TransAct Technologies (NASDAQ:TACT) Announces Quarterly Earnings Results, Beats Expectations By $0.02 EPS

TransAct Technologies (NASDAQ:TACT) released its earnings results on Thursday. The technology company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.02, FiscalAI reports. TransAct Technologies had a negative return on equity of 1.25% and a negative net margin of 0.75%. The business had revenue of $14.44 million for the quarter, compared to analyst estimates 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 Trading Down 1.0%

Shares of TACT traded down $0.05 during midday trading on Thursday, reaching $4.88. The stock had a trading volume of 4,764 shares, compared to its average volume of 43,397. The firm has a market cap of $50.36 million, a PE ratio of -122.00 and a beta of 1.25. The firm has a 50 day simple moving average of $4.98 and a 200-day simple moving average of $4.41. TransAct Technologies has a one year low of $3.06 and a one year high of $6.02.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on TACT shares. Weiss Ratings restated a “sell (d-)” rating on shares of TransAct Technologies in a research note on Monday, November 2nd. Wall Street Zen raised TransAct Technologies to a “hold” rating in a research report on Saturday, July 18th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently 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.