TransAct Technologies Incorporated (TACT): Business Model Canvas [Dec-2025 Updated]

You're digging into TransAct Technologies Incorporated (TACT)'s strategy, and honestly, the story isn't just about those reliable casino printers anymore. After a decade watching these shifts, I see a clear pivot: the real value is now in the Food Service Technology (FST) side, driven by the BOHA! platform. With Q3 2025 FST recurring revenue hitting $3.3 million and the company pushing direct sales of BOHA! Terminals, you need to understand how this software-first approach-supported by a 49.8% gross margin on their overall sales-changes the investment thesis. Let's break down the nine blocks of their current operating model so you see exactly where the next growth is coming from.

TransAct Technologies Incorporated (TACT) - Canvas Business Model: Key Partnerships

You're looking at the structure that supports TransAct Technologies Incorporated's revenue, especially how their hardware and software reach the end-user. The relationships here are critical, particularly as the BOHA! platform scales and the casino segment stabilizes.

Major U.S. Original Equipment Manufacturers (OEMs) for casino/gaming printers represent a core channel, though recent data shows a shift. For the third quarter of 2025, Casino and Gaming net sales reached $7.1 million, marking a 58% year-over-year increase. This growth was explicitly supported by normalized buying from major OEMs and a new charitable gaming OEM win. This contrasts with late 2024 when major domestic OEM partners were working through oversupply positions.

For the Foodservice Technology (FST) segment, which drives the BOHA! ecosystem, partnerships manifest as large-scale customer deployments, which act as distribution channels for the hardware and recurring software/consumables. The first nine months of 2025 saw 5,883 BOHA! Terminals sold, a 58% increase year-over-year. A recent win involved a Midwest convenience store chain with 81 locations selecting the BOHA! Platform, deploying 73 BOHA! Terminal 2 devices, with BOHA! Temp adopted at 47 of their foodservice locations. Also, a national sushi franchise approved an initial rollout of BOHA! Terminal 2 LTE devices.

The recurring revenue stream is directly tied to the success of these deployments and the ongoing supply chain. FST recurring revenue, which includes consumable label sales, hit $3.3 million in the third quarter of 2025, up 13% year-over-year. The company also spent $2.55 million to acquire the perpetual license to the BOHA! source code, signaling a move toward greater control over the software ecosystem, with a fully operational hosted version expected in early 2027.

Here's a quick look at the segment performance reflecting these channel dynamics through Q3 2025:

International distribution is supported by specific regional agreements. For instance, TransAct Technologies inked a strategic partnership with Suppliers of Panama, Inc. to support sales and service for the Epic line of gaming products across Panama. This partner provides local inventory, fast repairs, and logistics support for Panama's major casino operators.

Regarding the other required elements, the following details are supported by the latest filings:

• Technology integration partners for the BOHA! software ecosystem: The company is moving toward a fully in-house software platform, having acquired the perpetual license for $2.55 million, with the goal of a launch in early 2027.
• Consumable supplies vendors for custom labels and paper rolls: Revenue from consumable label sales is included within the $3.3 million FST Recurring Revenue reported for Q3 2025.
• Wireless carriers for BOHA! Terminal 2 LTE connectivity: Specific carrier names aren't disclosed, but the BOHA! Terminal 2 LTE model was deployed to solve connectivity challenges in off-network environments by removing the need for MiFi devices.

The overall financial health supporting these partnerships includes TransAct Technologies maintaining full-year 2025 net sales guidance between $50 million and $53 million. The balance sheet ended Q3 2025 with $20 million in cash and cash equivalents.

Finance: draft 13-week cash view by Friday.

TransAct Technologies Incorporated (TACT) - Canvas Business Model: Key Activities

You're looking at the core engine of TransAct Technologies Incorporated (TACT), the day-to-day work that turns their technology into revenue. It's a mix of heavy software development and physical product deployment, which you see reflected in their Q3 2025 numbers.

Developing and updating the BOHA! software platform (FST).

This is where the recurring revenue engine is built. TransAct Technologies Incorporated (TACT) focuses on enhancing the BOHA! Platform, which includes software like BOHA! Temp and BOHA! Checklist, to deliver measurable operational improvements. The success of this activity is clear in the recurring revenue stream, which is the lifeblood of the Food Service Technology (FST) segment.

Here's the quick math on that recurring revenue growth for the FST segment:

What this estimate hides is the increasing value per unit; the Average Revenue Per Unit (ARPU) climbed to $792 in Q3 2025 from $700 in the prior year quarter. Still, the total operating expenses for Q3 2025 were $6.5 million, with Engineering and R&D specifically accounting for $1.65 million of that spend, showing a defintely heavy investment in the platform.

Manufacturing and designing specialized printing hardware (Epic Edge, Ithaca).

While software drives recurring revenue, the hardware-like the BOHA! Terminal 2 and the established Epic and Ithaca lines-is the physical touchpoint. The design activity is geared toward solving specific customer pain points, such as the new BOHA! Terminal 2 LTE solving connectivity issues for franchisees outside of standard Wi-Fi environments. The manufacturing and design effort supports the overall net sales, which for Q3 2025 hit $13.2 million, with the full-year 2025 forecast sitting between $50 million and $53 million.

Direct sales and installation of BOHA! Terminals to large chains.

This activity is about closing deals and getting the hardware deployed at scale across major accounts. The sales team is clearly gaining traction, especially with the newer Terminal 2 units. For the first nine months of 2025, TransAct Technologies Incorporated (TACT) sold 5,883 BOHA! Terminals, which is a 58% year-over-year increase in units sold for that period. That's serious momentum.

Consider the recent deployment activity:

• Sold 1,591 BOHA! Terminals in Q3 2025 alone.
• Completed a full-fleet upgrade of 1,400 existing units to BOHA! Terminal 2 in Q1 2025 for one national convenience store chain.
• Secured an initial order of 596 BOHA! Terminal 2 LTE units from a national sushi franchise operator.

Managing the supply chain for hardware components and consumables.

You can't sell terminals or recurring labels without managing the flow of goods. This involves sourcing components for the Epic Edge and Ithaca printers, as well as managing inventory for consumables like labels that feed the recurring revenue stream. The Selling and Marketing expenses for Q3 2025 were $2.1 million, and G&A was $2.8 million, both increasing due in part to incentive compensation tied to improved financial results, which suggests the supply chain is supporting higher sales volume.

Providing world-class service and support for an installed base of over 4.0 million devices.

Keeping that massive installed base running smoothly is a key activity that underpins the recurring revenue. TransAct Technologies Incorporated (TACT) supports over 4.0 million printers, terminals, and other hardware devices globally. This service group is responsible for providing spare parts and accessories, which is part of the service component feeding that recurring revenue number. If onboarding takes 14+ days, churn risk rises, so efficiency here is paramount.

TransAct Technologies Incorporated (TACT) - Canvas Business Model: Key Resources

You're looking at the core assets TransAct Technologies Incorporated is leaning on right now to drive growth, especially in the Foodservice Technology (FST) space. Honestly, it's a mix of hard IP, installed hardware, and financial flexibility.

The foundation of the FST push is definitely the proprietary software intellectual property (IP) for the BOHA! Platform. A major step here was the acquisition of the perpetual license to the BOHA! source code for $2.55 million; this gives TransAct Technologies full control to use, host, market, sublicense, distribute, copy, and modify that code, with a fully operational, in-house supported version expected to launch in early 2027.

The installed base is growing, which is a key metric for recurring revenue potential. Here's the quick math on the hardware deployment:

This installed base supports the recurring revenue stream, which hit $3.3 million in the third quarter of 2025. What this estimate hides is the mix of hardware versus software/service revenue within the total FST sales of $4.8 million for the quarter.

The core printing technology is protected by established intellectual property, evidenced by the brands under which TransAct Technologies sells its solutions. These include the BOHA!, AccuDate, EPICENTRAL, Epic, and Ithaca brands.

For execution, TransAct Technologies relies on its specialized teams:

• Direct sales and technical service teams dedicated to the FST market.
• Direct sales and technical service teams dedicated to the Casino and Gaming market.

