Washington, D.C. 20549 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 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) | Delawar ...

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TransAct Technologies (TACT) Q2 2025 Earnings Call August 06, 2025 04:30 PM ET Speaker0Hello, and welcome everyone joining today's TransAct Technologies Second Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. Later, you will have an opportunity to ask questions during the question and answer session. Please note this call is being recorded. I am standing by should you need any assistance.It is now my pleasure to turn the program over to Ryan Gardella from I ...

Exhibit 10.1 Certain information in this document (indicated by "[***]") has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K because it is not material and is the type that the registrant treats as private or confidential. SOURCE CODE PURCHASE AND PERPETUAL LICENSE AGREEMENT THIS SOURCE CODE PURCHASE AND PERPETUAL LICENSE AGREEMENT (hereinafter the "Agreement") is entered into as of this 5th day of August, 2025 (hereinafter the "Effective Date"), by and between Avery Dennison Corporation (he ...

Industry Overview - The Zacks Computer-Peripheral Equipment industry includes companies that provide input, output, and storage devices, such as keyboards, mice, LCD panels, smart glasses, and gaming accessories [3] - The industry is characterized by intense competition, driving innovation and product relevance among participants [3] Current Trends - There is a shift in consumer preference from mobile gaming to professional gaming, which is expected to drive growth in the gaming peripherals market [4] - The 3D printing market is seen as a long-term investment opportunity, with increasing adoption across various sectors, including medical and automotive [4] - The expansion into price-sensitive regions like Asia Pacific and the Middle East & Africa is anticipated to enhance growth prospects [5] Demand and Market Dynamics - Improving commercial PC demand is likely to benefit the computer peripherals industry, particularly with the upcoming end of Microsoft's Windows 10 support in October 2025 [6] - The industry is currently facing macroeconomic challenges, including high inflation and interest rates, which are dampening IT spending and consumer demand [2][7] Financial Performance - The Zacks Computer-Peripheral Equipment industry has underperformed the S&P 500 and the broader technology sector, declining by 7.1% over the past 12 months [13] - The industry is trading at a forward 12-month price-to-sales (P/S) ratio of 0.62X, significantly lower than the S&P 500's 5.28X and the technology sector's 6.65X [16] Company Highlights - **TransAct Technologies**: Focuses on transaction-based printers and is benefiting from increased demand amid digital transformation. The Zacks Consensus Estimate for 2025 indicates a loss of 19 cents per share, an improvement from previous estimates [20][22] - **Immersion**: A leader in haptic technology with a strong patent portfolio, integrated into over three billion devices. The Zacks Consensus Estimate for fiscal 2026 earnings is 42 cents per share, unchanged over the past 60 days [25][27] - **LG Display**: Manufactures display panels with healthy demand from PC vendors. The Zacks Consensus Estimate for 2025 earnings is 25 cents per share, remaining stable over the past 60 days [30][32]

Group 1 - Momentum investing contrasts with the traditional strategy of "buy low and sell high," focusing instead on "buying high and selling higher" [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] Group 2 - TransAct Technologies Incorporated (TACT) is highlighted as a strong candidate for investment due to its recent price momentum, with a four-week price change of 0.5% [3] - TACT has gained 2.8% over the past 12 weeks, indicating its ability to deliver positive returns over a longer timeframe [4] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [5] Group 3 - TACT has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investor interest [6] - The stock is trading at a Price-to-Sales ratio of 0.82, indicating it is reasonably valued at 82 cents for each dollar of sales [6] - TACT is positioned for significant growth potential, supported by its fast-paced momentum characteristics [7]

