TACT

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is aggressively shifting from a hardware-centric model to a high-margin, recurring software-as-a-service (SaaS) framework within the Food Service Technology (FST) segment. Software revenue growth of 47% year-over-year was primarily driven by a strategic initiative to capture fair market value through price increases and the cessation of free software bundling. The migration of the BOHA! platform to Microsoft Azure is expected to accelerate the software roadmap, enabling faster innovation, AI-related workflows, and seamless enterprise integrations. FST demand is currently sustained by a multi-year conversion cycle as customers upgrade legacy AccuDate and Terminal 1 systems to newer BOHA! hardware. The Casino and Gaming segment remains a profitable 'cash cow' with solid OEM contributions, though management views its role as relatively small within a large industry compared to the FST market opportunity. A formal strategic review of the Casino and Gaming business has been initiated to maximize stockholder value and potentially reallocate capital toward higher-growth FST initiatives. Management reaffirmed full-year 2026 net sales guidance of $55 million to $57 million, while raising adjusted EBITDA guidance to a range of $1.5 million to $2.0 million. The company aims to drive FST monetization toward a target of $100 to $200 in recurring software-related revenue per machine per month. Gross margins are projected to remain in the mid-to-high 40% range for the full year 2026, supported by higher-margin software and label sales. The strategic review of the gaming business has no set timetable and may result in a sale, though management believes the FST business can reach cash flow break-even independently. Future reporting will shift toward metrics that better reflect contractual software growth and unique food service venues to more accurately track market share. A U.S. Supreme Court ruling on import tariffs resulted in a $1 million reduction to net sales and a $400,000 impact on adjusted EBITDA due to estimated customer refunds. The company has reclaimed approximately 80% of expected government refunds related to these tariffs as of the earnings call date. Engineering and R&D expenses decreased 29% year-over-year due to the capitalization of costs associated with in-housing the BOHA! software source code. Selling and marketing expenses rose 30% following a deliberate overhaul of the sales team and increased investment in lead generation and trade shows. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted the gaming market has stabilized post-pandemic, making it an opportune time to evaluate the asset while focusing on the larger FST total addressable market. The review aims to determine the best capital allocation strategy, as FST has a clear execution path while the gaming unit's expansion strategy is less defined. TransAct is moving toward a 'Microsoft 365' style transition, negotiating new fees with existing online customers for enhanced Azure-hosted services. New system sales now prioritize software bundles, with basic food labeling packages starting around $50 to $90 per month, while full enterprise solutions can exceed $300 per month. Management admitted that net new customer growth lagged in the quarter due to an intense focus on overhauling the sales team and developing the software business. The company plans to stop reporting simple 'logos' in favor of 'unique food service venues' to better capture market penetration through large food service management partners.

Interested in TransAct Technologies Incorporated? Here are five stocks we like better. Second-quarter sales were $13.9 million, while tariff-related customer refund adjustments reduced reported revenue by about $1 million; excluding that impact, sales would have risen approximately 8% year over year. TransAct raised its full-year adjusted EBITDA outlook to $1.5 million–$2 million. Food service technology revenue increased 9% to $5.2 million, with recurring revenue up 13% and software revenue up 47%. The company is expanding its BOHA! installed base and shifting toward higher-margin paid software subscriptions after completing its migration to Microsoft Azure. TransAct launched a formal strategic review of its casino and gaming business with BofA Securities as adviser, potentially including broader strategic alternatives. Reported casino and gaming revenue fell 4% year over year, but would have increased about 9% excluding tariff-related adjustments. TransAct Technologies (NASDAQ:TACT) reported second-quarter net sales of $13.9 million, up slightly from $13.8 million a year earlier, as growth in its food service technology business was partially offset by tariff-related customer refund adjustments and lower reported casino and gaming revenue. The company recorded an estimated $1 million reduction in sales tied to customer refunds following a February U.S. Supreme Court ruling that invalidated certain import tariffs, according to CFO Troy Ingianni. TransAct also recorded an approximately $600,000 reduction in cost of goods sold related to expected tariff refunds from the government. Excluding the tariff-related effect, the company said second-quarter sales would have been approximately $14.9 million, an 8% increase from the prior-year period. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Adjusted EBITDA totaled $514,000 in the quarter, compared with $478,000 a year earlier and $1.4 million in the first quarter. The result included a $400,000 impact from tariff adjustments. For the first half, adjusted EBITDA was approximately $1.9 million, prompting TransAct to raise its full-year adjusted EBITDA outlook to a range of $1.5 million to $2 million. Food service technology, or FST, revenue rose 9% year over year and 10% sequentially to $5.2 million. CEO John Dillon said the company’s strategy remains focused on building a higher-margin and more predictable recurring-revenue business around its BOHA! food service platform. → 3 Dividend Champion Utilities for a Market That Can't Sit Still TransAct sold 1,900 BOHA! units during the second quarter, bringing first-half unit sales to 3,270. The company ended the quarter with nearly 22,000 online units, an increase of about 33% from a year earlier. Dillon said demand continued to come from customers upgrading older AccuDate and Terminal One systems, which the company views as a multiyear conversion opportunity. Recurring FST revenue, including software and service subscriptions as well as consumable labels, increased 13% to $3.4 million. Software revenue rose 47% from the prior year and 25% sequentially, driven mainly by price increases implemented earlier in 2026. → Is Wingstop's Growth Story Losing Steam? Dillon said TransAct is moving away from prior practices of bundling software without charge to support hardware or label sales. The company now intends to charge for the value of its software offerings and, over the long term, aims to generate $100 to $200 per machine per month in recurring software and related revenue from its installed