TransAct Technologies rporated(TACT) - 2025 Q1 - Quarterly Results

CEO Commentary and Key Achievements 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][2] - Total Food Service Technology (FST) revenue increased by 49% year-over-year[1][2] - Casino and gaming sales grew 18% year-over-year and 41% sequentially, reaching $6.7 million[1][2] - 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] First Quarter 2025 Financial Highlights 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 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] Strategic Business Review 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] - The company's new focus will be on incremental organic growth and prudent investments[5] Financial Statements 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 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 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 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 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 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] - 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][11] - The financial information presented is preliminary and inherently uncertain, subject to change as the company finalizes its results[14] - The report contains forward-looking statements that are subject to numerous risks and uncertainties, including economic conditions, supply chain issues, and competition[16]