Track Group Reports 3rd Quarter Fiscal 2025 Financial Results
Track Group (OTCQB: TRCK), a leader in offender tracking services, reported Q3 FY25 financial results with mixed performance. The company posted revenue of $9.1M, down 1% year-over-year, while achieving significant improvements in profitability metrics.
Key highlights include an 8% increase in gross profit to $4.6M, a substantial improvement in operating income to $0.8M (up 244% YoY), and net income of $1.4M compared to a previous loss of $0.9M. The company's Adjusted EBITDA reached $1.8M, representing a 14% increase from Q3 FY24, with cash position strengthening to $4.9M, up 37% from September 2024.
For FY25, Track Group projects revenue between $34.5M-$35.5M with an Adjusted EBITDA margin of 14.0-18.0%, reflecting their strategic initiatives in technology platform investments and operational streamlining.
Track Group (OTCQB: TRCK), leader nei servizi di monitoraggio per i trasgressori, ha riportato i risultati finanziari del terzo trimestre dell'anno fiscale 2025 con performance contrastanti. L'azienda ha registrato un fatturato di 9,1 milioni di dollari, in calo dell'1% rispetto all'anno precedente, pur ottenendo significativi miglioramenti nei parametri di redditività.
I punti salienti includono un aumento dell'8% del profitto lordo a 4,6 milioni di dollari, un notevole miglioramento dell'utile operativo a 0,8 milioni di dollari (in crescita del 244% su base annua) e un utile netto di 1,4 milioni di dollari rispetto a una perdita precedente di 0,9 milioni. L'EBITDA rettificato ha raggiunto 1,8 milioni di dollari, con un incremento del 14% rispetto al terzo trimestre dell'anno fiscale 2024, mentre la posizione di cassa si è rafforzata a 4,9 milioni, in aumento del 37% rispetto a settembre 2024.
Per l'anno fiscale 2025, Track Group prevede un fatturato compreso tra 34,5 e 35,5 milioni di dollari con un margine EBITDA rettificato tra il 14,0% e il 18,0%, riflettendo le loro iniziative strategiche negli investimenti nella piattaforma tecnologica e nell'ottimizzazione operativa.
Track Group (OTCQB: TRCK), líder en servicios de seguimiento de infractores, reportó resultados financieros del tercer trimestre del año fiscal 2025 con un desempeño mixto. La compañía registró ingresos de 9.1 millones de dólares, una disminución del 1% interanual, mientras lograba mejoras significativas en los indicadores de rentabilidad.
Los aspectos destacados incluyen un aumento del 8% en la ganancia bruta hasta 4.6 millones de dólares, una mejora sustancial en el ingreso operativo a 0.8 millones de dólares (un aumento del 244% interanual) y una utilidad neta de 1.4 millones de dólares en comparación con una pérdida previa de 0.9 millones. El EBITDA ajustado alcanzó 1.8 millones de dólares, representando un incremento del 14% respecto al tercer trimestre del año fiscal 2024, con una posición de efectivo fortalecida a 4.9 millones, un aumento del 37% desde septiembre de 2024.
Para el año fiscal 2025, Track Group proyecta ingresos entre 34.5 y 35.5 millones de dólares con un margen EBITDA ajustado de 14.0-18.0%, reflejando sus iniciativas estratégicas en inversiones en plataformas tecnológicas y optimización operativa.
Track Group (OTCQB: TRCK)� 범죄� 추적 서비� 분야� 선두주자로서 2025 회계연도 3분기 재무 실적� 발표했으�, 실적은 다소 혼재되어 있습니다. 회사� 9.1백만 달러� 매출� 기록했으�, 전년 대� 1% 감소했지� 수익� 지표에서는 상당� 개선� 이루었습니다.
주요 성과로는 매출총이익이 8% 증가하여 4.6백만 달러� 기록했고, 영업이익은 0.8백만 달러� 전년 대� 244% 크게 증가했으�, 순이익은 이전� 0.9백만 달러 손실에서 1.4백만 달러 흑자� 전환되었습니�. 회사� 조정 EBITDA� 1.8백만 달러� 2024 회계연도 3분기 대� 14% 증가했으�, 현금 보유액도 2024� 9� 대� 37% 증가� 4.9백만 달러� 강화되었습니�.
2025 회계연도� Track Group은 3,450� 달러에서 3,550� 달러 사이� 매출� 14.0-18.0%� 조정 EBITDA 마진� 예상하며, 이는 기술 플랫� 투자 � 운영 효율화라� 전략� 이니셔티브를 반영� 것입니다.
