Transcat Reports Strong Fiscal Second Quarter 2026 Financial Results with Double-Digit Revenue & Gross Profit Growth

ROCHESTER, N.Y.--( BUSINESS WIRE)--Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leader in test measurement, control and calibration, has reported its financial and operational results for its fiscal second quarter ended September 27, 2025 (the “second quarter”) of fiscal year 2026.

Management Commentary

"Transcat had another strong quarter of revenue and Adjusted EBITDA* performance driven by double-digit service revenue growth and continued high demand in our rentals channel,” commented Lee D. Rudow, President and CEO. “Distribution revenue grew 24% in the quarter with gross margin expansion of 530bps versus the prior year driven by the strategic mix increase of higher-margin rentals. Focused execution of our strategic plan, including effective acquisition integration, enabled 37% growth of Adjusted EBITDA*. Healthy first quarter, and now, second quarter results demonstrate the strength of our diversified portfolio to deliver strong financial performance despite economic headwinds."

"We continue to strengthen the company for the future and improve our long-term competitive position. We are extremely pleased with the initial results of our most recent acquisition, Essco Calibration. We believe Essco is a perfect fit for the calibration service portfolio and demonstrates our ability to attract and acquire highly sought-after calibration companies that expand our capabilities, geographic reach, and contribute to long-term Service organic growth. We expect continued strong results from Essco, along with Martin Calibration (acquired Q3 Fiscal 2025), leveraging sales synergies with Transcat."

"Looking forward, uncertainty in the macro environment remains a challenge, but we are optimistic given the recent positive developments with the U.S. and trading partners around the globe. Our diversified portfolio of products and services combined with the ability to execute against strategic priorities will differentiate Transcat in fiscal 2026 and beyond. We expect continued service revenue growth, benefiting from a larger presence in the New England and Midwest markets, and improving service organic revenue. We expect a return to high single-digit service organic revenue growth in the second half of Fiscal 2026, barring any increased economic uncertainty. We believe the combination of our talented team, portfolio differentiation, and strong financial profile positions us well to drive sustainable, long-term shareholder value."

* See Note 1 on page 5 for a description of the non-GAAP financial measure and page 10 for the reconciliation table.

Second Quarter Fiscal 2026 Review

(Results are compared with the second quarter of the fiscal year ended March 29, 2025 (“fiscal 2025”))

($ in thousands)

Change

FY26

FY25

Service Revenue

52,836

44,083

8,753

19.9

Distribution Revenue

29,436

23,743

5,693

24.0

Revenue

82,272

67,826

14,446

21.3

Gross Profit

26,762

21,206

5,556

26.2

Gross Margin

32.5

31.3

Operating Income

3,505

3,735

(230

)

(6.2

Operating Margin

4.3

5.5

Net Income

1,269

3,286

(2,017

)

(61.4

Net Margin

1.5

4.8

Adjusted Net Income*

4,155

4,827

(672

)

(13.9

Adjusted Net Margin*

5.1

7.1

Adjusted EBITDA*

12,115

8,861

3,254

36.7

Adjusted EBITDA* Margin

14.7

13.1

Diluted EPS

0.14

0.35

(0.21

)

(60.0

Adjusted Diluted EPS*

0.44

0.52

(0.08

)

(15.4

Consolidated revenue was $82.3 million, an increase of $14.4 million or 21.3%, driven by growth in both service and distribution segments. Consolidated gross profit was $26.8 million, an increase of $5.6 million, or 26.2%, while gross margin increased 120bps when compared to the prior year period.

Operating expenses were $23.3 million, an increase of $5.8 million, or 33.1%, driven by incremental expenses from acquired businesses, increased stock-based compensation expense, increased intangibles' amortization expense, and higher sales-based incentives.

Net Income was $1.3 million, and Adjusted EBITDA* was $12.1 million, which represented an increase of $3.3 million or 36.7%, driven by strong revenue growth. Earnings per diluted share were $0.14 compared to $0.35 last year. Adjusted Diluted Earnings Per Share* were $0.44 versus $0.52 last year.

*See Note 1 on page 5 for a description of these non-GAAP financial measures and pages 10, 11 and 12 for the reconciliation tables.

