v3.26.1
Segment reporting
 3 Months Ended
Mar. 31, 2026
Segment reporting [Abstract]  
Segment reporting
6. Segment reporting
We apply the provisions of ASC Topic 280: Segment Reporting.  We view our operations and manage our business as one segment: the design, development, and marketing of software-driven technology and printing solutions for high growth markets, and provide related services, supplies and spare parts.  Factors used to identify TransAct’s single operating segment include the similar design, construction and functionality of our products and services, the combined research & development team that supports the entire company, a combined assembly, production and supply chain logistics process used to construct our products and services and a similar class of customers within our core markets (distributors, resellers, original equipment manufacturers (“OEMs”) and end users).
Other factors used to identify TransAct’s single operating segment include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker (“CODM”) in making decisions about how to allocate resources and assess performance.  The Company’s CODM function is performed by the Company’s Chief Executive Officer and the Company’s Chief Financial Officer, who utilize a consolidated approach to assess the performance of and allocate resources to the business.
The CODM generally uses measures of sales, gross margin percentage, net income, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted EBITDA to make operational and strategic decisions.  These financial measures are compared to budgeted and forecasted amounts by the CODMs on a regular basis to measure our progress towards our strategic plans, pursue product enhancements, conduct research and development initiatives and make any other necessary overall strategic changes to the business. We disclose these non-GAAP segment results because we believe they provide meaningful supplemental information and are used by the CODM in making decisions about how to allocate resources and assess performance.
The following table provides the operating financial results of our segment:


  
March 31,
  
   
2026
    
2025
  
   
(In thousands)
  
Revenues
  
$
14,415
    
$
13,053
  
                 
Cost of materials sold
    
5,132
      
4,964
  
Compensation costs
    
4,961
      
4,837
  
Professional services
    
815
      
971
  
Occupancy costs
    
386
      
364
  
Marketing expenses
    
163
      
244
  
IT expenses
    
345
      
329
  
Severance expense
    
42
      
7
  
Depreciation and amortization
    
158
      
173
  
Other segment expenses
    
1,642
      
1,179
  
     
13,644
      
13,068
  
Operating income (loss)
    
771
      
(15
)
                 
Interest income
    
145
      
107
  
Interest expense
    
(79
)
    
(85
)
Other, net
    
(48
)
    
63
  
Income tax expense
    
(23
)
    
(51
)
Net income
 
$
766
    
$
19
  

Other segment expenses included in segment net income primarily include other cost of goods sold, other administrative costs and engineering costs.

A reconciliation of net income to EBITDA and adjusted EBITDA follows:


  
March 31,
  
   
2026
    
2025
  
(unaudited)
  
(In thousands)
  
Net income
  
$
766
    
$
19
  
Interest income, net
    
(66
)
    
(22
)
Income tax expense
    
23
      
51
  
Depreciation and amortization
    
158
      
173
  
EBITDA
    
881
      
221
  
                 
Share-based compensation
    
511
      
323
  
                 
Adjusted EBITDA
  
$
1,392
    
$
544