Track Group (OTCQB : TRCK), un leader dans les services de suivi des délinquants, a publié des résultats financiers pour le troisième trimestre de l'exercice 2025 avec des performances mitigées. La société a enregistré un chiffre d'affaires de 9,1 millions de dollars, en baisse de 1 % par rapport à l'année précédente, tout en réalisant des améliorations significatives des indicateurs de rentabilité.
Les points clés comprennent une augmentation de 8 % du bénéfice brut à 4,6 millions de dollars, une amélioration substantielle du résultat d'exploitation à 0,8 million de dollars (en hausse de 244 % en glissement annuel), et un bénéfice net de 1,4 million de dollars contre une perte précédente de 0,9 million. L'EBITDA ajusté a atteint 1,8 million de dollars, soit une hausse de 14 % par rapport au troisième trimestre de l'exercice 2024, avec une position de trésorerie renforcée à 4,9 millions, en hausse de 37 % depuis septembre 2024.
Pour l'exercice 2025, Track Group prévoit un chiffre d'affaires compris entre 34,5 et 35,5 millions de dollars avec une marge d'EBITDA ajusté de 14,0 à 18,0 %, reflétant leurs initiatives stratégiques en investissements dans la plateforme technologique et l'optimisation opérationnelle.
Track Group (OTCQB: TRCK), ein führendes Unternehmen im Bereich der Täterüberwachung, meldete gemischte Ergebnisse für das dritte Quartal des Geschäftsjahres 2025. Das Unternehmen erzielte einen Umsatz von 9,1 Mio. USD, was einem Rückgang von 1 % gegenüber dem Vorjahr entspricht, konnte jedoch deutliche Verbesserungen bei den Profitabilitätskennzahlen verzeichnen.
Zu den wichtigsten Highlights zählen ein 8%iger Anstieg des Bruttogewinns auf 4,6 Mio. USD, eine erhebliche Steigerung des Betriebsergebnisses auf 0,8 Mio. USD (ein Anstieg von 244 % im Jahresvergleich) sowie ein Nettogewinn von 1,4 Mio. USD im Vergleich zu einem Verlust von 0,9 Mio. USD im Vorjahr. Das bereinigte EBITDA erreichte 1,8 Mio. USD, was einer Steigerung von 14 % gegenüber dem dritten Quartal des Geschäftsjahres 2024 entspricht, während sich die Cash-Position auf 4,9 Mio. USD verbesserte, ein Anstieg um 37 % seit September 2024.
Für das Geschäftsjahr 2025 prognostiziert Track Group einen Umsatz zwischen 34,5 und 35,5 Mio. USD mit einer bereinigten EBITDA-Marge von 14,0-18,0 %, was ihre strategischen Initiativen in Technologieplattform-Investitionen und operative Straffung widerspiegelt.
- Gross profit increased 8% to $4.6M year-over-year
- Operating income improved 244% to $0.8M from previous loss of $0.5M
- Net income reached $1.4M, a $2.3M improvement from previous year's loss
- Cash position strengthened 37% to $4.9M
- Adjusted EBITDA margin improved to 16.7% from 12.6%
- Operating expenses decreased by $0.9M
- Revenue declined 1% to $9.1M year-over-year
- 9-month revenue down 4% to $26.1M compared to prior year
- Decreased monitoring revenue in Virginia and Washington D.C. markets
- Loss of revenue from recently sold Chilean subsidiary
NAPERVILLE, Ill., Aug. 08, 2025 (GLOBE NEWSWIRE) -- Track Group, Inc. (OTCQB: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal quarter ended June 30, 2025 (“Q3 FY25�). In Q3 FY25, the Company posted (i) total revenue of
FINANCIAL HIGHLIGHTS
- Total Q3 FY25 revenue of
$9.1M was down1% compared to Q3 FY24 revenue of$9.2M . Revenue for the nine months ended June 30, 2025 (�9M FY25�) of$26.1M was down approximately4% compared to revenue of$27.1M for the nine months ended June 30, 2024 (�9M FY24�). The decrease in monitoring revenues is driven principally by a decrease in people assigned to monitoring for clients in Virginia and Washington D.C., and due to our recently sold Chilean subsidiary. This decrease was partially offset by revenue increases for clients in Illinois and the Bahamas who experienced increases in the number of people assigned to monitoring. - Gross Profit of
$4.6M rose by8% ($0.3M ) in Q3 FY25 compared to Q3 FY24. Gross profit for 9M FY25 was$13.1M compared to gross profit of$12.4M for 9M FY24. This improvement stems from factors including reduced monitoring center costs and device repair costs, partly offset by a decrease in revenue. - Operating income in Q3 FY25 of
