TransAct reports US$440,000 third-quarter loss as casino sales slide 10.7%

Nasdaq-listed TransAct Technologies Inc reported a net loss of US$440,000 for the three months to September 30, 2026, reversing a net profit of US$15,000 a year earlier. The company said casino and gaming sales fell 10.7 percent year-on-year to just under US$6.4 million, while group-wide net sales rose 9.3 percent to US$14.4 million; the unaudited results were issued on Thursday.

Quarterly financials

TransAct recorded a net loss of US$440,000 in 3Q, compared with net profit of US$15,000 in the same quarter of 2025 and a net loss of US$50,000 in the preceding quarter. The company posted an operating loss of US$415,000, against operating income of US$14,000 a year earlier. Gross profit edged up to nearly US$6.7 million, while gross margin fell to 46.4% from 49.8%.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) declined 56.8% year-on-year to US$289,000. That adjusted EBITDA figure excludes US$120,000 in shareholder advisory costs associated with shareholder activism, an adjustment TransAct began making in the third quarter.

Segment performance and guidance

Casino and gaming sales were down 10.7% to just under US$6.4 million. Sales in the food service technology segment increased 32.7% to US$6.4 million, driving the group-wide revenue gain.

The board has adjusted full-year 2026 guidance. TransAct now expects net sales of US$55 million to US$56 million, down from a previous range of US$55 million to US$57 million. The company projects adjusted EBITDA of US$1.5 million to US$1.75 million, narrowed from an earlier range of US$1.5 million to US$2.0 million.

"Casino and gaming softened in the quarter, consistent with the cyclicality that we have seen in the past, and we expect the softer demand environment to continue into the fourth quarter," said John Dillon, TransAct’s chief executive.

"However, the fundamentals of this business are unchanged. It is a regulated market with high barriers to entry and a long-standing original equipment manufacturers customer base, and it remains a strong cash flow generator for the overall business," Dillon added.

Strategic review and product news

TransAct said its board is evaluating a potential sale of the food service technology business, either separately or as part of a broader transaction, though the formal strategic review announced in August remains focused on the casino and gaming business. Management worked with financial adviser BofA Securities Inc during the quarter and has set no public timetable for completion.

In September, TransAct debuted the EPIC TT+ tabletop ticket-in, ticket-out printer, designed for transaction points beyond the slot floor including cashier cages, player clubs and redemption areas. The company did not provide separate revenue guidance for that product in the quarter.