Is software bundled with new BOHA sales? What would be the average bundle price on a new BOHA system? Did the 1,900 new systems sold this quarter include bundled software?

Yes, the company is now bundling software packages with new BOHA sales and negotiating fees with existing clients for services on their 22,000 online systems. The goal is to capture fair market value for software, moving from a past practice of free bundling. Pricing varies widely based on client needs and applications, from $75-$90/month for basic services to $300-$400/month for comprehensive solutions. The 1,900 units sold this quarter had varied software attachments, with some customers already having licenses or upgrading. “And candidly, we missed that opportunity in the early days because we were focused as a hardware company mostly on moving the units. And so I guess the answer to your question is yes. we're focused on adding software components, offering bundles, and making sure that the software that we deliver, we capture fair market value for that.”

Why were new customer logos not disclosed this quarter, as in past quarters? Will this metric be shared going forward?

The company is re-evaluating how to report this metric because 'new customer logos' can be misleading (e.g., one large food management company can represent hundreds of venues). They plan to start reporting 'unique products, food service venues' to better reflect market share. This quarter's focus was on developing the software business and overhauling the sales/marketing team, leading to a lag in net new customer sales. No report on this metric for Q2, but they expect to talk about net new customers and new FST venues in the future. “But I do expect to talk about net new customers and do expect to talk more importantly about new FST venues that we captured that we wouldn't have captured if it wasn't for some kind of partner or OEM that's going into those markets.”

TACT

TransAct Technologies (TACT) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 11, 2026

Source: earnings call transcript

Executive summary

TransAct Technologies Q2 FY26 — Solid Results Driven by FST Software Growth and Strategic Review of Casino & Gaming Business

TransAct Technologies delivered solid second-quarter results, driven by strong growth in its Food Service Technology segment, particularly recurring software revenue and an expanding BOHA unit installed base. The company is strategically shifting towards a higher-margin, software-led business model, supported by a strong balance sheet. Concurrently, the Board has initiated a formal strategic review of the Casino and Gaming business to maximize shareholder value.

Highlights

Net sales up 8% YoY to $14.9 million (excluding tariff impact).
Adjusted EBITDA outlook raised to a range of $1.5 million to $2.0 million for FY26.
Food Service Technology (FST) revenue up 9% YoY to $5.2 million.
Recurring FST sales grew 13% YoY to $3.4 million.
Software revenue within FST up 47% YoY, driven by price increases.
Online BOHA units increased 33% YoY to nearly 22,000.

Concerns

Net sales impacted by a $1 million reduction due to estimated customer refunds related to import tariffs.
Adjusted EBITDA impacted by $400,000 from tariff adjustments.
Casino and Gaming reported revenue down 4% YoY to $7.3 million.
ARPU for FST down 15% YoY to $673, though management notes it's becoming less indicative of true software growth.

Guidance & targets

Category	Target	Timeline	Confidence
Adjusted EBITDA	$1.5 million to $2.0 million high materiality	FY26	High
Net Sales	$57 million to $55 million high materiality	FY26	High
Gross Margin	mid to high 40% range medium materiality	FY26	High
POS Automation Sales	about 600,000 per quarter low materiality	Ongoing	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Food Service Technology (FST) Revenue growth driven by upgrade orders from existing Accudate and Terminal One systems. Focus on building high-margin, predictable recurring revenue from software. Software revenue growth primarily due to price increases. ARPU is becoming less indicative of true software growth. Online BOHA units sold: 1,900 (Q2 FY26)Online BOHA units sold YTD: 3,270 (H1 FY26)Total online units: 22,000Total online units growth YoY: 33%Recurring FST sales: $3.4 millionRecurring FST sales growth YoY: 13%Software revenue growth YoY: 47%Software revenue growth QoQ: 25%ARPU: $673	$5.2 million	9%	10%	—
Casino and Gaming Reported revenue was impacted by a $1 million tariff-related reduction. Solid contributions from key OEM customers. Epic TR-80 roll-fed printer gaining international traction. Revenue (excluding tariff impact): $8.3 millionRevenue growth YoY (excluding tariff impact): 9%	$7.3 million	-4%	-13%	—
POS Automation Sales of Ithaca 9000 printer remain in a normalized range, expected to be similar going forward.	$619,000	5%	—	—
TransAct Services Group (TSG) Increase driven by higher service revenue from legacy lottery printers, partially offset by lower spares and accessory revenue as legacy install base winds down.	$838,000	3%	—	—

Product announcements

Product	Type	Timeline	Details
BOHA SaaS Platform	update	completed

Deals & partnerships

BofA Securities Formal strategic review related to the casino and gaming business to explore potential options and maximize stockholder value.

