Track Group, Inc. Annual Report - How They Did This Year

This year, Track Group made some notable strategic shifts and continued to focus on its core business.

Major Business Changes: One of the biggest changes was the decision to sell off their business in Chile (Track Group Chile). This process started in the last fiscal year (ending September 2024) and continued into the current one (ending September 2025), with the company being held for sale or disposed of. This is a significant strategic move, indicating a potential refocus or streamlining of their international operations.

How They Make Money: Track Group primarily generates revenue from two main areas:

• Monitoring and Other Related Services: This is their core offering, likely involving the tracking and monitoring solutions they are known for.
• Product Sales and Other: This covers the sale of their devices and other related products.

Their business reaches across different regions, with revenue coming from the United States, Latin America, and other international markets.

Key Agreements and Assets: The company also has an important, ongoing agreement with a partner called Conrent, which was amended recently and extends into the future (forecasted until at least July 2026). They've also been investing in their infrastructure, including capitalized contract costs for a Santiago Monitoring Center and monitoring equipment.

Things to Keep an Eye On (Risk Factors): A point to note for investors is that Track Group has a concentration of revenue and accounts receivable with a few key customers. This means a significant portion of their business comes from a small number of clients. While this can be efficient, it also means that if one of these major customers were to reduce their business or delay payments, it could have a noticeable impact on Track Group's financial health.

Key Takeaways:

• Track Group is undergoing a strategic shift by divesting its Chilean operations.
• The company's revenue is primarily driven by monitoring services and product sales across the US, Latin America, and other international markets.
• A key partnership with Conrent has been extended, and investments are being made in infrastructure like the Santiago Monitoring Center.
• A notable risk factor is the concentration of revenue and accounts receivable with a few key customers.