Business
Transcat Reports Strong Fiscal Fourth Quarter 2026 Financial Results with Continued High Single-Digit Service Organic Revenue* Growth
Transcat Reports Strong Fiscal Fourth Quarter 2026 Financial Results with Continued High Single-Digit Service Organic Revenue*
About this update from Transcat, Inc.
Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leader in test measurement, control and calibration, has reported financial and operational results for its fiscal fourth quarter and year ended March 28, 2026 (“fiscal 2026”). Management Commentary “Transcat achieved robust results across both business segments in the fiscal fourth quarter, with service organic revenue* climbing 7%," said Jaime Irick, President and CEO. "Distribution revenue surged 11% during the quarter, accompanied by a 280 basis point expansion in gross margin compared to the prior year, fueled by our ongoing strategic shift toward higher-margin rental offerings. The combined strength of our team's operational execution and strong revenue momentum drove a 16% increase in adjusted EBITDA*. Service revenue grew 18% in the quarter, the sixty-eighth consecutive quarter of service revenue growth. Given our strong organic growth and strategic acquisitions of top regional players we believe Transcat gained market share in the calibration services market during fiscal 2026. Service gross margins improved sequentially in the fiscal fourth quarter by 670 bps, as expected. Looking ahead, we remain optimistic about the trajectory of our service segment, underpinned by strong customer retention, rising activity levels, and the conversion of new business wins into revenue. We expect service organic revenue growth to continue in the high single-digits in Fiscal 2027, assuming the broader economic environment remains stable. Strategic M&A is a key pillar of our overall growth strategy and the recent acquisition of SCM Metrology and Laboratories reinforces our belief that we continue to be the acquirer of choice in the calibration services market. SCM establishes Transcat’s first operational presence in Latin America and advances the Company’s strategy to grow alongside our existing customers in high-growth, highly regulated markets. I am incredibly impressed with everyone on the Transcat leadership and governance teams, our dedicated employees across all regions, and our world-class customer and partner base. Our core values prioritize uncompromising integrity, relentless customer focus, and technical excellence to ensure safety and quality in the highly regulated industries we serve. I am extremely excited to be part of this exceptional team, and we will continue to execute and accelerate our proven and successful core strategy: high single-digit service organic revenue growth, service gross margin expansion, strategic M&A, and strong rentals growth. We are confident that our compelling value proposition, combined with recent additions of premier calibration service companies that broaden our geographic reach, positions Transcat to deliver continued sustainable, long-term shareholder value," concluded Mr. Irick. * See Note 1 on page 6 for a description of the non-GAAP financial measures and pages 12-17 for the reconciliation tables. Fourth Quarter Fiscal 2026 Review (Results are compared with the fourth quarter of the fiscal year ended March 29, 2025 ("fiscal 2025")) ($ in thousands) Change FY26 Q4 FY25 Q4 $ % Service Revenue $ 61,570 $ 52,010 $ 9,560 18.4 % Distribution Revenue 27,755 25,124 2,631 10.5 % Revenue $ 89,325 $ 77,134 $ 12,191 15.8 % Gross Profit $ 30,468 $ 25,913 $ 4,555 17.6 % Gross Margin 34.1 % 33.6 % Operating Income $ 4,332 $ 6,940 $ (2,608 ) (37.6 )% Operating Margin 4.8 % 9.0 % Net Income $ 1,947 $ 4,464 $ (2,517 ) (56.4 )% Net Margin 2.2 % 5.8 % Adjusted Net Income* 5,237 5,939 $ (702 ) (11.8 )% Adjusted Net Margin* 5.9 % 