Business
Transcat Reports Strong Fiscal First Quarter 2027 Financial Results with Double-Digit Service Organic Revenue* Growth and Service Gross Margin Expansion
Transcat Reports Strong Fiscal First Quarter 2027 Financial Results with Double-Digit Service Organic Revenue* Growth and Service Gross Margin
About this update from Transcat, Inc.
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 first quarter ended June 27, 2026 (the “first quarter”) of fiscal year 2027. Management Commentary First 100 Days "Prior to discussing our strong financial performance, I want to share my observations and take aways after my first full quarter as CEO of Transcat,” said Jaime Irick, President and CEO. "Over the past hundred days, I have engaged with and learned from our customers, strategic partners, and Transcat teammates across our technology labs, field operations, and sales organization. I have also conducted extensive reviews of Transcat’s end-to-end operations across North America, Central America, and Ireland; spent time with the analyst and investment community; and held in-depth discussions, both individually and collectively, with our Board of Directors. These firsthand experiences have only strengthened my appreciation for Transcat’s leadership, the dedication of our employees, and the lasting customer and strategic partnerships we have built over more than 60 years of industry leadership. “Our first quarter results, together with the insights gained during my first 100 days, reinforce my conviction that we have clear, measurable opportunities to build on our industry-leading organic and inorganic growth. Just as importantly, they underscore our opportunity to become as recognized for operational excellence as we have historically been for growth. This journey will take time and disciplined execution. By relentlessly improving our customer-facing business processes, deploying proven Lean operating principles, optimizing business mix and pricing, and applying AI to enhance productivity and customer solutions, we can activate repeatable levers to expand margins and strengthen the foundation for continued growth. As we move forward, we will build an even stronger Transcat by growing the business, improving how we operate, and energizing our teammates. Continued Strong Financial Performance "The fiscal first quarter of 2027 showcased another sequential quarter of strong financial performance as strength in the Calibration business drove double-digit Service revenue growth, double-digit Service organic revenue* growth and Service gross margin expansion. The inherent operating leverage in our Service model, along with our focus on operational excellence and maturing of new customer relationships, drove 90bps of Service gross margin expansion. Distribution revenue grew 11% during the quarter, fueled by continued strength in Rentals and Product sales. Revenue momentum combined with productivity gains enabled a 19% increase in adjusted EBITDA*. Given our strong organic growth, operational excellence, and strategic acquisitions, we believe Transcat continues to gain market share in the calibration services market. “Looking ahead, we remain optimistic about the Service segment’s momentum, supported by high customer retention, conversion of new business wins into revenue, and continued strong demand in life sciences, aerospace and defense, and the other regulated end markets we serve. The recent acquisition of SCM is progressing well and we are excited about the opportunity that exists in Central America. For the fiscal 2027 full year, we confidently expect Service organic revenue growth in the high single-digits and Service gross margin expansion, assuming the broader economic environment remains stable. “Fiscal first quarter financial results are a testament to the execution of our proven and successful core strategy: strong service organic revenue