UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 0-21121 TRANSACT TECHNOLOGIES INC (Exact name of registrant as specified in its charter) | Delaware | 06-1456680 | ...

Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $11.5 million, up 12% from $10.2 million in Q4 2024 [19] - Full year 2025 total net sales reached $51.5 million, a 19% increase compared to $43.4 million in 2024 [19] - Adjusted EBITDA for the full year was positive $1.2 million, compared to negative $1.5 million in 2024 [27] - The company ended 2025 with over $20 million in cash, an increase of $6 million from the end of 2024 [28] Business Line Data and Key Metrics Changes - Food Service Technology (FST) sales for Q4 2025 were $4.8 million, up 12% year-over-year [11] - FST recurring revenue reached $3.4 million in Q4 2025, a 24% increase from $2.7 million in Q4 2024 [20] - Casino and gaming sales for Q4 2025 were $5.4 million, up 13% from $4.8 million in Q4 2024 [21] - POS automation sales increased 47% year-over-year to $606,000 in Q4 2025 [22] Market Data and Key Metrics Changes - The installed base of BOHA! terminals reached 7,317 units sold in 2025, a 36% increase from 5,371 units in 2024 [4] - The average revenue per unit (ARPU) for FST in Q4 2025 was $756, down 14% from $875 in Q4 2024 [21] - The company has approximately 40,000 legacy terminals that present opportunities for upgrades [13] Company Strategy and Development Direction - The company is focusing on revenue growth in the FST vertical, with software as the primary growth engine [4] - Strategic investments will be made in marketing and growth initiatives, particularly in software-led solutions [8] - The acquisition of the BOHA! software source code is expected to enhance offerings and capture higher margin recurring revenue [7] - The company aims to transition from a hardware-centric focus to a software-driven solutions provider [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the direction of the business in 2026, particularly regarding FST software initiatives [17] - The casino and gaming business is expected to continue generating significant free cash flow despite cyclical fluctuations [16] - The company anticipates net sales for 2026 to be between $55 million and $57 million, with positive adjusted EBITDA expected [17] Other Important Information - The company is refining its go-to-market strategy with an emphasis on competitive pricing and strategic partnerships [8] - A new Chief Marketing Officer has been appointed to lead marketing and growth initiatives [14] - The company plans to maintain a disciplined cost management regimen to target positive adjusted EBITDA [9] Q&A Session Summary Question: How do you see AI programming tools helping your business? - The company uses AI internally to improve efficiency in coding and application development [29] - AI tools will be added to products to help clients optimize decision-making [30] - Management views AI as an opportunity rather than a threat, emphasizing the need for skilled personnel in application development [31][32] Question: Any closing remarks? - Management expressed gratitude for participation and encouraged follow-up discussions [37]

Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $11.5 million, up 12% from $10.2 million in Q4 2024 [23] - Full year 2025 total net sales reached $51.5 million, a 19% increase compared to $43.4 million in 2024 [23] - Adjusted EBITDA for the full year was positive $1.2 million, compared to negative $1.5 million in 2024 [31] - The company ended 2025 with over $20 million in cash, an increase of $6 million from the end of 2024 [31] Business Line Data and Key Metrics Changes - Food Service Technology (FST) sales for Q4 were $4.8 million, up 12% year-over-year [24] - Full year FST sales were $19.3 million, a 20% increase from $16.1 million in 2024 [24] - Casino and gaming sales for Q4 were $5.4 million, up 13% from $4.8 million in Q4 2024 [25] - Full year casino and gaming sales reached $26.9 million, a 32% increase year-over-year [26] Market Data and Key Metrics Changes - FST recurring revenue for Q4 was $3.4 million, up 24% compared to $2.7 million in the prior year [24] - Average revenue per unit (ARPU) for Q4 was $756, down 14% from $875 in Q4 2024 [25] - POS automation sales for Q4 increased 47% year-over-year to $606,000 [26] Company Strategy and Development Direction - The company is focusing on revenue growth in the FST vertical, with software as the primary growth engine [5] - Plans to leverage the acquisition of the BOHA! software source code to enhance offerings and capture higher margin recurring revenue [9] - Targeting positive adjusted EBITDA for 2026 while making disciplined investments in sales and marketing [10] - Emphasis on competitive pricing and strategic partnerships in high-potential sub-verticals such as quick serve restaurants and corporate food services [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the direction of the business in 2026, particularly around FST software initiatives [21] - The casino business is expected to provide stability and significant free cash flow despite