7.7 % Adjusted EBITDA* $ 14,788 $ 12,745 $ 2,043 16.0 % Adjusted EBITDA* Margin 16.6 % 16.5 % Diluted EPS $ 0.21 $ 0.48 $ (0.27 ) (56.3 )% Adjusted Diluted EPS* $ 0.56 $ 0.64 $ (0.08 ) (12.5 )% *See Note 1 on page 6 for a description of these non-GAAP financial measures and pages 12-17 for the reconciliation tables. Consolidated revenue was $89.3 million, an increase of 15.8%, compared to the prior year quarter primarily due to organic service revenue* growth and revenue related to acquisitions. Consolidated gross profit was $30.5 million, an increase of $4.6 million, or 17.6%, and gross margin increased by 50 basis points compared to the prior year quarter, primarily due to sales mix. Operating expenses were $26.1 million, an increase of $7.2 million, or 37.8%, driven by incremental expenses from acquired businesses, including increased intangibles amortization expense, increased stock-based compensation expense, executive transition costs, and focused marketing spend. Net income was $1.9 million, a decrease of $2.5 million compared to the prior year quarter net income of $4.5 million. Adjusted EBITDA* was $14.8 million, which represented an increase of $2.0 million or 16.0%. Net income per diluted share of $0.21 was down from $0.48 last year and adjusted diluted earnings per share* was down $0.08 at $0.56 versus $0.64 last year. Service Segment Fiscal 2026 Fourth Quarter Results Represents the accredited calibration, repair, inspection and laboratory instrument services business (68.9% of total revenue for the fourth quarter of fiscal 2026). ($ in thousand) Change FY26 Q4 FY25 Q4 $ % Service Segment Revenue $ 61,570 $ 52,010 $ 9,560 18.4 % Gross Profit $ 21,860 $ 18,828 $ 3,032 16.1 % Gross Margin 35.5 % 36.2 % Operating Income $ 3,508 $ 5,976 $ (2,468 ) (41.3 )% Operating Margin 5.7 % 11.5 % Adjusted Operating Income* $ 11,202 $ 10,318 $ 884 8.6 % Adjusted Operating Margin* 18.2 % 19.8 % *See Note 1 on page 6 for a description of this non-GAAP financial measure and pages 12-17 for the reconciliation tables. Service segment revenue was $61.6 million, an increase of $9.6 million or 18.4% and included $5.8 million of incremental revenue from acquisitions. Service organic revenue increased 7% compared to the prior year quarter. The segment gross margin decreased 70 basis points from the prior year, primarily due to costs associated with new customer wins. Distribution Segment Fiscal 2026 Fourth Quarter Results Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (31.1% of total revenue for the fourth quarter of fiscal 2026). ($ in thousands) Change FY26 Q4 FY25 Q4 $ % Distribution Segment Revenue $ 27,755 $ 25,124 $ 2,631 10.5 % Gross Profit $ 8,608 $ 7,085 $ 1,523 21.5 % Gross Margin 31.0 % 28.2 % Operating Income $ 824 $ 964 $ (140 ) (14.5 )% Operating Margin 3.0 % 3.8 % Adjusted Operating Income* $ 3,709 $ 2,618 $ 1,091 41.7 % Adjusted Operating Margin* 13.4 % 10.4 % *See Note 1 on page 6 for a description of this non-GAAP financial measure and pages 12-17 for the reconciliation tables. Distribution segment revenue was $27.8 million, an increase of 10.5% on improved rental sales. Distribution segment gross margin was 31.0%, an increase of 280 basis points, driven by a favorable sales mix. Full-Year Fiscal 2026 Review (Results are compared with full-year fiscal 2025) ($ in thousands) Change FY 2026 FY 2025 $ % Service Revenue 217,209 181,428 $ 35,781 19.7 % Distribution Revenue 114,668 96,993 17,675 18.2 % Revenue $ 331,877 $ 278,421 $ 53,456 19.2 % Gross Profit $ 108,304 $ 89,453 $ 18,851 21.1 % Gross Margin 32.6 % 32.1 % Operating Income $ 13,263 $ 17,874 $ (4,611 ) (25.8 )% Operating Margin 4.0 % 6.4 % Net Income $ 5,376 $ 14,515 $ (9,139 ) (63.0 )% Net Margin 1.6 % 5.2 % Adjusted Net Income* $ 17,297 $ 21,159 $ (3,862 ) (18.2 )% Adjusted Net Margin* 5.2 % 7.6 % Adjusted EBITDA* $ 48,739 $ 39,732 $ 