Transact Technologies (TACT) AI Stock Analysis

• Market Cap: $43.48M
• Dividend Yield: N/A
• Average Volume (3M): 61.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 8.27%
• EPS Growth: -308.63%
• Country: US
• Employees: 108
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.00
• Shares Outstanding: 10,112,585
• 10 Day Avg. Volume: 31,716
• 30 Day Avg. Volume: 61,813
• PEG Ratio: 0.01
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 26.57
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 0.95
• Enterprise Value/Ebitda: -112.65
• 1Y Price Target: $5.00
• Price Target Upside: 16.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $4.50 ▲(4.65% Upside)

Transact Technologies faces significant financial challenges, with declining revenue and profitability, negatively impacting its stock score. Technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. However, strong sales growth in key segments and a solid balance sheet provide some optimism, as highlighted in the recent earnings call.

Positive Factors

BOHA! Terminal Sales Growth

The significant growth in BOHA! Terminal sales indicates strong demand and market acceptance, enhancing revenue potential and market position.

Casino and Gaming Sales Growth

Robust growth in the casino and gaming segment suggests a competitive edge and potential for sustained revenue increases in this lucrative market.

Strong Balance Sheet

A strong balance sheet with significant cash reserves provides financial flexibility, supporting strategic investments and growth initiatives.

Negative Factors

Decline in POS Automation Sales

The sharp decline in POS Automation sales reflects competitive pressures, potentially impacting market share and revenue diversification.

Challenges in Domestic Casino Market

Headwinds in the domestic casino market could hinder revenue growth and require strategic adjustments to address demand fluctuations.

Fewer New Logo Acquisitions

The lower-than-expected acquisition of new logos may indicate challenges in expanding the customer base, affecting long-term growth prospects.

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 Technologies generates revenue primarily through the sale of its hardware and software products, which include point-of-sale terminals, payment processing solutions, and transaction management software. Key revenue streams include direct sales to businesses in the gaming and retail sectors, as well as recurring revenue from software licenses and support services. The company also benefits from strategic partnerships with major payment processors and technology firms, enabling it to expand its market reach and enhance its product offerings, contributing to consistent earnings growth.

Transact Technologies Financial Statement Overview

Summary

Transact Technologies is experiencing significant financial challenges, with a notable decline in revenue and profitability. The income statement shows a sharp revenue drop and negative net profit margin. The balance sheet indicates low leverage but a concerning negative return on equity. Cash flow has weakened, with a significant decrease in operating cash flow, although free cash flow remains positive.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.26M	43.38M	72.63M	58.14M	39.39M	30.59M
Gross Profit	24.09M	21.48M	38.40M	24.41M	15.38M	12.93M
EBITDA	-203.00K	-2.21M	7.70M	-6.36M	-4.97M	-6.70M
Net Income	-8.07M	-9.86M	4.75M	-5.94M	-4.04M	-5.63M
Balance Sheet
Total Assets	44.98M	44.03M	54.48M	51.83M	50.93M	42.28M
Cash, Cash Equivalents and Short-Term Investments	20.04M	14.39M	12.32M	7.95M	19.46M	10.36M
Total Debt	3.44M	4.19M	3.90M	4.81M	2.57M	5.87M
Total Liabilities	13.21M	13.40M	15.07M	17.97M	11.95M	12.05M
Stockholders Equity	31.78M	30.63M	39.41M	33.86M	38.98M	30.24M
Cash Flow
Free Cash Flow	5.74M	1.54M	4.61M	-13.52M	-3.89M	-4.25M
Operating Cash Flow	5.78M	1.86M	5.51M	-12.22M	-2.51M	-3.51M
Investing Cash Flow	-40.00K	-322.00K	-901.00K	-1.30M	222.00K	-1.34M
Financing Cash Flow	700.00K	634.00K	-87.00K	2.06M	11.47M	11.03M

Transact Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 4.3 is below the 20-day moving average (MA) of 4.37, below the 50-day MA of 4.61, and above the 200-day MA of 4.09, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 18.53 is Positive, 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OSS	61 Neutral	$185.58M	-23.34	-24.26%	―	14.33%	36.97%
TACT	51 Neutral	$43.48M	-5.34	-23.00%	―	8.27%	-308.63%
ALOT	51 Neutral	$62.10M	-3.64	-19.92%	―	-2.07%	-535.26%
SCKT	47 Neutral	$9.25M	-3.12	-17.53%	―	-13.01%	-65.20%
KTCC	43 Neutral	$27.58M	-2.34	-9.78%	―	-20.03%	-485.19%
EBON	41 Neutral	$22.97M	-1.19	-7.04%	―	154.52%	47.31%

Transact Technologies Corporate Events

Transact Technologies Extends Lease with Reduced Space

On November 3, 2025, TransAct Technologies signed a Third Amendment to Lease with One Hamden Center, LLC, extending their corporate headquarters lease until December 31, 2029. The amendment reduces the leased space from 11,000 to 3,630 square feet and lowers the monthly base rent from $19,473.55 to $6,806.25, while also requiring the company to pay a portion of any increase in the landlord’s operating costs and a monthly electric charge.