TransAct Technologies Q2 Earnings Call Highlights

Second-quarter sales were $13.9 million , while tariff-related customer refund adjustments reduced reported revenue by about $1 million; excluding that impact, sales would have risen approximately 8% year over year. TransAct raised its full-year adjusted EBITDA outlook to $1.5 million–$2 million. Food service technology revenue increased 9% to $5.2 million, with recurring revenue up 13% and software revenue up 47%. The company is expanding its BOHA! installed base and shifting toward higher-margin paid software subscriptions after completing its migration to Microsoft Azure. TransAct launched a formal strategic review of its casino and gaming business with BofA Securities as adviser, potentially including broader strategic alternatives. Reported casino and gaming revenue fell 4% year over year, but would have increased about 9% excluding tariff-related adjustments.

TransAct Technologies NASDAQ: TACT reported second-quarter net sales of $13.9 million, up slightly from $13.8 million a year earlier, as growth in its food service technology business was partially offset by tariff-related customer refund adjustments and lower reported casino and gaming revenue. The company recorded an estimated $1 million reduction in sales tied to customer refunds following a February U.S. Supreme Court ruling that invalidated certain import tariffs, according to CFO Troy Ingianni. TransAct also recorded an approximately $600,000 reduction in cost of goods sold related to expected tariff refunds from the government. Excluding the tariff-related effect, the company said second-quarter sales would have been approximately $14.9 million, an 8% increase from the prior-year period.

Adjusted EBITDA totaled $514,000 in the quarter, compared with $478,000 a year earlier and $1.4 million in the first quarter. The result included a $400,000 impact from tariff adjustments. For the first half, adjusted EBITDA was approximately $1.9 million, prompting TransAct to raise its full-year adjusted EBITDA outlook to a range of $1.5 million to $2 million.

Food service technology, or FST, revenue rose 9% year over year and 10% sequentially to $5.2 million. CEO John Dillon said the company’s strategy remains focused on building a higher-margin and more predictable recurring-revenue business around its BOHA! food service platform. TransAct sold 1,900 BOHA! units during the second quarter, bringing first-half unit sales to 3,270. The company ended the quarter with nearly 22,000 online units, an increase of about 33% from a year earlier. Dillon said demand continued to come from customers upgrading older AccuDate and Terminal One systems, which the company views as a multiyear conversion opportunity. Recurring FST revenue, including software and service subscriptions as well as consumable labels, increased 13% to $3.4 million. Software revenue rose 47% from the prior year and 25% sequentially, driven mainly by price increases implemented earlier in 2026. Dillon said TransAct is moving away from prior practices of bundling software without charge to support hardware or label sales. The company now intends to charge for the value of its software offerings and, over the long term, aims to generate $100 to $200 per machine per month in recurring software and related revenue from its installed base. During the question-and-answer session, Dillon said basic software packages may generate roughly $75 to $90 per month, while more extensive deployments can produce $300 to $400 per unit monthly. He said software packages vary by customer requirements and may include applications such as food labeling, nutrition, temperature moni...