TransAct Technologies (NASDAQ:TACT) Announces Quarterly Earnings Results

TransAct Technologies (NASDAQ:TACT) announced its earnings results on Thursday. The technology company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.06) by $0.02, FiscalAI reports. TransAct Technologies had a negative net margin of 0.75% and a negative return on equity of 1.25%. The firm had revenue of $14.44 million for the quarter, compared to the consensus estimate of $13.90 million.

Here are the key takeaways from TransAct Technologies’ conference call:

• Food service technology (FST) grew strongly, with revenue up 33% year over year, recurring revenue up 24%, and software revenue up 61%. The company said its growing online terminal base and Azure-based platform support its push toward a larger recurring software business.
• Casino and gaming weakness prompted lower full-year guidance. TransAct expects softer demand to continue into the fourth quarter and now forecasts 2026 sales of $55 million–$56 million and adjusted EBITDA of $1.5 million–$1.75 million.
• Profitability weakened in the quarter: gross margin fell to 46.4% from 49.8% a year earlier, and the company recorded an operating loss of $415,000 and a net loss of $440,000.
• The board’s strategic review covers the casino and gaming business and broader alternatives, including a possible sale of FST. The company gave no timetable and said there is no assurance the review will result in a transaction.

TransAct Technologies Stock Performance

TransAct Technologies stock traded down $0.05 during mid-day trading on Thursday, reaching $4.88. The company’s stock had a trading volume of 4,764 shares, compared to its average volume of 43,397. The company has a market capitalization of $50.36 million, a price-to-earnings ratio of -122.00 and a beta of 1.25. TransAct Technologies has a 12 month low of $3.06 and a 12 month high of $6.02. The business’s 50 day simple moving average is $4.98 and its 200 day simple moving average is $4.41.

Analyst Upgrades and Downgrades

TACT has been the subject of several research analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of TransAct Technologies in a report on Monday, November 2nd. Wall Street Zen upgraded TransAct Technologies to a “hold” rating in a report on Saturday, July 18th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Reduce”.

TransAct Technologies Company Profile

TransAct Technologies Incorporated (NASDAQ:TACT) develops and manufactures transaction-based technology products for the gaming, lottery, food service and point-of-sale markets. The company’s offerings include thermal printers, kiosks, terminals and related hardware used to produce tickets, receipts, vouchers and other transaction documents. In the gaming and lottery industries, TransAct supplies printers and other equipment for slot machines, video lottery terminals, ticket-in/ticket-out systems and lottery applications.