ReposiTrak (TRAK) is one of the few names on the list of companies set to report earnings next week and continues to show impressive technical strength with shares higher by 97% this year flagging under a record high. TRAK has closed higher 9 of its last 13 reports.

TRAK operates a business-to-business e-commerce, compliance, and supply chain management platform that partners with retailers, wholesalers, and product suppliers to help them source, vet, and transact with their suppliers in order to accelerate sales, control risks, and improve supply chain efficiencies, and source hard-to-get-things. The bulk of the Company’s customers are in the U.S. consumer retail sector for food, convenience store, and general merchandise, although the Company’s software and services are not sold exclusively to this customer base, and the Company believes that its software and services are also applicable to a wide variety of other potential customers domestically and abroad. The Company’s software and services are designed to address the business problems faced by our customers. These solutions are delivered via a cloud-based infrastructure and grouped in three product application suites that mirror the workflow of the Company’s customers as they manage the activities of their supply chain.

TRAK has a market cap of $360M and is trading 56.4X Earnings, 43.7X EBITDA, 53.75X FCF and 15X EV/Sales, premium valuation with revenues seen rising 13.5% in FY25 and 15% in FY26 while EBIT seen rising 35% and 26% respectively. Upcoming compliance rules in the food industry that require tracking and tracing from farm-to-fork can be a big boost to TRAK’s business and growth is seen accelerating the next few years. Management is more confident than ever before it will double the size of its annual recurring revenue in the next 24 to 36 months. FDA’s FSMA Rule 204 mandate is scheduled for 2026 and the industry is reacting in advance. The Traceability mandate is increasingly being driven by the market from the top down rather than from government regulations. Traceability revenue represents about 5% of TRAK’s ARR and is set to grow substantially. TRAK has maintained a fortress balance sheet with $25M cash and no debt.

Analysts have an average target of $24 and short interest is elevated at 8.8% of the float rising all year.

TRAK trades at a rich valuation but is seeing increased business momentum and awareness that can propel shares much higher as this FDA mandate takes hold.