base. During the question-and-answer session, Dillon said basic software packages may generate roughly $75 to $90 per month, while more extensive deployments can produce $300 to $400 per unit monthly. He said software packages vary by customer requirements and may include applications such as food labeling, nutrition, temperature monitoring and checklists. The company also completed its migration from legacy hosted infrastructure to Microsoft Azure for its next-generation enterprise-grade BOHA! software-as-a-service platform. Dillon said the move is intended to improve scalability, security, resiliency, system performance and integration capabilities, while enabling TransAct to bring new features to customers faster. He also said the platform could support AI-related workloads and additional applications over time. Casino and gaming revenue was $7.3 million, down 4% from $7.6 million in the second quarter of 2025 and down 13% from the first quarter. Excluding the $1 million tariff-related sales reduction, casino and gaming revenue would have been about $8.3 million, up approximately 9% year over year. Dillon said the company received contributions from domestic and international original equipment manufacturer customers, while its Epic TR80 roll-fed printer continued to gain traction in international gaming applications such as betting kiosks. TransAct’s board has initiated a formal strategic review of the casino and gaming business and retained BofA Securities as financial adviser. The review could also encompass broader strategic alternatives if the board determines they could enhance shareholder value. The company did not provide a timetable and said there is no assurance the process will result in a transaction or other outcome. Dillon said the prior strategic process occurred during a more volatile period following the pandemic, when supply-chain issues and customer inventory adjustments affected the gaming business. He said the business has since stabilized and recovered. Management plans eventually to provide separate EBITDA information for its casino and gaming and FST go-to-market strategies, he added. Second-quarter gross margin was 50.2%, compared with 48.2% in the prior-year period and 50.3% in the first quarter. Ingianni said TransAct continues to expect full-year gross margin in the mid-to-high 40% range. Engineering and research and development expense fell 29% to $1.2 million, reflecting capitalization of software consulting and R&D costs related to bringing BOHA! software operations in-house. Selling and marketing expense rose 30% to $2.7 million, driven by new hires, trade shows, advertising and commissions. General and administrative expense was essentially flat at $3.1 million, as higher legal costs related to executive transitions and strategic matters were offset by lower bonus expense. TransAct reported a net loss of $50,000, or break-even on a diluted per-share basis, compared with a net loss of $143,000, or 1 cent per diluted share, a year earlier. The company ended the quarter with $19.4 million in cash and cash equivalents and said it maintained only a minimum balance on its Siena revolver. It did not repurchase shares during the quarter. The company reaffirmed its full-year 2026 net sales outlook of $57 million to $55 million, as stated on the call, while raising its adjusted EBITDA outlook. TransAct Technologies Inc designs, manufactures and distributes secure card issuance systems and embedded transactional printing solutions for a variety of industries. The company's portfolio includes high-speed card printers, card personalization and issuance software, as well as embedded printers used in kiosks, point-of-sale terminals, lottery machines and gaming applications. TransAct's products are built to deliver reliable, on-demand printing and secure card encoding for markets that require rapid, accurate issuance of payment cards, identification badges and tickets. Within its secure card solutions segment, TransAct offers turnkey systems that integrate card printing, magnetic stripe encoding, smart card personalization and instant card issuance software. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "TransAct Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Sold 1,900 BOHA! Units in the Second Quarter of 2026 FST Recurring Revenue up 13% Year-over-Year Casino and Gaming Demonstrates Continued Strength Reiterates 2026 Revenue Guidance of $55 to $57 Million, Increases 2026 Adj. EBITDA Guidance* to $1.5 Million to $2.0 Million Announces BofA Securities, Inc. as Financial Advisor in Focused Strategic Alternatives Review HAMDEN, Conn., August 11, 2026--(BUSINESS WIRE)--TransAct Technologies Incorporated (Nasdaq: TACT) ("TransAct" or the "Company"), a leading provider of SaaS software and integrated hardware solutions, today reported preliminary results for the second quarter ended June 30, 2026. "TransAct delivered solid second-quarter results that reflect meaningful progress on our strategy to build a high margin, software-led recurring revenue business for FST," said John Dillon, Chief Executive Officer of TransAct. "Underlying demand remained healthy, with strong software growth and continued BOHA! unit placements expanding our install base. We also launched our next generation BOHA! SaaS platform on Microsoft Azure, giving us greater scale, speed, and control. As we focus on monetizing our growing base of online terminals, we are well positioned to drive more predictable, higher quality revenue over time. Casino and Gaming also saw another strong quarter. This market continues to generate substantial cash flow and positive results for the business." "We have also engaged BofA Securities as our financial advisor given their expertise in the Casino and Gaming marketplace. We believe the time is right to explore potential strategic options, given the ongoing strength in this market." Second Quarter 2026 Financial Highlights Net Sales: Net sales for the second quarter of 2026 were $13.9 million, up 1% compared to $13.8 million for the second quarter of 2025, and Casino and Gaming sales for the second quarter were $7.3 million, down 4% compared to $7.6 million for the second quarter of 2025. Results include a $1.0 million reduction to Casino and Gaming sales related to customer tariff surcharge refunds; excluding this item, Company-wide net sales would have been $14.9 million, up approximately 8% year-over-year, and Casino and Gaming sales would have been $8.3 million, up approximately 9% year-over-year. FST Recurring Revenue: FST recurring revenue for the second quarter of 2026 was $3.4 million, which represents an increase of 13% compared to $3.0 million for the second quarter of 2025. FST Recurring Revenue includes software, labels and other recurring sources of revenue. More specifically, software revenue for the second quarter of 2026 was $732 thousand, which represents an increase of 47% compared to $499 thousand for the second quarter of 2025. FST Online BOHA! Units – Active online BOHA! units increased to 21,790 as of June 30, 2026, as compared with 16,439 units as of June 