9,007 22.7 % Adjusted EBITDA* Margin 14.7 % 14.3 % Diluted EPS $ 0.57 $ 1.57 $ (1.00 ) (63.7 )% Adjusted Diluted EPS* $ 1.84 $ 2.29 $ (0.45 ) (19.7 )% *See Note 1 on page 6 for a description of these non-GAAP financial measures and pages 12-17 for the reconciliation tables. Total revenue was $331.9 million, an increase of $53.5 million or 19.2%. Consolidated gross profit was $108.3 million, up $18.9 million, or 21.1%, and gross margin was 32.6%, an increase of 50 basis points. Consolidated operating expenses were $95.0 million, an increase of $23.5 million, or 32.8%, driven by incremental expenses from acquired businesses, including increased intangibles amortization expense, increased stock-based compensation expense, executive transition costs, and higher sales-based incentives. As a result, consolidated operating income was $13.3 million compared with $17.9 million in the prior fiscal year, a decrease of 25.8%. Net income was $5.4 million, a decrease of $9.1 million compared to the prior year net income of $14.5 million. Adjusted EBITDA* was $48.7 million which represented an increase of $9.0 million or 22.7%. Net income per diluted share decreased to $0.57 from $1.57 and adjusted diluted earnings per share was $1.84 versus $2.29 last year. Balance Sheet and Cash Flow Overview On March 28, 2026, the Company had $4.9 million in cash and cash equivalents and $50.1 million available for borrowing, subject to covenant restrictions, under its secured revolving credit facility. Net cash provided by operations for the year ended March 2026 and March 2025 was $34.9 million and $39.0 million, respectively. Operating free cash flow* for the year ended March 2026 and March 2025 was $19.6 million and $25.8 million, respectively. Total debt as of March 28, 2026 was $99.9 million versus $32.7 million on March 29, 2025, and net debt* was $94.9 million as of March 28, 2026 versus $31.2 million at the end of the prior fiscal year. The Company’s leverage ratio, as defined in the credit agreement, was 2.03 on March 28, 2026, compared with 0.78 on March 29, 2025. Tom Barbato, Transcat’s Chief Financial Officer, added, “Fourth quarter adjusted EBITDA* grew 16%, as both segments delivered double-digit revenue growth. We are excited about the recent acquisition of SCM in Costa Rica because it strengthens Transcat’s support for our multinational customer base by adding a broader local service footprint, and we expect it to drive future organic service revenue growth. We remain well-positioned to pursue growth through both organic initiatives and strategic M&A.” Fiscal Fourth Quarter and Full Year 2026 Results Webcast and Conference Call Transcat will host a conference call and webcast on Tuesday, May 26, 2026, at 4:30 p.m. ET. Management will review the financial and operating results for the fourth quarter and full fiscal year, 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 (800) 245-3047. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations . Tuesday, May 26, 2026 4:30 p.m. Eastern Time Dial-in – Toll-Free US / Canada: 1-800-245-3047 Dial-in – Toll / International: 1-203-518-9765 Conference ID: TRANSCAT (THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY) Webcast and accompanying slide presentation: https://viavid.webcasts.com/starthere.jsp?ei=1758089&tp_key=b56742249d A telephonic replay will be available from 8:30 p.m. ET on the day of the conference call through Tuesday, June 9, 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 11161413 or access the webcast replay at https://www.transcat.com/investor-relations , where a transcript will be posted once available. *See Note 1 on page 6 for a description of these non-GAAP financial measures and pages 12-17 for the reconciliation tables. NOTE 1 – Non-GAAP Financial Measures In addition to reporting service revenue, a U.S. generally accepted accounting