cyclical fluctuations [20] - The company aims to maintain fiscal discipline while pursuing growth opportunities [22] Other Important Information - The company is transitioning from a hardware-centric focus to a software-driven solutions provider [13] - New Chief Marketing Officer Dana Loof is expected to enhance marketing and growth initiatives [17] Q&A Session Summary Question: How do you see AI programming tools helping your business? - The company uses AI internally to improve efficiency in coding and application development [33] - AI tools will be added to products to help clients optimize decision-making [34] Question: How does the company view competition from AI technologies? - Management believes that while AI can assist in basic coding, creating engaging applications still requires skilled professionals [35] - The company sees AI as an opportunity to enhance customer interactions rather than a threat [36]

Financial Data and Key Metrics Changes - Total net sales for Q4 2025 were $11.5 million, up 12% from $10.2 million in Q4 2024 [20] - Full year 2025 total net sales reached $51.5 million, a 19% increase from $43.4 million in 2024 [20] - Adjusted EBITDA for the full year was positive $1.2 million, compared to negative $1.5 million in 2024 [28] - The company ended 2025 with over $20 million in cash, an increase of $6 million from the end of 2024 [28] Business Line Data and Key Metrics Changes - Food Service Technology (FST) sales for Q4 were $4.8 million, up 12% year-over-year [20] - FST recurring revenue reached $3.4 million in Q4, a 24% increase from $2.7 million in the prior year [21] - Casino and gaming sales for Q4 were $5.4 million, up 13% from $4.8 million in Q4 2024 [22] - POS automation sales increased 47% year-over-year to $606,000 in Q4 [23] Market Data and Key Metrics Changes - FST net sales for the full year were $19.3 million, a 20% increase from $16.1 million in 2024 [21] - Casino and gaming sales for the full year were $26.9 million, up 32% year-over-year [23] - The installed base of terminals is approximately 40,000 legacy units, presenting opportunities for upgrades [12] Company Strategy and Development Direction - The company is focusing on revenue growth in the FST vertical, with software as the primary growth engine [4] - Plans to enhance software offerings and introduce new applications following the acquisition of the BOHA! source code [6] - Targeting positive adjusted EBITDA for 2026 while making disciplined investments in sales and marketing [7] - Emphasis on competitive pricing and strategic partnerships in high-potential sub-verticals such as quick-service restaurants [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the direction of the business in 2026, particularly around FST software initiatives [18] - The company expects net sales for 2026 to be between $55 million and $57 million, with adjusted EBITDA projected between $800,000 and $1.5 million [18] - Management highlighted the importance of fiscal discipline and creating shareholder value through prudent growth [19] Other Important Information - The company is transitioning from a hardware-centric focus to a software-driven solutions provider [10] - New Chief Marketing Officer Dana Loof has been appointed to lead marketing and growth initiatives [14] - The company is exploring an application store model for terminals to drive additional software revenue streams [10] Q&A Session Summary Question: How do you see AI programming tools helping your business? - The company uses AI internally to improve efficiency in coding and application development [31] - AI tools will be added to products to help clients optimize decision-making [32] Question: How does the company view competition from AI? - Management believes that while AI can assist in basic coding, creating engaging applications still requires skilled personnel [33] - The company sees AI as an opportunity to enhance customer experience rather than a threat [34]

Sales Performance - Sold 1,434 terminals in Q4 2025 and 7,317 terminals for the full year 2025, representing a 36% year-over-year growth[1] - Full year 2025 net sales increased by 19% to $51.5 million, up from $43.4 million in 2024[3] - Net sales for Q4 2025 reached $11,453,000, a 11.9% increase from $10,231,000 in Q4 2024[22] - The food service technology segment generated $19,318,000 in sales for the year, up 20.8% from $16,101,000 in 2024[24] - The casino and gaming segment saw sales increase to $26,873,000 in 2025, a 32.2% rise from $20,348,000 in 2024[24] Profitability and Loss - Gross profit for Q4 2025 was $5.4 million, resulting in a gross margin of 47.6%, compared to 44.2% in Q4 2024[3] - Gross profit for the year ended December 31, 2025, was $25,015,000, up 16.5% from $21,482,000 in 2024[22] - Adjusted net loss for Q4 2025 was $(1.1) million, or $(0.11) per diluted share, compared to an adjusted net loss of $(644) thousand in Q4 2024[6] - The net loss for the year ended December 31, 2025, was $(1,240,000), a decrease from $(9,863,000) in 2024, showing significant improvement[22] - The company reported a basic net loss per share of $(0.12) for the year ended December 31, 2025, compared to $(0.99) in 2024, reflecting a significant reduction in losses per share[29] Operating Performance - Full year 2025 adjusted EBITDA was $1.2 million, compared to $(1.5) million for the full year 2024[6] - Operating loss for the full year 2025 was $(1.4) million, an improvement from $(3.6) million in 2024[6] - Operating loss for Q4 2025 was $(1,156,000), compared to $(1,050,000) in Q4 2024, indicating a slight increase in losses[22] - Operating expenses as a percentage of net sales were 51.3% for the year ended December 31, 2025, compared to 58.0% in 2024, indicating improved cost efficiency[29] - Operating expenses accounted for 57.9% of net sales, totaling $25.108 million[30] Cash Flow and Liquidity - Cash and cash equivalents increased to $20,433,000 in 2025 from $14,394,000 in 2024, reflecting a strong liquidity position[26] - Total current assets rose to $38,808,000 in 2025, compared to $38,362,000 in 2024, indicating stable asset management[26] Future Guidance - The company guides for 2026 revenue of $55-$57 million, driven by anticipated high-margin software sales[1] - The company expects full year 2026 adjusted EBITDA to be between $800 thousand and $1.5 million[5] - The company plans to continue focusing on improving operational efficiency and exploring new market opportunities[30] Market Insights - The casino and gaming market continues to provide steady cash flow to fund FST investments[2]

Core Viewpoint - TransAct Technologies Incorporated has appointed Dana Loof as Chief Marketing Officer to enhance brand leadership and accelerate the adoption of its technology portfolio [1][2][3] Company Overview - TransAct Technologies is a global leader in software-driven technology and integrated printing solutions, serving large and emerging markets such as food service, casino and gaming, and POS automation [5] - The company has sold over 4.0 million printers, terminals, and other hardware devices globally and is committed to providing world-class service and support [5] Leadership Appointment - Dana Loof brings 30 years of experience in leading high-growth technology companies, focusing on global marketing strategy, brand positioning, and customer engagement [2][4] - Her role will involve defining TransAct's global marketing strategy, unifying brand and product positioning, and driving demand across core markets [2][4] Strategic Focus - The appointment of Ms. Loof highlights TransAct's strategic focus on accelerating growth and expanding the reach of its BOHA! platform and casino and gaming solutions [3][4] - TransAct's software-led offerings aim to improve safety and operational efficiency while ensuring compliance with regulatory standards through data-driven insights and automation [3]

Industry Overview - The technology sector is experiencing strong growth in 2025, driven by cloud computing, artificial intelligence (AI), cybersecurity, data-center expansion, and digital transformation [2] - The sector has gained 25.3% year to date, outperforming the S&P 500's growth of 19.2% [3] - Approximately 61% of investors believe the technology sector will attract the most investment over the next three years, surpassing all other sectors [3] Future Outlook - The outlook for the technology sector in 2026 appears positive, supported by ongoing enterprise investment in AI, software automation, and digital engagement tools [4] - Demand for specialized technologies is expected to accelerate as organizations seek to extract more value from data and improve operational agility [4] Investment Opportunities - Investing in low-priced tech stocks can provide attractive upside potential, especially when these companies show improving fundamentals and clear growth drivers [5] - Nokia (NOK) is well-positioned in the technology cycle, with a strong 5G portfolio and a stable balance sheet, holding €4.89 billion ($5.74 billion) in cash as of September 30, 2025 [6][7] - Lantronix, Inc. (LTRX) is gaining traction in Edge AI and drones, with a significant increase in drone OEM engagements from 10 to 17 [12][13] - Taboola.com Ltd. (TBLA) is expanding its performance advertising platform, Realize, and reported adjusted EBITDA of about $48 million with margins exceeding 27% in Q3 2025 [19][20] - TransAct Technologies (TACT) is experiencing strong momentum in its Foodservice Technology business, with expected net sales between $50 million and $53 million for full-year 2025 [23][24] Company Performance - Nokia targets an annual comparable operating profit of €2.7–€3.2 billion by 2028 and has a Zacks Rank 2 (Buy) [10] - Lantronix has a Growth Score of A, with a stock surge of 48.8% over the past year and earnings estimates for the current and next fiscal year increasing by 42.9% and 90%, respectively [16] - Taboola has a Growth Score of A, with a stock gain of 11.4% over the past three months and earnings estimates moving up by 2.2% and 4.3% for the current and next fiscal year [22] - TransAct has a Growth Score of A, with a stock increase of 15.8% over the past six months and earnings estimates rising by 18.4% and 6.9% for the current and next fiscal year [26]

