UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 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) Dela ...

TransAct Technologies Incorporated (NASDAQ:TACT) Q3 2023 Earnings Conference Call November 9, 2023 4:30 PM ET Company Participants Ryan Gardella – Investor Relations John Dillon – Chief Executive Officer Steve DeMartino – Chief Financial Officer Conference Call Participants Jeff Martin – Roth Capital Partners, LLC Operator Greetings, and welcome to the TransAct Technologies’ Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ 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 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) (Mark One) ☒ QUARTERLY REPORT PURSUANT ...

Financial Data and Key Metrics Changes - Total net sales for Q2 2023 were $19.9 million, representing a year-over-year increase of approximately 58% but a sequential decline of about 11% from Q1 2023 [7][15] - Gross margin for Q2 was 54.5%, slightly down from 55% in the prior year but up from 43% in the same period last year [20] - Net income for the quarter was $765,000 or $0.08 per diluted share, compared to a net loss of $2.4 million or $0.24 loss per diluted share in the prior year [22] Business Line Data and Key Metrics Changes - Food Service Technology (FST) revenue was $3.9 million, up 14% year-over-year, driven by higher shipments of the AccuDate 9700 product and increased label sales [36][43] - Casino and gaming sales reached $12.2 million, an increase of 87% year-over-year but down 23% sequentially from Q1 2023 [18][39] - Recurring FST sales, including software and service subscriptions, were $2.5 million, up 14% compared to $2.2 million in the prior year [17] Market Data and Key Metrics Changes - Domestic sales increased by 141% year-over-year, indicating strong performance in the market [19] - The order rate and backlog additions have slowed due to OEMs reducing their inventory levels after over-ordering in the first half of 2023 [12][45] - The company expects a new baseline sales level to be 15% to 20% higher than pre-COVID historical averages, with this new run rate expected to be fully reflected in Q4 2023 and into 2024 [41] Company Strategy and Development Direction - The company has revamped its sales teams and go-to-market strategies, focusing on execution and improving customer engagement [3][35] - The launch of the BOHA! Terminal 2 is anticipated to enhance market penetration and customer retention, with positive early feedback from trials [38][43] - The company aims to maintain its current net sales guidance of $71.5 million to $73.5 million while raising adjusted EBITDA guidance to a range of $8 million to $8.5 million for the full year 2023 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on market opportunities, despite acknowledging the challenges posed by returning competitors and pricing pressures [42][51] - The company is focused on nurturing new customer relationships and retaining market share, particularly in the casino and gaming sectors [40][43] - Management indicated that the sales cycle for FST products is long but expressed optimism about future sales growth as new strategies take effect [10][11] Other Important Information - The company finished the quarter with $10.8 million in cash and $2.25 million of debt outstanding on its credit facility [49] - Adjusted EBITDA for the quarter improved to $3.2 million compared to an adjusted EBITDA loss of $2.5 million in the prior year [49] Q&A Session Summary Question: What changes have been made to the go-to-market strategy? - Management discussed implementing metrics related to funnel management and improving the connection between marketing and sales to enhance customer engagement and conversion rates [24][25] Question: How is the restaurant space performing? - Management noted that while the restaurant space is still recovering, there are opportunities with larger chains, and they are focusing on areas with more immediate ROI [27][28] Question: What is the outlook for the BOHA! Terminal upgrades? - Management indicated that there are tens of thousands of older AccuDate 9700 units in the market that present upgrade opportunities [31] Question: How is the company addressing production capacity? - Management stated that production capacity is currently good, with plans to potentially add a fourth line in a different country to enhance flexibility [60] Question: What is the expected impact of competitors re-entering the market? - Management acknowledged that the return of competitors and price reductions will impact net sales and profitability but emphasized the company's strong market position [42][51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 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 | Delaware | 06-1456680 | | --- | --- | | (State or Other Jurisdiction of Incorporation o ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for the quarter improved to $4.5 million compared to an adjusted EBITDA loss of $5.1 million for the first quarter last year [1] - Total net sales for the first quarter were $22.3 million, up 130% compared to $9.7 million in the year-ago period [29] - Operating income was $3.8 million or 17.1% of net sales in the first quarter of '23 compared to an operating loss of $5.6 million in the prior-year period [45] - Net income recorded was $3.1 million or $0.31 per diluted share compared to a net loss of $4.4 million or a loss of $0.44 per diluted share in the year-ago period [45] Business Line Data and Key Metrics Changes - Sales from the food service technology market (FST) for the first quarter were $3.5 million, up 62% compared to $2.1 million in the prior year period [29] - Casino and gaming sales reached a quarterly record high of $15.8 million, up 232% from the first quarter of '22 [43] - TransAct Services Group (TSG) sales were down 20% year over year to $1.2 million, largely due to lower sales of spare parts for legacy lottery printers [44] - Recurring FST sales were $2.3 million, up 49% compared to $1.6 million in the prior year period [66] Market Data and Key Metrics Changes - Domestic casino gaming sales were up 315% and international sales up 115% year over year [43] - The company ended the quarter with 12,733 terminals in the marketplace, a 26% year-over-year increase from 10,127 [26] - RPU for the first quarter of '23 was $764, up 20% compared to $638 in the first quarter of '22 [66] Company Strategy and Development Direction - The company is focusing on enhancing its go-to-market strategy, particularly for the BOHA! platform, with an emphasis on training and sales organization improvements [24][37] - The company aims to leverage its core competencies to build competitive advantages in the market [11] - Adjustments to product positioning and sales strategies are expected to result in positive changes in customer perception and adoption of the BOHA! platform [37] Management's Comments on Operating Environment and Future Outlook - Management anticipates a normalization of the casino and gaming market in the back half of the year, which may negatively impact sales and gross margin [1] - The company expects to see a moderation in casino and gaming sales in the latter half of the year [27] - Management believes that while competitive dynamics may change, a portion of the market share gained will be sticky [30] Other Important Information - The company finished the quarter with $6.4 million of cash on hand and $2.25 million of outstanding borrowings under its revolving credit facility [69] - Operating expenses for the first quarter increased 3% to $8.4 million, reflecting a return to more normalized levels of travel and marketing [31] Q&A Session Summary Question: Update on casino printer business and backlog - Management confirmed they are in a good position and have delivered all scheduled orders for the first quarter [47] Question: Changes and improvements in BOHA! Terminal 2 - The new terminal features enhancements such as a better screen and faster performance, with positive feedback from demonstrations [48][81] Question: Approach to large convenience store customer and franchisor - Management indicated that the large convenience store is purchasing equipment again and that the franchisor is satisfied with the company's progress [75] Question: Strategy for upgrading existing customers to BOHA! Terminal 2 - Management noted that while the 9700 terminals are performing well, they are actively approaching customers for upgrades [90][91]