Service segment second quarter results

Represents the accredited calibration, repair, inspection and laboratory instrument services business (64.2% of total revenue for the second quarter of fiscal 2026).

($ in thousand)

Change

FY26

FY25

Service Segment Revenue

52,836

44,083

8,753

19.9

Gross Profit

16,993

14,591

2,402

16.5

Gross Margin

32.2

33.1

Operating Income

920

3,704

(2,784

)

(75.2

Operating Margin

1.7

8.4

Adjusted Operating Income*

7,124

6,624

500

7.5

Adjusted Operating Margin*

13.5

15.0

*See Note 1 on page 5 for a description of this non-GAAP financial measure and pages 10 and 11 for the Adjusted Operating Income Reconciliation tables. To distinguish between the two non-GAAP measures, the segment non-GAAP results are labeled "Adjusted Operating Income". The calculation did not change.

Service segment revenue was $52.8 million, an increase of $8.8 million or 19.9%, and included $9.8 million of incremental revenue from acquisitions. The segment gross margin was 32.2%, a decrease of 90bps from the prior year.

Distribution segment second quarter results

Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (35.7% of total revenue for the second quarter of fiscal 2026).

($ in thousands)

Change

FY26

FY25

Distribution Segment Revenue

29,436

23,743

5,693

24.0

Gross Profit

9,769

6,615

3,154

47.7

Gross Margin

33.2

27.9

Operating Income

2,585

2,554

N/M

Operating Margin

8.8

0.1

Adjusted Operating Income*

4,990

2,237

2,753

123.1

Adjusted Operating Margin*

17.0

9.4

Distribution segment revenue was $29.4 million, which represented an increase of $5.7 million or 24.0%, driven by growth in rentals and products. Distribution segment gross margin was 33.2%, an increase of 530 bps due to robust performance in higher-margin rentals.

Balance Sheet and Cash Flow Overview

On September 27, 2025, the Company had $5.1 million in cash and cash equivalents on hand and $38.1 million available for borrowing, subject to covenant restrictions, under its secured revolving credit facility. Total debt increased during the quarter, resulting primarily from the Essco acquisition, and was $111.9 million as of September 27, 2025, versus $32.7 million on March 29, 2025. On July 29, 2025, Transcat announced a new 5-Year $150 million syndicated secured credit facility with M&T Bank and included additional lenders, Wells Fargo Bank, N.A. and Bank of America, replacing its existing $80 million credit facility with M&T and payoff of the term debt. The Company’s leverage ratio, as defined in the credit agreement, was 2.26 on September 27, 2025, compared with 0.78 on March 29, 2025.

Tom Barbato, Transcat’s Chief Financial Officer, added, “We were pleased to close the Essco Calibration deal in the second quarter. Essco was a coveted calibration company that is highly synergistic and fulfills all our strategic acquisition drivers by expanding geographic reach, increasing capabilities, and leveraging existing infrastructure. Second quarter Adjusted EBITDA* grew 37% with 160bps margin expansion as both segments experienced double-digit revenue growth. The expanding Adjusted EBITDA* margin will drive a lower leverage ratio in subsequent quarters.”

* See Note 1 on page 5 for a description of the non-GAAP financial measure and page 10 for the reconciliation table.

Fiscal Second Quarter 2026 Results Webcast and Conference Call

Transcat will host a conference call and webcast on Monday, November 3, 2025, at 4:30 p.m. ET. Management will review the financial and operating results for the second quarter, as well as the Company’s strategy and outlook. A question-and-answer session will follow the formal discussion. The review will be accompanied by a slide presentation, which will be available at www.transcat.com/investor-relations. The conference call can be accessed by calling (203) 518-9708. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations.

Monday, November 3, 2025

4:30 p.m. Eastern Time

Dial-in – Toll-Free US / Canada: (800) 225-9448

Dial-in – Toll / International: (203) 518-9708

Conference ID: TRANSCAT (THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY)

Webcast and accompanying slide presentation: https://viavid.webcasts.com/starthere.jsp?ei=1738343&tp_key=f23bde3eca

A telephonic replay will be available from 8:30 p.m. ET on the day of the conference call through Monday, November 10, 2025. To listen to the archived call, dial (844) 512-2921 from the US or Canada, or (412) 317-6671 from international locations, and enter conference ID number 11160191 or access the webcast replay at https://www.transcat.com/investor-relations, where a transcript will be posted once available.

