TransAct Technologies (NASDAQ:TACT) reported fourth-quarter and full-year 2025 results that management said reflected continued momentum in its Food Service Technology (FST) business, while its casino and gaming segment provided steady cash flow to fund software-focused investments. Executives also issued 2026 guidance calling for net sales of $55 million to $57 million and positive adjusted EBITDA of $800,000 to $1.5 million.
Fourth-quarter results and full-year growth
Total net sales in the fourth quarter were $11.5 million, up 12% from $10.2 million in the prior-year period. For full-year 2025, total net sales were $51.5 million, up 19% from $43.4 million in 2024 and within the company’s increased outlook range, according to President and CFO Steve DeMartino.
Adjusted EBITDA for Q4 was negative $499,000, compared with negative $705,000 in Q4 2024. For full-year 2025, adjusted EBITDA was positive $1.2 million versus negative $1.5 million in 2024, placing the company above the midpoint of its 2025 outlook range.
Food Service Technology: terminal placements, recurring revenue, and labels
Management emphasized software as the primary growth engine going forward, supported by hardware placements and consumables. In the fourth quarter, TransAct sold 1,434 BOHA! terminals, bringing full-year terminal sales to 7,317, a 36% increase from 5,371 units in 2024. CEO John Dillon said terminal units sold remain the best leading indicator of sales performance and pointed to strong retention across the installed base, with plans to introduce additional KPI disclosure in coming quarters.
FST net sales in Q4 were $4.8 million, up 12% year-over-year and approximately flat sequentially. Full-year FST sales were $19.3 million, up 20% from $16.1 million in 2024.
Recurring FST revenue (software and service subscriptions plus label sales) reached $3.4 million in Q4, up 24% from $2.7 million a year earlier. Full-year recurring FST sales were $12.2 million, up 14% from $10.8 million in 2024.
Average revenue per unit (ARPU) in Q4 was $756, down 14% from $875 in Q4 2024 and down 5% sequentially from $792 in Q3 2025. DeMartino attributed the ARPU pressure to sales of BOHA terminals to a large customer that initially carry no recurring revenue, adding that the company expects to begin changing the selling model to that customer in 2026.
Labels were a notable contributor in the quarter. Dillon said label sales hit an all-time high of $2.6 million in Q4, describing the business as margin-accretive and helpful in building long-term customer relationships, while acknowledging label demand can be “lumpy.”
Software strategy, source code ownership, and 2026 priorities
Dillon said TransAct is evolving toward a software-driven solutions model in FST, funded by cash flows from the casino and gaming segment. He highlighted the company’s 2025 acquisition of the BOHA! software source code as a key step, stating that the company plans to leverage code control in 2026 to enhance offerings, introduce new applications, and capture higher-margin recurring revenue.
Management said the transition following the source code acquisition is progressing smoothly, with “tangible strides” in standing up TransAct’s own operational version and an expected launch targeted for mid-year 2026. Dillon also outlined longer-term initiatives, including migrating existing customers to a public cloud platform to improve scalability and create additional cross-selling opportunities.
Dillon said the company is targeting an increase in monthly recurring revenue per machine over time, describing an aspiration to reach “something like $200 per machine per month,” noting an installed base of roughly 18,000 to 19,000 online terminals. He added that the company is exploring an “application store” concept that could allow users to opt into new applications directly on terminal hardware, potentially creating additional software revenue streams.
For go-to-market execution in 2026, management said it plans to strengthen the sales team with a sharper software-led focus and prioritize upselling software modules into the existing installed base. Dillon also cited targeted outreach in sub-verticals including:
- Quick-serve restaurants (QSR)
- Convenience stores (C-stores)
- Grab-and-go sushi
- Corporate food services (including venues such as campuses and hospitals)
The company said these initiatives will require measured spending increases, including selective hires, expanded digital marketing, and continued product roadmap investment, while maintaining cost discipline and targeting positive adjusted EBITDA in 2026.
Dillon also noted the recent addition of Chief Marketing Officer Dana Loof, who will focus on competitive positioning, messaging, lead generation, and improving the company’s website presence. He said TransAct expects to begin a more active investor outreach program in Q2.
Casino and gaming: growth in 2025, Q4 slowdown, and cash flow role
Casino and gaming net sales were $5.4 million in Q4, up 13% from $4.8 million a year earlier, but down 25% sequentially. DeMartino said the Q4 slowdown reflected a large customer reaching “fully stocked” status and awaiting jurisdictional approvals, which the company expects sometime later in 2026.
For the full year, casino and gaming sales were $26.9 million, up 32% from 2024. Dillon described the segment as a “reliable cash cow” that generates significant free cash flow and is expected to continue contributing positively to cash flow in 2026 despite cyclical demand.
Dillon also pointed to the company’s Epic TR80 thermal roll printer gaining traction in sports betting kiosks and video lottery terminals, saying it is anticipated to become a more meaningful contributor in 2026. He added that TransAct is exploring expansion opportunities such as charitable gaming and deeper Epicentral integrations aimed at recurring revenue.
Margins, expenses, and balance sheet
Gross margin in Q4 was 47.6%, and full-year gross margin was 48.6%, down slightly from 49.5% in 2024. DeMartino said the company expects gross margin to be in the high-40% range in 2026.
Operating expenses rose 19% in Q4 to $6.6 million. For the full year, operating expenses were $26.4 million, up 5% year-over-year, driven largely by higher sales commissions, incentive compensation, and share-based compensation tied to improved results, partly offset by savings from cost reductions initiated in late 2024.
TransAct ended 2025 with more than $20 million in cash, up $6 million from the end of 2024. The company reported $3 million of borrowings under its credit facility with CNL, described as the minimum required amount.
During the question-and-answer session, Dillon discussed the company’s view of AI tools, saying TransAct is using AI internally to analyze code for issues and improve efficiency now that it owns the BOHA! source code. He also said the company expects to incorporate AI tooling in customer-facing applications over time to help clients make better decisions related to data and operational optimization, while characterizing AI as an opportunity rather than a competitive threat.
About TransAct Technologies (NASDAQ:TACT)
TransAct Technologies Inc designs, manufactures and distributes secure card issuance systems and embedded transactional printing solutions for a variety of industries. The company’s portfolio includes high-speed card printers, card personalization and issuance software, as well as embedded printers used in kiosks, point-of-sale terminals, lottery machines and gaming applications. TransAct’s products are built to deliver reliable, on-demand printing and secure card encoding for markets that require rapid, accurate issuance of payment cards, identification badges and tickets.
Within its secure card solutions segment, TransAct offers turnkey systems that integrate card printing, magnetic stripe encoding, smart card personalization and instant card issuance software.