Sales Performance - Net sales for the three months ended September 30, 2025, were $13.176 million, a 21.2% increase from $10.867 million in the same period in 2024[76]. - The food service technology (FST) segment generated $4.841 million in sales, up 12.0% from $4.321 million in the prior year[76]. - Casino and gaming sales surged to $7.144 million, reflecting a 57.6% increase from $4.534 million in the previous year[76]. - Net sales for Q3 2025 increased by $2.3 million, or 21%, compared to Q3 2024, with hardware unit sales volume up 18% to approximately 24,300 units[77]. - International sales accounted for $2.740 million, representing 20.8% of total sales, compared to 20.9% in the prior year[76]. - International sales increased by $467 thousand, or 21%, in Q3 2025, primarily driven by the casino and gaming market[78]. - Domestic casino and gaming product sales surged by $2.1 million, or 78%, in Q3 2025 compared to Q3 2024, with total casino and gaming revenue reaching $7.1 million[85]. - Net sales for the first nine months of 2025 increased by $6.9 million, or 21%, compared to the same period in 2024, with a 22% increase in hardware sales unit volume[101]. - Domestic casino and gaming sales increased by $6.5 million, or 71%, in the first nine months of 2025 compared to the same period in 2024, as customers worked through excess inventory[106]. - International casino and gaming sales decreased by $0.6 million, or 9%, in the first nine months of 2025, primarily due to a significant European OEM working down overstock[107]. Financial Metrics - Gross profit for Q3 2025 was $6.6 million, a 25.4% increase from Q3 2024, with a gross margin improvement to 50%[89]. - Gross profit increased by $2.6 million, or 15%, to $19,567 thousand for the first nine months of 2025, while gross margin decreased by 230 basis points to 49%[110]. - Operating income for Q3 2025 was $14 thousand, a significant improvement from an operating loss of $837 thousand in Q3 2024, attributed to a 21% increase in sales and a $1.3 million increase in gross profit[94]. - Net interest income increased to $61 thousand in Q3 2025 from $42 thousand in Q3 2024, reflecting higher interest income on increased levels of invested cash[95]. - Net income for Q3 2025 was $15 thousand, or $0.00 per diluted share, compared to a net loss of $600 thousand, or $(0.06) per diluted share, in Q3 2024[98]. - Operating loss decreased by $2.3 million, or 90%, to $(259) thousand for the first nine months of 2025 compared to $(2,576) thousand in 2024[114]. - Net loss for the first nine months of 2025 was $(109) thousand, or $(0.01) per diluted share, compared to a net loss of $(1.9) million, or $(0.19) per diluted share in 2024[118]. Expenses and Cost Management - Engineering, design, and product development expenses increased by $16 thousand, or 1%, in Q3 2025, primarily due to higher incentive compensation[90]. - Selling and marketing expenses increased by $211 thousand, or 11%, in Q3 2025 compared to Q3 2024, primarily due to higher sales commissions and incentive compensation on a 58% increase in casino and gaming sales[91]. - General and administrative expenses rose by $251 thousand, or 10%, in Q3 2025 compared to Q3 2024, driven largely by higher incentive and share-based compensation due to improved financial results[93]. - Engineering, design, and product development expenses decreased by $389 thousand, or 7.2%, to $5,016 thousand for the first nine months of 2025[111]. - Selling and marketing expenses increased by $119 thousand, or 2%, to $6,279 thousand for the first nine months of 2025[112]. - General and administrative expenses increased by $559 thousand, or 7%, to $8,531 thousand for the first nine months of 2025[113]. Cash Flow and Liquidity - Cash and cash equivalents increased by $5.6 million, or 39%, to $20.0 million as of September 30, 2025[119]. - As of September 30, 2025, the company had $3.0 million of outstanding borrowings under the Siena Credit Facility at an interest rate of 9.00%[128]. Strategic Initiatives and Risks - The company acquired a perpetual license for the BOHA! software source code for $2.55 million, with an additional $1.0 million for transition services[66]. - The company expects annualized savings of approximately $2 million from a cost reduction initiative initiated in Q2 2024[73]. - The U.S. government has imposed a 19% tariff on goods imported from Thailand, which may impact future financial results[69][71]. - The company continues to monitor macroeconomic factors and potential impacts of tariffs on sales levels[67][71]. - The company is dependent on a single contract manufacturer in Thailand for the majority of its products, which poses risks related to supply chain disruptions[68][72]. - The company expects total FST revenue for Q4 2025 to be higher than Q4 2024, focusing on growing the installed base of terminals and related recurring revenue[81]. - The company anticipates TSG sales to be somewhat lower in Q4 2025 compared to the same period in 2024 as it plans to cease selling remaining legacy consumable products[88].