30, 2025, representing 33% year-over-year growth in online units. Selling software, labels and other recurring sources of revenue into this growing install base is a key focus of management. Gross Profit: Gross profit for the second quarter of 2026 was $7.0 million, resulting in gross margin of 50.2%, compared to gross profit of $6.7 million for the second quarter of 2025, which delivered a 48.2% gross margin. Operating (Loss) Income: Operating loss for the second quarter of 2026 was $(54) thousand, or (0.4)% of net sales, compared to an operating loss of $(258) thousand for the second quarter of 2025 and operating income of $771 thousand for the first quarter of 2026. Net Loss**: Net loss for the second quarter of 2026 was $(50) thousand, or $0.00 per diluted share, based on 10.3 million weighted average diluted shares outstanding. This compares to a net loss of $(143) thousand, or $(0.01) per diluted share, based on 10.1 million weighted average diluted shares outstanding, for the second quarter of 2025, and net income of $766 thousand, or $0.07 per diluted share, based on 10.2 million weighted average diluted shares outstanding, for the first quarter of 2026. EBITDA**: EBITDA was $59 thousand for the second quarter of 2026, compared to $28 thousand for the second quarter of 2025 and $881 thousand for the first quarter of 2026. Adjusted EBITDA**: Adjusted EBITDA was $514 thousand for the second quarter of 2026, compared to $478 thousand for the second quarter of 2025 and $1.4 million for the first quarter of 2026. Engagement of BofA Securities, Inc. ("BofA Securities") The Company today announced that its Board of Directors has initiated a formal strategic review of the Casino and Gaming business. Management has engaged BofA Securities as its financial advisor given their expertise within the Casino and Gaming market and their long-standing relationship with TransAct. The Company believes that exploring potential options within Casino and Gaming, given the current strength within this market, is in the best interests of stockholders as they look to maximize value. While the review is focused on the Casino and Gaming business, the Board intends to evaluate a broader range of strategic alternatives to the extent the Board determines that doing so may further enhance stockholder value. The Company has not set a timetable for the review, and there can be no assurance that the review will result in any transaction or other strategic outcome. The Company does not intend to disclose developments until its Board of Directors has approved a specific transaction or course of action or otherwise determines that disclosure is appropriate or required. 2026 Financial Outlook* Net Sales: The Company expects full year 2026 net sales of between $55 million and $57 million. Adjusted EBITDA: The Company now expects full year 2026 adjusted EBITDA to be between $1.5 million and $2.0 million. *Our outlook for non-GAAP adjusted EBITDA is presented only on a non-GAAP basis as not all of the information necessary for a quantitative reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure is available without unreasonable effort, primarily due to uncertainties relating to the occurrence or amount of the adjustments that may arise in the future. If one or more of the currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results. ** Net (Loss) Income, EBITDA and Adjusted EBITDA include a $0.4 million reduction related to the tariff surcharge refunds. See below for descriptions and reconciliations of these non-GAAP measures. Second Quarter 2026 Conference Call and Webcast TransAct is hosting a conference call and webcast on August 11, 2026, beginning at 4:30 p.m. ET to discuss the Company’s preliminary second quarter 2026 results and other matters. Both the call and the webcast are open to the general public. The conference call number is 877-704-4453 and the conference ID number is 13762138. Please call ten minutes prior to the presentation to ensure that you are connected. Interested parties may also access the conference call live on the Internet at www.transact-tech.com (select "About" followed by "Investor Relations," then select "News & Events" followed by "Events & Presentations"). Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location. Non-GAAP Financial Measures TransAct is providing certain non-GAAP financial measures because the Company believes that these measures are helpful to investors and others in assessing the ongoing nature of what the Company’s management views as TransAct’s core operations. EBITDA and adjusted EBITDA provide the Company with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. The Company believes that these non-GAAP financial measures provide relevant and useful information to an investor evaluating the Company’s operating performance because these measures are: (i) widely used by investors to measure a company’s operating performance without regard to items that do not reflect the Company’s ongoing operations and are excluded from the calculation of such measures; (ii) used as financial measurements by lenders and other parties to evaluate creditworthiness; and (iii) used by the Company’s management for various purposes including strategic planning and forecasting and assessing financial performance. The Company also presents the changes in net sales and Casino and gaming net sales excluding customer tariff surcharge refunds because it believes these measures provide the Company with visibility into the sales performance for the period by excluding the refunds, which the Company believes are not reflective of ongoing operations. The presentation of this non-GAAP information is not considered superior to or a substitute for, and should be read in conjunction with, the financial information prepared in accordance with GAAP. EBITDA is defined as net income (loss) before net interest income (expense), income taxes, depreciation, and amortization. A reconciliation of EBITDA to net income, the most comparable GAAP financial measure, can be found attached to this release. Adjusted EBITDA is defined as net (loss) income before net interest income (expense), income taxes, depreciation and amortization and is adjusted for (1) share-based compensation expense and (2) any other items, when they occur, that we believe do not reflect the ordinary earnings of the Company’s ongoing business. The Company adjusts EBITDA for share-based compensation because the Company considers share-based compensation expense to be a non-cash expense similar to depreciation and amortization. A reconciliation of adjusted EBITDA to net income, the most comparable GAAP financial measure, can be found attached to this release. About TransAct Technologies Incorporated TransAct Technologies Incorporated is a leading provider of SaaS software and integrated hardware solutions that redefine how organizations connect operations, technology and data to drive measurable business value. Through its BOHA!