growth, service gross margin expansion, strategic M&A, and steady rentals growth. We believe our compelling customer value proposition and focus on operational excellence, along with continued acquisitions of premier calibration service companies, positions Transcat to deliver sustainable, long-term shareholder value," concluded Mr. Irick. * See Note 1 on page 4 for a description of the non-GAAP financial measures and pages 10-14 for the reconciliation tables. First Quarter Fiscal 2027 Results (Results are compared with the first quarter of the fiscal year ended June 28, 2025 ( “ fiscal 2026 ” )) ($ in thousands) Change FY27 Q1 FY26 Q1 $ % Service Revenue $ 62,559 $ 49,144 $ 13,415 27.3 % Distribution Revenue 30,386 27,280 3,106 11.4 % Revenue $ 92,945 $ 76,424 $ 16,521 21.6 % Gross Profit $ 30,734 $ 25,821 $ 4,913 19.0 % Gross Margin 33.1 % 33.8 % Operating Income $ 3,719 $ 5,338 $ (1,620 ) (30.3 )% Operating Margin 4.0 % 7.0 % Net Income $ 1,331 $ 3,261 $ (1,931 ) (59.2 )% Net Margin 1.4 % 4.3 % Adjusted Net Income* $ 4,852 $ 5,524 $ (672 ) (12.2 )% Adjusted Net Margin* 5.2 % 7.2 % Adjusted EBITDA* $ 13,956 $ 11,768 $ 2,188 18.6 % Adjusted EBITDA* Margin 15.0 % 15.4 % Diluted EPS $ 0.14 $ 0.35 $ (0.21 ) (59.9 )% Adjusted Diluted EPS* $ 0.51 $ 0.59 $ (0.08 ) (13.6 )% Consolidated revenue was $92.9 million, an increase of $16.5 million or 21.6%, driven by growth in both service and distribution segments. Consolidated gross profit was $30.7 million, an increase of $4.9 million, or 19.0%, while gross margin decreased 70bps when compared to the prior year period. Operating expenses were $27.0 million, an increase of $6.5 million, or 31.9%, driven by incremental expenses from acquired businesses, including intangible assets amortization expense, increased stock-based compensation expense, and executive transition costs. Net income was $1.3 million, and Adjusted EBITDA* was $14.0 million, which represented an increase of $2.2 million or 18.6%, primarily driven by strong revenue growth. Earnings per diluted share was $0.14 compared to earnings per diluted share of $0.35 last year. Adjusted Diluted Earnings Per Share* were $0.51 versus $0.59 last year. * See Note 1 on page 4 for a description of these non-GAAP financial measures and pages 10-14 for the reconciliation tables. Service Segment First Quarter Results Represents the accredited calibration, repair, inspection and laboratory instrument services business ( 67.3% of total revenue for the first quarter of fiscal 2027). ($ in thousands) Change FY27 Q1 FY26 Q1 $ % Service Segment Revenue $ 62,559 $ 49,144 $ 13,415 27.3 % Gross Profit $ 21,178 $ 16,209 $ 4,969 30.7 % Gross Margin 33.9 % 33.0 % Operating (Loss) Income $ 2,280 $ 2,566 $ (286 ) (11.1 )% Operating Margin 3.6 % 5.2 % Adjusted Operating Income* $ 9,629 $ 7,158 $ 2,471 34.5 % Adjusted Operating Margin* 15.4 % 14.6 % * See Note 1 on page 4 for a description of this non-GAAP financial measure and pages 10-14 for the reconciliation tables. Service segment revenue was $62.6 million, an increase of $13.4 million, or 27.3%, and included $6.9 million of incremental revenue from acquisitions. The segment gross margin was 33.9%, an increase of 90bps from the prior year. Distribution Segment First Quarter Results Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation ( 32.7% of total revenue for the first quarter of fiscal 2027). ($ in thousands) Change FY27 Q1 FY26 Q1 $ % Distribution Segment Revenue $ 30,386 $ 27,280 $ 3,106 11.4 % Gross Profit $ 9,556 $ 9,612 $ (56 ) (0.6 %) Gross Margin 31.4 % 35.2 % Operating Income $ 1,439 $ 2,772 $ (1,333 ) (48.1 %) Operating Margin 4.7 % 10.2 % Adjusted Operating Income* $ 4,346 $ 4,943 $ (597 ) (12.1 %) Adjusted Operating Margin* 14.3 % 18.1 % * See Note 1 on page 4 for a description of this non-GAAP financial measure and pages 10-14 for the reconciliation tables. Distribution segment revenue was $30.4 