$0.8M was up approximately244% compared to an operating loss of ($0.5M ) in Q3 FY24. Operating income for 9M FY25 of$0.9M was up approximately156% compared to operating loss of ($1.7M ) for 9M FY24. This rise in operating income is primarily due to a decrease in cost of revenue and a decrease in operating expense, partially offset by a decrease in revenue. Operating expenses were down$0.9M in Q3 FY25 compared to Q3 FY24, primarily due to a decrease in general and administrative payroll, benefits, and payroll taxes of$0.4M due to the sale of our Chilean subsidiary on November 1, 2024 and a settlement expense related to a contract dispute of$0.5M in Q3 FY24. - Adjusted EBITDA for Q3 FY25 was
$1.8M compared to$1.6M for Q3 FY24. Adjusted EBITDA for 9M FY25 was$4.4M compared to Adjusted EBITDA for 9M FY24 of$3.4M primarily due to an increase in operating income in 9M FY25 compared to 9M FY24. Adjusted EBITDA in 9M FY25 as a percentage of revenue increased to16.7% , compared to12.6% for 9M FY24. - Cash balance of
$4.9M at June 30, 2025 increased37% compared to$3.6M at September 30, 2024.The increase in cash position was due to an increase in operating income, a decrease in payments to vendors and proceeds from the sale of our Chilean subsidiary, partially offset by a decrease in collections from customers. - Net income attributable to shareholders in Q3 FY25 was
$1.4M compared to a net loss of ($0.9M ) in Q3 FY24, an increase of$2.3M . Net loss attributable to shareholders in 9M FY25 was ($1.1M ), compared to ($2.8M ) for 9M FY24, a change principally attributable to an increase in operating income, partially offset by increases in interest expense and income tax expense.
"In the quarter ended June 30, 2025, we continued to realize the benefits of our long-term strategy, delivering strong financial performance driven by focused execution,� said Derek Cassell, Track Group’s CEO. “Gross profit increased
Business Outlook
Track Group enters the second half of FY25 with momentum fueled by the execution of key strategic initiatives launched over the past year. These maneuvers—including targeted reinvestments in our technology platforms, streamlined operational processes, and enhanced customer programs—are now translating into measurable improvements in EBITDA, gross profit, and operating income. The financial results reported in Q2 FY25 validate our direction and underscore the effectiveness of our long-term growth strategy. With this foundation in place, we are positioned for continued, sustainable growth throughout FY25. Our outlook for FY25 is as follows:
Actual | Outlook | ||||||||||||
FY 2023 | FY 2024 | FY 2025 | |||||||||||
Revenue (in millions): | $ | 34.5 | M | $ | 36.9 | M | - | 35.5M | |||||
Adjusted EBITDA Margin: | 11.1 | % | 14.6 | % | 14.0 | - |
About Track Group, Inc.
Track Group designs, manufactures, and markets location tracking devices; as well as develops and sells a variety of related software, services, and accessories, networking solutions, and monitoring applications. The Company's products and services are designed to empower professionals in security, law enforcement, corrections, and rehabilitation organizations worldwide with single-sourced offender management solutions that integrate reliable intervention technologies to support re-socialization and monitoring initiatives.
The Company currently trades under the ticker symbol "TRCK" on the OTCQB exchange. For more information, visit www.trackgrp.com.
Forward-Looking Statements
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if", "should" and "will" and similar expressions as they relate to Track Group, Inc., and subsidiaries ("Track Group") are intended to identify such forward-looking statements. These statements are only predictions and reflect Track Group's current beliefs and expectations with respect to future events and are based on assumptions and subject to risks and uncertainties and subject to change at any time. Track Group may from time-to-time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in Track Group's annual report on Form 10-K, its quarterly report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. New risks emerge from time to time. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
Non-GAAP Financial Measures
This release includes financial measures defined as “non-GAAP financial measures� by the Securities and Exchange Commission including non-GAAP EBITDA. These measures may be different from non- GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. Reconciliations of these non-GAAP financial measures are based on the financial figures for the respective period.
