By John Dillon, CEO, TransAct Technologies
Connecting performance with long-term confidence
This week, TransAct announced our preliminary first quarter 2026 financial results, along with a Board-authorized share repurchase program of up to $3 million over the next 12 months.
Taken together, these announcements reflect an important point in TransAct’s continued evolution.
We are executing against a clear strategy centered on recurring revenue growth through our integrated BOHA! hardware and SaaS platform, maintaining discipline across the business, continuing to support our long-standing casino and gaming customers, and allocating capital in a way that we believe supports long-term stockholder value.Â
Building momentum across the business
The first quarter represented a solid start to 2026 for TransAct.
We reported preliminary first quarter net sales of $14.4 million, up 10% year-over-year, and returned to GAAP profitability. We also reported adjusted EBITDA of $1.4 million for the quarter, compared to $544 thousand in the first quarter of 2025.
Just as importantly, the performance was broad-based.
Our casino and gaming business delivered strong year-over-year growth, with sales increasing 24% compared to the prior-year period. This part of our business continues to generate meaningful cash flow and remains an important contributor to TransAct’s overall financial strength.
At the same time, our Food Service Technology business continued to make progress in the areas that matter most to our long-term strategy.
Recurring FST revenue grew 26% year-over-year to $3.3 million in the first quarter, reflecting continued strength in software, labels, and service-related revenue. We also sold 1,370 BOHA! terminals during the quarter and continued expanding our online terminal base. To me, the significance is not only the quarterly performance itself, but what it says about the shape of the business we are building.
These results are encouraging because they reflect the direction we have been working toward: a business model with a greater mix of recurring, higher-margin, and more predictable revenue over time.
Why recurring revenue matters for TransAct
Today, the integrated BOHA! solution supports more than 19,000 foodservice locations worldwide, helping operators automate key parts of food safety, labeling, task management, temperature monitoring, and back-of-house operations.
As our install base grows, we have an opportunity to generate more value from the platform by ensuring customers are both paying for and receiving the full value of all the applications. This is an important part of our strategy moving forward.
In the past, software was often bundled with hardware in ways that did not fully reflect its value. As we continue sharpening our focus on software growth and recurring revenue, we believe there is a meaningful opportunity to better align the value of the BOHA! platform with the services and applications customers use across their operations. Â
That shift supports the long-term direction of the business, strengthens our recurring revenue model, and builds upon a foundation that already includes meaningful customer relationships, purpose-built technology, and a large installed base.Â
Discipline remains central to our strategy
At TransAct, our focus is on disciplined growth. That means investing where we see opportunity, managing costs carefully, supporting our customers, and preserving the strength of our balance sheet.Â
That discipline was reflected in our first quarter results. Gross margin expanded to 50.3% in the first quarter, compared to 48.7% in the prior-year period, and we generated operating income of $771 thousand compared to an operating loss of $15 thousand in the first quarter of 2025.
We also reaffirmed our full-year 2026 net sales outlook of $55 million to $57 million and increased our adjusted EBITDA outlook to a range of $1 million to $1.75 million.
Those figures are important, but more broadly, we are working to build a stronger, more focused TransAct. That means continuing to invest in BOHA! as a central part of our long-term growth strategy, leveraging the strength of our casino and gaming business, improving how we monetize our software platform and recurring revenue opportunities, and maintaining a responsible approach to capital allocation.Â
A share repurchase program aligned with long-term confidence
Alongside our first quarter results, we also announced that TransAct’s Board of Directors authorized a share repurchase program of up to $3 million of the Company’s outstanding common stock over the next 12 months.
The authorization reflects continued confidence in TransAct’s strategic direction, our balance sheet, and our long-term growth opportunities.Â
The program is also consistent with our disciplined approach to capital allocation. We remain focused on investing in growth, customer acquisition, platform expansion, and software innovation. At the same time, we believe there are moments when returning capital to stockholders can be an appropriate and value-enhancing use of capital.
The program gives us flexibility. Repurchases may be executed opportunistically, depending on market conditions, share price, and alternative uses of capital. The program does not require the Company to repurchase any specific number of shares and may be modified, suspended, or discontinued at any time. Â
For us, the key point is balance. We are not choosing between growth and discipline. We are focused on both.
Positioning TransAct for the next stage
The first quarter was an encouraging start to 2026, but we know there is more work ahead.
We remain focused on scaling BOHA!, growing recurring revenue, strengthening our market position in foodservice technology, and continuing to support our casino and gaming customers with the reliable solutions they have come to expect from TransAct.
We are also moving through an important leadership transition, with Steve DeMartino preparing to retire after nearly 30 years with the company and Bob Campbell preparing to step into the CFO role. As I discussed in my recent reflection on that transition, continuity matters as we continue executing our long-term strategy.
As we move forward, I believe TransAct is becoming a more focused, more software-driven, and more strategically aligned company.
Our first quarter results show progress, while the share repurchase authorization reflects confidence in the direction of the business. Our strategy remains centered on the same goal: building long-term value for customers, employees, and stockholders.Â
That is the work ahead, and it is work we are committed to continuing.
For more detail, read the full announcements below: