TRANSACT TECHNOLOGIES INCTACT

TRANSACT TECHNOLOGIES INC Segments Disclosure

10-KFiled Mar 12, 20262 min read
7. Segment reporting


We apply the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 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 and the sale of printer and terminal related software, services, labels and spare parts.  Factors used to identify the Company’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 the Company’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 chief operating decision makers, who are the Company’s chief executive officer and the Company’s chief financial officer, utilize a consolidated approach to assess the performance of and allocate resources to the business.

We generally use 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.


The following table provides the operating financial results of our segment:


   
December 31,
  
(In thousands)
  
2025
    
2024
  
Revenues
  
$
51,480
    
$
43,384
  
                 
Cost of materials sold
    
19,050
      
15,268
  
Compensation costs
    
20,144
      
18,323
  
Professional services
    
3,760
      
3,493
  
Occupancy costs
    
1,458
      
1,477
  
Marketing expenses
    
983
      
1,109
  
IT expenses
    
1,328
      
1,255
  
Severance expense
    
133
      
75
  
Depreciation and amortization
    
672
      
1,037
  
Other segment expenses(1)
    
5,367
      
4,973
  
      52,895       47,010  
Operating loss    
(1,415
)
    
(3,626
)
                 
Interest income
    
537
      
469
  
Interest expense
    
(339
)
    
(322
)
Other income (expense)
    
133
      
(89
)
Income tax expense
    
(156
)
    
(6,295
)
Net loss
  
$
(1,240
)
  
$
(9,863
)



(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 loss to EBITDA and adjusted EBITDA follows:


   
Years Ended December 31,
  
(In thousands)
  
2025
    
2024
  
Net loss
  
$
(1,240
)
  
$
(9,863
)
Interest income, net
    
(198
)
    
(147
)
Income tax expense
    
156
      
6,295
  
Depreciation and amortization
    
672
      
1,037
  
EBITDA
    
(610
)
    
(2,678
)
                 
Share-based compensation
    
1,802
      
1,157
  
                 
Adjusted EBITDA
  
$
1,192
    
$
(1,521
)




Please see Note 14 – Geographic area information for net sales and long-lived assets by geographic area.

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 24, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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