NOTE 1 – Non-GAAP Financial Measures

In addition to reporting net income and net margin, U.S. generally accepted accounting principle (“GAAP”) measures, we present Adjusted Net Income (net income plus acquisition related amortization expense, acquisition related transaction expenses, acquisition related stock-based compensation, and acquisition amortization of backlog) and Adjusted net margin (Adjusted Net Income divided by revenue), which are non-GAAP measures. The Company’s management believes Adjusted net income and Adjusted net margin are important measures of operating performance because the measures provide a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. As such, the Company uses Adjusted Net Income and Adjusted net margin as measures of performance when evaluating its business segments and as a basis for planning and forecasting.

In addition to reporting net income and net margin, GAAP measures, we present Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, non-cash stock compensation expense, and acquisition related transaction expenses) and Adjusted EBITDA margin (Adjusted EBITDA divided by revenue), which are non-GAAP measures. The Company’s management believes Adjusted EBITDA and Adjusted EBITDA margin are important measures of operating performance because the measures allow management, investors and others to evaluate and compare the performance of its core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, stock-based compensation expense and other items, which is not always commensurate with the reporting period in which it is included. As such, the Company uses Adjusted EBITDA and Adjusted EBITDA margin as measures of performance and as a basis for planning and forecasting.

In addition to reporting operating income, a GAAP measure, we present Adjusted Operating Income (operating income plus depreciation and amortization, non-cash stock compensation expense, acquisition related transaction expenses and contingent consideration adjustments), which is a non-GAAP measure. The Company’s management believes Adjusted Operating Income is an important measure of operating performance because it allows management, investors and others to evaluate and compare the performance of its core operations from period to period by excluding items that we do not believe are indicative of our core operating performance. As such, the Company uses Adjusted Operating Income as a measure of performance when evaluating its business segments.

In addition to reporting Diluted Earnings Per Share, a GAAP measure, we present Adjusted Diluted Earnings Per Share (net income plus acquisition related amortization expense, acquisition related transaction expenses, acquisition related stock-based compensation, and acquisition amortization of backlog; divided by the average diluted shares outstanding during the period), which is a non-GAAP measure. Our management believes Adjusted Diluted Earnings Per Share is an important measure of our operating performance because it provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance.

Adjusted Net Income, Adjusted Net Income margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income, and Adjusted Diluted Earnings Per Share are not measures of financial performance under GAAP and are not calculated through the application of GAAP. As such, the measures should not be considered as a substitute or alternative for the GAAP measures of Net Income, Operating Income and Diluted Earnings Per Share and, therefore, should not be used in isolation of, but in conjunction with, the related GAAP measures. Adjusted Net Income, Adjusted Net Income margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income, and Adjusted Diluted Earnings Per Share, as presented, may produce results that vary from the related GAAP measure and may not be comparable to similarly defined non-GAAP measures used by other companies. See pages 10-12 for the reconciliation tables.

About Transcat

Transcat, Inc. is a leading provider of accredited calibration, reliability, maintenance optimization, quality and compliance, validation, Computerized Maintenance Management System (CMMS), and pipette services. The Company is focused on providing best-in-class services and products to highly regulated industries, particularly the Life Science industry, which includes pharmaceutical, biotechnology, medical device, and other FDA-regulated businesses, as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its Calibration Service Centers strategically located across the United States, Puerto Rico, Canada, and Ireland. In addition, Transcat operates calibration labs in imbedded customer-site locations. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry.

Transcat also operates as a leading value-added distributor that markets, sells and rents new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise, and integrity create a unique and compelling value proposition for its customers.

Transcat’s strategy is to leverage its strong brand and unique value proposition that includes its comprehensive instrument service capabilities, Cost, Control and Optimizations services, and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model. More information about Transcat can be found at: Transcat.com.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and assumptions. Forward-looking statements relate to expectations, estimates, beliefs, assumptions and predictions of future events and are identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “focus,” "look forward," “may,” “plan,” “outlook,” “potential,” “strategy,” “will,” and other similar words. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those more fully described in Transcat’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release, whether as the result of new information, future events or otherwise.

