TransAct Technologies (NASDAQ:TACT) Issues Earnings Results, Beats Expectations By $0.11 EPS

TransAct Technologies (NASDAQ:TACT) posted its earnings results on Tuesday. The technology company reported $0.07 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.11, FiscalAI reports. The business had revenue of $14.42 million for the quarter, compared to analysts’ expectations of $12.60 million. TransAct Technologies had a negative net margin of 2.41% and a negative return on equity of 3.96%.

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

• TransAct reported a solid first quarter with net sales of $14.4 million, up 10% year over year, and adjusted EBITDA of $1.4 million, putting the company on track for full-year profitability goals.
• The company’s Food Service Technology recurring revenue is becoming a bigger driver, with software revenue up 23% and recurring FST revenue up 26% to $3.3 million, as management pushes to monetize its nearly 20,000 online terminals.
• Management said the software platform migration is progressing faster than expected, with the go-live date pulled forward from Q1 2027 to late Q2 or early Q3 2026, which should support the recurring revenue model.
• Casino and gaming sales surged 24% year over year to $8.3 million, helped by strong domestic and international demand and early traction for the Epic TR80 printer in roll-fed gaming applications.
• The company reaffirmed full-year 2026 net sales guidance of $55 million to $57 million and raised adjusted EBITDA guidance to $1.0 million to $1.75 million, while noting ARPU declined in the quarter as it transitions hardware customers to recurring contracts.

TransAct Technologies Trading Up 2.5%

Shares of TACT traded up $0.08 during mid-day trading on Wednesday, hitting $3.45. 120,852 shares of the company traded hands, compared to its average volume of 45,893. TransAct Technologies has a one year low of $3.06 and a one year high of $5.70. The business has a 50-day moving average of $3.36 and a 200 day moving average of $3.81. The stock has a market capitalization of $35.50 million, a price-to-earnings ratio of -28.78 and a beta of 1.16.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of TransAct Technologies in a research note on Thursday, January 22nd. Zacks Research cut shares of TransAct Technologies from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 6th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $5.00.

Insider Activity at TransAct Technologies

In related news, CEO John Dillon purchased 70,902 shares of the firm’s stock in a transaction dated Monday, March 16th. The shares were acquired at an average cost of $3.49 per share, with a total value of $247,447.98. Following the completion of the purchase, the chief executive officer directly owned 100,000 shares of the company’s stock, valued at $349,000. This trade represents a 243.67% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 19.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On TransAct Technologies

Large investors have recently bought and sold shares of the business. Coldstream Capital Management Inc. acquired a new position in TransAct Technologies in the third quarter valued at approximately $58,000. Goldman Sachs Group Inc. lifted its holdings in TransAct Technologies by 33.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 20,464 shares of the technology company’s stock valued at $82,000 after buying an additional 5,100 shares during the period. Arrowstreet Capital Limited Partnership acquired a new position in TransAct Technologies in the third quarter valued at approximately $151,000. Susquehanna International Group LLP acquired a new position in TransAct Technologies in the third quarter valued at approximately $225,000. Finally, Heron Bay Capital Management acquired a new position in TransAct Technologies in the fourth quarter valued at approximately $236,000. 74.46% of the stock is currently owned by institutional investors and hedge funds.

About TransAct Technologies

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.