Transact Technologies (TACT) AI Stock Analysis

• Market Cap: $35.63M
• Dividend Yield: N/A
• Average Volume (3M): 50.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 8.27%
• EPS Growth: -308.63%
• Country: US
• Employees: 108
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.11
• Shares Outstanding: 10,112,585
• 10 Day Avg. Volume: 55,540
• 30 Day Avg. Volume: 50,851
• PEG Ratio: 0.37
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 5.33
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 0.61
• Enterprise Value/Ebitda: -21.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.05
• Revenue Forecast (FY): $54.90M

• Rating: 62 Neutral
• Price Target: $3.50 ▼(-9.09% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

TACT scores highest on improving financial quality (strong balance sheet, solid cash generation, and sharply narrowing losses), supported by generally positive but mixed earnings-call guidance. The score is held back by weak technicals (price below key moving averages with negative MACD) and limited valuation support due to a negative P/E and no dividend yield data.

Positive Factors

Balance-sheet strength

TransAct’s materially reduced leverage and sizable cash position ($20M noted on the call) create durable financial flexibility. Low debt cuts refinancing risk, funds BOHA! transition and R&D, and supports working capital for installs — a structural cushion for 2–6 month execution.

Improved cash generation

After multi-year cash deficits, the company generated strong operating and free cash flow in 2025, enabling self-funding of operations and software investments. Sustained cash conversion reduces dilution risk and supports disciplined reinvestment and margin improvement over the medium term.

Software ownership & BOHA! adoption

Gaining full control of BOHA! source code is a structural shift that removes revenue-sharing fees, enables new licensing/recurring revenue models, and accelerates product innovation. Coupled with accelerating terminal sales, this underpins durable ARPU and margin expansion opportunities.

Negative Factors

Operating profitability not yet restored

Although losses narrowed materially, the company remains slightly unprofitable at the operating level. Continued negative EBIT/EBITDA means core operations must convert improved sales into sustained operating income before profitability is structurally secure.

Top-line volatility vs 2023 peak

Revenue has rebounded but remains well below the 2023 peak and has shown meaningful year-to-year swings. That historical volatility makes forecasting capital allocation and margin cadence harder and raises execution risk for multi-quarter growth plans.

Concentration & demand headwinds

Large segment swings (POS automation collapse, domestic casino softness) and a thin new-logo pipeline increase revenue concentration risk. Reliance on a few OEMs/customers and cyclical casino approvals can produce uneven bookings and pressure medium-term growth durability.

Transact Technologies Business Overview & Revenue Model

Company Description

TransAct Technologies Incorporated designs, develops, and markets transaction-based and specialty printers and terminals in the United States and internationally. Its thermal printers and terminals to generates labels, coupons, and transaction records, such as receipts, tickets, and other documents, as well as printed logging and plotting of data. The company also provides consumable products, including POS receipt paper, inkjet cartridges, ribbons, and other printing supplies, as well as replacement parts and accessories; maintenance and repair services; and refurbished printers. In addition, it offers EPICENTRAL print system, a software solution that enables casino operators to create promotional coupons and marketing messages, and print them at the slot machine; and technical support services, as well as spare parts and accessories. Further, the company provides BOHA! terminal that combines hardware and software components in a device that includes an operating system, touchscreen, and one or two thermal print mechanisms. It markets its products under the BOHA!, AccuDate, Epic, Ithaca, EPICENTRAL, and Printrex brands for food service technology, point of sale automation, casino and gaming, lottery, and oil and gas markets, as well as government. The company sells its products to original equipment manufacturers, value-added resellers, and distributors, as well as directly to end-users through its Webstore transactsupplies.com. TransAct Technologies Incorporated was incorporated in 1996 and is headquartered in Hamden, Connecticut.

How the Company Makes Money

TransAct makes money primarily by selling its products and related services to business customers through a mix of direct sales and channel partners (e.g., resellers, distributors, and other solution providers). Key revenue streams typically include: (1) Product revenue: sales of specialty printers and transaction hardware used in restaurant and hospitality workflows (e.g., receipt printing and kitchen/order management printing) and in gaming/casino environments (e.g., ticketing and transaction printing). (2) Software and technology-related revenue: revenue from software offerings that support restaurant operations and order workflow digitization (where applicable), which may include recurring fees such as subscriptions or licenses; if specific recurring pricing or segment mix is not publicly detailed in the available information, this is null. (3) Supplies and services: revenue from consumables (e.g., paper/labels) and from maintenance, service, extended warranties, or support arrangements associated with installed hardware. (4) Partner/channel-driven revenue: a meaningful portion of sales can be influenced by relationships with POS system vendors, restaurant technology providers, and value-added resellers that bundle TransAct printers/software with broader POS or restaurant operations solutions; if specific named partnerships and their financial contribution are not publicly specified, this is null. Overall, earnings are driven by the installed base of printers (which can generate follow-on demand for supplies and service) plus new placements tied to restaurant technology upgrades, new store openings/retrofits, and replacement cycles in hospitality and gaming environments.

Transact Technologies Financial Statement Overview

Summary

Overall fundamentals are improving but not fully proven: revenue rebounded in 2025 ($51.5M vs. $43.4M) and losses narrowed materially (net margin improved to about -2.4%) with solid gross margin (~49%). Balance sheet strength is a key positive with very low leverage (debt-to-equity ~0.02) after significant debt reduction, and cash generation is strong (2025 operating cash flow ~ $7.7M; free cash flow ~ $7.6M). The main constraint is that operating profitability remains slightly negative and results have been volatile versus the 2023 peak.