FINANCIAL TABLES FOLLOW.

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

(Unaudited)

Second Quarter Ended

Six Months Ended

September 27,

September 28,

September 27,

September 28,

2025

2024

2025

2024

Service Revenue

52,836

44,083

101,980

87,861

Distribution Revenue

29,436

23,743

56,716

46,672

Total Revenue

82,272

67,826

158,696

134,533

Cost of Service Revenue

35,843

29,492

68,778

58,387

Cost of Distribution Revenue

19,667

17,128

37,335

32,285

Total Cost of Revenue

55,510

46,620

106,113

90,672

Gross Profit

26,762

21,206

52,583

43,861

Selling, Marketing and Warehouse Expenses

10,627

8,181

20,142

15,982

General and Administrative Expenses

12,630

9,290

23,598

19,045

Total Operating Expenses

23,257

17,471

43,740

35,027

Operating Income

3,505

3,735

8,843

8,834

Interest Expense

1,269

1,720

128

Interest Income

)

(286

)

(16

)

(598

)

Other Expense

212

232

545

363

Total Interest and Other Expense/(Income), net

1,476

2,249

(107

)

Income Before Provision For Income Taxes

2,029

3,713

6,594

8,941

Provision for Income Taxes

760

427

2,064

1,247

Net Income

1,269

3,286

4,530

7,694

Basic Earnings Per Share

0.14

0.36

0.49

0.84

Basic Average Shares Outstanding

9,321

9,160

9,319

9,107

Diluted Earnings Per Share

0.14

0.36

0.48

0.84

Diluted Average Shares Outstanding

9,399

9,282

9,392

9,222

TRANSCAT, INC.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)

(Audited)

September 27,

March 29,

2025

ASSETS

Current Assets:

Cash and Cash Equivalents

5,082

1,517

Accounts Receivable, less allowance for credit losses of $789 and $659 as of September 27, 2025 and March 29, 2025, respectively

62,573

55,941

Other Receivables

638

373

Inventory

13,065

14,483

Prepaid Expenses and Other Current Assets

4,387

5,695

Total Current Assets

85,745

78,009

Property and Equipment, net

58,127

50,024

Goodwill

218,362

176,928

Intangible Assets, net

85,172

54,777

Right to Use Assets

35,495

24,345

Other Assets

1,986

1,159

Total Assets

484,887

385,242

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

Accounts Payable

15,374

16,755

Accrued Compensation and Other Current Liabilities

19,931

15,466

Current Portion of Long-Term Debt

1,816

Total Current Liabilities

35,305

34,037

Long-Term Debt

111,885

30,892

Deferred Tax Liabilities, net

9,297

9,286

Lease Liabilities

31,898

21,395

Other Liabilities

1,085

2,752

Total Liabilities

189,470

98,362

Shareholders' Equity:

Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 9,327,667 and 9,315,840 shares issued and outstanding as of September 27, 2025 and March 29, 2025, respectively

4,664

4,658

Capital in Excess of Par Value

194,534

191,167

Accumulated Other Comprehensive Loss

(747

)

(1,469

)

Retained Earnings

96,966

92,524

Total Shareholders' Equity

295,417

286,880

Total Liabilities and Shareholders' Equity

484,887

385,242

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

Six Months Ended

September 27,

September 28,

2025

2024

Cash Flows from Operating Activities:

Net Income

4,530

7,694

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Net Loss on Disposal of Property and Equipment

Noncash Lease Expense

2,034

1,373

Deferred Income Taxes

Depreciation and Amortization

12,092

8,513

Amortization of Deferred Financing Costs

Provision for Accounts Receivable and Inventory Reserves

258

108

Stock-Based Compensation Expense

2,970

1,623

Changes in Assets and Liabilities, net of acquisitions:

Accounts Receivable and Other Receivables

(3,550

)

1,746

Inventory

1,798

2,597

Prepaid Expenses and Other Current Assets

1,039

(1,918

)

Accounts Payable

(1,573

)

1,525

Accrued Compensation and Other Current Liabilities

(3,757

)

