TransAct maintains $50M–$53M revenue guidance for 2025 as BOHA! platform expansion and casino softness shape outlook

Earnings Call Insights: TransAct Technologies Incorporated (TACT) Q3 2025

MANAGEMENT VIEW

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CEO John Dillon opened by stating, “TransAct delivered another solid quarter in Q3 and continuing momentum we've built throughout 2025.” Dillon highlighted that 1,591 BOHA! Terminals were sold in the quarter, bringing the year-to-date total to 5,883 units, representing a 58% increase from the prior-year period. He noted, “The improving results for foodservice technology… highlight the effectiveness of the go-to-market improvements, and we believe this trajectory sets us up for ongoing progress and continuing improvement as we move into 2026.”

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Dillon provided an update on the acquisition of the perpetual license to the BOHA! source code, stating, “We acquired this royalty-free license for $2.55 million… gives us full control to use, host market, sublicense, distribute, copy and modify the code.” He indicated progress toward a fully operational launch in early 2027.

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The CEO emphasized strength in the foodservice technology (FST) business, reporting total FST net sales of $4.8 million for the quarter and recurring FST revenue at $3.3 million. He also underscored expansion wins, including a new rollout with a major sushi franchise operator and an additional convenience store chain.

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Dillon addressed casino and gaming performance, noting net sales of $7.1 million, up 58% year-over-year, but acknowledged domestic headwinds: “Our domestic OEM partners have indicated slowing demand… and 1 large buyer… is now in an overstock position.” He expects this will impact fourth-quarter sales.

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On guidance, Dillon stated, “We're maintaining our full year revenue guidance of $50 million to $53 million… Adjusted EBITDA is expected to range from breakeven to positive $1.5 million for the full year.” He added, “We have $20 million in cash on the balance sheet at the end of '23.”

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President and CFO Steve DeMartino reported, “Total net sales for the third quarter were $13.2 million, which was down 5% sequentially but up 21% compared to $10.9 million in the prior year period.” He detailed gross margin at 49.8%, up from 48.1% in the prior year period and up 160 basis points sequentially. DeMartino noted, “Our adjusted EBITDA for the quarter remained positive at $669,000.”

OUTLOOK

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The company reiterated its full-year 2025 revenue guidance of $50 million to $53 million and expects adjusted EBITDA from breakeven to positive $1.5 million, with no major disruptions in supplier or demand anticipated.

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The management anticipates the BOHA! fully in-house software to go live in early 2027, noting that related implementation costs will be capitalized until launch.

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Fourth-quarter casino sales are expected to be sequentially lower due to domestic market softness, though international results remain steady.

FINANCIAL RESULTS

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Total net sales for the third quarter were $13.2 million, down 5% sequentially but up 21% year-over-year.

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FST sales reached $4.8 million, up 2% sequentially and 12% year-over-year; recurring FST revenue was $3.3 million, up 10% sequentially and 13% year-over-year.

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Casino and gaming sales were $7.1 million, down 7% sequentially but up 58% from the prior year period.

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Gross margin was 49.8%, up from 48.1% in the prior year period and up 160 basis points sequentially.

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Net income was $15,000 or breakeven EPS, compared to a net loss of $551,000 or (-$0.06) per share in the prior year.

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Adjusted EBITDA was $669,000, up from a loss of $204,000 in the prior year period.

Q&A

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Jeff Martin, ROTH Capital Partners: “You mentioned on the last quarter earnings call that in casino gaming you're getting more aggressive and you're incentivizing winning competitive deals. Just curious how that initiative is going? And can you give us an update on the competitive landscape in that market.” John Dillon responded that the company increased incentives for winning new customers or competitive wins, which “turned up the heat and it turned up the zeal to go after and win business.” He emphasized a focus on new opportunities, “when a new casino is going to come online, we're right there.”

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Jeff Martin: “Can you give us a sense of the magnitude of the fourth quarter impact on casino gaming?” Steve DeMartino replied, “Not yet, Jeff… we're already seeing the weakness in the demand, and we expect it to continue for at least the remainder of the fourth quarter. I think it's temporary.”

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Jeff Martin: “Are you seeing much on the regulatory front that we can see more states open up as we head into 2026 here?” John Dillon described the charitable gaming market as promising and suggested, “this is an area that we think is going to be a very successful area for TransAct.”

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Jeff Martin: “On the new logo side in FST… Maybe just could you help us frame how the pipeline is and how the new logo sales are developing from a pipeline perspective?” Steve DeMartino indicated, “Pipeline remains basically the same. We have enough coverage to make the numbers that we forecast internally… but the accounts that we landed in this quarter will be accounts that sustain us in the future.”

SENTIMENT ANALYSIS

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Analysts’ tone was neutral, with questions focused on competitive strategies, potential regulatory catalysts, pipeline health, and near-term headwinds rather than expressing overt concern or optimism.

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Management maintained a confident tone in prepared remarks, frequently highlighting execution, momentum, and the success of recent strategic initiatives. In Q&A, they were candid about domestic casino softness but expressed confidence in future opportunities. Dillon stated, “We believe this trajectory sets us up for ongoing progress.”

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Compared to last quarter, management sentiment remained consistently positive, with a slight increase in caution around casino market headwinds. Analysts maintained a neutral stance across both quarters.

QUARTER-OVER-QUARTER COMPARISON

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Guidance for full-year revenue and EBITDA was reaffirmed at $50 million to $53 million and breakeven to $1.5 million, consistent with the raised guidance in Q2.

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Sequential net sales declined to $13.2 million from $13.8 million, while year-over-year growth accelerated.

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FST business showed sustained strength, with recurring revenue and ARPU improvements. Casino and gaming sales decreased sequentially but grew year-over-year. Domestic casino headwinds were highlighted as a new concern for Q4, while international performance remained steady.

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Management continued to emphasize disciplined execution and highlighted recent customer wins and strategic initiatives, such as the BOHA! source code acquisition.

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Analyst focus shifted slightly to near-term risks and competitive positioning, while prior quarters focused more on growth and operational execution.

RISKS AND CONCERNS

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Management cited macroeconomic softness affecting domestic casino and gaming demand, with one major buyer holding excess inventory while awaiting jurisdictional approvals.

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Tariff and air freight charges led to a second price increase on applicable imports, though management reported no significant customer pushback so far.

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The company expects POS automation and TSG sales to remain at normalized lower run-rates due to competitive and legacy product dynamics.

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Inventory reduction efforts succeeded, but management expects inventory to rise in Q4 and into 2026 as new products are stocked in anticipation of demand.

FINAL TAKEAWAY

TransAct Technologies reported solid progress in Q3 2025, marked by continued BOHA! Terminal sales growth and recurring revenue expansion in foodservice technology. Management reaffirmed full-year guidance and highlighted operational improvements, a strong balance sheet, and strategic initiatives such as the BOHA! source code acquisition. While domestic casino market softness is expected to impact Q4, new customer wins and international stability support a positive outlook heading into 2026.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/tact/earnings/transcripts]

MORE ON TRANSACT TECH

* TransAct Technologies Incorporated (TACT) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4841577-transact-technologies-incorporated-tact-q3-2025-earnings-call-transcript]
* Seeking Alpha’s Quant Rating on TransAct Tech [https://seekingalpha.com/symbol/TACT/ratings/quant-ratings]
* Historical earnings data for TransAct Tech [https://seekingalpha.com/symbol/TACT/earnings]
* Financial information for TransAct Tech [https://seekingalpha.com/symbol/TACT/income-statement]