TransAct Technologies Incorporated (Nasdaq: TACT), a prominent player in software-driven technology and printing solutions, released its preliminary financial results for the fourth quarter and full year ending December 31, 2025, on March 10, 2026. The report highlights substantial growth in net sales and recurring revenue, particularly in the food service technology (FST) sector, even as the company navigates ongoing operating losses.

1. CEO Insights on Performance

In a statement regarding the results, John Dillon, CEO of TransAct, expressed optimism about the company's trajectory. "We delivered a strong fourth quarter and full year, with BOHA! terminal sales up 36% to 7,317 units for the year and record label revenue in Q4," Dillon noted. He emphasized the company's strategic focus on software, stating, "With all rights to the BOHA! software now in hand... we believe that software is unequivocally our growth engine going forward." This shift is expected to foster innovation, new applications, and recurring revenue growth which, in turn, aims to enhance margins.

2. Fourth Quarter 2025 Financial Highlights

TransAct's financial results for Q4 2025 showed promising advancements compared to the previous year:

Net Sales: The company achieved net sales of $11.5 million, a 12% increase from $10.2 million in Q4 2024.

FST Recurring Revenue: This segment saw a 24% increase, reaching $3.4 million, up from $2.7 million in the same quarter last year.

Gross Profit and Margin: Gross profit for Q4 was $5.4 million, resulting in a gross margin of 47.6%, an improvement from 44.2% in Q4 2024.

Operating Loss: The operating loss stood at $(1.2) million, a decline from a small operating income of $14 thousand in Q3 2025 and a loss of $(1.1) million in Q4 2024.

Net Loss: The net loss narrowed to $(1.1) million, or $(0.11) per diluted share, compared to a significant loss of $(8.0) million in the previous year, which included a substantial non-cash tax charge.

3. Full Year 2025 Financial Performance

For the entire year, TransAct reported robust growth indicators:

Net Sales: Total net sales reached $51.5 million, marking a 19% increase from $43.4 million in 2024.

FST Recurring Revenue: The annual recurring revenue from FST also displayed growth, totaling $12.3 million, up 14% from the previous year.

Gross Profit and Margin: Full-year gross profit increased to $25.0 million, with a gross margin of 48.6%, slightly lower than 2024's 49.5%.

Operating Loss: The operating loss reduced to $(1.4) million, a notable improvement from $(3.6) million in 2024.

Net Loss: The net loss was $(1.2) million, or $(0.12) per diluted share, compared to $(9.9) million in 2024, again influenced by that prior year’s tax charge.

4. Adjusted Metrics and EBITDA

TransAct also reported adjusted figures that further clarify its performance:

Adjusted Net Loss: For Q4 2025, the adjusted net loss was $(1.1) million, consistent with the reported net loss, while the full year adjusted net loss was also $(1.2) million.

EBITDA: EBITDA for Q4 was $(1.0) million, matching the prior year's loss. For 2025, EBITDA improved to $(610) thousand from $(2.7) million in 2024.

5. 2026 Outlook

Looking ahead, TransAct has set optimistic targets for 2026, forecasting net sales between $55 million and $57 million and adjusted EBITDA between $800 thousand and $1.5 million. This outlook reflects the company's commitment to leveraging its software-based growth strategy to enhance financial performance.

6. Conclusion

TransAct Technologies' preliminary financial results for Q4 and full year 2025 reflect a significant recovery trajectory, characterized by strong sales growth and improved recurring revenue streams. While the company continues to face operational challenges, its strategic focus on software innovation and market expansion positions it for potential profitability in the upcoming fiscal year. The ongoing conference call set for later today will likely provide further insights into the company’s strategic direction and market outlook.

Original press release