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, 2022 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 (Stat ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $18 million, up 61% from $11.1 million in the prior year period, and for the full year, total revenue grew by almost 48% to just over $58 million, the highest since 2015 [19][28] - Gross margin for Q4 was 45.8%, compared to 38.7% in the prior year, and full year gross margin was 42%, up from 39.1% in 2021 [20][57] - Operating expenses for Q4 increased 12% to $7.7 million, while for the full year, they were $32.1 million, up 30% from 2021 [20][57] - The company recorded a net income of $260,000 in Q4 2022, compared to a net loss of $823,000 in the prior year, and for the full year, a net loss of $5.9 million compared to a loss of $4 million in 2021 [57] Business Line Data and Key Metrics Changes - Casino and gaming market revenue for Q4 was nearly $11 million, up 123% year-over-year, and for the full year, it increased approximately 96% to $30 million [19][36] - FST (Food Service Technology) sales for Q4 were $3.1 million, down 13% from the prior year, and for the full year, FST sales were $12.4 million, down 2% [28][57] - Recurring FST revenue for Q4 was $2.4 million, up 14% year-over-year, and for the full year, it was $8.7 million, up 18% [55] Market Data and Key Metrics Changes - International sales in the casino and gaming sector were up 108% year-over-year, while domestic sales increased by 131% [55] - The company is experiencing strong demand in the SMB market, having closed deals with at least two SMB restaurant chains in Q1 [26] Company Strategy and Development Direction - The company is focusing on maintaining relationships with customers and managing expectations due to high demand and supply chain challenges [2] - There is a strategic emphasis on the labeling solutions in the restaurant industry, targeting labor and food cost savings [8][78] - The company plans to increase production capacity with the addition of a fourth production line to meet ongoing demand [11][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the casino and gaming market, projecting growth for 2023 [53] - The company anticipates total revenues for 2023 to be between $70 million and $72 million, with adjusted EBITDA expected between $5.2 million and $5.4 million [35][57] - Management acknowledged the challenges posed by inflation and labor shortages in the restaurant sector but remains optimistic about the potential for growth [8][78] Other Important Information - The company has successfully navigated supply chain issues and is now focusing on ramping up production to meet demand [43][72] - The company is also seeing increased interest in its TSG (TransAct Services Group) sales, which are expected to grow in 2023 due to demand for spare parts [56] Q&A Session Summary Question: Insights on guidance for 2023 - Management provided guidance for 2023, indicating confidence based on current visibility and backlog levels [68][72] Question: Update on large QSR customer rollout - Management clarified that they are working with large C-stores and have seen new orders come in, indicating a positive trend [60] Question: Component supply challenges - Management noted that while some supply issues remain, they have largely overcome the major challenges faced previously [61] Question: Confidence in providing guidance - Management attributed their confidence to improved visibility and strong demand from casino customers, who are placing orders well in advance [72][77]

5 • Successful expansion to the "back-of-house" with our BOHA! platform is a game changer for the market Note: Sample of FST customers SAFE HARBOR Certain statements in this press release include forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "project", "plan", "design" or "continue", or the negative thereof, or other similar words. All forward-lookin ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Address of Principal Executive Offices) (Zip Code) For the quarterly period ended: September 30, 2022 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 ...