® solutions, serving 19,000 foodservice locations worldwide, TransAct combines purpose-built hardware with a SaaS platform to help foodservice operators automate food safety, improve operational efficiency and maintain trusted brand relevance. In the casino and gaming market, TransAct’s award-winning EPIC solutions enable ticket-in/ticket-out (TITO) functionality and advanced promotional capabilities that enhance player engagement and drive revenue for operators globally. TransAct also provides a comprehensive portfolio of consumables and service solutions, allowing customers to simplify operations and partner with a single, trusted provider across their technology ecosystem. TransAct is headquartered in Hamden, CT. For more information, please visit transact-tech.com or call (203) 859-6800. ©2026 TRANSACT Technologies Incorporated. All rights reserved. TransAct®, BOHA!®, are registered trademarks of TransAct Technologies Incorporated. Cautionary Statement Regarding Preliminary Financial Information The Company has prepared the preliminary financial information set forth below on a materially consistent basis with its historical financial information and in good faith based upon its internal reporting as of and for the three and six months ended June 30, 2026. This financial information is preliminary and is thus inherently uncertain and subject to change as the Company finalizes its financial results and related review for the three and six months ended June 30, 2026. During the preparation of the Company’s consolidated financial statements and related notes as of and for the three and six months ended June 30, 2026, the Company may identify items that could cause its final reported results to be materially different from the preliminary financial information set forth herein. As a result, there can be no assurance that the Company’s final results for these periods will not differ from the preliminary financial information. This preliminary financial information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. In addition, this preliminary financial information is not necessarily indicative of the results to be achieved for any future period. Forward-Looking Statements Certain statements included in this press release are forward-looking statements within the meaning of the U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent current views about possible future events and are often identified by the use of forward-looking terminology, such as "may", "will", "could", "expect", "intend", "estimate", "anticipate", "believe", "project", "plan", "predict", "design" or "continue", or the negative thereof, or other similar words. Forward-looking statements are subject to certain risks, uncertainties and assumptions. In the event that one or more of such risks or uncertainties materialize, or one or more underlying assumptions prove incorrect, actual results may differ materially from those expressed or implied by the forward-looking statements. Important factors and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: the adverse effects of current economic conditions, including inflation and changes in interest rates, on our business, operations, financial condition, results of operations and capital resources; continued reliance on third parties to host and support our FST offerings; difficulties or delays in manufacturing or delivery of inventory or other supply chain disruptions; our dependence on a single contract manufacturer for the assembly of a large portion of our products in Asia; the imposition of additional duties, tariffs, quotas, taxes, trade barriers, capital flow restrictions and other charges on imports and exports by the United States or the governments of the countries in which we or our manufacturers and suppliers operate including the potential for new or reinstated trade measures, in addition to the 10% tariff surcharge already implemented under Section 122 of the Trade Act of 1974, following the U.S. Supreme Court’s decision to invalidate certain previously imposed tariffs; the Russia/Ukraine and Middle East conflicts; inadequate manufacturing capacity or a shortfall or excess of inventory as a result of difficulty in predicting manufacturing requirements due to volatile economic conditions; price increases, decreased availability of third-party component parts or raw materials at reasonable prices, price wars or significant pricing pressures affecting the Company’s products in the United States or abroad; increased product costs or reduced customer demand for our products in the United States or abroad, including as a result of trade wars, tariffs or other trade actions; our ability to successfully develop new products that garner customer acceptance and generate sales, both domestically and internationally, in the face of substantial competition; any system outages, interruptions or other disruptions to our software applications, including as a result of unexpected errors or mistakes in connection with over-the-air updates; our ability to successfully grow our business in the food service technology market; renewal rates for our subscription-based products; risks associated with the pursuit of strategic initiatives, including the strategic review of the Company’s casino and gaming business, and business growth; uncertainties and administrative, legal, and tax complexities associated with the process of claiming and remitting tariff refunds to customers, which may expose us to litigation, regulatory scrutiny, and financial loss; our dependence on significant suppliers; our ability to recruit and retain quality employees; our dependence on third parties for sales outside the United States; marketplace acceptance of new products; risks associated with foreign operations; political and policy uncertainties and any adverse economic impacts resulting from such uncertainties; our ability to protect intellectual property; exchange rate fluctuations; the availability of needed financing on acceptable terms or at all; volatility of, and decreases in, trading prices of our common stock; and other risk factors identified and discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and other reports filed with the Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements, which speak only as of the date of this release. We undertake no obligation to publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors, except where we are expressly required to do so by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260811219994/en/ Contacts Investor Contact: Ryan GardellaICR, [email protected]

