TransAct Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the third quarter of 2026 were $14.4 million, a 10% increase year-over-year compared to $13.2 million in Q3 2025.
• Gross profit was $6.7 million with a gross margin of 46.4%, down from $6.6 million and 49.8% in Q3 2025.
• Operating loss was $(415) thousand (2.9% of net sales), compared to operating income of $14 thousand (0.1% of net sales) in Q3 2025.
• Net loss was $(440) thousand, or $(0.04) per diluted share, compared to net income of $15 thousand, or $0.00 per diluted share, in Q3 2025.
• EBITDA was $(172) thousand for the quarter, compared to $142 thousand in Q3 2025.
• Adjusted EBITDA was $289 thousand for the quarter, compared to $669 thousand in Q3 2025; Adjusted EBITDA for the first nine months of 2026 was approximately $2.2 million.
• Deferred revenue increased to $2.5 million total ($2.2 million current, $280 thousand non-current) as of September 30, 2026, from $1.8 million total ($1.4 million current, $355 thousand non-current) as of December 31, 2025.
• Cash and cash equivalents were $20.2 million as of September 30, 2026, compared to $20.4 million as of December 31, 2025.
• Revolving loan payable remained at $3.0 million as of September 30, 2026.

Guidance and Future Outlook:

• The Company revised full-year 2026 net sales guidance to between $55 million and $56 million.
• The Company revised full-year 2026 adjusted EBITDA guidance to between $1.5 million and $1.75 million.
• Management expects the softer demand environment in the Casino and Gaming sector to continue into the fourth quarter.

Business Segments and Product Lines:

• Food Service Technology (FST) net sales were $6.4 million, up 33% year-over-year from $4.8 million in Q3 2025.
• FST recurring revenue was $4.0 million, up 24% year-over-year from $3.3 million in Q3 2025.
• FST software revenue was $876 thousand, up approximately 61% year-over-year from $544 thousand in Q3 2025.
• The Company sold 2,346 BOHA! units in the third quarter.
• The online BOHA! installed base grew to approximately 22,600 units as of September 30, 2026, a 26% year-over-year increase from 17,900 units.
• Casino and Gaming sales were $6.4 million, down 11% year-over-year from $7.1 million in Q3 2025.
• POS automation sales were $733 thousand, up from $399 thousand in Q3 2025.
• TransAct Services Group sales were $900 thousand, up from $792 thousand in Q3 2025.

Market and Competitive Landscape:

• The Casino and Gaming market is described as regulated with high barriers to entry and a long-standing OEM customer base.
• The FST business is characterized by growth across hardware, software, and labels, driven by pricing actions, new account wins, and bundled software packages.

Risks and Challenges:

• The Casino and Gaming business experienced cyclicality leading to softer demand in the quarter.
• The Company faces risks related to economic conditions, inflation, interest rates, supply chain disruptions, and dependence on a single contract manufacturer in Asia.
• Potential trade barriers, tariffs, and geopolitical conflicts (Russia/Ukraine, Middle East) are cited as risks.
• The strategic review of the Casino and Gaming business and potential sale of the FST business introduce uncertainties regarding future transactions.

Management Commentary and Tone:

• CEO John Dillon stated the FST business drove a strong quarter and that the company is building a high-margin, software-led recurring revenue business.
• Management emphasized executing a transition to a software-led model with disciplined capital allocation and a solid balance sheet.
• Management noted that while Casino and Gaming fundamentals remain unchanged, the cyclicality of the business is impacting current demand.

Other Key Points:

• The Board of Directors has initiated a formal strategic review of the Casino and Gaming business with BofA Securities, Inc. as financial advisor.
• The strategic review is also evaluating a broader range of alternatives for the Company, including a potential sale of the FST business separately or as part of a broader transaction.
• No public timetable has been set for the strategic review, and there is no assurance that any transaction will result.
• Shareholder advisory costs related to activism actions were $120 thousand in Q3 2026 and are excluded from Adjusted EBITDA; no such costs were incurred in prior periods.
• The Company is hosting a conference call and webcast on November 12, 2026, at 4:30 p.m. ET.