TransAct Technologies (TACT) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 reached $14.4 million, up 10–10.4% year-over-year, driven by strong casino and gaming demand and higher recurring FST revenue.

• Adjusted EBITDA was $1.4 million, marking a significant increase from Q1 2025 and a loss in Q4 2025.

• Net income rose to $766–800 thousand ($0.07 per diluted share), up from $19 thousand in the prior year period.

• Board authorized a $3 million share repurchase program, reflecting confidence in long-term growth.

• Announced CFO transition, with Robert Campbell succeeding Steven A. DeMartino effective June 30, 2026.

Financial highlights

• Gross profit for Q1 2026 was $7.3 million, with gross margin expanding to 50.3% from 48.7% in Q1 2025.

• Operating income was $771–800 thousand (5.3% of net sales), reversing a loss in Q1 2025.

• Adjusted EBITDA reached $1.4 million, up from $544 thousand in Q1 2025.

• Cash and cash equivalents stood at $18.8 million at quarter-end, with $3 million in outstanding borrowings.

• Basic and diluted EPS were $0.08 and $0.07, respectively.

Outlook and guidance

• Full-year 2026 net sales guidance reaffirmed at $55–$57 million.

• Adjusted EBITDA guidance raised to $1–$1.75 million for 2026, reflecting strong Q1 performance.

• Gross margin expected to remain in the high 40% range for the full year.

• FST revenue projected to increase, driven by recurring software revenue and installed base growth.

• POS automation sales expected to remain stable at 2025 levels.