Non-GAAP Adjusted EBITDA excludes items included but not limited to interest, taxes, depreciation, amortization, impairment charges, gains and losses, currency effects, one-time charges or benefits that are not indicative of operations, charges to consolidate, integrate or consider recently acquired businesses, costs of closing facilities, stock based or other non-cash compensation or other stated cash and non-cash charges (the “Adjustments�).
The Company believes the non-GAAP measures provide useful information to both management and investors when factoring in the Adjustments. Specific disclosure regarding the Company’s financial results, including management’s analysis of results from operations and financial condition, are contained in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2023, and other reports filed with the Securities and Exchange Commission. Investors are encouraged to carefully read and consider such disclosure and analysis contained in the Company’s Form 10-K and other reports, including the risk factors contained in such Form 10-K.
TRACK GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
June 30, | September 30, | |||||||
2025 | 2024 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 4,910,729 | $ | 3,574,215 | ||||
Accounts receivable, net of allowance for credit losses of | 5,482,734 | 4,428,535 | ||||||
Prepaid expense and deposits | 323,052 | 638,293 | ||||||
Inventory, net of reserves of | 1,205,453 | 582,481 | ||||||
Assets held for sale | - | 969,481 | ||||||
Total current assets | 11,921,968 | 10,193,005 | ||||||
Property and equipment, net of accumulated depreciation of | 472,992 | 317,206 | ||||||
Monitoring equipment, net of accumulated depreciation of | 4,423,522 | 4,598,864 | ||||||
Intangible assets, net of accumulated amortization of | 13,779,426 | 13,959,571 | ||||||
Goodwill | 8,249,193 | 7,941,190 | ||||||
Other assets, net | 1,111,664 | 660,170 | ||||||
Total assets | $ | 39,958,765 | $ | 37,670,006 | ||||
Liabilities and Stockholders� Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,964,399 | $ | 3,082,467 | ||||
Accrued liabilities | 3,865,704 | 2,639,318 | ||||||
Liabilities held for sale | - | 732,028 | ||||||
Total current liabilities | 7,830,103 | 6,453,813 | ||||||
Long-term debt, net of current portion | 42,700,507 | 42,639,197 | ||||||
Long-term liabilities | 580,858 | 186,407 | ||||||
Total liabilities | 51,111,468 | 49,279,417 | ||||||
Stockholders� equity (deficit): | ||||||||
Common stock, | 1,186 | 1,186 | ||||||
Preferred stock, | - | - | ||||||
Series A Convertible Preferred stock, | - | - | ||||||
Paid in capital | 302,600,546 | 302,600,546 | ||||||
Accumulated deficit | (314,357,014 | ) | (312,691,811 | ) | ||||
Accumulated other comprehensive income (loss) | 602,579 | (1,519,332 | ) | |||||
Total stockholders� equity (deficit) | (11,152,703 | ) | (11,609,411 | ) | ||||
Total liabilities and stockholders� equity (deficit) | $ | 39,958,765 | $ | 37,670,006 |
TRACK GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenue: | ||||||||||||||||
Monitoring and other related services | $ | 8,071,416 | $ | 9,064,447 | $ | 24,380,699 | $ | 26,497,582 | ||||||||
Product sales and other | 1,020,026 | 120,583 | 1,731,392 | 645,640 | ||||||||||||
Total revenue | 9,091,442 | 9,185,030 | 26,112,091 | 27,143,222 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Monitoring, products and other related services | 3,765,700 | 4,182,692 | 10,789,484 | 12,387,179 | ||||||||||||
Depreciation & amortization included in cost of revenue | 734,301 | 732,749 | 2,192,857 | 2,316,100 | ||||||||||||
Total cost of revenue | 4,500,001 | 4,915,441 | 12,982,341 | 14,703,279 | ||||||||||||
Gross profit | 4,591,441 | 4,269,589 | 13,129,750 | 12,439,943 | ||||||||||||
Operating expense: | ||||||||||||||||
General & administrative | 2,078,417 | 3,091,210 | 6,636,680 | 9,022,963 | ||||||||||||
Selling & marketing | 858,789 | 761,890 | 2,724,721 | 2,278,861 | ||||||||||||
