TransAct Technologies Incorporated

Second-quarter net sales were $13.9 million, up slightly from $13.8 million a year ago; excluding about $1 million of tariff-related customer refunds, net sales would have been about $14.9 million, up 8% year over year. Adjusted EBITDA was $514,000 versus $478,000 in Q2 2025, and net loss was $50,000 versus a $143,000 loss, or $0.01 per diluted share, in the prior-year quarter. Gross margin was 50.2% versus 48.2% a year ago, and management said it expects full-year 2026 gross margin to remain in the mid to high 40% range. FST revenue was $5.2 million, up 9% year over year; recurring FST sales were $3.4 million, up 13%; software revenue was up 47% year over year. Casino and gaming sales were $7.3 million reported, or about $8.3 million excluding tariff impacts. Cash and cash equivalents were $19.4 million. Management raised full-year 2026 adjusted EBITDA guidance to $1.5 million to $2.0 million and reaffirmed full-year net sales outlook of $55 million to $57 million.

John Dillon framed the quarter as evidence that TransAct is making progress on a long-term shift toward a higher-margin, more predictable software-led model in FST. He emphasized the growth of the online BOHA! base, the move to charge fair market value for software, and the launch of the next-generation BOHA! SaaS platform on Microsoft Azure. He also said the company is using AI pragmatically in development and that the casino and gaming business review is intended to maximize shareholder value.

Troy Ingianni highlighted that Q2 net sales were $13.9 million versus $13.8 million a year ago, with about $1 million of tariff-related customer refunds reducing sales and about $600,000 lowering cost of goods sold. He said the company had received about $500,000 of expected government refunds by the call date, roughly 80% of the total, and noted Q2 gross margin of 50.2% versus 48.2% last year. Operating expenses were $7.1 million, including $1.2 million of engineering and R&D, $2.7 million of selling and marketing, and $3.1 million of G&A. He closed by pointing to $19.4 million of cash and cash equivalents, minimal revolver usage, no share repurchases in the quarter, and the raised full-year adjusted EBITDA range of $1.5 million to $2.0 million.

Analysts focused mainly on why the board launched a strategic review of casino and gaming now and what that might mean for the FST business if gaming were monetized. John Dillon said the prior process came during a more turbulent post-pandemic period, while the gaming business is now stabilized, and he suggested the review is timely because gaming is a profitable cash generator but not the company’s main strategic focus. He also said he believes FST could grow and potentially reach cash-flow breakeven with the cash on hand, if gaming were sold. On software, he confirmed new BOHA! sales are being bundled with software packages in some cases, with pricing ranging from basic offerings around $75 to $90 a month and some units at $300 to $400 per month, depending on customer needs.