million, which represented an increase of $3.1 million, or 11.4%. Distribution segment gross margin was 31.4%, a decrease of 380 bps. The revenue increase was driven by continued strength in rentals and product sales. The revenue mix in the current quarter compared to the prior year quarter resulted in a decrease in gross margin. Balance Sheet and Cash Flow Overview On June 27, 2026, the Company had $6.7 million in cash and cash equivalents on hand and $39.6 million available for borrowing, subject to covenant restrictions, under its secured revolving credit facility. Net cash provided by operations for the three months ended June 27, 2026 and June 28, 2025 was $8.8 million and $3.6 million, respectively. Operating free cash flow* for the three months ended June 27, 2026 was $4.8 million. Total long-term debt as of June 27, 2026 was $110.4 million versus $99.9 million on March 28, 2026. Tom Barbato, Transcat’s Chief Financial Officer, added, “Net income decreased $1.9 million, in line with expectations and influenced by higher levels of deal-related amortization and stock compensation expense. That said, Adjusted EBITDA* grew 19%, and we believe it is a better indicator of our ability to generate cash. The result was a year-over-year increase in operating free cash flow of $5.8 million. Given increased levels of cash generation, our strong balance sheet and proven strategic execution, we believe we remain well-positioned to pursue opportunities for growth through both organic initiatives and strategic M&A.” * See Note 1 on page 4 for a description of the non-GAAP financial measures and pages 10-14 for the reconciliation tables. Fiscal First Quarter 2027 Results Webcast and Conference Call Transcat will host a conference call and webcast on Tuesday, August 4, 2026, at 4:30 p.m. ET. Management will review the financial and operating results for the first 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 (833) 419-0865. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations . Tuesday, August 4, 2026 4:30 p.m. Eastern Time Dial-in – Toll-Free US / Canada: 1-833-419-0865 Dial-in – Toll / International: 1-785-838-9333 Conference ID: TRANSCAT (THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY) Webcast and accompanying slide presentation: https://viavid.webcasts.com/starthere.jsp?ei=1767397&tp_key=17aef9c35b A telephonic replay will be available from 8:30 p.m. ET on the day of the conference call through Tuesday, August 18, 2026. To listen to the archived call, dial 1-844-512-2921 from the US or Canada, or 1-412-317-6671 from international locations, and enter conference ID number 11161995 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 service revenue, net income, operating income, diluted earnings per share, net cash provided by operating activities, and long-term debt, which are U.S. generally accepted accounting principle ("GAAP") measures, we present service organic revenue, adjusted net income, adjusted EBITDA, adjusted operating income, adjusted diluted earnings per share, operating free cash flow and net debt, which are non-GAAP measures. Management uses these non-GAAP measures as indicators to better assess comparability between periods and as a basis for planning and forecasting because management believes these non-GAAP measures reflect our core business operations. These non-GAAP measures are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the SEC. As such, they should not be considered a substitute for the corresponding GAAP measures and, therefore, they should not be used in isolation, but in conjunction with the GAAP measures. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See pages 10-14 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 sciences 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 and Internationally. 