Park City Group Inc (PCYG) Q3 2024 Earnings Report

Park City Group Inc (PCYG) delivered a solid QQ3 2024 quarter, underscoring the durability of its software-as-a-service business model in the supply-chain technology arena. Revenue of $5.9137 million rose 16.3% year-over-year and 7.7% sequentially, supported by an exceptionally high gross margin of 84.58% and an EBITDA margin of 36.05%. Net income totaled $1.9658 million, translating to earnings per share (EPS) of $0.10, up 28.53% year over year and 25.00% quarter over quarter. These fundamentals point to meaningful operating leverage as the company scales, within a SaaS-like environment that benefits from recurring revenue, relatively low cost of goods sold, and a lean operating structure.

Liquidity remains exceptionally strong. Park City Group ended the period with $24.45 million in cash and cash equivalents and a net debt position of negative $23.96 million, reflecting excess cash over total debt (short-term debt $340,725 and long-term debt $431,352). Free cash flow (FCF) was $2.4518 million, supporting ongoing product development, potential reinvestment in growth initiatives, and shareholder-friendly actions such as modest capital returns. The balance sheet shows robust liquidity and a conservative leverage profile, complemented by a healthy current ratio (about 6.03x) and sizeable cash containment against modest liabilities.

Management commentary on its medium-term outlook is not accompanied by formal forward-looking guidance in the QQ3 filing. Nonetheless, the results imply a business with stable margins, potential for ARR expansion, and opportunities to monetize its food-supply chain software ecosystem (ReposiTrak, MarketPlace, and related compliance offerings). Investors should monitor ARR growth, customer retention, and the pace of new product monetization as the company scales outside its smallest customer base. Overall, the combination of high gross margins, solid profitability, and substantial liquidity supports a cautiously favorable long-term investment thesis, albeit with the caveat of the company’s relatively small scale and the need for continued execution to sustain growth.