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Transact Technologies Inc. (TACT)
NASDAQ:TACT
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Transact Technologies
(NASDAQ:TACT)
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Rating:52Neutral
Price Target:
$5.00
▲(5.49% Upside)
Transact Technologies' overall stock score is primarily influenced by its challenging financial performance, with declining revenues and profitability. Technical indicators suggest weak market momentum, and the valuation is unattractive due to a negative P/E ratio. However, the positive sentiment from the recent earnings call, highlighting growth in key areas and strategic initiatives, provides some optimism for future performance.
Transact Technologies (TACT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.84M
Dividend YieldN/A
Average Volume (3M)61.81K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth-9.09%
EPS Growth-1586.89%
CountryUS
Employees108
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)-0.01
Shares Outstanding10,092,326
10 Day Avg. Volume31,716
30 Day Avg. Volume61,813
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.33
Price to Sales (P/S)0.94
P/FCF Ratio26.57
Enterprise Value/Market Cap0.48
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.00
Enterprise Value/Ebitda-22.09
Forecast
1Y Price Target
$5.00Price Target Upside5.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Transact Technologies Business Overview & Revenue Model
Company DescriptionTransact Technologies (TACT) is a leading provider of technology solutions focused on payment processing and transaction management. Operating primarily in the financial technology sector, TACT specializes in developing software and hardware solutions for various industries including retail, hospitality, and gaming. Its core products encompass point-of-sale systems, payment processing software, and secure transaction hardware, aimed at enhancing customer experience and operational efficiency for businesses.
How the Company Makes MoneyTransact Technologies generates revenue through multiple streams. The primary revenue model is based on the sale of its hardware and software solutions, including point-of-sale systems and payment processing software. The company also earns income from transaction fees associated with payment processing services, where it charges a percentage of each transaction processed through its systems. Additionally, TACT offers ongoing support and maintenance services for its products, which provides a steady stream of recurring revenue. Strategic partnerships with financial institutions and technology providers further enhance its market reach and contribute to its earnings by facilitating bundled solutions that integrate seamlessly into existing business infrastructures.
Transact Technologies Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook, with significant growth in BOHA! Terminal sales and casino and gaming revenue. The acquisition of the BOHA! software source code is seen as a strategic move for future growth. However, challenges remain with declining POS automation sales and lower gross margins. Overall, the company seems to be on a positive trajectory with optimistic financial guidance.Q2-2025 Updates
Positive Updates
Significant Increase in BOHA! Terminal Sales
TransAct Technologies sold 1,942 BOHA! Terminals in Q2, reflecting a 32% increase year-over-year, bringing the total sold in the first 6 months to 4,292.
Strong Growth in Casino and Gaming Revenue
Casino and gaming revenue reached $7.6 million, up 42% year-over-year and 14% sequentially from $6.7 million in the first quarter.
Acquisition of BOHA! Software Source Code
TransAct acquired a perpetual license to the BOHA! software source code for $2.55 million, plus about $1 million in professional services fees, allowing for greater control and potential future revenue generation.
Positive Adjusted EBITDA
The company reported its second consecutive quarter of positive adjusted EBITDA, building on its success from the last quarter.
Increased Full Year Revenue Guidance
The company raised its full year guidance to between $49 million and $53 million in revenue, reflecting confidence in continued FST expansion and casino stability.
Negative Updates
Decline in POS Automation Sales
POS automation sales for the second quarter declined 49% from the prior year to $590,000, with sales expected to remain in the $500,000 to $600,000 range per quarter for the rest of the year.
Lower Gross Margin
Second quarter gross margin was down to 48.2% from 52.7% in the prior year period, due to a higher mix of lower-margin FST hardware sales and increased overhead costs.
Operating Loss
The company had an operating loss of $258,000 or negative 1.9% of net sales, though this was an improvement from the prior year's operating loss.