[Part I - Financial Information](index=4&type=section&id=PART%20I%20-%20Financial%20Information) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20Financial%20Statements) TransAct Technologies reported Q1 2025 net sales of $13.1 million and net income of $19 thousand, a significant improvement from prior year's net loss, with total assets at $44.2 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $14,178 | $14,394 | | Total current assets | $38,918 | $38,362 | | Total assets | $44,164 | $44,034 | | Total current liabilities | $12,752 | $12,884 | | Total liabilities | $13,223 | $13,401 | | Total shareholders' equity | $30,941 | $30,633 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net sales | $13,053 | $10,687 | | Gross profit | $6,359 | $5,624 | | Operating loss | $(15) | $(1,301) | | Net income (loss) | $19 | $(1,036) | | Basic EPS | $0.00 | $(0.10) | | Diluted EPS | $0.00 | $(0.10) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(161) | $(1,490) | | Net cash used in investing activities | $(10) | $(106) | | Net cash used in financing activities | $(50) | $(71) | | Decrease in cash and cash equivalents | $(216) | $(1,690) | | Cash and cash equivalents, end of period | $14,178 | $10,631 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 revenue grew **22.1%** driven by strong FST and Casino/Gaming sales, while gross margin declined due to product mix, and operating expenses decreased, leading to a near break-even operating loss [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Q1 2025 net sales increased **22.1%** to **$13.1 million**, primarily from FST and Casino/Gaming growth, while gross margin declined due to product mix, and operating expenses decreased, significantly reducing the operating loss Net Sales by Market (in thousands) | Market | Q1 2025 Sales | Q1 2024 Sales | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Food service technology (FST) | $4,908 | $3,300 | $1,608 | 48.7% | | POS automation | $618 | $651 | $(33) | (5.1%) | | Casino and gaming | $6,719 | $5,696 | $1,023 | 18.0% | | TransAct Services Group (TSG) | $808 | $1,040 | $(232) | (22.3%) | | **Total Net Sales** | **$13,053** | **$10,687** | **$2,366** | **22.1%** | - FST sales growth was driven by a **152% increase** in hardware sales, primarily BOHA! Terminal 2 units to a large convenience store, an international QSR, and a new sushi customer, offsetting the loss of a significant customer who contributed approximately **$300 thousand** in revenue in Q1 2024[73](index=73&type=chunk)[74](index=74&type=chunk) - Domestic casino and gaming sales rose **49%** as major customers resumed normal ordering after depleting excess inventory built up during the supply chain crisis, with a new OEM customer for charitable gaming also contributing to sales[79](index=79&type=chunk) - Gross margin decreased by **390 basis points** to **48.7%** in Q1 2025, largely due to a higher mix of BOHA! hardware sales which have lower margins than casino and gaming products[82](index=82&type=chunk) - Operating expenses decreased by **$551 thousand (8%)** year-over-year, reflecting the impact of cost reduction initiatives started in late 2023 and Q2 2024[87](index=87&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and equivalents decreased to **$14.2 million** in Q1 2025, with improved operating cash flow, and the company maintains a **$3.0 million** credit facility, believing resources are sufficient for future liquidity needs - Cash used in operating activities improved significantly to **$161 thousand** in Q1 2025 from **$1.5 million** in Q1 2024, primarily due to a **$2.5 million** increase in accounts receivable offset by a **$1.8 million** decrease in inventories[92](index=92&type=chunk)[98](index=98&type=chunk) - As of March 31, 2025, the company had **$3.0 million** in outstanding borrowings under its Siena Credit Facility at an interest rate of **9.25%**, with an additional **$3.3 million** of net borrowing capacity available[100](index=100&type=chunk) - The company expects more normalized sales in the casino and gaming market in 2025 after customers worked through excess inventory in 2024, and management believes existing resources are sufficient for the next twelve months despite uncertainties from tariffs and economic conditions[94](index=94&type=chunk)[95](index=95&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is a smaller reporting company and is not required to provide information for this item - As a smaller reporting company defined in Item 10(f)(1) of Regulation S-K, TransAct is not required to provide information under this item[101](index=101&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[102](index=102&type=chunk) - No change in internal control over financial reporting occurred during the fiscal quarter ended March 31, 2025, that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting[103](index=103&type=chunk) [Part II - Other Information](index=26&type=section&id=PART%20II%20-%20Other%20Information) [Legal Proceedings](index=26&type=section&id=Item%201%20Legal%20Proceedings) As of March 31, 2025, the company is not aware of any material pending legal proceedings or any material legal proceedings contemplated by government authorities - The company is unaware of any material pending legal proceedings as of March 31, 2025[104](index=104&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A%20Risk%20Factors) The company faces material risks from its dependence on a single Thai manufacturer, exacerbated by new U.S. tariffs on goods from Thailand, potentially increasing costs and disrupting supply - The company is dependent on a single contract manufacturer in Thailand for the assembly of substantially all its printers and terminals, creating significant concentration risk[106](index=106&type=chunk)[107](index=107&type=chunk) - On April 2, 2025, the U.S. government imposed a **10% tariff** on goods imported from Thailand, effective April 5, 2025, with a potential **36% reciprocal tariff** announced but subsequently suspended until July 2025[108](index=108&type=chunk) - These tariffs and potential trade policy changes could lead to additional costs, pricing pressures, and supply chain disruptions that the company may not be able to fully mitigate by raising prices or changing its supply chain[108](index=108&type=chunk)[109](index=109&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) None reported for the period - None[111](index=111&type=chunk) [Other Information](index=27&type=section&id=Item%205%20Other%20Information) During the three months ended March 31, 2025, no director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the first quarter of 2025[113](index=113&type=chunk) [Exhibits](index=28&type=section&id=Item%206%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act and Inline XBRL data files

