Earnings Releases·Nov 3, 2026, 4:02 PM ET

Transcat, Inc. — Fiscal Second Quarter 2027 Earnings Summary

Total revenue rose 18.0% year-over-year to $97.1 million, driven by 22.6% growth in Service revenue and 9.8% growth in Distribution revenue; net income surged 90.1% to $2.4 million and Adjusted EBITDA increased 23.1% to $14.9 million.
Management raised full-year fiscal 2027 Service organic revenue growth outlook to low double digits (from high single digits) and expects Service gross margin expansion of at least 100 basis points in the second half of the fiscal year.
Service segment gross margin expanded 220 basis points to 34.4%, while Distribution margin declined 120 basis points to 32.0% due to lower-margin used equipment sales; total long-term debt increased to $116.9 million.
The August acquisition of Southeastern Biomedical advanced the strategy of building scale in regulated, high cost-of-failure end markets, contributing $3.5 million to Service revenue.
The company recorded its 70th consecutive quarter of Service revenue growth, with operating expenses rising 18.7% due to acquisition-related amortization, stock-based compensation, and executive transition costs.