TransAct Tech | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 13.18 M

Revenue: As of FY2025 Q3, the actual value is USD 13.18 M, beating the estimate of USD 13.1 M.

EPS: As of FY2025 Q3, the actual value is USD 0.

EBIT: As of FY2025 Q3, the actual value is USD -47 K.

Segment Revenue

• Food Service Technology (FST): Revenue for the third quarter of 2025 was $4,841 thousand, a 12% increase from $4,321 thousand in the third quarter of 2024.
• POS Automation: Revenue for the third quarter of 2025 was $399 thousand, a 65.2% decrease from $1,148 thousand in the third quarter of 2024.
• Casino and Gaming: Revenue for the third quarter of 2025 was $7,144 thousand, a 57.6% increase from $4,534 thousand in the third quarter of 2024.
• TransAct Services Group (TSG): Revenue for the third quarter of 2025 was $792 thousand, an 8.3% decrease from $864 thousand in the third quarter of 2024.

Operational Metrics

• Net Income (Loss): Net income for the third quarter of 2025 was $15 thousand, compared to a net loss of $551 thousand in the third quarter of 2024.
• Gross Profit: Gross profit for the third quarter of 2025 was $6,556 thousand, a 25.4% increase from $5,227 thousand in the third quarter of 2024, with a gross margin of 49.8% compared to 48.1% in 2024.
• Operating Income (Loss): Operating income for the third quarter of 2025 was $14 thousand, compared to an operating loss of $837 thousand in the third quarter of 2024.

Cash Flow

• Operating Cash Flow: Net cash provided by operating activities for the first nine months of 2025 was $7,064 thousand, compared to net cash used in operating activities of $527 thousand for the first nine months of 2024.

Unique Metrics

• Inventory Reduction: Inventory levels decreased by approximately $4.4 million from December 31, 2024, to September 30, 2025.

Future Outlook and Strategy

• Core Business Focus: The company expects total FST revenue for the fourth quarter of 2025 to be higher than the equivalent period of 2024, focusing on growing the installed base of terminals and related recurring revenue.
• Non-Core Business: The company anticipates entering into a new agreement with the existing third-party cloud service provider to ensure continued hosting and support for the BOHA! software during the transition from Avery Dennison.
• Priority: The company expects domestic casino and gaming sales to be lower in the fourth quarter of 2025 compared to the third quarter due to slowing demand and overstock positions of certain customers.