HAMDEN, Conn., August 04, 2026--(BUSINESS WIRE)--TransAct Technologies Incorporated (Nasdaq: TACT), a global leader in software-driven technology and printing solutions for high-growth markets, announced today that it will release its second quarter 2026 results after the market close on Tuesday, August 11, 2026 and will host a conference call and simultaneous webcast at 4:30 p.m. ET that day. The conference call number is 877-704-4453; and the conference ID is 13762138. Please call ten minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the live call on the Internet at www.transact-tech.com (select "Investor Relations" followed by "Events & Presentations"). Following its completion, an archived version of the webcast will be available for replay at the same location. A replay of the call will also be available starting roughly 3 hours after the call has ended and will continue until Tuesday, August 25, 2026 at 11:59 PM ET. The replay call number is 844-512-2921 with passcode 13762138. About TransAct Technologies IncorporatedTransAct Technologies Incorporated is a leading provider of SaaS software and integrated hardware solutions that redefine how organizations connect operations, technology and data to drive measurable business value. Through its BOHA!® solutions, serving 19k foodservice locations worldwide, TransAct combines purpose-built hardware with a SaaS platform to help foodservice operators automate food safety, drive measureable operational efficiency and maintain trusted brand relevance. In the casino and gaming market, TransAct’s award-winning EPIC solutions enable ticket-in/ticket-out (TITO) functionality and advanced promotional capabilities that enhance player engagement and drive revenue for operators globally. TransAct also provides a comprehensive portfolio of consumables and service solutions, allowing customers to simplify operations and partner with a single, trusted provider across their technology ecosystem. TransAct is headquartered in Hamden, CT. For more information, please visit transact-tech.com or call (203) 859-6800. ©2026 TRANSACT Technologies Incorporated. All rights reserved. TransAct®, BOHA!® are registered trademarks of TransAct Technologies Incorporated. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804751660/en/ Contacts Investor Contact: Ryan [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is transitioning the business model from one-time hardware sales to a recurring software-as-a-service (SaaS) framework to drive higher margins and predictability. The company is actively ending the practice of bundling software for free, focusing instead on monetizing its nearly 20,000 online terminals at fair market value while leveraging its total install base of over 40,000 units. Performance in the Food Service Technology (FST) vertical was highlighted by a 23% increase in software revenue, though total FST sales declined by 4% due to lower hardware sales. as the company prioritizes high-margin recurring streams. The 'land-and-expand' strategy is being utilized to secure small initial orders from large clients, which then serve as entry points for broader account management and expansion revenue. Management views its integrated solution—combining hardware, software, and IoT sensors—as a defense against disintermediation by simple SaaS competitors or AI-driven automation. Casino and gaming growth of 24% was attributed to strong domestic and international demand, with the company's ship share is approaching parity with other large vendors in a duopoly market. A new Chief Marketing Officer was appointed to overhaul the brand's digital presence and lead generation engine, addressing previously 'lackluster' market positioning. The go-live date for the new in-house software platform has been pulled forward from 2027 to late Q2 2026, which is expected to increase operational freedom and innovation speed. Management is targeting a long-term recurring software revenue goal of $100 to $200 per machine per month across its growing installed base. The company plans to explore an application store model for its terminals, allowing for the integration of both in-house and third-party partner applications. Full-year 2026 net sales guidance is reaffirmed at $55 million to $57 million, while adjusted EBITDA outlook was raised to $1 million to $1.75 million based on Q1 performance. The transition of a large hardware-only customer toward a recurring revenue model is expected to begin contributing positively to ARPU in the coming quarters. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The company began capitalizing R&D costs related to the BOHA! software in-house effort, which contributed to a 16% reduction in reported engineering expenses. Legacy consumables, specifically thermal POS paper roll inventory, are nearly fully sold off, with management expecting little to no revenue from these products moving forward. Chief Financial Officer Steven DeMartino announced his retirement after 30 years, with plans to support the transition through the end of the year. The company maintains a $3 million outstanding balance on its credit facility with Siena Lending while holding $18.8 million in cash.

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Transact Technologies Inc (NASDAQ:TACT) reported a 10% year-over-year increase in total net sales, reaching $14.4 million. The company achieved an adjusted EBITDA of $1.4 million, indicating a strong start to the year. Recurring FST revenue grew by 23% year-over-year, highlighting the success of their strategic focus on software revenue. The company sold 1,370 BOHA terminals, driven by upgrade orders from their existing customer base. Casino and gaming sales increased by 24% from the prior-year period, with strong demand both domestically and internationally. FST market sales were down 4% compared to the first quarter of 2025, indicating a decline in hardware sales. Average Revenue Per Unit (ARPU) decreased by 7% year-over-year, reflecting challenges in transitioning to a recurring revenue model. TSG sales declined by 5% due to lower spares and accessories revenue as the legacy installed base winds down. Legacy consumables revenue is expected to decline further as thermal POS paper roll inventory is nearly sold off. Operating expenses increased by 2% due to higher selling, marketing, and G&A expenses, impacting overall profitability. Warning! GuruFocus has detected 1 Warning Sign with TACT. Is TACT fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the growth strategy for the Foodservice Technology (FST) vertical? A: John Dillon, CEO, explained that the focus is on driving revenue growth through software as the primary growth engine. The company is making targeted investments to accelerate sales and is seeing strong interest from existing customers to upgrade to newer systems. The recurring FST revenue is growing, with software revenue up 23% year-over-year, indicating confidence in their strategic direction. Q: How is the transition to a recurring revenue model progressing? A: Steve DiMartino, President and CFO, mentioned that recurring FST sales, including software and service subscriptions, were $3.3 million, up 26% from the previous year. The company is transitioning large hardware-only customers towards a recurring model, which is expected to positively impact ARPU in the coming quarters. Q: What is the outlook for the casino and gaming segment? A: John Dillon, CEO, noted that casino and gaming sales were $8.3 million, up 24% from the previous year. Both domestic and international demand was strong, and the EPYC TR-80 product is gaining traction internationally. Although the business is cyclical, it consistently contributes to cash flow, and the company expects