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 “anticipate,” “assuming,” “believe,” “can,” “continue,” “estimate,” “expect,” “focus,” “looking ahead,” “may,” “plan,” “opportunity,” “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. TRANSCAT, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In Thousands, Except Per Share Amounts) Three Months Ended June 27, 2026 June 28, 2025 Service Revenue $ 62,559 $ 49,144 Distribution Revenue 30,386 27,280 Total Revenue 92,945 76,424 Cost of Service Revenue 41,381 32,935 Cost of Distribution Revenue 20,830 17,668 Total Cost of Revenue 62,211 50,603 Gross Profit 30,734 25,821 Selling, Marketing and Warehouse Expenses 11,374 9,515 General and Administrative Expenses 15,641 10,968 Total Operating Expenses 27,015 20,483 Operating Income 3,719 5,338 Interest Expense 1,518 451 Interest Income (3 ) (11 ) Other Expense 19 333 Total Interest and Other Expense, net 1,534 773 Income Before Provision for Income Taxes 2,185 4,565 Provision for Income Taxes 854 1,304 Net Income $ 1,331 $ 3,261 Basic Earnings Per Share $ 0.14 $ 0.35 Basic Average Shares Outstanding 9,353 9,317 Diluted Earnings Per Share $ 0.14 $ 0.35 Diluted Average Shares Outstanding 9,473 9,389 TRANSCAT, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In Thousands, Except Share and Per Share Amounts) June 27, 2026 March 28, 2026 ASSETS Current Assets: Cash and Cash Equivalents $ 6,709 $ 4,942 Accounts Receivable, less allowance for credit losses of $936 and $851 as of June 27, 2026 and March 28, 2026, respectively 66,748 65,170 Other Receivables 727 672 Inventory 14,777 13,705 Prepaid Expenses and Other Current Assets 6,773 7,973 Total Current Assets 95,734 92,462 Property and Equipment, net 58,368 57,801 Goodwill 226,808 218,185 Intangible Assets, net 78,194 77,706 Right to Use Assets 31,801 32,365 Other Assets 1,723 1,968 Total Assets $ 492,628 $ 480,487 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 20,302 $ 17,931 Accrued Compensation and Other Current Liabilities 18,115 21,697 Total Current Liabilities 38,417 39,628 Long-Term Debt 110,385 99,885 Deferred Tax Liabilities, net 11,361 10,167 Lease Liabilities 28,391 29,000 Other Liabilities 1,175 1,188 Total Liabilities 189,729 179,868 Commitments and Contingencies (Note 6) Shareholders' Equity: Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 9,359,263 and 9,333,953 shares issued and outstanding as of June 27, 2026 and March 28, 2026, respectively 4,680 4,670 Capital in Excess of Par Value 200,629 199,115 Accumulated Other Comprehensive Loss (1,258 ) (923 ) Retained Earnings 98,848 97,757 Total Shareholders' Equity 302,899 300,619 Total Liabilities and Shareholders' Equity $ 492,628 $ 480,487 TRANSCAT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In Thousands) Three Months Ended June 27, 2026 June 28, 2025 Cash Flows from Operating Activities: Net Income $ 1,331 $ 3,261 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Net Loss on Disposal of Property and Equipment 45 54 Noncash Lease Expense 1,599 915 Deferred Income Taxes 2 24 Depreciation and Amortization 6,959 5,605 Amortization of Deferred Financing Costs 38 - Provision for Accounts Receivable and Inventory Reserves 115 118 Stock-Based Compensation Expense 1,978 1,130 Changes in Assets and Liabilities, net of acquisitions: Accounts Receivable and Other Receivables (1,264 ) (1,214 ) Inventory 407 (745 ) Prepaid Expenses and Other Current Assets 1,537 1,737 Accounts Payable 1,790 (3,300 ) Accrued Compensation and Other Current Liabilities (4,152 ) (3,423 ) Lease Liabilities (1,567 ) (915 ) Income Taxes Payable - 376 Net Cash Provided by Operating Activities 8,817 3,623 Cash Flows from Investing Activities: Purchase of Property and Equipment (3,982 ) (4,598 ) Business Acquisitions, net of cash acquired (12,808 ) - Net Cash Used in Investing Activities (16,790 ) (4,598 ) Cash Flows from Financing Activities: Proceeds From Revolving Credit Facility, net of lender fees 20,835 31,690 Repayment