(4,621

)

Income Taxes Payable

549

(2,930

)

Net Cash Provided by Operating Activities

16,504

15,759

Cash Flows from Investing Activities:

Purchase of Property and Equipment

(9,030

)

(7,633

)

Business Acquisitions, net of cash acquired

(82,526

)

(15,858

)

Sales of Marketable Securities

15,533

Net Cash Used in Investing Activities

(91,556

)

(7,958

)

Cash Flows from Financing Activities:

Proceeds From Revolving Credit Facility

181,078

Repayment of Revolving Credit Facility

(100,084

)

Repayments of Term Loan

(1,816

)

(1,158

)

Payments of Deferred Financing Costs

(366

)

Issuance of Common Stock, net of direct costs

491

838

Repurchase of Common Stock

(110

)

(3,026

)

Net Cash Provided by/(Used in) Financing Activities

79,194

(3,346

)

Effect of Exchange Rate Changes on Cash and Cash Equivalents

(576

)

(286

)

Net Increase in Cash and Cash Equivalents

3,565

4,169

Cash and Cash Equivalents at Beginning of Period

1,517

19,646

Cash and Cash Equivalents at End of Period

5,082

23,815

TRANSCAT, INC.

Adjusted EBITDA and Operating Income Reconciliation Table

(In thousands)

(Unaudited)

Fiscal 2026

YTD

Net Income

3,261

1,269

4,530

+ Interest Expense, Net

440

1,264

1,704

+ Tax Provision

1,304

760

2,064

+ Depreciation & Amortization

5,605

6,487

12,092

+ Transaction Expenses

496

524

+ Non-cash Stock Compensation

1,130

1,839

2,969

Adjusted EBITDA*

11,768

12,115

23,883

Segment Breakdown

Service Operating Income

2,567

920

3,487

+ Depreciation & Amortization

3,763

4,562

8,325

+ Transaction Expenses

496

524

+ Other Expense

(230

)

(155

)

(385

)

+ Non-cash Stock Compensation

802

1,301

2,103

Service Adjusted Operating Income*

6,930

7,124

14,054

Distribution Operating Income

2,771

2,585

5,356

+ Depreciation & Amortization

1,842

1,925

3,767

+ Transaction Expenses

+ Other Expense

(103

)

(58

)

(161

)

+ Non-cash Stock Compensation

329

538

867

Distribution Adjusted Operating Income*

4,839

4,990

9,829

TRANSCAT, INC.

Adjusted EBITDA and Operating Income Reconciliation Table

(In thousands)

(Unaudited)

Fiscal 2025

YTD

Net Income

4,408

3,286

2,357

4,464

14,515

+ Interest Expense (Income), net

(260

)

(210

)

(20

)

463

(27

)

+ Tax Provision

820

427

772

1,792

3,811

+ Depreciation & Amortization

4,113

4,399

4,430

5,625

18,567

+ Transaction Expenses

434

778

1,277

+ Acquisition Earn-Out Adjustment

(835

)

(835

)

+ Other (Expense) / Income

(855

)

(824

)

+ Non-cash Stock Compensation

697

926

452

1,173

3,248

Adjusted EBITDA*

10,212

8,861

7,914

12,745

39,732

Segment Breakdown

Service Operating Income

4,091

3,704

1,412

5,976

15,183

+ Depreciation & Amortization

2,402

2,455

2,451

3,774

11,082

+ Transaction Expenses

146

778

935

+ Acquisition Earn-Out Adjustment

(256

)

(256

)

+ Other (Expense) / Income

(96

)

(164

)

(133

)

(299

)

+ Non-cash Stock Compensation

421

629

186

813

2,049

Service Adjusted Operating Income*

6,964

6,624

4,921

10,185

28,694

Distribution Operating Income

1,008

688

964

2,691

+ Depreciation & Amortization

1,711

1,944

1,979

1,851

7,485

+ Transaction Expense

288

342

+ Acquisition Contingent Consideration Adjustment

(579

)

(579

)

+ Other (Expense) / Income

(35

)

(67

)

(58

)

(100

)

+ Noncash Stock Compensation

276

297

266

360

1,199

Distribution Adjusted Operating Income*

3,248

2,237

2,993

2,560

11,038

TRANSCAT, INC.