Income Statement

Revenue rebounded sharply in 2025 (annual revenue up to $51.5M vs. $43.4M in 2024), but the top line remains below the 2023 peak ($72.6M), highlighting volatility. Profitability improved meaningfully from 2024’s heavy loss (net margin about -22.7%) to a much smaller loss in 2025 (net margin about -2.4%), and gross margin stayed solid near ~49% in 2025. However, operating results are still negative (EBIT and EBITDA remain below zero in 2025), indicating the company has not fully regained sustainable earnings power after the 2024 downturn.

Balance Sheet

The balance sheet looks conservatively financed, with very low leverage in 2025 (debt-to-equity ~0.02) and a sizable equity base (~$31.1M) relative to total assets (~$44.8M). Debt fell dramatically from 2024 to 2025 (about $4.2M down to ~$0.6M), reducing financial risk. The key weakness is that returns to shareholders are still negative in 2025 (negative return on equity) due to continued net losses, even if those losses have narrowed.

Cash Flow

Cash generation improved notably: operating cash flow was strong in 2025 (~$7.7M) and free cash flow was also robust (~$7.6M), a sharp recovery from negative cash flow in 2020–2022. That said, free cash flow declined versus 2024 (free cash flow growth was negative in 2025), and the business has shown meaningful year-to-year swings historically. Overall, cash conversion is currently a strength, but consistency remains a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.48M	43.38M	72.63M	58.14M	39.39M
Gross Profit	25.02M	21.48M	38.40M	24.41M	15.38M
EBITDA	-743.00K	-2.21M	7.70M	-6.36M	-4.97M
Net Income	-1.24M	-9.86M	4.75M	-5.94M	-4.04M
Balance Sheet
Total Assets	44.77M	44.03M	54.48M	51.83M	50.93M
Cash, Cash Equivalents and Short-Term Investments	20.43M	14.39M	12.32M	7.95M	19.46M
Total Debt	561.00K	4.19M	3.90M	4.81M	2.57M
Total Liabilities	13.65M	13.40M	15.07M	17.97M	11.95M
Stockholders Equity	31.12M	30.63M	39.41M	33.86M	38.98M
Cash Flow
Free Cash Flow	7.56M	1.54M	4.61M	-13.52M	-3.89M
Operating Cash Flow	7.67M	1.86M	5.51M	-12.22M	-2.51M
Investing Cash Flow	-1.61M	-322.00K	-901.00K	-1.30M	222.00K
Financing Cash Flow	-119.00K	634.00K	-87.00K	2.06M	11.47M

Transact Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TACT, the sentiment is Negative. The current price of 3.85 is above the 20-day moving average (MA) of 3.49, above the 50-day MA of 3.67, and below the 200-day MA of 4.11, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 41.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TACT.

Transact Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TACT	62 Neutral	$35.63M	-8.95	-25.89%	―	8.27%	-308.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OSS	58 Neutral	$248.83M	111.64	-26.13%	―	14.33%	36.97%
KTCC	53 Neutral	$30.30M	-0.81	-13.42%	―	-20.03%	-485.19%
ALOT	51 Neutral	$65.84M	45.43	-19.92%	―	-2.07%	-535.26%
SCKT	47 Neutral	$7.28M	-0.56	-17.53%	―	-13.01%	-65.20%
EBON	46 Neutral	$16.33M	-1.15	-7.04%	―	154.52%	47.31%

Transact Technologies Corporate Events

TransAct Technologies Updates Bylaws, Modernizes Governance Framework

On February 25, 2026, TransAct Technologies’ Board of Directors approved amended and restated by-laws to modernize the company’s corporate governance framework, with a particular emphasis on virtual and hybrid shareholder meetings under Delaware corporate law. The changes refine meeting procedures, clarify the Board’s authority over agendas and conduct, and allow cancellation of special meetings if shareholder support thresholds are no longer met.

The updated by-laws also tighten requirements for shareholder proposals and director nominations, enhancing disclosure on ownership, derivatives, voting arrangements, and proxy solicitation plans in line with U.S. universal proxy rules. Further revisions modernize director compensation practices, enable electronic notices and officer resignations, and update officer roles and delegation powers, collectively sharpening controls and transparency around board composition and shareholder engagement.

The most recent analyst rating on (TACT) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Transact Technologies stock, see the TACT Stock Forecast page.

TransAct Technologies Signs Las Vegas Cost-Saving Office Lease

On February 9, 2026, TransAct Technologies signed a lease for approximately 9,427 square feet of office space at 6140 Brent Thurman Way in Las Vegas, relocating operations from its existing local office. The initial term runs five years and four months from a commencement date tied to February 2026 tenant improvements, with two optional three-year renewals and base rent starting at $17,911.30 per month, subject to 3% annual increases.

TransAct will also pay an estimated $3,582.26 per month for its 12.7% share of operating expenses at the new premises, with overall occupancy terms structured to lower ongoing facility costs. The company expects the move to generate about $100,000 in annualized lease and occupancy cost savings, signaling a cost-optimization effort that could modestly improve its expense structure without altering its core Las Vegas operating footprint.

The most recent analyst rating on (TACT) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Transact Technologies stock, see the TACT Stock Forecast page.

TransAct Ends BOHA! Agreements, Gains Software Control

On December 30, 2025, TransAct Technologies agreed with Avery Dennison and StreemSoft to terminate a set of long-standing development, license, and subcontract agreements that governed the development, maintenance, hosting, and licensing of components of TransAct’s BOHA! food service technology software, as well as revenue-sharing payments to StreemSoft. The termination, which incurred no early termination penalties and will become effective upon completion of a previously announced source code transition project under which TransAct obtained a royalty-free license to the BOHA! source code, marks a shift toward greater control over its core software assets and may reduce ongoing third-party fees and revenue-sharing obligations for the company.

The most recent analyst rating on (TACT) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Transact Technologies stock, see the TACT Stock Forecast page.