TransAct Technologies Incorporated reported a net sales increase of 22% for the first quarter of 2025, reaching $13.1 million compared to $10.7 million in the same period of 2024. The company achieved a gross profit of $6.4 million, up from $5.6 million year-over-year, although the gross margin declined to 49% from 53.9%. The operating loss significantly decreased to $15, a 99% improvement from the $1.3 million loss reported in the prior year. TransAct's net income for the quarter was $19,000, a notable recovery from a net loss of $1.0 million in the first quarter of 2024.
The increase in revenue was primarily driven by a 28% rise in printer and terminal sales volume, totaling approximately 24,700 units. The casino and gaming market saw a 25% increase in unit sales, while the food service technology (FST) segment experienced a substantial 143% increase in hardware sales. However, international sales decreased by 21%, largely due to lower demand in the casino and gaming sector. The company noted that the average selling price of its products rose by 5% compared to the previous year.
In terms of operational developments, TransAct has been actively managing its costs through various initiatives, resulting in approximately $3 million in annualized savings during 2024, with similar savings expected in 2025. The company has also been focusing on its product offerings, particularly in the FST market, where it has launched new hardware solutions and cloud-based applications. Despite the loss of a significant customer in 2024, TransAct anticipates overall FST revenue growth for the remainder of 2025.
Looking ahead, TransAct is navigating a complex economic landscape, including potential impacts from recent U.S. tariffs on imports from Thailand, where the company sources a significant portion of its manufacturing. The company is monitoring these developments closely and plans to mitigate potential tariff impacts by adjusting pricing strategies. Management remains optimistic about returning to normalized sales levels in the casino and gaming market, as customer ordering patterns stabilize following inventory adjustments made in 2024. The company believes its current cash reserves and credit facilities will be sufficient to meet operational needs over the next twelve months.
About TRANSACT TECHNOLOGIES INC
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