principle ("GAAP") measure, we present service organic revenue (current period service revenue less freight billed to customer less acquired revenue less prior period service revenue). Acquired revenue is revenue generated from acquisitions for twelve months subsequent to the acquisition date. The Company’s management believes service organic revenue is an important measure of operating performance because the measure provides a basis for comparison of our business operations across periods to assess core operating performance. As such, the Company uses service organic revenue as a measure of performance when evaluating its Service segment and as a basis for planning and forecasting. In addition to reporting net income and net margin, GAAP measures, we present Adjusted Net Income (net income plus acquisition related amortization expense, acquisition related transaction expenses, acquisition related stock-based compensation, executive transition costs, 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, executive transition costs, 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, executive transition costs, gain on sale of assets 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, executive transition costs, and contingent consideration adjustments) and Adjusted Operating Income Margin (Adjusted Operating Income divided by revenue), which are non-GAAP measures. The Company’s management believes Adjusted Operating Income and Margin are important measures of operating performance because they allow 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 and Margin as measures 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, executive transition costs, and acquisition amortization of backlog, as applicable; 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. In addition to reporting cash from operations, a GAAP measure, we present Operating Free Cash Flow (cash from operations less capital expenditures), which is a non-GAAP measure. The Company's management believes Operating Free Cash Flow is an important liquidity measure that reflects the cash generated by the business, after the purchases of technology, capabilities and assets, that can be used for, among other things, strategic acquisitions, investments in the business and funding ongoing operations. As such, the Company uses Operating Free Cash Flow as a measure of performance when evaluating its business. In addition to reporting debt, a GAAP measure, we present Net Debt (debt less cash and cash equivalents), which is a non-GAAP measure. We believe Net Debt is an important measure of financial leverage. Service Organic Revenue, Adjusted Net Income, Adjusted net income margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income, Adjusted Diluted Earnings Per Share, Operating Free Cash Flow and Net Debt 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 Service Revenue, Net Income, Operating Income, Diluted Earnings Per Share, Net Cash provided by Operations and Debt and, therefore, should not be used in isolation of, but in conjunction with, the related GAAP measures. Service Organic Revenue, Adjusted Net Income, Adjusted net margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Operating Income, Adjusted Diluted Earnings Per Share, Operating Free Cash Flow and Net Debt 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 12-17 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 “anticipates,” “assuming,” “believes,” “can,” “continues,” “estimates,” “expects,” “focus,” “guides,” “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 (Amounts in Thousands, Except Per Share Amounts) (Unaudited) (Unaudited) Fourth Quarter Ended Fiscal Year Ended March 28, March 29, March 28, March 29, 2026 2025 2026 2025 Service Revenue $ 61,570 $ 52,010 $ 217,209 $ 181,428 Distribution Sales 27,755 25,124 114,668 96,993 Total Revenue 89,325 77,134 331,877 278,421 Cost of Service Revenue 39,710 33,182 146,677 120,769 Cost of Distribution Sales 19,147 18,039 76,896 68,199 Total Cost of Revenue 58,857 51,221 223,573 188,968 Gross Profit 30,468 25,913 108,304 89,453 Selling, Marketing and Warehouse Expenses 11,223 9,240 42,765 33,341 General and Administrative Expenses 14,913 9,733 52,276 38,238 Total Operating Expenses 26,136 18,973 95,041 71,579 Operating Income 4,332 6,940 13,263 17,874 Interest and Other Expense (Income), net 1,498 684 5,274 (452 ) Income Before Income Taxes 2,834 6,256 7,989 18,326 Provision for Income Taxes 887 1,792 2,613 3,811 Net Income $ 1,947 $ 4,464 $ 5,376 $ 14,515 Basic Earnings Per Share $ 0.21 $ 0.48 $ 0.58 $ 1.58 Average Shares Outstanding 9,345 9,230 9,334 9,185 Diluted Earnings Per Share $ 0.21 $ 0.48 $ 0.57 $ 1.57 Average Shares Outstanding 9,398 9,287 9,380 9,254 TRANSCAT, INC. CONSOLIDATED BALANCE SHEETS (Amounts in Thousands, Except Share and Per Share Amounts) March 28, March 29, 2026 2025 ASSETS Current Assets: Cash and Cash Equivalents $ 4,942 $ 1,517 Accounts Receivable, less allowance for credit losses of $851 and $659 65,170 55,941 Other Receivables 672 373 Inventory 13,705 14,483 Prepaid Expenses and Other Current Assets 7,973 5,695 Total Current Assets 92,462 78,009 Property and Equipment, net 57,801 50,024 Goodwill 218,185 176,928 Intangible Assets, net 77,706 54,777 Right to Use Assets, net 32,365 24,345 Other Assets 1,968 1,159 Total Assets $ 480,487 $ 385,242 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 17,931 $ 16,755 Accrued Compensation and Other Current Liabilities 21,697 15,466 Current Portion of Long-Term Debt - 1,816 Total Current Liabilities 39,628 34,037 Long-Term Debt 99,885 30,892 Deferred Tax Liabilities, net 10,167 9,286 Lease Liabilities 29,000 21,395 Other Liabilities 1,188 2,752 Total Liabilities 179,868 98,362 Commitments and Contingencies (Note 8) Shareholders' Equity: Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 9,333,953 and 9,315,840 shares issued and outstanding as of March 28, 2026 and March 29, 2025, respectively 4,670 4,658 Capital in Excess of Par Value 199,115 191,167 Accumulated Other Comprehensive Loss (923 ) (1,469 ) Retained Earnings 97,757 92,524 Total Shareholders' Equity 300,619 286,880 Total Liabilities and Shareholders' Equity $ 480,487 $ 385,242 TRANSCAT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) Fiscal Year Ended March 28, March 29, 2026 2025 Cash Flows from Operating Activities: Net Income $ 5,376 $ 14,515 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Net (Gain) Loss on Disposal of Property and Equipment 232 (31 ) Noncash Lease Expense 6,021 3,447 Deferred Income Taxes 827 (5 ) Depreciation and Amortization 26,172 18,567 Gain on Sale of Assets - (855 ) Amortization of Deferred Financing Costs 104 - Provision for Accounts Receivable and Inventory Reserves 471 336 Stock-Based Compensation Expense 7,549 3,248 Changes in Assets and Liabilities, net of acquisitions: Accounts Receivable and Other Receivables (6,578 ) (1,292 ) Inventory 839 4,393 Prepaid Expenses and Other Current Assets (2,209 ) (992 ) Accounts Payable 965 4,940 Accrued Compensation and Other Current Liabilities 924 (1,118 ) Lease Liabilities (5,842 ) (3,243 ) Income Taxes Payable - (2,925 ) Net Cash Provided by Operating Activities 34,850 38,985 Cash Flows from Investing Activities: Purchase of Property and Equipment (15,298 ) (13,197 ) Business Acquisitions, net of cash acquired (82,525 ) (87,436 ) Proceeds from Sale of Assets - 1,100 Sales/(Purchases) of Marketable Securities - 15,533 Net Cash Used in Investing Activities (97,823 ) (84,000 ) Cash Flows from Financing Activities: Proceeds From Revolving Credit Facility, net of lender fees 156,675 68,630 Repayment of Revolving Credit Facility (88,086 ) (37,739 ) Repayments of Term Loan (1,816 ) (2,338 ) Payments