of Revolving Credit Facility (10,335 ) (29,399 ) Repayments of Term Loan - (602 ) Issuance of Common Stock, net of direct costs 1,161 257 Repayment of Financing Leases (84 ) - Repurchase of Common Stock (1,855 ) - Net Cash Provided by Financing Activities 9,722 1,946 Effect of Exchange Rate Changes on Cash and Cash Equivalents 18 (627 ) Net Increase in Cash and Cash Equivalents 1,767 344 Cash and Cash Equivalents at Beginning of Period 4,942 1,517 Cash and Cash Equivalents at End of Period $ 6,709 $ 1,861 TRANSCAT, INC. Adjusted EBITDA Reconciliation Table (In thousands) (Unaudited) Fiscal 2027 Q1 Q2 Q3 Q4 YTD Net Income $ 1,331 $ - $ - $ - $ 1,331 Interest Expense, Net 1,515 - - - 1,515 Tax Provision 854 - - - 854 Depreciation & Amortization 6,914 - - - 6,914 Executive Transition Costs (1) 736 - - - 736 Transaction Expenses (2) 628 - - - 628 Non-cash Stock Compensation 1,978 - - - 1,978 Adjusted EBITDA* $ 13,956 $ - $ - $ - $ 13,956 Adjusted EBITDA Margin # 15.0 % 15.0 % Fiscal 2026 Q1 Q2 Q3 Q4 YTD Net Income (Loss) $ 3,261 $ 1,269 $ (1,101 ) $ 1,947 $ 5,376 Interest Expense, Net 440 1,264 1,500 1,375 4,579 Tax Provision 1,304 760 (338 ) 887 2,613 Depreciation & Amortization 5,605 6,487 7,130 6,950 26,172 Executive Transition Costs (1) - - 771 935 1,706 Transaction Expenses (2) 28 496 45 175 744 Non-cash Stock Compensation 1,130 1,839 2,061 2,519 7,549 Adjusted EBITDA* $ 11,768 $ 12,115 $ 10,068 $ 14,788 $ 48,739 Adjusted EBITDA Margin # 15.4 % 14.7 % 12.0 % 16.6 % 14.7 % * See Note 1 on page 4 for a description of the non-GAAP financial measures. # Calculated by dividing Adjusted EBITDA* by Revenue. (1) Costs incurred in connection with the CEO transition plan. (2) Expenses incurred in connection with acquisitions. TRANSCAT, INC. Operating Income Reconciliation Table (In thousands) (Unaudited) Fiscal 2027 Segment Breakdown Q1 Q2 Q3 Q4 YTD Service Operating Income $ 2,280 $ - $ - - 2,280 Depreciation & Amortization 5,006 - - - 5,006 Executive Transition Costs (1) 491 - - - 491 Transaction Expenses (2) 524 - - - 524 Non-cash Stock Compensation 1,328 - - - 1,328 Service Adjusted Operating Income* $ 9,629 $ - $ - $ - $ 9,629 Distribution Operating Income $ 1,439 $ - $ - - 1,439 Depreciation & Amortization 1,908 - - - 1,908 Executive Transition Costs (1) 245 - - - 245 Transaction Expenses (2) 104 - - - 104 Non-cash Stock Compensation 650 - - - 650 Distribution Adjusted Operating Income* $ 4,346 $ - $ - $ - $ 4,346 Fiscal 2026 Segment Breakdown Q1 Q2 Q3 Q4 YTD Service Operating Income (Loss) $ 2,566 $ 920 $ (2,052 ) $ 3,508 $ 4,942 Depreciation & Amortization 3,763 4,562 5,175 5,143 18,643 Executive Transition Costs (1) - - 519 630 1,149 Transaction Expenses (2) 28 496 45 175 744 Non-cash Stock Compensation 801 1,301 1,459 1,746 5,307 Service Adjusted Operating Income* $ 7,158 $ 7,279 $ 5,146 $ 11,202 $ 30,785 Distribution Operating Income $ 2,772 $ 2,585 $ 2,140 $ 824 $ 8,321 Depreciation & Amortization 1,842 1,925 1,955 1,807 7,529 Executive Transition Costs (1) - - 252 305 557 Transaction Expenses (2) - - - - - Non-cash Stock Compensation 329 538 602 773 2,242 Distribution Adjusted Operating Income* $ 4,943 $ 5,048 $ 4,949 $ 3,709 $ 18,649 * See Note 1 on page 4 for a description of the non-GAAP financial measures. (1) Costs incurred in connection with the CEO transition plan. (2) Expenses incurred in connection with acquisitions. TRANSCAT, INC. Adjusted Net Income and Diluted EPS Reconciliation Table (In Thousands, Except Per Share Amounts) (Unaudited) Fiscal 2027 Q1 Q2 Q3 Q4 YTD Net Income $ 1,331 $ - $ - $ - $ 1,331 Amortization Expense 3,598 - - - 3,598 Executive Transition Costs (1) 736 - - - 736 Transaction Expenses (2) 628 - - - 628 Acquisition Stock Expense (3) 186 - - - 186 Income Tax Effect @ 31.6% (1,627 ) - - - (1,627 ) Adjusted Net Income* $ 4,852 $ - $ - $ - $ 4,852 Diluted Average Shares Outstanding 9,473 - - 9,473 Diluted