Research & development | 675,861 | 700,168 | 2,095,901 | 2,083,813 | ||||||||||||
Depreciation & amortization | 227,568 | 234,813 | 682,506 | 711,097 | ||||||||||||
Loss on sale of subsidiary | - | - | 66,483 | - | ||||||||||||
Total operating expense | 3,840,635 | 4,788,081 | 12,206,291 | 14,096,734 | ||||||||||||
Operating income (loss) | 750,806 | (518,492 | ) | 923,459 | (1,656,791 | ) | ||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (568,536 | ) | (439,515 | ) | (1,703,339 | ) | (1,306,307 | ) | ||||||||
Currency exchange rate gain (loss) | 1,253,726 | (179,041 | ) | (210,708 | ) | (160,028 | ) | |||||||||
Other income (expense), net | - | - | - | (3,443 | ) | |||||||||||
Total other income (expense) | 685,190 | (618,556 | ) | (1,914,047 | ) | (1,469,778 | ) | |||||||||
Income (loss) before income taxes | 1,435,996 | (1,137,048 | ) | (990,588 | ) | (3,126,569 | ) | |||||||||
Income tax expense (benefit) | 1,716 | (266,969 | ) | 103,097 | (353,876 | ) | ||||||||||
Net income (loss) attributable to common shareholders | 1,434,280 | (870,079 | ) | (1,093,685 | ) | (2,772,693 | ) | |||||||||
Release of cumulative translation adjustment for sale of subsidiary | - | - | 1,390,913 | - | ||||||||||||
Equity adjustment for sale of subsidiary | - | - | 571,518 | - | ||||||||||||
Foreign currency translation adjustments | (526,580 | ) | 145,101 | 159,480 | 1,645 | |||||||||||
Comprehensive income (loss) | $ | 907,700 | $ | (724,978 | ) | $ | 1,028,226 | $ | (2,771,048 | ) | ||||||
Net income (loss) per share � basic: | ||||||||||||||||
Net income (loss) per share | $ | 0.12 | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.23 | ) | |||||
Weighted average shares outstanding | 11,863,758 | 11,863,758 | 11,863,758 | 11,863,758 | ||||||||||||
Net income (loss) per share � diluted: | ||||||||||||||||
Net income (loss) per share | $ | 0.12 | $ | (0.07 | ) | $ | (0.09 | ) | $ | (0.23 | ) | |||||
Weighted average shares outstanding | 11,863,758 | 11,863,758 | 11,863,758 | 11,863,758 |
TRACK GROUP, INC. AND SUBSIDIARIES NON-GAAP ADJUSTED EBITDA JUNE 30 (Unaudited) (amounts in thousands, except share and per share data) | ||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Non-GAAP Adjusted EBITDA | ||||||||||||||||
Net Income (loss) attributable to common shareholders | $ | 1,434 | $ | (870 | )) | $ | (1,094 | ) | $ | (2,773 | ) | |||||
Interest expense, net | 569 | 440 | 1,703 | 1,310 | ||||||||||||
Depreciation and amortization | 962 | 968 | 2,875 | 3,027 | ||||||||||||
Income taxes (1) | 2 | (267 | ) | 103 | (354 | ) | ||||||||||
Board compensation and stock-based compensation | 75 | 75 | 225 | 178 | ||||||||||||
Foreign exchange (gain)/loss | (1,254 | ) | 179 | 211 | 160 | |||||||||||
Loss on sale of subsidiary | - | - | 66 | - | ||||||||||||
Other charges, net (2) | - | 1,051 | 267 | 1,877 | ||||||||||||
Non-GAAP Adjusted EBITDA | $ | 1,788 | $ | 1,576 | $ | 4,356 | $ | 3,425 | ||||||||
Non-GAAP Adjusted EBITDA, percent of revenue | 19.7 | % | 17.1 | % | 16.7 | % | 12.6 | % | ||||||||
Weighted average common shares outstanding - basic | 11,863,758 | 11,863,758 | 11,863,758 | 11,863,758 | ||||||||||||
Non-GAAP earnings per share | $ | 0.15 | $ | 0.13 | $ | 0.37 | $ | 0.29 | ||||||||
Weighted average common shares outstanding - diluted | 11,863,758 | 11,863,758 | 11,863,758 | 11,863,758 | ||||||||||||
Non-GAAP earnings per share | $ | 0.15 | $ | 0.13 | $ | 0.37 | $ | 0.29 |
(1 | ) | Currently, the Company has significant U.S. tax loss carryforwards that may be used to offset future taxable income, subject to IRS limitations. However, the Company is still subject to certain state, commonwealth, and other foreign based taxes. |
(2 | ) | Other charges include expenses related to the board of directors, severance, a settlement related to a contract dispute, and other Chile monitoring center costs for our recently sold subsidiary. |