of Deferred Financing Costs (365 ) - Principal Payments on Finance Leases (280 ) - Issuance of Common Stock, net of direct costs 842 1,874 Repurchase of Common Stock (469 ) (3,565 ) Net Cash Provided by Financing Activities 66,501 26,862 Effect of Exchange Rate Changes on Cash and Cash Equivalents (103 ) 24 Net (Decrease) Increase in Cash and Cash Equivalents 3,425 (18,129 ) Cash and Cash Equivalents at Beginning of Fiscal Year 1,517 19,646 Cash and Cash Equivalents at End of Fiscal Year $ 4,942 $ 1,517 TRANSCAT, INC. Adjusted EBITDA Reconciliation Table (Dollars in Thousands) (Unaudited) Fiscal 2026 Q1 Q2 Q3 Q4 YTD Net Income $ 3,261 $ 1,269 $ (1,101 ) $ 1,947 $ 5,376 + Interest Expense 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 - - 771 935 1,706 + Transaction Expense 28 496 45 175 744 + Noncash Stock Compensation 1,130 1,839 2,061 2,519 7,549 Adjusted EBITDA* $ 11,768 $ 12,115 $ 10,068 $ 14,788 $ 48,739 Segment Breakdown Service Operating Income (Loss) $ 2,567 $ 920 $ (2,052 ) $ 3,508 $ 4,943 + Depreciation & Amortization 3,763 4,562 5,175 5,143 18,643 + Executive Transition Costs - - 519 630 1,149 + Transaction Expense 28 496 45 175 744 + Noncash Stock Compensation 801 1,301 1,459 1,746 5,307 Service Adjusted Operating Income* $ 7,159 $ 7,279 $ 5,146 $ 11,202 $ 30,786 Distribution Operating Income $ 2,771 $ 2,585 $ 2,140 $ 824 $ 8,320 + Depreciation & Amortization 1,842 1,925 1,955 1,807 7,529 + Executive Transition Costs - - 252 305 557 + Transaction Expense - - - - - + Noncash Stock Compensation 329 538 602 773 2,242 Distribution Adjusted Operating Income* $ 4,942 $ 5,048 $ 4,949 $ 3,709 $ 18,648 TRANSCAT, INC. Adjusted EBITDA Reconciliation Table (Dollars in Thousands) (Unaudited) Fiscal 2025 Q1 Q2 Q3 Q4 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 Expense 434 32 778 33 1,277 + Acquisition Earn-Out Adjustment - - - (835 ) (835 ) + (Gain) Loss on Sale of Business - 1 (855 ) 30 (824 ) + Noncash 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 Expense 146 - 778 11 935 + Acquisition Earn-Out Adjustment - - - (256 ) (256 ) + Noncash Stock Compensation 421 629 186 813 2,049 Service Adjusted Operating Income* $ 7,060 $ 6,788 $ 4,827 $ 10,318 $ 28,993 Distribution Operating Income $ 1,008 $ 31 $ 688 $ 964 $ 2,691 + Depreciation & Amortization 1,711 1,944 1,979 1,851 7,485 + Transaction Expense 288 32 - 22 342 + Acquisition Contingent Consideration Adjustment - - - (579 ) (579 ) + Noncash Stock Compensation 276 297 266 360 1,199 Distribution Adjusted Operating Income* $ 3,283 $ 2,304 $ 2,933 $ 2,618 $ 11,138 TRANSCAT, INC. Adjusted Diluted EPS Reconciliation Table (Amounts in Thousands, Except Per Share Amounts) (Unaudited) Fiscal 2026 Q1 Q2 Q3 Q4 YTD Net Income $ 3,261 $ 1,269 $ (1,101 ) $ 1,947 $ 5,376 + Amortization of Intangible Assets 2,844 3,461 3,977 3,488 13,770 + Acquisition Amortization of Backlog - - - - - + Executive Transition Costs - - 771 935 1,706 + Acquisition Deal Costs 28 496 45 175 744 + Acquisition Stock Expense 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 Average Diluted Shares Outstanding 9,389 9,399 9,329 9,398 9,380 Diluted Earnings Per Share $ 0.35 $ 0.14 $ (0.12 ) $ 0.21 $ 0.57 + Amortization of Intangible Assets 0.30 0.37 0.43 0.37 1.47 + Acquisition Amortization of Backlog - - - - - + Executive Transition Costs - - 0.08 0.10 0.18 + Acquisition Deal Costs 0.00 0.05 0.00 0.02 0.08 + Acquisition Stock Expense 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 Fiscal 2025 Q1 Q2 Q3 Q4 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 24 4 - - 28 + Acquisition Deal Costs 434 33 778 34 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 Average Diluted 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 0.20 0.20 0.31 0.91 + Acquisition Amortization of Backlog - - - - - + Acquisition Deal Costs 0.05 0.00 0.08 0.00 0.14 + Acquisition Stock