TransAct Technologies (TACT) Q4 2024 earnings summary

Executive summary

• Fourth quarter revenue reached $10.2 million, with over 1,600 BOHA! Terminals sold, the highest since 2020, and an eight-quarter CAGR of 40%+.

• Casino and gaming sales increased year-over-year and sequentially, indicating market stabilization.

• Full year 2024 net sales were $43.4 million, down 40% year-over-year but within the revised outlook range.

• Management and the board remain focused on maximizing shareholder value, with a strategic review process ongoing.

• Management expects 2025 to be an inflection point, with net losses decreasing as revenue returns to growth.

Financial highlights

• Q4 2024 net sales were $10.2 million, down 6% sequentially and 23% year-over-year due to high prior-year casino sales.

• Q4 FST revenue was $4.3 million, flat sequentially and down 9% year-over-year; recurring FST revenue was $2.7 million, down 15% year-over-year.

• Casino and gaming revenue for Q4 was $4.8 million, up 14% year-over-year and 5% sequentially; full year C&G sales were $20.3 million, down 51% year-over-year.

• Q4 2024 gross profit was $4.5 million (44.2% margin), down from $6.4 million (48.0%) in Q4 2023; full year gross margin was 49.5%.

• Q4 2024 net loss was $8 million ($0.79 per share), including a $7.3 million non-cash tax charge; full year net loss was $9.9 million ($0.99 per share).

Outlook and guidance

• 2025 revenue expected between $47 million and $52 million; adjusted EBITDA guidance ranges from break-even to -$2 million.

• Guidance assumes continued recovery in casino and gaming and no major supply chain or demand disruptions.

• Gross margin expected in the mid to high 40% range for 2025.

• Management anticipates a sustainable terminal sales run rate and further growth as new clients are added.