TransAct Technologies (TACT) Q1 2025 Earnings Call May 13, 2025 04:30 PM ET Company Participants Ryan Gardella - SVP - IRJohn Dillon - CEOSteve DeMartino - President, CFO, Treasurer & Secretary Conference Call Participants Jeff Martin - Director of Research & Senior Research Analyst Operator As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ryan Gardella, Investor Relations. Please go ahead, sir. Ryan Gardella Thank you. Good afternoon. Welcome to t ...

TransAct Technologies (TACT) Q1 2025 Earnings Call May 13, 2025 04:30 PM ET Speaker0 As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ryan Gardella, Investor Relations. Please go ahead, sir. Speaker1 Thank you. Good afternoon. Welcome to the TransAct Technologies First Quarter twenty twenty five Earnings Call. Today, we'll be discussing the results announced in our press release issued after market close. Joining us from the company is CEO, John Di ...

[CEO Commentary and Key Achievements](index=1&type=section&id=CEO%20Commentary%20and%20Key%20Achievements) The CEO highlighted a record quarter for BOHA! terminal sales, which drove a 49% year-over-year increase in Food Service Technology (FST) revenue, achieving positive net income and adjusted EBITDA through operational discipline and successful go-to-market strategies - Achieved an all-time quarterly high with the sale of over **2,350 BOHA! terminal units**[1](index=1&type=chunk)[2](index=2&type=chunk) - Total Food Service Technology (FST) revenue increased by **49% year-over-year**[1](index=1&type=chunk)[2](index=2&type=chunk) - Casino and gaming sales grew **18% year-over-year** and **41% sequentially**, reaching **$6.7 million**[1](index=1&type=chunk)[2](index=2&type=chunk) - Secured significant new business, including a **1,400 BOHA! unit upgrade** for a major convenience store chain and a new contract with a national healthcare food service provider[2](index=2&type=chunk) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) The company reported a 22% year-over-year increase in net sales to $13.1 million, driven by strong performance in both FST and gaming segments, while gross margin decreased to 48.7% from 52.6% in the prior year's quarter, successfully reversing a prior-year net loss to achieve a net income of $19 thousand and showing significant improvement in operating loss and Adjusted EBITDA Q1 2025 vs Q1 2024 Financial Performance | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $13.1 million | $10.7 million | +22% YoY | | FST Recurring Revenue | $2.7 million | $2.4 million | +10% YoY | | Gross Profit | $6.4 million | $5.6 million | +14.3% YoY | | Gross Margin | 48.7% | 52.6% | -3.9 p.p. | | Operating Loss | $(15) thousand | $(1.3) million | Significant Improvement | | Net Income (Loss) | $19 thousand | $(1.0) million | Significant Improvement | | Diluted EPS | $0.00 | $(0.10) | Significant Improvement | | Adjusted EBITDA | $544 thousand | $(701) thousand | Significant Improvement | [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) The company provided its financial guidance for the full year 2025, projecting net sales to be between $47 million and $52 million, with Adjusted EBITDA expected to range from breakeven to a loss of $1.5 million, presented on a non-GAAP basis due to the unavailability of a reconciliation to the comparable GAAP measure without unreasonable effort Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Net Sales | $47 million - $52 million | | Adjusted EBITDA | $0 (breakeven) - $(1.5) million | - The outlook for non-GAAP adjusted