYSE:TRAK) has successfully converted over $7 million in one-time revenue to recurring SaaS revenue, increasing recurring revenue from 62% to over 98% of total revenue.

The company has paid off over $6 million in bank debt and reduced annual operating expenses from $19 million to $16 million since 2020.

Net margin has grown from 8% to over 30% during the same period, indicating improved profitability.

ReposiTrak Inc (NYSE:TRAK) has increased net cash by a 16% compounded annual growth rate, growing from $13.7 million in 2020 to almost $29 million in 2025.

The company has invested in new product solutions and filed for two patents, enhancing its competitive edge and creating a moat around its business.

Negative Points

The traceability process is challenging due to a high error rate in supplier data, with initial error rates between 50% and 70%.

The transition to traceability is taking longer than expected, impacting the speed of onboarding new suppliers.

There is a potential risk from AI advancements, as some companies may believe they can develop their own solutions, posing a competitive threat.

Food inflation and margin squeezes in the supermarket industry could indirectly impact ReposiTrak Inc (NYSE:TRAK)'s business.

The company faces a short-term headwind from the need to patent its innovations before initiating sales, delaying potential revenue from new solutions.

Q & A Highlights

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Q: In fiscal '25, traceability was only 8% of total revenue. Is there a more recent data point on how much total revenue is coming from traceability? A: It’s between 8 and 10%, but it’s hard to specify due to cross-selling. (John Merrill, CFO)

Q: Can AI improve the accuracy of traceability data? A: Yes, AI helps detect and correct errors in traceability data. Our system uses AI to identify and autocorrect errors, which is crucial as many errors are not detectable by traditional methods. (Randy Fields, CEO)

Q: Is there any impact on ReposiTrak from the concept of Maha? A: Yes, indirectly. Maha increases awareness of food safety, which benefits us as it highlights the importance of traceability and safety in food supply chains. (Randy Fields, CEO)

Q: Does food inflation have a direct or indirect impact on your business? A: Indirectly, yes. Inflation without the ability to pass costs to consumers can lead to margin squeezes for supermarkets, potentially affecting all cost elements, including ours. (Randy Fields, CEO)

Story continues  

Q: What are your current thoughts on strategic M&A? A: While we are open to opportunities, our current focus is on our existing initiatives, particularly traceability, as the FDA deadline approaches. (John Merrill, CFO and Randy Fields, CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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