The company has also focused on its financial footing to back this strategy. While the latest specific cash balance figure for late 2025 isn't explicitly stated in the preliminary results, management confirmed they strengthened their balance sheet during the third quarter of 2025 to support the FST software focus. The last reported figure available was $20 million in cash on the balance sheet at the end of 2023.

TransAct Technologies Incorporated (TACT) - Canvas Business Model: Value Propositions

You're looking at the core promises TransAct Technologies Incorporated (TACT) makes to its customers, grounded in the performance seen through the first three quarters of 2025. The value is split clearly between the Foodservice Technology (FST) segment and the Casino & Gaming segment.

Food Service: Streamlining Back-of-House Operations and Reducing Labor Effort

For foodservice operators, the value proposition centers on replacing manual, error-prone processes with guided digital workflows. This is evident in the adoption rates of the BOHA! Platform. For instance, one recent Midwest convenience store chain win involved deploying 73 BOHA! Terminal 2 devices across its locations to support labeling workflows, which is a direct move to streamline operations. Another contract foodservice customer went live with BOHA! Temp and BOHA! Checklist software at all 55 of its locations to improve labor efficiency and ensure consistent execution of daily tasks. While specific TACT labor-hour savings aren't published for 2025, industry context shows the potential: technology digitizing checklists previously saved retailers 16.5 hours a month, per location. The growth in hardware sales supports this: 2,350 BOHA! Terminal units were sold in Q1 2025, an all-time quarterly high, driving 49% year-over-year FST revenue growth that quarter.

Ensuring HACCP Compliance and Food Safety with Digital Workflows (BOHA! Temp)

Ensuring food safety compliance is non-negotiable, and TACT delivers this via BOHA! Temp, which replaces paper logs with guided digital temperature recording. This directly supports HACCP standards. We see this value being taken up by major chains; the aforementioned Midwest convenience store chain adopted BOHA! Temp at 47 of its foodservice locations as part of its digitization effort. Furthermore, 21 sites within another contract foodservice customer are using BOHA! Sense for real-time equipment monitoring, which helps prevent spoilage caused by temperature deviations.

Providing Consistent Execution and Brand Quality Across Multi-Unit Locations

For large, distributed chains, consistency is everything. The BOHA! Platform's guided workflows enforce the same process everywhere, which is key to brand quality. The platform's traction is shown by securing wins with a major convenience store chain for a 1,400 BOHA! unit upgrade and a national healthcare foodservice contract in Q1 2025 alone. The recurring revenue stream, which is tied to the installed base, shows this stickiness; FST recurring revenue hit $3.3 million in Q3 2025, a 13% increase year-over-year.

Here's a look at the growth supporting the platform's value proposition in the first nine months of 2025:

Casino/Gaming: High-Reliability Ticket-In/Ticket-Out (TITO) Printing Solutions

In the Casino and Gaming sector, the value is centered on the reliability of the printing solutions, which includes TITO functionality. This segment showed significant strength in the first nine months of 2025. Casino and Gaming Net Sales grew 58% year-over-year in Q3 2025. Revenue for this segment reached $6.7 million in Q1 2025, marking an 18% year-over-year increase. The company has sold over 3.9 million printers, terminals, and other hardware devices globally, underscoring the installed base supporting these high-reliability needs.

Delivering Strong Return on Investment (ROI) through Operational Efficiency

The financial results point toward a positive trend in profitability driven by these solutions. The Company expects full year 2025 net sales to be between $50 million and $53 million. Gross margin in Q3 2025 was 49.8%, up from 48.1% in Q3 2024, indicating better profitability on sales. The ultimate measure of ROI is the bottom line improvement: Q3 2025 saw a net income of $15 thousand, a substantial swing from the net loss of $(551) thousand in Q3 2024. The company also achieved positive adjusted EBITDA of $669 thousand in Q3 2025, up from an adjusted EBITDA loss of $(204) thousand in the prior year period.

