v3.26.1
Segment reporting
 6 Months Ended
Jun. 30, 2026
Segment reporting [Abstract]  
Segment reporting
7. 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 CODM 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:


  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
   
2026
    
2025
     2026
     2025  
   
(In thousands)
  
Revenues
  
$
13,948
    
$
13,798
     $ 28,363     $ 26,851  
                                 
Cost of materials sold
    
5,559
      
5,203
       10,691       10,167  
Compensation costs
    
5,105
      
5,486
       10,066       10,323  
Professional services
    
847
      
879
       1,662       1,851  
Occupancy costs
    
299
      
368
       685       732  
Marketing expenses
    
477
      
232
       640       476  
IT expenses
    
348
      
319
       693       648  
Severance expenses
    
–
      
1
       42       8  
Depreciation and amortization
    
138
      
171
       296       344  
Other segment expenses (1)
    
1,229
      
1,397
       2,871       2,575  
     
14,002
      
14,056
       27,646       27,124  
Operating (loss) income
    
(54
)
    
(258
)
     717       (273 )
                                 
Interest income
    
139
      
126
       284       233  
Interest expense
    
(80
)
    
(86
)
     (159 )     (171 )
Other, net
    
(25
)
    
115
       (73 )     178  
Income tax expense
    
(30
)
    
(40
)
     (53 )     (91 )
Net (loss) income
  
$
(50
)
  
$
(143
)
   $ 716     $ (124 )

(1)
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:


  
Three Months Ended
June 30,
     Six Months Ended
June 30,
  
(unaudited)  
2026
    
2025
     2026     2025  

 
(In thousands)
  
Net (loss) income
  
$
(50
)
  
$
(143
)
   $ 716     $ (124 )
Interest income, net
    
(59
)
    
(40
)
     (125 )     (62 )
Income tax expense (benefit)
    
30
      
40
       53       91  
Depreciation and amortization
    
138
      
171
       296       344  
EBITDA
    
59
      
28
       940       249  
                                 
Share-based compensation
    
455
      
450
       966       773  
                                 
Adjusted EBITDA
  
$
514
    
$
478
     $ 1,906     $ 1,022