TransAct Technologies Incorporated reported a net loss of $143,000, or $(0.01) per diluted share, for the second quarter of 2025, a significant improvement from a net loss of $319,000, or $(0.03) per diluted share, in the same period of 2024. For the first half of 2025, the company recorded a net loss of $124,000, compared to a loss of $1.4 million in the first half of 2024. The company’s net sales for the second quarter increased by 19% to $13.8 million, up from $11.6 million in the prior year, while sales for the first half rose 21% to $26.9 million from $22.3 million.
The increase in revenue was driven by a 40% rise in unit sales in the casino and gaming market and a 41% increase in food service technology hardware sales. However, the point of sale (POS) automation market saw a decline of 46% in unit sales. The average selling price of products increased by 5%, attributed to higher costs from U.S. tariffs on products assembled in Thailand. The company’s gross profit for the second quarter was $6.7 million, reflecting a gross margin of 48%, down from 52.7% in the previous year, primarily due to increased sales of lower-margin BOHA! hardware products.
In terms of operational developments, TransAct Technologies has been focusing on cost reduction initiatives, which began in the second quarter of 2024. These efforts have resulted in annualized savings of approximately $2 million, although these savings are expected to be offset by inflation and increased compensation costs. The company also successfully reduced its inventory levels by $3.4 million during the first half of 2025, contributing to improved cash flow, which increased by $3.4 million to $17.7 million as of June 30, 2025.
Strategically, TransAct announced the acquisition of a perpetual license for the BOHA! software source code from Avery Dennison for $2.55 million, which is expected to enhance its product offerings and operational capabilities. The company continues to monitor the impact of tariffs on its manufacturing costs and has indicated that it may need to raise prices to mitigate these costs. Looking ahead, TransAct anticipates a return to normalized sales levels in the casino and gaming market, although it remains cautious about potential fluctuations in demand due to economic conditions and tariff impacts.
Overall, while TransAct Technologies has shown signs of recovery with increased sales and reduced losses, the company faces ongoing challenges related to market conditions, competitive pressures, and the evolving regulatory landscape. The management remains optimistic about future growth, particularly in the food service technology and casino markets, as it continues to adapt to changing economic conditions and customer needs.
About TRANSACT TECHNOLOGIES INC
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