0001140361-26-009238
SEC filingTransAct Technologies Incorporated reported net sales of $51.5 million for fiscal year 2025, resulting in a net loss of $1.2 million. The company generated a gross profit of $25.0 million with a gross margin of 48.5%, but operating expenses of $26.4 million led to an operating loss of $1.4 million. Despite the net loss, the company generated positive operating cash flow of $7.7 million, primarily driven by non-cash adjustments including share-based compensation of $1.8 million and depreciation/amortization of $672K. The balance sheet shows total assets of $44.8 million with $20.4 million in cash and cash equivalents, and shareholders' equity of $31.1 million. A significant development was the acquisition of a perpetual license to the BOHA! software source code for $2.55 million plus approximately $1.0 million in transition services, which is expected to reduce long-term dependence on third-party developers.
TransAct Technologies reported net sales of $51.5 million for fiscal year 2025, with cost of sales totaling $26.5 million, resulting in gross profit of $25.0 million. The company incurred operating expenses of $26.4 million, comprising engineering, design and product development ($6.7M), selling and marketing ($8.4M), and general and administrative expenses ($11.3M). This led to an operating loss of $1.4 million. After interest and other income of $331K and income tax expense of $156K, the company reported a net loss of $1.2 million. Basic and diluted net loss per common share were both -$0, with 10.1 million shares used in per-share calculations.
The company operates in one reportable segment: the design, development, and marketing of software-driven technology and printing solutions for high growth markets, and related services, labels and spare parts. The company serves three primary markets: food service technology (FST), point of sale (POS) automation, and casino and gaming. In the FST market, the company sells BOHA! hardware solutions and companion cloud-based applications. In the POS automation market, the company sells the Ithaca 9000 printer primarily to McDonald's. In the casino and gaming market, the company sells printers for slot machines, VLTs, and sports betting kiosks. Light & Wonder Gaming, Inc. represented 9% of total net sales for the year ended December 31, 2025.
The company achieved a gross margin of 48.5% on net sales of $51.5 million. Operating expenses totaled $26.4 million, representing 51.3% of net sales. The operating loss margin was -2.7%. The net loss margin was -2.3%. Engineering, design and product development expenses were $6.7 million (13.0% of revenue), selling and marketing expenses were $8.4 million (16.3% of revenue), and general and administrative expenses were $11.3 million (21.9% of revenue). Interest expense was $339K while interest income was $537K, resulting in net interest income of $198K.
The company generated $7.7 million in net cash from operating activities, primarily driven by net loss of $1.2M adjusted for non-cash items including share-based compensation expense of $1.8M and depreciation and amortization of $672K. Significant changes in operating assets and liabilities included a $5.4M increase in inventories and a $1.9M increase in accrued liabilities. Net cash used in investing activities was $1.6M, primarily for capitalized software development costs of $1.5M. Net cash used in financing activities was $119K. The company ended the period with $20.4M in cash and cash equivalents. Total assets were $44.8M, with current assets of $38.8M including accounts receivable of $6.4M and inventories of $10.9M. Total liabilities were $13.7M, with current liabilities of $13.0M including revolving loan payable of $3.0M. Shareholders' equity was $31.1M.
The company acquired a perpetual license to the BOHA! software source code from Avery Dennison for $2.55 million plus professional services fees of approximately $1.0 million for transition services. The company expects to host the code in its own environment by mid-2026. The company launched the BOHA! Terminal 2 LTE in 2025 to solve connectivity challenges for franchisees operating in supermarkets or off-network environments. The Epic TR80 casino and gaming printer, launched in Q4 2023, entered the market fully during Q1 2025 and is expected to become a more meaningful contributor to revenues as customer deployments expand in 2026. Risk factors include adverse economic conditions, supply chain disruptions, dependence on single contract manufacturers, trade barriers, competition, and the need to protect intellectual property.