this trend to continue in 2026. Q: Can you elaborate on the impact of AI on your business? A: John Dillon, CEO, highlighted that AI serves as an accelerant for their business, allowing developers to focus on crafting new applications. The integrated solutions approach insulates TransAct from potential downsides of AI, as their offerings include hardware, software, and IoT components, making them less susceptible to disintermediation. Q: What are the financial expectations for 2026? A: John Dillon, CEO, reaffirmed the 2026 net sales outlook of $55 million to $57 million and raised the adjusted EBITDA outlook to between $1 million and $1.75 million. The company is off to a strong start with $14.4 million in net sales and $1.4 million in adjusted EBITDA for the first quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Sold 1,370 BOHA! Terminals in the First Quarter of 2026 First Quarter 2026 Net Sales up 10% and Recurring FST Revenue up 26% Year-over-Year Reiterates 2026 Revenue Guidance of $55 to $57 Million, Increases 2026 Adj. EBITDA Guidance* to $1 Million to $1.75 Million Board of Directors Authorizes $3 Million Share Repurchase Program Company Announces Chief Financial Officer Transition HAMDEN, Conn., May 12, 2026--(BUSINESS WIRE)--TransAct Technologies Incorporated (Nasdaq: TACT) ("TransAct" or the "Company"), a leading provider of cloud-based software and integrated hardware solutions, today reported preliminary results for the first quarter ended March 31, 2026. "We are pleased to report a solid start to 2026, with first quarter net sales of $14.4 million, up 10% year-over-year, and a return to GAAP profitability," said John Dillon, Chief Executive Officer of TransAct. "The performance was broad-based, with casino and gaming sales rising 24% year-over-year and generating strong cash flow to support our Food Service Technology initiatives. Recurring FST revenue grew 26% to $3.3 million, driven by robust label sales. Gross margin expanded 160 basis points to 50.3%, resulting in operating income of $0.8 million. "As we sharpen our focus on software growth, we are working diligently to ensure our Terminal users both pay for and realize the full value of our software suite, which we expect will accelerate growth in our recurring revenue base." First Quarter 2026 Financial Highlights Net Sales: Net sales for the first quarter of 2026 were $14.4 million, up 10% compared to $13.1 million for the first quarter of 2025, driven primarily by a 24% increase in casino and gaming sales. FST Recurring Revenue: FST recurring revenue for the first quarter of 2026 was $3.3 million, which represents an increase of 26% compared to $2.7 million for the first quarter of 2025. Gross Profit: Gross profit for the first quarter of 2026 was $7.3 million, resulting in gross margin of 50.3%, compared to gross profit of $6.4 million for the first quarter of 2025, which delivered a 48.7% gross margin. Operating Income: Operating income for the first quarter of 2026 was $771 thousand, or 5.3% of net sales, compared to an operating loss of $(15) thousand for the first quarter of 2025 and an operating loss of $(1.2) million for the fourth quarter of 2025. Net Income: Net income for the first quarter of 2026 was $766 thousand, or $0.07 per diluted share, based on 10.2 million weighted average diluted shares outstanding. This compares to net income of $19 thousand, or $0.00 per diluted share, for the first quarter of 2025 and a net loss of $(1.1) million, or $(0.11) per diluted share, for the fourth quarter of 2025, each based on 10.1 million weighted average common shares outstanding. EBITDA: EBITDA was $881 thousand for the first quarter of 2026, compared to $221 thousand for the first quarter of 2025 and $(1.0) million for the fourth quarter of 2025. Adjusted EBITDA: Adjusted EBITDA was $1.4 million for the first quarter of 2026, compared to $544 thousand for the first quarter of 2025 and $(499) thousand for the fourth quarter of 2025. Share Repurchase Program Today, the Company announced that its Board of Directors has authorized a share repurchase program of up to $3 million of the Company’s outstanding common stock over the next 12 months. This authorization reflects TransAct’s continued confidence in its strategic direction, strong balance sheet, and long-term growth opportunities, driven by the BOHA!® platform’s recurring revenue model and strengthened by TransAct’s EPIC line of casino and gaming printing solutions. TransAct intends to execute repurchases opportunistically, considering market conditions, share price, and alternative uses of capital. The share repurchase program does not obligate the Company to acquire any specific number of shares and may be modified, suspended, or discontinued at any time. Chief Financial Officer Transition On May 8, 2026, the Company announced the appointment of Robert Campbell as Chief Financial Officer, effective upon the June 30, 2026, retirement of long-time Chief Financial Officer, Steven A. DeMartino. Mr. Campbell has more than 25 years of financial leadership experience across publicly traded and privately held global manufacturing organizations. He has served as the Company’s Controller since June 2022, playing a key role in strengthening financial operations, enhancing reporting and internal controls, and supporting TransAct’s transition toward a recurring revenue model. Mr. DeMartino, who serves as President, Chief Financial Officer, Secretary and Treasurer of the Company, will retire following almost 30 years of service to TransAct. Upon Mr. DeMartino’s retirement, Mr. Campbell will take over as Chief Financial Officer, Secretary and Treasurer, and John Dillon, the Company’s Chief Executive Officer, will assume the title of President of the Company. Mr. DeMartino will remain in an advisory role through the end of the year to support a seamless transition. 2026 Financial Outlook* Net Sales: The Company expects full year 2026 net sales of between $55 million and $57 million. Adjusted EBITDA: The Company now expects full year 2026 adjusted EBITDA to be between $1 million and $1.75 million. *Our outlook for non-GAAP adjusted EBITDA is presented only on a non-GAAP basis because not all of the information necessary for a quantitative reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure is available without unreasonable effort, primarily due to uncertainties relating to the occurrence or amount of the adjustments that may arise in the future. If one or more of the currently unavailable items is applicable, some items could be material, individually or in the aggregate, to GAAP reported results. First Quarter 2026 Conference Call and Webcast TransAct is hosting a conference call and webcast on May 12, 2026, beginning at 4:30 p.m. ET to discuss the Company’s preliminary first quarter 2026 results and other matters. Both the call and the webcast are open to the general public. The conference call number is 877-704-4453 and the conference ID number is 13760514. Please call ten minutes prior to the presentation to ensure that you are connected. Interested parties may also access the