Overview

• U.S. offender monitoring firm's fiscal Q2 revenue rose 7% yr/yr, driven by growth in Florida and Illinois

• Gross profit for fiscal Q2 increased 9%, aided by cost controls and monitoring center transition savings

• Net loss widened due to a $0.5 mln foreign currency translation loss, with no material cash impact

Outlook

• Company expects annualized server cost savings of about $2 mln by end of fiscal 2026

• Completion of new monitoring device expected to reduce capital expenditures and create new business opportunities

• Track Group expects year-over-year growth in revenue and underlying profitability for fiscal 2026 and 2027

Result Drivers

• REGIONAL GROWTH - Revenue growth in Q2 was mainly driven by increased business in Florida and Illinois, offsetting declines in Pennsylvania and Puerto Rico

• COST CONTROLS - Gross profit improvement was attributed to increased revenue and ongoing cost controls, including continued savings from the monitoring center transition

• SERVER COSTS - Monitoring cost savings were partially offset by continued server cost increases

Company press release: ID:nGNX4zzLGl

Key Details

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