Adjusted Net Income and Diluted EPS Reconciliation Table

(In Thousands, Except Per Share Amounts)

(Unaudited)

Fiscal 2026

YTD

Net Income

3,261

1,269

4,530

+ Amortization of Intangible Assets

2,844

3,461

6,305

+ Acquisition Amortization of Backlog

+ Acquisition Deal Costs

496

524

+ Acquisition Stock Expense

145

226

371

+ Income Tax Effect @ 31%

(754

)

(1,297

)

(2,051

)

Adjusted Net Income*

5,524

4,155

9,679

Diluted Average Shares Outstanding

9,389

9,399

9,392

Diluted Earnings Per Share

0.35

0.14

0.48

+ Amortization of Intangible Assets

0.30

0.37

0.67

+ Acquisition Amortization of Backlog

+ Acquisition Deal Costs

0.00

0.05

0.06

+ Acquisition Stock Expense

0.02

0.04

+ Income Tax Effect @ 31%

(0.08

)

(0.14

)

(0.22

)

Adjusted Diluted Earnings Per Share*

0.59

0.44

1.03

Fiscal 2025

YTD

Net Income

4,408

3,286

2,357

4,464

14,515

+ Amortization of Intangible Assets

1,749

1,888

1,879

2,906

8,422

+ Acquisition Amortization of Backlog

+ Acquisition Deal Costs

434

778

1,279

+ Acquisition Stock Expense

234

130

(261

)

141

244

+ Income Tax Effect at 25%

(610

)

(514

)

(599

)

(770

)

(2,493

)

+ Acquisition Earn-Out Adjustment

(836

)

(836

)

Adjusted Net Income*

6,239

4,827

4,154

5,939

21,159

Diluted Average Shares Outstanding

9,196

9,282

9,326

9,287

9,254

Diluted Earnings Per Share

0.48

0.35

0.25

0.48

1.57

+ Amortization of Intangible Assets

0.19

0.21

0.31

0.91

+ Acquisition Amortization of Backlog

0.00

+ Acquisition Deal Costs

0.05

0.00

0.08

0.00

0.14

+ Acquisition Stock Expense

0.03

0.02

(0.03

)

0.02

0.03

+ Income Tax Effect @ 25%

(0.07

)

(0.06

)

(0.06

)

(0.08

)

(0.27

)

+ Acquisition Earn-Out Adjustment

(0.09

)

(0.09

)

Adjusted Diluted Earnings Per Share*

0.68

0.52

0.45

0.64

2.29

TRANSCAT, INC.

Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

Change

SERVICE

FY 2026

FY 2025

Service Revenue

52,836

44,083

8,753

19.9

Cost of Revenue

35,843

29,492

6,351

21.5

Gross Profit

16,993

14,591

2,402

16.5

Gross Margin

32.2

33.1

Selling, Marketing & Warehouse Expenses

6,825

4,586

2,239

48.8

General and Administrative Expenses

9,248

6,301

2,947

46.8

Operating Income

920

3,704

(2,784

)

(75.2

% of Revenue

1.7

8.4

Change

DISTRIBUTION

FY 2026

FY 2025

Distribution Revenue

29,436

23,743

5,693

24.0

Cost of Revenue

19,667

17,128

2,539

14.8

Gross Profit

9,769

6,615

3,154

47.7

Gross Margin

33.2

27.9

Selling, Marketing & Warehouse Expenses

3,803

3,595

208

5.8

General and Administrative Expenses

3,381

2,989

392

13.1

Operating Income

2,585

2,554

N/M

% of Sales

8.8

0.1

Change

TOTAL

FY 2026

FY 2025

Total Revenue

82,272

67,826

14,446

21.3

Total Cost of Revenue

55,510

46,620

8,890

19.1

Gross Profit

26,762

21,206

5,556

26.2

Gross Margin

32.5

31.3

Selling, Marketing & Warehouse Expenses

10,627

8,181

2,446

29.9

General and Administrative Expenses

12,630

9,290

3,340

35.9

Operating Income

3,505

3,735

(230

)

(6.2

% of Revenue

4.3

5.5