conference call live on the Internet at www.transact-tech.com (select "About Us" followed by "Investor Relations," then select "News & Events" followed by "Events & Presentations"). Approximately two hours after the call has concluded, an archived version of the webcast will be available for replay at the same location. Non-GAAP Financial Measures TransAct is providing certain non-GAAP financial measures because the Company believes that these measures are helpful to investors and others in assessing the ongoing nature of what the Company’s management views as TransAct’s core operations. EBITDA and adjusted EBITDA provide the Company with an understanding of one aspect of earnings before the impact of investing and financing charges and income taxes. The Company believes that these non-GAAP financial measures provide relevant and useful information to an investor evaluating the Company’s operating performance because these measures are: (i) widely used by investors to measure a company’s operating performance without regard to items that do not reflect the Company’s ongoing operations and are excluded from the calculation of such measures; (ii) used as financial measurements by lenders and other parties to evaluate creditworthiness; and (iii) used by the Company’s management for various purposes including strategic planning and forecasting and assessing financial performance. The presentation of this non-GAAP information is not considered superior to or a substitute for, and should be read in conjunction with, the financial information prepared in accordance with GAAP. EBITDA is defined as net income (loss) before net interest income (expense), income taxes, depreciation, and amortization. A reconciliation of EBITDA to net income, the most comparable GAAP financial measure, can be found attached to this release. Adjusted EBITDA is defined as net income (loss) before net interest income (expense), income taxes, depreciation and amortization and is adjusted for (1) share-based compensation expense and (2) any other items, when they occur, that we believe do not reflect the ordinary earnings of the Company’s ongoing business. The Company adjusts EBITDA for share-based compensation because the Company considers share-based compensation expense to be a non-cash expense similar to depreciation and amortization. A reconciliation of adjusted EBITDA to net income, the most comparable GAAP financial measure, can be found attached to this release. About TransAct Technologies Incorporated TransAct Technologies Incorporated is a leading provider of cloud-based software and integrated hardware solutions that redefine how organizations connect operations, technology and data to drive measurable business value. Through its BOHA!® solutions, serving over 19,000 foodservice locations worldwide, TransAct combines purpose-built hardware with a cloud-based SaaS platform to help foodservice operators automate food safety, improve operational efficiency and maintain trusted brand relevance. In the casino and gaming market, TransAct’s award-winning EPIC solutions enable ticket-in/ticket-out (TITO) functionality and advanced promotional capabilities that enhance player engagement and drive revenue for operators globally. TransAct also provides a comprehensive portfolio of consumables and service solutions, allowing customers to simplify operations and partner with a single, trusted provider across their technology ecosystem. TransAct is headquartered in Hamden, CT. For more information, please visit http://www.transact-tech.com or call (203) 859-6800. ©2026 TRANSACT Technologies Incorporated. All rights reserved. TransAct®, BOHA!®, AccuDate®, Epic Edge®, EPICENTRAL® and Ithaca® are registered trademarks of TransAct Technologies Incorporated. Cautionary Statement Regarding Preliminary Financial Information The Company has prepared the preliminary financial information set forth below on a materially consistent basis with its historical financial information and in good faith based upon its internal reporting as of and for the three months ended March 31, 2026. This financial information is preliminary and is thus inherently uncertain and subject to change as the Company finalizes its financial results and related review for the three months ended March 31, 2026. During the preparation of the Company’s consolidated financial statements and related notes as of and for the three months ended March 31, 2026, the Company may identify items that could cause its final reported results to be materially different from the preliminary financial information set forth above. As a result, there can be no assurance that the Company’s final results for these periods will not differ from the preliminary financial information. This preliminary financial information should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. In addition, this preliminary financial information is not necessarily indicative of the results to be achieved for any future period. Forward-Looking Statements Certain statements included in this press release are forward-looking statements within the meaning of the U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent current views about possible future events and are often identified by the use of forward-looking terminology, such as "may", "will", "could", "expect", "intend", "estimate", "anticipate", "believe", "project", "plan", "predict", "design" or "continue", or the negative thereof, or other similar words. Forward-looking statements are subject to certain risks, uncertainties and assumptions. In the event that one or more of such risks or uncertainties materialize, or one or more underlying assumptions prove incorrect, actual results may differ materially from those expressed or implied by the forward-looking statements. Important factors and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: the adverse effects of current economic conditions on our business, operations, financial condition, results of operations and capital resources; our ability to achieve the anticipated benefits of our acquisition of a licensed copy of the source code for the BOHA! software and risks to our reputation and business relating to the source code transition; our ability to successfully transition the BOHA! source code to our platform and systems and, until such transition is complete, our continued reliance on third parties to host and support our FST offerings; difficulties or delays in manufacturing or delivery of inventory or other supply chain disruptions; our dependence on a single contract manufacturer for the assembly of a large portion of our products in Asia; the imposition of additional duties, tariffs, quotas, taxes, trade barriers, capital flow restrictions and other charges on imports and exports by the United States or the governments of the countries in which we or our manufacturers and suppliers operate; the Russia/Ukraine and Middle East conflicts; inadequate manufacturing capacity or a shortfall or excess of inventory as a result of difficulty in predicting manufacturing requirements due to volatile economic