TransAct Technologies (TACT) Q4 2025 earnings summary

Executive summary

• Closed 2025 with strong Q4 performance, achieving 36% year-over-year growth in terminal sales and record label revenue, positioning for revenue growth in 2026, especially in Food Service Technology (FST).

• Software identified as the primary growth engine, with a focus on recurring revenue, margin expansion, and software-driven transformation.

• Strategic priorities include enhancing go-to-market strategies, expanding software offerings, and leveraging cash flow from casino and gaming to fund FST growth.

• Acquisition of full rights to BOHA! software enables accelerated innovation, new application development, and margin expansion.

• New Chief Marketing Officer hired in Q4 to drive competitive positioning, lead generation, and investor outreach.

Financial highlights

• Q4 2025 net sales were $11.5 million, up 12% year-over-year; full year net sales reached $51.5 million, up 19%.

• FST Q4 net sales were $4.8 million, up 12% year-over-year; full year FST sales were $19.3 million, up 20%.

• Casino and gaming Q4 sales were $5.4 million, up 13% year-over-year but down 25% sequentially; full year sales were $26.9 million, up 32%.

• Q4 FST recurring revenue grew 24% to $3.4 million; full year FST recurring revenue rose 14% to $12.3 million.

• Q4 gross margin was 47.6%, up from 44.2% last year; full year gross margin was 48.6%.

• Q4 operating loss was $1.2 million; full year operating loss was $1.4 million, improved from $3.6 million in 2024.

• Q4 net loss was $1.1 million ($0.11/share); full year net loss was $1.2 million ($0.12/share), a significant improvement from 2024.

• Adjusted EBITDA for Q4 was negative $499,000; full year adjusted EBITDA was positive $1.2 million, above guidance midpoint.

• Ended 2025 with over $20 million in cash and $3 million in debt.

Outlook and guidance

• 2026 net sales expected between $55 million and $57 million, driven by anticipated high-margin software sales.

• Adjusted EBITDA for 2026 projected between $800,000 and $1.5 million positive.

• Focus on positive adjusted EBITDA while investing in sales and marketing for software-led growth.

• Gross margin expected to remain in the high 40% range for 2026.