Company Guidance
During the TransAct Technologies Second Quarter 2025 Earnings Call, the company raised its full-year revenue guidance to between $49 million and $53 million, reflecting confidence in continued growth in the food service technology (FST) sector and stability in the casino and gaming markets. The company reported strong results with total net sales of $13.8 million, marking a 19% increase year-over-year, including a 42% rise in casino and gaming revenue to $7.6 million and a 14% increase in FST revenue to $4.8 million. The sale of 1,942 BOHA! Terminals, a 32% year-over-year increase, contributed to a recurring FST revenue of $3 million with an ARPU of $792. TransAct also acquired a perpetual license for the BOHA! software source code for $2.55 million, expecting it to provide significant future benefits. The company achieved a positive adjusted EBITDA of $478,000, and CEO John Dillon highlighted strategic initiatives, including the acquisition of new clients and expansions in existing accounts, as key drivers of their performance.Transact Technologies Financial Statement Overview
Summary
Transact Technologies is experiencing a challenging period with declining revenues and profitability. The balance sheet shows low leverage, but the negative return on equity is concerning. While free cash flow remains positive, the significant decrease in operating cash flow suggests operational difficulties. The company needs to address revenue growth and improve operational efficiency to strengthen its financial position.Income Statement
Transact Technologies has experienced a significant decline in revenue from $72.63M in 2023 to $43.38M in 2024, indicating a revenue growth rate of -40.24%. The gross profit margin decreased to 49.51% in 2024 from 52.84% in 2023, reflecting a reduction in profitability. The net profit margin has also turned negative at -22.73% in 2024 compared to 6.54% in 2023. Overall, the company is facing challenges in maintaining its revenue and profitability levels.40
Negative
Balance Sheet
The company's debt-to-equity ratio improved to 0.04 in 2024 from 0.10 in 2023, suggesting lower leverage. However, the return on equity turned negative at -32.19% in 2024, down from 12.04% in 2023, indicating declining profitability. The equity ratio remains stable at 69.56%, showing a solid equity base. Although leverage is low, the negative ROE is a concern.60
Neutral
Cash Flow
Operating cash flow decreased significantly from $5.51M in 2023 to $1.86M in 2024. Free cash flow also saw a decline but remained positive at $1.54M. The operating cash flow to net income ratio of -0.19 indicates challenges in converting income to cash flow. Although free cash flow is positive, the overall cash flow position has weakened.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.95M | 43.38M | 72.63M | 58.14M | 39.39M | 30.59M |
| Gross Profit | 22.76M | 21.48M | 38.40M | 24.41M | 15.25M | 12.93M |
| EBITDA | -1.03M | -2.21M | 7.70M | -6.36M | -4.97M | -6.70M |
| Net Income | -8.63M | -9.86M | 4.75M | -5.94M | -4.14M | -5.63M |
Balance Sheet | ||||||
| Total Assets | 44.55M | 44.03M | 54.20M | 51.83M | 50.94M | 42.25M |
| Cash, Cash Equivalents and Short-Term Investments | 17.75M | 14.39M | 12.32M | 7.95M | 19.46M | 10.36M |
| Total Debt | 3.70M | 4.19M | 3.90M | 4.81M | 2.57M | 5.87M |
| Total Liabilities | 13.26M | 13.40M | 14.78M | 17.97M | 11.95M | 12.01M |
| Stockholders Equity | 31.29M | 30.63M | 39.41M | 33.86M | 38.99M | 30.24M |
Cash Flow | ||||||
| Free Cash Flow | 6.04M | 1.54M | 4.61M | -13.52M | -3.89M | -4.25M |
| Operating Cash Flow | 6.15M | 1.86M | 5.51M | -12.22M | -2.51M | -3.51M |
| Investing Cash Flow | -108.00K | -322.00K | -901.00K | -1.30M | 222.00K | -1.34M |
| Financing Cash Flow | 655.00K | 634.00K | -87.00K | 2.06M | 11.47M | 11.03M |
Transact Technologies Technical Analysis
Positive
4.74
Price Trends
4.82
Negative
4.29
Positive
4.09
Positive
Market Momentum
-0.08
Positive
44.92
Neutral
35.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TACT, the sentiment is Positive. The current price of 4.74 is below the 20-day moving average (MA) of 4.98, below the 50-day MA of 4.82, and above the 200-day MA of 4.09, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 35.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TACT.
Transact Technologies Risk Analysis
Transact Technologies disclosed 37 risk factors in its most recent earnings report. Transact Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Transact Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
| ― | $38.68M | -4.64 | -6.90% | ― | -16.49% | -198.42% | |
| ― | $125.09M | -7.75 | -44.58% | ― | 4.65% | -79.75% | |
| ― | $47.84M | -5.50 | -24.73% | ― | -9.09% | -1586.89% | |
| ― | $70.58M | -4.10 | -20.27% | ― | 0.63% | -364.33% | |
| ― | $7.40M | -2.50 | -17.53% | ― | -13.01% | -65.20% | |
| ― | $29.32M | ― | -7.04% | ― | 154.52% | 47.31% |
* Technology Sector Average
TACT
Transact Technologies
4.74
0.49
11.53%
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Transact Technologies Corporate Events
TransAct Technologies Q2 Earnings Call Highlights Growth and Strategic Moves
Aug 8, 2025
TransAct Technologies recently held its earnings call for the second quarter of 2025, revealing a generally positive sentiment with notable achievements and strategic initiatives. The company reported significant growth in BOHA! Terminal sales and casino revenue, alongside a strategic acquisition aimed at long-term benefits. However, challenges were noted in declining gross margins and lower sales in certain segments.
TransAct Technologies Reports Strong Q2 2025 Results
Aug 7, 2025
TransAct Technologies Incorporated is a global leader in developing and selling software-driven technology and integrated printing solutions for large and emerging markets, including food service, casino and gaming, and POS automation. The company is headquartered in Hamden, Connecticut.
Business Operations and StrategyFinancial DisclosuresM&A Transactions
TransAct Technologies Acquires BOHA! Software License
Positive
Aug 6, 2025
On August 5, 2025, TransAct Technologies entered into a Source Code Purchase and Perpetual License Agreement with Avery Dennison Corporation, acquiring a non-exclusive, perpetual, and royalty-free license for the BOHA! software. This agreement allows TransAct to modify and enhance its BOHA! platform, supporting its strategic priorities and growth in the casino and gaming market. Additionally, TransAct reported preliminary financial results for the second quarter of 2025, highlighting a 19% increase in net sales year-over-year and a significant rise in casino and gaming sales. The company achieved profitability with a decrease in net loss and positive adjusted EBITDA, reflecting progress in its operations and market strategies.
The most recent analyst rating on (TACT) stock is a Buy with a $7.50 price target. To see the full list of analyst forecasts on Transact Technologies stock, see the TACT Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.