The Board of Directors engaged BofA Securities as its financial advisor. The review is focused on the casino and gaming business but may evaluate broader strategic alternatives. No public timetable set, no assurance of a transaction.

Risks & headwinds

Impact from US Supreme Court ruling on import tariffs Q2 FY26

$1 million reduction to sales; $400,000 impact on adjusted EBITDA

Mitigation:Reclaiming duty amounts from government (received $500,000 so far), refunding a portion of tariff surcharges to customers while retaining a modest management fee.

Decline in Average Revenue Per Unit (ARPU) for FST Q2 FY26

Down 15% YoY to $673 in Q2 FY26 (from $792 in Q2 FY25); down 5% QoQ from $709 in Q1 FY26

Mitigation:Management states ARPU is becoming less indicative of true software growth and plans to share new, more relevant metrics in the future. Focus is on growing software and installed base.

Natural wind-down of legacy install base for TransAct Services Group Ongoing

Partially offset higher service revenue from legacy lottery printers, leading to lower spares and accessory revenue.

Mitigation:Focus on new growth areas like FST software and strategic review of Casino & Gaming.

What to watch in Q3 FY26

Casino & Gaming Strategic Review

next quarter

Current Formal review initiated, BofA Securities engaged.

Target Update on potential transaction or course of action.

Why it matters

This review could significantly alter the company's business structure and capital allocation, impacting the investment thesis.

We do not intend to disclose developments until our Board of Directors has approved a specific transaction or course of action. or until which time we otherwise determine that disclosure is appropriate or required.

Find out whether TACT delivers this. Inve re-checks your case every morning.

Q&A highlights

Why now for the strategic review, given a past discontinued process? What is the EBITDA of the casino business? If the gaming business is sold, will FST have enough capital to grow and reach cash flow breakeven?

The prior review was during a turbulent period, but the gaming business has now stabilized. The FST market (TAM) is significantly larger ($4B-$12B, growing to $18B by 2032/33). The gaming business has been a 'profitable cash cow.' The review aims to determine the best strategy for the gaming unit, while FST's strategy is 'well baked.' Management believes FST will have enough capital to grow and reach cash flow breakeven even without the gaming business. Management aims to eventually share specific EBITDA for the two segments.

“I think the answer to that question is yes.”

asked by Greg Burns · answered by John Dillon

2 min read 6 chapters

Detailed narrative

Tariff Refund Impact

The company's Q2 FY26 results were significantly impacted by a US Supreme Court ruling on import tariffs, leading to a $1 million reduction in sales and a $400,000 impact on adjusted EBITDA due to estimated customer refunds. TransAct is reclaiming duties from the government and refunding a portion of previously recognized tariff surcharges to customers, retaining a modest management fee.

As of the call date, $500,000 of expected government refunds have been received, representing 80% of the total.

FST Software Monetization Strategy

TransAct is actively monetizing its Food Service Technology (FST) software, shifting away from bundling software for free with hardware sales to build a higher-margin, predictable recurring revenue stream. The company is negotiating fees with existing clients for enhanced Azure-hosted services and bundling software packages with new system sales.

The long-term aim is to drive the FST installed base toward $100-$200 per machine per month in recurring software-related revenue.

BOHA Platform Migration to Azure

The company completed the migration of its BOHA SaaS platform from legacy hosted infrastructure to Microsoft Azure. This strategic move significantly enhances platform scalability, security, resiliency, and performance, enabling faster innovation, seamless integrations, and enterprise-grade uptime. The new platform also provides greater operational freedom and positions TransAct to accelerate its software roadmap, including implementing AI-related workflows and applications, with AI also aiding internal development teams.

Casino and Gaming Strategic Review

The Board of Directors initiated a formal strategic review of the Casino and Gaming business, engaging BofA Securities as a financial advisor. This review aims to explore potential options and maximize stockholder value, given the current strength of the market.

While focused on this segment, the board may evaluate broader strategic alternatives. No public timetable has been set, and there is no assurance that the review will result in any transaction or specific outcome.

ARPU Metric Evolution and Future Reporting

Management noted that ARPU (Average Revenue Per Unit) for FST, which includes software, labels, and other recurring revenue, is becoming less indicative of true software growth as the software and installed base expand. The company plans to share new metrics in the future that better reflect the contractual software side of the business, acknowledging the need for more precise indicators of software performance.

Sales & Marketing Team Overhaul

TransAct has overhauled its sales and marketing team and revised its go-to-market motions for FST. This includes new hires and increased spending on trade shows, advertising, and commissions, which are just beginning to yield dividends in increased FST sales. The company focuses on large customers and plans to report on new food service venues captured, rather than just new customer logos, to better reflect market share.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.