Earnings Per Share $ 0.14 $ - $ - $ - $ 0.14 Amortization Expense 0.38 - - - 0.38 Executive Transition Costs (1) 0.08 - - - 0.08 Transaction Expenses (2) 0.07 - - - 0.07 Acquisition Stock Expense (3) 0.02 - - - 0.02 Income Tax Effect @ 31.6% (0.17 ) - - - (0.17 ) Adjusted Diluted Earnings Per Share* $ 0.51 - - - $ 0.51 Fiscal 2026 Q1 Q2 Q3 Q4 YTD Net Income (Loss) $ 3,261 $ 1,269 $ (1,101 ) $ 1,947 $ 5,376 Amortization Expense 2,844 3,461 3,977 3,488 13,770 Executive Transition Costs (1) - - 771 935 1,706 Transaction Expenses (2) 28 496 45 175 744 Acquisition Stock Expense (3) 145 226 291 290 952 Income Tax Effect @ 32% (754 ) (1,297 ) (1,601 ) (1,598 ) (5,251 ) Adjusted Net Income* $ 5,524 $ 4,155 $ 2,382 $ 5,237 $ 17,297 Diluted Average Shares Outstanding 9,389 9,399 9,329 9,398 9,380 Diluted Earnings (Loss) Per Share $ 0.35 $ 0.14 $ (0.12 ) $ 0.21 $ 0.57 Amortization Expense 0.30 0.37 0.43 0.37 1.47 Executive Transition Costs (1) - - 0.08 0.10 0.18 Transaction Expenses (2) - 0.05 - 0.02 0.08 Acquisition Stock Expense (3) 0.02 0.02 0.03 0.03 0.10 Income Tax Effect @ 32% (0.08 ) (0.14 ) (0.17 ) (0.17 ) (0.56 ) Adjusted Diluted Earnings Per Share* $ 0.59 $ 0.44 $ 0.26 $ 0.56 $ 1.84 * See Note 1 on page 4 for a description of the non-GAAP financial measures. # Calculated by dividing Adjusted EBITDA* by Revenue. (1) Costs incurred in connection with the CEO transition plan. (2) Expenses incurred in connection with acquisitions. (3) Stock compensation expense incurred that is related to grants to employees that were acquired with recent acquisitions. TRANSCAT, INC. Additional Information - Business Segment Data (Dollars in thousands) (Unaudited) Change SERVICE FY 2027 Q1 FY 2026 Q1 $ % Service Revenue $ 62,559 $ 49,144 $ 13,415 27.3 % Cost of Revenue 41,381 32,935 8,446 25.6 % Gross Profit $ 21,178 $ 16,209 $ 4,969 30.7 % Gross Margin 33.9 % 33.0 % Selling, Marketing & Warehouse Expenses $ 7,599 $ 5,866 $ 1,733 29.5 % General and Administrative Expenses 11,299 7,777 3,522 45.3 % Operating Income $ 2,280 $ 2,566 $ (286 ) (11.1 )% % of Revenue 3.6 % 5.2 % Change DISTRIBUTION FY 2027 Q1 FY 2026 Q1 $ % Distribution Revenue $ 30,386 $ 27,280 $ 3,106 11.4 % Cost of Revenue 20,830 17,668 3,162 17.9 % Gross Profit $ 9,556 $ 9,612 $ (57 ) (0.6 %) Gross Margin 31.4 % 35.2 % Selling, Marketing & Warehouse Expenses $ 3,775 $ 3,649 $ 126 3.4 % General and Administrative Expenses 4,342 3,191 1,151 36.1 % Operating Income $ 1,439 $ 2,772 $ (1,333 ) (48.1 %) % of Revenue 4.7 % 10.2 % Change TOTAL FY 2027 Q1 FY 2026 Q1 $ % Total Revenue $ 92,945 $ 76,424 $ 16,521 21.6 % Total Cost of Revenue 62,211 50,603 11,608 22.9 % Gross Profit $ 30,734 $ 25,821 $ 4,913 19.0 % Gross Margin 33.1 % 33.8 % Selling, Marketing & Warehouse Expenses $ 11,374 $ 9,515 $ 1,859 19.5 % General and Administrative Expenses 15,641 10,968 4,673 42.6 % Operating Income $ 3,719 $ 5,338 $ (1,620 ) (30.3 )% % of Revenue 4.0 % 7.0 % TRANSCAT, INC. Service Organic Revenue, Operating Free Cash Flow, and Net Debt (Dollars in thousands) (Unaudited) Service Organic Revenue First Quarter Ended June 27, June 28, Change 2026 2025 $ % Service Revenue $ 62,559 $ 49,144 $ 13,415 27 % Less: Acquired Revenue (1) (6,930 ) - Less: Freight Billed to Customer (861 ) (603 ) Service Organic Revenue * $ 54,768 $ 48,541 $ 6,227 13 % (1) Defined as revenue generated by an acquired business for twelve months after the closing of an acquisition. Operating Free Cash Flow Three Months Ended June 27, June 28, 2026 2025 Net cash provided by operations $ 8,817 $ 3,623 Capital Expenditures (3,982 ) (4,598 ) Operating Free Cash Flow* $ 4,835 $ (975 ) Net Debt June 27, March 28, 2026 2026 Long-Term Debt $ 110,385 $ 99,885 Less: Cash and Cash Equivalents (6,709 ) (4,942 ) Net Debt * $ 103,676 $ 94,943 * See Note 1 on page 4 for a description of the non-GAAP financial measures. 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