TransAct Technologies Incorporated

What they do

TransAct designs, develops, and markets thermal printers and terminals for food service technology (FST), point-of-sale (POS) automation, and casino and gaming markets. It sells directly to end users, OEMs, value-added resellers, and distributors, and also generates revenue from software subscriptions, labels, spare parts, and service via its TransAct Services Group (TSG). The company operates globally with facilities in Ithaca, NY (primary operations), Las Vegas, NV, the UK, and Macau.

Revenue drivers

• Casino and Gaming — Largest product line; Q2 2026 sales of $7.3M (down 4% YoY, but up ~9% excluding a $1.0M tariff surcharge refund).
• Food Service Technology (FST) - BOHA! — Includes hardware, software subscriptions, labels, and recurring revenue; online units grew 33% YoY to 21,790 as of June 30, 2026, with recurring revenue up 13% YoY.
• FST Software — Recurring software revenue was $732K in Q2 2026, up 47% YoY; a key focus for monetizing the installed base.
• POS Automation and Other — Printers and terminals for POS and other markets; contributes to the remainder of net sales, but specific figures not disclosed.

Recent performance

For Q2 2026 (preliminary), net sales were $13.9M, up 1% YoY, with gross margin of 50.2% (vs. 48.2% in Q2 2025). Operating loss was $54K, and net loss was $50K ($0.00 EPS), compared to a net loss of $143K in Q2 2025. Q1 2026 net income was $766K; 2025 full-year revenue was $51.5M with a net loss of $1.2M. Operating cash flow improved to $7.7M in 2025 from $1.9M in 2024.

Strategy

Management is focused on building a high-margin, software-led recurring revenue business for FST, leveraging the 33% growth in online BOHA! units and 47% software revenue growth. The company acquired a perpetual, royalty-free license to the BOHA! source code from Avery Dennison for $2.55M plus transition services, and plans to host it internally by mid-2026. It launched a next-generation BOHA! SaaS platform on Microsoft Azure to improve scale and control. Additionally, the Board initiated a formal strategic review of the Casino and Gaming business, engaging BofA Securities as financial advisor.

Risks

• History of net losses — Net losses in 2024 ($9.9M) and 2025 ($1.2M), and losses from 2020-2022, with no guarantee of future profitability.
• Dependence on a single contract manufacturer — Reliance on a single Asian contract manufacturer for a large portion of product assembly, exposing the company to supply chain disruptions.
• Tariffs and trade policy uncertainty — Impact of tariffs, including a 10% surcharge and potential refunds to customers, reduced Q2 2026 Casino and Gaming sales by $1.0M.
• BOHA! source code transition risk — Until the source code hosting transition to TransAct's environment is complete (expected mid-2026), the company relies on third parties to host and support its FST offerings.

Outlook

Management reiterated 2026 revenue guidance of $55-57 million and increased adjusted EBITDA guidance to $1.5-2.0 million, reflecting confidence in continued FST and Casino and Gaming strength. The strategic review of Casino and Gaming could result in a divestiture or other transaction, but no outcome is guaranteed.