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01/10 16:06
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings report shows mixed signals: strong year-over-year growth in certain sectors like casino gaming and recurring revenue, but significant challenges in POS automation and new customer acquisition. The raised revenue guidance and improved financials are offset by competitive pressures and cost headwinds. The Q&A section highlights uncertainties in the casino gaming market and regulatory developments. Overall, these factors balance each other out, leading to a neutral stock price prediction over the next two weeks.
BOHA! Terminals sold 1,591 units sold in Q3 2025, bringing the year-to-date total to 5,883 units, up 58% from 3,732 units sold in the first 9 months of 2024. This increase reflects progress in sales initiatives and the effectiveness of the go-to-market strategy.
Total FST net sales $4.8 million in Q3 2025, up 13% year-over-year. Growth driven by hardware sales and recurring revenue, including strong performance in Labels.
Recurring FST revenue $3.3 million in Q3 2025, up 13% year-over-year from $2.9 million. Growth attributed to increased label sales and a rise in ARPU to $792 per unit from $700 in the prior year.
Casino and gaming net sales $7.1 million in Q3 2025, up 58% year-over-year. Growth driven by a market rebound, new OEM wins, and normalized buying from major OEMs. However, domestic demand faces headwinds due to macroeconomic factors.
POS Automation sales $399,000 in Q3 2025, down 65% year-over-year. Decline attributed to normalized sales levels of Ithaca 9000 printers due to competitive dynamics.
TransAct Services Group (TSG) sales $792,000 in Q3 2025, down 8% year-over-year. Decline due to lower demand for legacy spare parts, partially offset by higher shipping revenue.
Gross margin 49.8% in Q3 2025, up from 48.1% in the prior year period. Improvement driven by higher sales and a favorable mix of casino and gaming sales, offset by cost headwinds from inflation and tariffs.
Operating income $14,000 in Q3 2025, compared to an operating loss of $837,000 in the prior year period. Improvement due to higher sales and better cost management.
Net income $15,000 in Q3 2025, compared to a net loss of $551,000 in the prior year period. Improvement driven by higher sales and cost control measures.
Adjusted EBITDA $669,000 in Q3 2025, up from a loss of $204,000 in the prior year period. Improvement reflects better financial performance across the business.
BOHA! Terminals: Sold 1,591 units in Q3 2025, totaling 5,883 units year-to-date, a 58% increase from 2024. The BOHA! platform is expanding across subverticals like convenience stores, healthcare, and sushi operators.
BOHA! Source Code Acquisition: Acquired a perpetual license for $2.55 million, providing operational freedom and long-term value creation. Fully operational version expected by early 2027.
FST Net Sales: Increased to $4.8 million in Q3 2025, up 13% year-over-year, driven by hardware sales and recurring revenue.
Recurring FST Revenue: Climbed to $3.3 million in Q3 2025, with ARPU increasing to $792 from $700 in the prior year.
New Customer Wins: Secured a rollout with a sushi franchise operator (2,100 locations) and a convenience store chain (81 locations).
International Casino Sales: Strong growth year-over-year, offsetting domestic challenges.
Operational Efficiencies: Implemented inventory reduction program, reducing inventory by over $4 million in 2025. Maintained $20 million in cash on the balance sheet.
Tariff Management: Implemented price increases to offset higher tariff and freight costs without significant customer pushback.
Future App Store for BOHA! Terminals: Evaluating development of an app store to drive future software revenue.
Casino and Gaming Strategy: Focusing on international markets and new OEM wins to offset domestic challenges.
Casino and Gaming Sales: Domestic casino market is facing challenges with slowing demand, particularly in Las Vegas, and a large buyer is in an overstock position awaiting jurisdictional approvals on new machines. This is expected to impact fourth-quarter sales.
Tariff and Cost Headwinds: The company is experiencing modest cost headwinds from overhead inflation and tariffs, which have required price increases to cover higher costs. This remains a fluid situation that could impact future sales.
POS Automation Sales: Sales have declined significantly and are expected to remain at a low level of $400,000 to $500,000 per quarter due to competitive dynamics.
New Customer Acquisition: The company added only two new logos in the quarter, which was lower than expected, though offset by expansion with existing customers. This could indicate challenges in acquiring new customers.
Supply Chain and Inventory Management: While inventory levels have been reduced successfully, the company expects inventories to increase in the fourth quarter and into 2026, which could pose risks if demand does not meet expectations.
FST Business Growth: The company expects ongoing progress and improvement in the FST business as they move into 2026, driven by repeatable execution and competitive advantages.
BOHA! Source Code Implementation: The fully operational and supported version of the BOHA! source code is expected to launch in early 2027, providing greater operational freedom and long-term value creation.
Casino and Gaming Sales: Domestic casino and gaming sales are expected to face challenges in Q4 2025 due to macroeconomic factors, but the company anticipates an improving set of dynamics in 2026. International sales remain strong.
Epic TR80 Thermal Roll Printer: Sales are expected to become a larger contributor in 2026.
Revenue Guidance for 2025: The company maintains its full-year revenue guidance of $50 million to $53 million, reflecting continued FST expansion and casino stability amid anticipated Q4 deceleration.
Adjusted EBITDA for 2025: Expected to range from breakeven to positive $1.5 million for the full year, assuming no major disruptions in supply or demand.
Future App Store for BOHA! Terminals: The company is evaluating the development and launch of an app store for BOHA! Terminals as a future project to drive software revenue.
The selected topic was not discussed during the call.
The earnings report shows mixed signals: strong year-over-year growth in certain sectors like casino gaming and recurring revenue, but significant challenges in POS automation and new customer acquisition. The raised revenue guidance and improved financials are offset by competitive pressures and cost headwinds. The Q&A section highlights uncertainties in the casino gaming market and regulatory developments. Overall, these factors balance each other out, leading to a neutral stock price prediction over the next two weeks.
The earnings call summary shows strong revenue growth and positive product development, particularly with record BOHA! Terminal sales and customer upgrades. The Q&A section suggests positive sentiment from analysts, with management expressing confidence in growth and strategy execution. Despite some uncertainties in guidance, the overall financial health and market strategy appear solid. Considering the strong revenue growth and positive business updates, the stock is likely to see a positive movement in the short term.
The earnings call presents a mixed picture: strong revenue growth and improved operational performance are offset by declining gross margins and sector volatility. The Q&A reveals optimism but lacks concrete data, and the software transition introduces short-term challenges. The unchanged revenue guidance suggests stability, but market risks and margin pressures temper enthusiasm. With no market cap provided, a neutral prediction (-2% to 2%) is prudent, balancing positive growth with potential risks.
The earnings call presents a mixed sentiment. Financial performance shows improvement, with increased net sales and reduced operating expenses, but gross margins have declined. The suspension of the strategic review and macroeconomic uncertainties weigh negatively. The Q&A highlights positive pipeline conversion and opportunities in new markets, yet lacks clarity on revenue guidance specifics. Considering these factors, along with the absence of new partnerships or significant shareholder return announcements, the stock price is likely to remain stable, leading to a neutral prediction.
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