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Transact Technologies Inc. (TACT) Fundamental Analysis & AI Grade 2026

TACT Nasdaq Computer Peripheral Equipment, NEC DE CIK: 0001017303
Updated This Month • Analysis: May 14, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
72% Confidence
N/A
C
72% Conf
Pending
Analysis scheduled

📊 TACT Key Takeaways

Revenue: $14.4M
Net Margin: 5.3%
Free Cash Flow: $-1.0M
Current Ratio: 3.13x
Debt/Equity: 0.00x
EPS: $0.07
AI Grade: C with 72% confidence
Transact Technologies Inc. (TACT) receives a C fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $14.4M, net profit margin of 5.3%, and return on equity (ROE) of 2.4%, Transact Technologies Inc. demonstrates mixed fundamentals in the Technology sector. Below is our complete TACT stock analysis for 2026.

Is Transact Technologies Inc. (TACT) a Good Investment?

Claude

Despite 18.7% revenue growth and a fortress balance sheet, TACT faces critical operational challenges: negative operating cash flow of -$946K contradicts positive net income, signaling quality of earnings concerns. Weak capital efficiency metrics (ROE 2.4%, ROA 1.6%) indicate the business is not converting growth into shareholder value, and negative free cash flow of -$1.0M suggests an unsustainable trajectory despite adequate cash reserves.

Transact Technologies Inc. Key Strengths (TACT)

Claude
  • + Strong balance sheet with $18.8M cash, zero long-term debt, and debt/equity of 0.0x
  • + Revenue growth of 18.7% YoY with solid 50.3% gross margins
  • + Excellent liquidity position with current ratio of 3.13x and quick ratio of 2.36x

TACT Stock Risks: Transact Technologies Inc. Investment Risks

Claude
  • ! Negative operating cash flow of -$946K despite positive net income indicates quality of earnings concerns and working capital deterioration
  • ! Extremely weak capital returns with ROE of 2.4% and ROA of 1.6% show poor asset and equity deployment efficiency
  • ! Negative free cash flow of -$1.0M means the company is burning cash; unsustainable even with strong reserves
  • ! Elevated insider trading activity (27 Form 4 filings in 90 days) may signal insider concern or dilution

Key Metrics to Watch

Claude
  • * Operating Cash Flow trend - must turn positive to validate profitability and cash generation
  • * Working Capital composition - diagnose drivers of negative OCF relative to net income
  • * Return on Equity and ROA trajectory - need evidence of improving capital efficiency
  • * Free Cash Flow sustainability - critical to assess burn rate and runway

Transact Technologies Inc. (TACT) Financial Metrics & Key Ratios

Revenue
$14.4M
Net Income
$766.0K
EPS (Diluted)
$0.07
Free Cash Flow
$-1.0M
Total Assets
$47.9M
Cash Position
$18.8M

💡 AI Analyst Insight

Strong liquidity with a 3.13x current ratio provides a solid financial cushion.

TACT Profit Margin, ROE & Profitability Analysis

Gross Margin 50.3%
Operating Margin 5.3%
Net Margin 5.3%
ROE 2.4%
ROA 1.6%
FCF Margin -7.1%

TACT vs Technology Sector: How Transact Technologies Inc. Compares

How Transact Technologies Inc. compares to Technology sector averages

Net Margin
TACT 5.3%
vs
Sector Avg 18.0%
TACT Sector
ROE
TACT 2.4%
vs
Sector Avg 22.0%
TACT Sector
Current Ratio
TACT 3.1x
vs
Sector Avg 2.5x
TACT Sector
Debt/Equity
TACT 0.0x
vs
Sector Avg 0.5x
TACT Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Transact Technologies Inc. Stock Overvalued? TACT Valuation Analysis 2026

Based on fundamental analysis, Transact Technologies Inc. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
2.4%
Sector avg: 22%
Net Profit Margin
5.3%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Transact Technologies Inc. Balance Sheet: TACT Debt, Cash & Liquidity

Current Ratio
3.13x
Quick Ratio
2.36x
Debt/Equity
0.00x
Debt/Assets
32.6%
Interest Coverage
2.49x
Long-term Debt
N/A

TACT Revenue & Earnings Growth: 5-Year Financial Trend

TACT 5-year financial data: Year 2021: Revenue $39.4M, Net Income -$992.0K, EPS $-0.13. Year 2022: Revenue $58.1M, Net Income -$2.1M, EPS $-0.23. Year 2023: Revenue $72.6M, Net Income -$4.3M, EPS $-0.44. Year 2024: Revenue $72.6M, Net Income $3.1M, EPS $0.31. Year 2025: Revenue $51.5M, Net Income -$1.0M, EPS $-0.10.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Transact Technologies Inc.'s revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.10 indicates the company is currently unprofitable.

TACT Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-7.1%
Free cash flow / Revenue

TACT Quarterly Earnings & Performance

Quarterly financial performance data for Transact Technologies Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $13.1M $19.0K $0.00
Q3 2025 $10.9M $15.0K $0.00
Q2 2025 $11.6M -$124.0K $-0.01
Q1 2025 $10.7M $19.0K $0.00
Q3 2024 $10.9M -$551.0K $-0.06
Q2 2024 $11.6M -$319.0K $-0.03
Q1 2024 $10.7M -$1.0M $-0.10
Q3 2023 $17.2M $528.0K $0.05

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Transact Technologies Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$946.0K
Cash generated from operations
Capital Expenditures
$80.0K
Investment in assets
Dividends
None
No dividend program

TACT SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Transact Technologies Inc. (CIK: 0001017303)

📋 Recent SEC Filings

Date Form Document Action
May 27, 2026 8-K g5262618k.htm View →
May 13, 2026 10-Q ef20070600_10q.htm View →
May 12, 2026 8-K x5112608k.htm View →
May 4, 2026 4 xslF345X06/ownership.xml View →
May 4, 2026 4 xslF345X06/form4.xml View →

Frequently Asked Questions about TACT

What is the AI rating for TACT?

Transact Technologies Inc. (TACT) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TACT's key strengths?

Claude: Strong balance sheet with $18.8M cash, zero long-term debt, and debt/equity of 0.0x. Revenue growth of 18.7% YoY with solid 50.3% gross margins.

What are the risks of investing in TACT?

Claude: Negative operating cash flow of -$946K despite positive net income indicates quality of earnings concerns and working capital deterioration. Extremely weak capital returns with ROE of 2.4% and ROA of 1.6% show poor asset and equity deployment efficiency.

What is TACT's revenue and growth?

Transact Technologies Inc. reported revenue of $14.4M.

Does TACT pay dividends?

Transact Technologies Inc. does not currently pay dividends.

Where can I find TACT SEC filings?

Official SEC filings for Transact Technologies Inc. (CIK: 0001017303) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TACT's EPS?

Transact Technologies Inc. has a diluted EPS of $0.07.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TACT's fundamental grade?

Based on our AI fundamental analysis in June 2026, Transact Technologies Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TACT stock overvalued or undervalued?

Valuation metrics for TACT: ROE of 2.4% (sector avg: 22%), net margin of 5.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

What is TACT's AI grade for 2026?

Our dual AI analysis gives Transact Technologies Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TACT's free cash flow?

Transact Technologies Inc.'s operating cash flow is $-946.0K, with capital expenditures of $80.0K. FCF margin is -7.1%.

How does TACT compare to other Technology stocks?

Vs Technology sector averages: Net margin 5.3% (avg: 18%), ROE 2.4% (avg: 22%), current ratio 3.13 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 14, 2026 | Data as of: 2026-03-31 | Powered by Claude AI