The value proposition is translating into financial performance:

• FST recurring revenue growth of 13% year-over-year in Q3 2025 signals sustained customer commitment.
• Full year 2025 Adjusted EBITDA is forecasted to be between breakeven ($0) and $1.5 million.
• The shift from a net loss of $(551) thousand (Q3 2024) to a net income of $15 thousand (Q3 2025) shows direct financial benefit to TACT, which flows from customer efficiency gains.

Finance: draft 13-week cash view by Friday.

TransAct Technologies Incorporated (TACT) - Canvas Business Model: Customer Relationships

You're looking at how TransAct Technologies Incorporated builds and maintains its customer base, which is clearly segmented between high-touch enterprise accounts and broader transactional relationships. This approach is key to driving the recurring revenue that supports the business.

Dedicated account management for large national chain rollouts (high-touch).

For major deployments, TransAct Technologies engages in high-touch relationship management, evidenced by significant, multi-location wins. For instance, in the first quarter of 2025, the company secured a 1,400 BOHA! unit upgrade for a major convenience store chain. More recently, a national sushi franchise approved a rollout of the BOHA! Terminal 2 LTE, with initial orders totaling 596 units for a network that is expected to eventually include all 2,108 locations. This level of deployment requires dedicated support to ensure smooth integration across large, dispersed networks.

Software-as-a-Service (SaaS) subscription model for BOHA! platform access.

The relationship is heavily weighted toward recurring revenue streams tied to the BOHA! platform access, which functions as a Software-as-a-Service (SaaS) model, combined with consumable sales. The Food Service Technologies (FST) recurring revenue for the third quarter of 2025 reached $3.3 million. This recurring revenue base, which includes software and service subscriptions, grew 13% year-over-year compared to the $2.9 million reported in the third quarter of 2024. The average revenue per unit (ARPU) for FST recurring revenue climbed to $792 per unit in Q3 2025, up from $700 in the prior year period.

Self-service and online ordering for consumable supplies (TransAct Services Group).

The TransAct Services Group manages the relationship for ongoing consumable needs, which is a high-volume, lower-touch interaction. Customers can secure their complete range of supplies and consumable items online at http://www.transactsupplies.com or through the direct sales team. This channel supports the installed base of over 3.9 million printers, terminals, and other hardware devices sold globally by TransAct Technologies.

Long-term service contracts and Premier Express Warranties for hardware.

The relationship extends through hardware support via service contracts and warranties, which are critical for maintaining the installed base and ensuring consistent recurring revenue. The company remains committed to providing world-class service, spare parts, and accessories to support its installed product base. The overall full-year 2025 net sales guidance is set between $50 million and $53 million.

Key metrics illustrating the customer base growth and recurring revenue focus:

• Q1 2025 BOHA! terminal unit sales hit an all-time quarterly high of 2,350 units.
• Terminal unit sales for the first nine months of 2025 totaled 5,883, a 58% year-over-year increase.
• Q3 2025 Net Sales were $13.2 million.
• A Midwest convenience store chain deployed 73 BOHA! Terminal 2 devices in October 2025.

Finance: review Q4 2025 recurring revenue projections against the $792 ARPU target by end of next week.

TransAct Technologies Incorporated (TACT) - Canvas Business Model: Channels

You're looking at how TransAct Technologies Incorporated gets its products and services into the hands of its customers as of late 2025. It's a mix of direct engagement and partner integration across their two main revenue drivers: Food Service Technology (FST) and Casino & Gaming.

The company's overall financial expectation for the full year 2025 net sales is between $50 million and $53 million. To give you a concrete snapshot, the preliminary third quarter 2025 net sales reached $13.2 million, which was up 21% compared to the third quarter of 2024.

Here's a breakdown of how those sales channels are performing based on the Q3 2025 figures:

The direct sales force is heavily focused on the FST segment, pushing hardware like the BOHA! Terminals. For instance, the company secured a major BOHA Terminal 2 upgrade order with a national convenience store chain operating over 700 locations in Q1 2025. That's a clear win for the direct sales motion targeting large national accounts.

• Direct sales force targets large national and regional foodservice chains for BOHA! solutions.
• OEM partners are the primary channel for the Casino and Gaming segment, which generated $7.1 million in Q3 2025.
• The company sold 2,350 BOHA! Terminals in Q1 2025, a record for that quarter.