Core Insights - TransAct Technologies Incorporated (TACT) reported break-even quarterly earnings per share, surpassing the Zacks Consensus Estimate of a loss of $0.02, and showing improvement from a loss of $0.06 per share a year ago, resulting in an earnings surprise of +100.00% [1] - The company posted revenues of $13.18 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 0.58% and up from $10.87 million year-over-year [2] - TransAct Technologies has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The company has shown a significant earnings surprise of +80% in the previous quarter, where it was expected to post a loss of $0.05 per share but reported a loss of only $0.01 [1] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $11.8 million, and for the current fiscal year, it is -$0.15 on revenues of $51.75 million [7] Market Position - TransAct Technologies shares have increased by approximately 5.3% since the beginning of the year, while the S&P 500 has gained 14.4%, indicating underperformance relative to the broader market [3] - The Zacks Industry Rank for Computer - Peripheral Equipment places it in the top 22% of over 250 Zacks industries, suggesting a favorable industry outlook [8] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for TransAct Technologies was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Total net sales for Q3 2025 were $13.2 million, down 5% sequentially but up 21% year-over-year from $10.9 million [17] - Adjusted EBITDA for the quarter was positive at $669,000, up from an adjusted EBITDA loss of $204,000 in the prior year period [21] - Gross margin for Q3 was 49.8%, up from 48.1% in the prior year period and up 160 basis points sequentially [20] Business Line Data and Key Metrics Changes - Food Service Technology (FST) net sales rose to $4.8 million, up 13% year-over-year, driven by hardware sales and growing recurring revenue [6][17] - Recurring FST revenue climbed to $3.3 million, generating a modest uptick in ARPU to $792 per unit from $700 in the prior year quarter [6][17] - Casino and gaming sales were $7.1 million, up 58% year-over-year but down 7% sequentially, reflecting market rebound and challenges in domestic demand [12][18] Market Data and Key Metrics Changes - The company experienced challenges in the domestic casino market, with indications of slowing demand from partners [12][18] - International markets showed strong performance, contrasting with domestic challenges [13] Company Strategy and Development Direction - The company is focused on a "land and expand" strategy, emphasizing repeatable execution and leveraging competitive advantages [5] - An acquisition of a perpetual license for the BOHA source code was completed for $2.55 million, providing operational freedom and long-term value creation [5][24] - Future projects include the potential development of an app store for BOHA terminals to enhance software revenue [11] Management's Comments on Operating Environment and Future Outlook - Management expects fourth quarter sales to be impacted by domestic market dynamics but remains optimistic about recovery in 2026 [12][31] - The company maintains full-year revenue guidance of $50 million-$53 million, reflecting continued FST expansion and casino stability [13] Other Important Information - The company has $20 million in cash on the balance sheet, providing ample working capital and flexibility [14][22] - Operating expenses for Q3 increased by 8% year-over-year to $6.5 million, with G&A expenses rising due to higher incentive and share-based compensation [21] Q&A Session Summary Question: Update on casino and gaming initiatives and competitive landscape - Management has adjusted the sales compensation plan to incentivize new customer acquisition and competitive wins, focusing on maintaining market share against a major competitor [27][29] Question: Magnitude of fourth quarter impact on casino and gaming - Management noted that demand has weakened and expects the fourth quarter to be weaker than the third quarter, but anticipates recovery in 2026 [30][31] Question: Regulatory developments in non-charitable gaming markets - Management highlighted opportunities for state governments to generate revenue through gaming, suggesting potential for expansion as states follow suit [32][34] Question: New logo acquisition in FST and pipeline development - Management acknowledged that while new logo acquisition was below expectations, the pipeline remains strong, and the focus is on improving metrics throughout the sales process [35][36]