Expense 0.03 0.01 (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 Q4 FY 2025 Q4 $ % Service Revenue $ 61,570 $ 52,010 $ 9,560 18.4 % Cost of Revenue 39,710 33,182 6,528 19.7 % Gross Profit $ 21,860 $ 18,828 $ 3,032 16.1 % Gross Margin 35.5 % 36.2 % Selling, Marketing & Warehouse Expenses $ 7,486 $ 5,743 $ 1,743 30.3 % General and Administrative Expenses 10,866 7,109 3,757 52.8 % Operating Income $ 3,508 $ 5,976 $ (2,468 ) (41.3 )% % of Revenue 5.7 % 11.5 % Change DISTRIBUTION FY 2026 Q4 FY 2025 Q4 $ % Distribution Revenue $ 27,755 $ 25,124 $ 2,631 10.5 % Cost of Revenue 19,147 18,039 1,108 6.1 % Gross Profit $ 8,608 $ 7,085 $ 1,523 21.5 % Gross Margin 31.0 % 28.2 % Selling, Marketing & Warehouse Expenses $ 3,736 $ 3,497 $ 239 6.8 % General and Administrative Expenses 4,048 2,624 1,424 54.3 % Operating Income $ 824 $ 964 $ (140 ) (14.5 )% % of Sales 3.0 % 3.8 % Change TOTAL FY 2026 Q4 FY 2025 Q4 $ % Total Revenue $ 89,325 $ 77,134 $ 12,191 15.8 % Total Cost of Revenue 58,857 51,221 7,636 14.9 % Gross Profit $ 30,468 $ 25,913 $ 4,555 17.6 % Gross Margin 34.1 % 33.6 % Selling, Marketing & Warehouse Expenses $ 11,222 $ 9,240 $ 1,982 21.5 % General and Administrative Expenses 14,914 9,733 5,181 53.2 % Operating Income $ 4,332 $ 6,940 $ (2,608 ) (37.6 )% % of Revenue 4.8 % 9.0 % TRANSCAT, INC. Additional Information - Business Segment Data (Dollars in Thousands) (Unaudited) Change FY 2026 FY 2025 SERVICE YTD YTD $ % Service Revenue $ 217,209 $ 181,428 $ 35,781 19.7 % Cost of Revenue 146,677 120,769 25,908 21.5 % Gross Profit $ 70,532 $ 60,659 $ 9,873 16.3 % Gross Margin 32.5 % 33.4 % Selling, Marketing & Warehouse Expenses $ 27,692 $ 19,013 $ 8,679 45.6 % General and Administrative Expenses 37,897 26,466 11,431 43.2 % Operating Income $ 4,943 $ 15,180 $ (10,237 ) (67.4 )% % of Revenue 2.3 % 8.4 % Change FY 2026 FY 2025 DISTRIBUTION YTD YTD $ % Distribution Revenue $ 114,668 $ 96,993 $ 17,675 18.2 % Cost of Revenue 76,896 68,199 8,697 12.8 % Gross Profit $ 37,772 $ 28,794 $ 8,978 31.2 % Gross Margin 32.9 % 29.7 % Selling, Marketing & Warehouse Expenses $ 15,073 $ 14,328 $ 745 5.2 % General and Administrative Expenses 14,379 11,772 2,607 22.1 % Operating Income $ 8,320 $ 2,694 $ 5,626 208.8 % % of Sales 7.3 % 2.8 % Change FY 2026 FY 2025 TOTAL YTD YTD $ % Total Revenue $ 331,877 $ 278,421 $ 53,456 19.2 % Total Cost of Revenue 223,573 188,968 34,605 18.3 % Gross Profit $ 108,304 $ 89,453 $ 18,851 21.1 % Gross Margin 32.6 % 32.1 % Selling, Marketing & Warehouse Expenses $ 42,765 $ 33,341 $ 9,424 28.3 % General and Administrative Expenses 52,276 38,238 14,038 36.7 % Operating Income $ 13,263 $ 17,874 $ (4,611 ) (25.8 )% % of Revenue 4.0 % 6.4 % TRANSCAT, INC. Service Organic Revenue and Operating Free Cash Flow (Dollars in Thousands) (Unaudited) Service Organic Revenue Fourth Quarter Ended March 28, March 29, Change 2026 2025 $ % Service Revenue $ 61,570 $ 52,010 $ 9,560 18 % Less: Acquired Revenue (5,802 ) 11 Less: Freight Billed to Customer (875 ) (643 ) Service Organic Revenue $ 54,893 $ 51,378 $ 3,515 7 % Service Organic Revenue Year Ended March 28, March 29, Change 2026 2025 $ % Service Revenue $ 217,209 $ 181,428 $ 35,781 20 % Less: Acquired Revenue (30,934 ) (1,337 ) Less: Freight Billed to Customer (2,984 ) (2,112 ) Service Organic Revenue $ 183,291 $ 177,979 $ 5,312 3 % Operating Free Cash Flow Year Ended March 28, March 29, 2026 2025 Net Cash Provided by Operating Activities $ 34,850 $ 38,985 Less: Capital Expenditures (15,298 ) (13,197 ) Operating Free Cash Flow $ 19,552 $ 25,788 Net Debt Year Ended March 28, March 29, 2026 2025 Debt $ 99,885 $ 32,708 Less: Cash & Cash Equivalents (4,942 ) (1,517 ) Net Debt $ 94,943 $ 31,191 * See Note 1 on page 6 for a description of the non-GAAP financial measures View source version on businesswire.com: https://www.businesswire.com/news/home/20260526371157/en/