conditions; price increases, decreased availability of third-party component parts or raw materials at reasonable prices, price wars or significant pricing pressures affecting the Company’s products in the United States or abroad; increased product costs or reduced customer demand for our products in the United States or abroad, including as a result of trade wars, tariffs or other trade actions; our ability to successfully develop new products that garner customer acceptance and generate sales, both domestically and internationally, in the face of substantial competition; any system outages, interruptions or other disruptions to our software applications, including as a result of unexpected errors or mistakes in connection with over-the-air updates; our ability to successfully grow our business in the food service technology market; renewal rates for our subscription-based products; risks associated with the pursuit of strategic initiatives and business growth; our dependence on significant suppliers; our ability to recruit and retain quality employees; our dependence on third parties for sales outside the United States; marketplace acceptance of new products; risks associated with foreign operations; political and policy uncertainties and any adverse economic impacts resulting from such uncertainties; our ability to protect intellectual property; exchange rate fluctuations; the availability of needed financing on acceptable terms or at all; volatility of, and decreases in, trading prices of our common stock; and other risk factors identified and discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and other reports filed with the Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements, which speak only as of the date of this release. We undertake no obligation to publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors, except where we are expressly required to do so by applicable law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512235350/en/ Contacts Investor Contact: Ryan GardellaICR, [email protected]

This article first appeared on GuruFocus. Total Net Sales (Q4 2025): $11.5 million, up 12% from $10.2 million in Q4 2024. Total Net Sales (Full Year 2025): $51.5 million, up 19% from $43.4 million in 2024. FST Net Sales (Q4 2025): $4.8 million, up 12% year-over-year. FST Net Sales (Full Year 2025): $19.3 million, up 20% from $16.1 million in 2024. Recurring FST Revenue (Q4 2025): $3.4 million, up 24% from $2.7 million in Q4 2024. Casino and Gaming Sales (Q4 2025): $5.4 million, up 13% from $4.8 million in Q4 2024. Casino and Gaming Sales (Full Year 2025): $26.9 million, up 32% from 2024. Gross Margin (Q4 2025): 47.6%, up from 44.2% in Q4 2024. Operating Loss (Q4 2025): $1.2 million, compared to $1 million in Q4 2024. Net Loss (Q4 2025): $1.1 million or $0.11 per diluted share. Net Loss (Full Year 2025): $1.2 million or $0.12 per share. Adjusted EBITDA (Q4 2025): Negative $499,000, compared to negative $705,000 in Q4 2024. Adjusted EBITDA (Full Year 2025): Positive $1.2 million, compared to negative $1.5 million in 2024. Cash Balance (End of 2025): Over $20 million, up $6 million from the end of 2024. Warning! GuruFocus has detected 1 Warning Sign with TACT. Is TACT fairly valued? Test your thesis with our free DCF calculator. Release Date: March 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Transact Technologies Inc (NASDAQ:TACT) reported a strong fourth quarter, building on momentum from earlier in the year, positioning the company well for 2026. The company sold 7,317 BOHA! Terminals in 2025, marking a 36% increase year-over-year, indicating successful sales strategies. Recurring FST revenue reached $3.4 million in the fourth quarter, with labels hitting an all-time high of $2.6 million, contributing to strong customer retention. The acquisition of the BOHA! software source code is expected to enhance offerings and capture higher-margin recurring revenue. Transact Technologies Inc (NASDAQ:TACT) ended the year with over $20 million in cash, up $6 million from the previous year, indicating a solid financial position. The company reported a net loss of $1.1 million for the fourth quarter, although this was an improvement from the previous year's loss. ARPU for the fourth quarter was $756, down 14% from the previous year, partly due to sales to a large customer with no recurring revenue attached initially. Operating expenses increased by 19% in the fourth quarter, driven by higher sales commissions and incentive compensation. There was a sequential softening in domestic demand in the casino and gaming segment towards the end of the year due to macroeconomic headwinds. POS automation sales for the full year were down 34% from 2024, indicating challenges in this market segment. Q: How do you see AI programming tools helping your business, and could they increase competition? A: John Dillon, CEO: We use AI internally to enhance efficiency by analyzing our BOHA! software code for issues and summarizing its functions. AI tools will also be integrated into our products to help clients make better decisions. While AI can handle basic coding, it requires experienced professionals to create user-friendly applications. We view AI as an opportunity rather than a threat, as it allows us to focus on customer satisfaction while maintaining our competitive edge. Q: Can you provide more details on the strategic priorities for 2026? A: John Dillon, CEO: Our focus is on revenue growth, particularly in the foodservice technology (FST) sector, funded by cash flows from our casino and gaming vertical. Software will be our primary growth engine, and we plan to enhance our offerings and increase recurring revenue. We aim to deliver positive adjusted EBITDA while investing in sales and marketing, emphasizing software-led solutions and competitive pricing. Q: What are the financial expectations for 2026? A: Steven Demartino, CFO: We expect 2026 net sales to be between $55 million and $57 million, with adjusted EBITDA ranging from $800,000 to $1.5 million positive. Our focus will be on maintaining fiscal discipline while driving growth in our FST software initiatives. Q: How did the casino and gaming segment perform, and what are the expectations for 2026? A: John Dillon, CEO: Casino and gaming net sales were $5.3 million for the quarter, up 13% year-over-year, with 2025 sales at $26.9 million, up 32% from 2024. Despite some domestic demand softening, international sales remain strong. We expect this segment to continue generating significant free cash flow in 2026, supporting our FST investments. Q: What are the key highlights from the fourth quarter in the FST segment? A: John Dillon, CEO: FST net sales reached $4.8 million, up 12% year-over-year, driven by hardware placements, software adoption, and record label sales. Recurring FST revenue was $3.4 million, with an average revenue per unit of $756. We continue to see strong customer retention and are focused on expanding our software offerings and customer base. For the complete transcript of the earnings call, please refer to the full earnings call transcript.