EBITDA is not reconciled to GAAP measures due to uncertainties related to future adjustments[4](index=4&type=chunk) [Strategic Business Review](index=2&type=section&id=Strategic%20Business%20Review) The Board of Directors has decided to suspend the company's strategic review process, influenced by increasing macroeconomic uncertainty and positive business momentum in both the FST and Casino segments, now prioritizing incremental organic growth initiatives while remaining open to resuming the process if conditions improve - The strategic review process has been suspended due to macroeconomic uncertainty and strong business momentum[5](index=5&type=chunk) - The company's new focus will be on incremental organic growth and prudent investments[5](index=5&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the preliminary and unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, including the statement of operations, a breakdown of sales by market, the balance sheet, and a reconciliation of net income to non-GAAP measures such as EBITDA and Adjusted EBITDA [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 vs Q1 2024 Income Statement (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $13,053 | $10,687 | | Gross profit | $6,359 | $5,624 | | Operating loss | $(15) | $(1,301) | | Net income (loss) | $19 | $(1,036) | | Diluted EPS | $0.00 | $(0.10) | [Supplemental Information – Sales by Market](index=5&type=section&id=SUPPLEMENTAL%20INFORMATION%20%E2%80%93%20SALES%20BY%20MARKET) Q1 2025 vs Q1 2024 Sales by Market (in thousands) | Market | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Food service technology | $4,908 | $3,300 | | Casino and gaming | $6,719 | $5,696 | | POS automation | $618 | $651 | | TransAct services group | $808 | $1,040 | | **Total net sales** | **$13,053** | **$10,687** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Balance Sheet Highlights (in thousands) | Line Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $14,178 | $14,394 | | Total Assets | $44,164 | $44,034 | | Total Liabilities | $13,223 | $13,401 | | Total Shareholders' Equity | $30,941 | $30,633 | [Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA](index=7&type=section&id=RECONCILIATION%20OF%20NET%20INCOME%20(LOSS)%20TO%20EBITDAAND%20ADJUSTED%20EBITDA) Non-GAAP Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $19 | $(1,036) | | EBITDA | $221 | $(966) | | Adjusted EBITDA | $544 | $(701) | [Other Information](index=2&type=section&id=Other%20Information) This section provides logistical details for the Q1 2025 conference call, definitions for the non-GAAP financial measures used (EBITDA and Adjusted EBITDA), a cautionary note that the reported financial data is preliminary and subject to change, and a standard forward-looking statements disclaimer outlining potential business risks - The company hosted a conference call and webcast on May 13, 2025, to discuss the preliminary results[6](index=6&type=chunk) - The report uses non-GAAP measures like EBITDA and Adjusted EBITDA, which management believes are helpful for assessing core operations by excluding certain non-cash or non-recurring items[8](index=8&type=chunk)[11](index=11&type=chunk) - The financial information presented is preliminary and inherently uncertain, subject to change as the company finalizes its results[14](index=14&type=chunk) - The report contains forward-looking statements that are subject to numerous risks and uncertainties, including economic conditions, supply chain issues, and competition[16](index=16&type=chunk)