The TransAct Services Group (TSG) is critical for capturing recurring revenue, which is directly tied to the installed base of hardware. This group handles the direct sales of supplies and consumables, feeding into the recurring revenue stream. For the third quarter of 2025, FST recurring revenue hit $3.3 million.

The online portal, http://www.transactsupplies.com, works in tandem with TSG to provide customers with a complete range of supplies and consumable items. TransAct has sold over 4.0 million printers, terminals, and other hardware devices globally to support this consumables channel.

• TransAct Services Group (TSG) drives sales of supplies and consumables.
• The online portal supports TSG by offering supplies and consumables directly to the installed base.
• Total installed base supported by service/supplies is over 4.0 million devices.

The Casino and Gaming channel, driven by OEM partners, remains the largest revenue contributor, bringing in $7.1 million in Q3 2025. That's a significant piece of the $13.2 million total quarterly revenue.

TransAct Technologies Incorporated (TACT) - Canvas Business Model: Customer Segments

You're looking at the core customer groups TransAct Technologies Incorporated (TACT) targets with its BOHA! platform and its other technology solutions. Honestly, the focus has clearly shifted toward Food Service Technology (FST), but the gaming side still brings in significant, high-growth revenue.

National and regional convenience store chains represent a major win area, especially with the BOHA! Terminal 2 rollout. You saw a headline-grabbing event in Q1 2025 where a major convenience store chain committed to a 1,400 BOHA! unit upgrade. That same quarter, another national chain, operating over 700 locations, secured a major BOHA Terminal 2 upgrade order. To be fair, the pipeline is still active here; for instance, a Midwest chain with 81 locations selected BOHA! in October 2025. The momentum is clear, as evidenced by the 2,350 BOHA! terminal units sold in Q1 2025, an all-time quarterly high. By the end of Q3 2025, the company had sold 5,883 terminals year-to-date.

For Quick Service Restaurants (QSR) and fast-casual franchises, the traction is about sophisticated labeling and operational streamlining. The company secured international and domestic approvals to sell BOHA 2 terminals to franchisees of a large QSR, with the domestic opportunity estimated to be in excess of 10,000 locations. They've signed deals across five territories, including Canada, Germany, Poland, Saudi Arabia, and Italy. The Q1 2025 results specifically noted conversion of Tier 1 customers, including a major QSR, to the Terminal 2. The CEO also mentioned doing well with national sushi providers in the grab-and-go space.

The contract foodservice providers and institutional kitchens segment is an emerging market for the BOHA! platform, particularly for compliance. You can see this in the Q1 2025 win with a national healthcare food service provider for deployment in hospital and care facility kitchens for nutritional labeling. The company is also actively working with large facility automation players like Sodexo and Aramark.

The casino and gaming machine manufacturers and operators globally segment remains a substantial revenue driver, showing strong rebound in 2025. Casino and gaming revenue hit $6.7 million in Q1 2025, up 18% year-over-year. This strength continued, with Q2 2025 gaming revenue reaching $7.6 million, a 42% year-over-year increase. By Q3 2025, that revenue surged again to $7.1 million, marking a 58% increase year-over-year. Here's a quick look at how the main revenue streams stacked up in Q3 2025:

Finally, the Healthcare and POS automation markets represent a smaller, more legacy area, though healthcare is an area of growth for BOHA!. POS automation sales specifically saw a decline, falling 5% from the prior year in Q1 2025, landing at $618,000. The TransAct Services Group (TSG), which includes legacy parts, saw sales of $808,000 in Q1 2025, down 22% year-over-year as strong prior-year spare parts demand normalized. Still, the overall company outlook for full-year 2025 net sales was raised to between $50 million and $53 million.

TransAct Technologies Incorporated (TACT) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive TransAct Technologies Incorporated's operations as of late 2025. Honestly, for a company bridging hardware like BOHA! Terminals and recurring software revenue, the cost structure is a mix of traditional manufacturing costs and modern software overhead.

The cost of goods sold (COGS) directly impacts the profitability of the hardware sales, which is key for both the BOHA! Terminals and gaming printers. For the third quarter of 2025, the company achieved a gross margin of 49.8%, up from 48.1% in the third quarter of 2024. This margin is calculated on net sales of $13.2 million for Q3 2025, resulting in a gross profit of $6.6 million.

Manufacturing and assembly costs for the hardware devices are bundled into the Cost of Sales. For context, in the first quarter of 2025, the Cost of Sales was $6,694 thousand on net sales of $13,053 thousand. The volume of hardware moved is a factor here; TransAct Technologies sold 1,591 BOHA! Terminals in the third quarter of 2025 alone.

A significant portion of the cost structure involves investment in the future, particularly the BOHA! software platform and new hardware development. This is the Research and Development (R&D) bucket, which the company often labels as Engineering, design and product development. Software maintenance costs, which are recurring, also fall under operating expenses, often overlapping with R&D or G&A depending on the nature of the maintenance.

Sales and Marketing (S&M) expenses cover the direct sales force efforts and presence at trade shows, which are critical for securing new placements for the BOHA! solution suite in the food service technology and casino/gaming markets. These costs are designed to drive both initial hardware sales and the growth of the recurring revenue stream, which hit $3.3 million in Q3 2025.

General and administrative (G&A) overhead covers the necessary costs of keeping the lights on-finance, executive functions, and general operations. It's everything that isn't directly tied to building or selling the product. You want this number lean, because it directly eats into operating income.

Here's a quick look at the operating expense breakdown from the first quarter of 2025, which gives you a concrete sense of the scale of these fixed and semi-fixed costs relative to the business:

For the first nine months of 2025, net sales totaled $40.0 million. The company is managing these costs to achieve profitability; Q3 2025 saw operating income of $14 thousand, a significant swing from the operating loss of $(837) thousand in Q3 2024.

The key cost drivers you should watch closely are:

• Cost of Sales (COGS) relative to hardware unit volume.
• R&D spend supporting the BOHA! software roadmap.
• S&M effectiveness in driving new FST recurring revenue.
• G&A leverage as net sales approach the full-year guidance of $50 million to $53 million.

Finance: draft 13-week cash view by Friday.

TransAct Technologies Incorporated (TACT) - Canvas Business Model: Revenue Streams

You're looking at how TransAct Technologies Incorporated brings in cash, which is key for understanding its valuation right now. The revenue mix shows a clear push toward more predictable income streams, balancing hardware sales with ongoing service fees.

The recurring component of the Food Service Technology (FST) segment is a major focus. This revenue, which covers software/service subscriptions and labels, hit $3.3 million in Q3 2025. That was up 13% compared to the $2.9 million seen in Q3 2024.

Hardware sales remain significant, particularly in the FST division where the company sold 1,591 BOHA! Terminals in the third quarter alone. Over the first nine months of 2025, TransAct Technologies Incorporated moved 5,883 terminals, marking a 58% increase year-over-year for that period. This speaks directly to the sales of BOHA! Terminal 2 and AccuDate hardware units.

The Casino and Gaming segment is a strong driver of transactional revenue. Casino and Gaming hardware sales, which include printers and parts, generated $7.1 million in Q3 2025. That was a substantial 58% jump year-over-year.

Consumable supplies, like labels and paper, flow through the TransAct Services Group, supporting the recurring revenue base. The total FST net sales for the quarter were $4.8 million, up 12% from the prior year.

Here's a quick look at the Q3 2025 revenue breakdown:

The full-year 2025 net sales guidance is set between $50 million and $53 million. This was an upward revision from the prior low end of $49 million. The company maintained its adjusted EBITDA outlook for the full year to be between breakeven and $1.5 million.

You can see the revenue streams are layered:

• FST recurring revenue, including software subscriptions.
• Sales of BOHA! Terminal 2 and AccuDate hardware.
• Casino and Gaming hardware and parts sales.
• Consumable supplies revenue from TransAct Services Group.

The Revenue Per Unit (RPU) for FST in Q3 2025 was $792, showing an increase in the value extracted per installed terminal. Finance: draft 13-week cash view by Friday.