Transcat (NASDAQ: TRNS) grows 2026 revenue 19% as earnings and leverage shift

Rhea-AI Filing Summary

Transcat, Inc. reported strong top-line growth but weaker earnings for its fiscal fourth quarter and full year ended March 28, 2026. Q4 revenue rose 15.8% to $89.3 million, led by 18.4% growth in service revenue to $61.6 million and 10.5% growth in distribution revenue to $27.8 million. Q4 gross margin improved to 34.1%, and Adjusted EBITDA* increased 16.0% to $14.8 million, but operating income fell 37.6% to $4.3 million and net income declined to $1.9 million, or $0.21 per diluted share.

For fiscal 2026, total revenue grew 19.2% to $331.9 million, with service revenue up 19.7% and distribution revenue up 18.2%. Full‑year gross margin expanded 50 basis points to 32.6% and Adjusted EBITDA* rose 22.7% to $48.7 million, while operating income decreased 25.8% to $13.3 million and net income dropped 63.0% to $5.4 million, or $0.57 per diluted share. Management attributes higher operating expenses to acquisitions, increased amortization, stock-based compensation, executive transition costs and incentives, and continues to guide to high single-digit service organic revenue growth for fiscal 2027.

Insights

Equity analyst

Revenue and cash flow are solid, but earnings and leverage deteriorated.

Transcat delivered broad-based growth in fiscal 2026, with revenue up 19.2% to $331.9 million and Adjusted EBITDA* up 22.7% to $48.7 million. Both service and distribution segments grew double digits and gross margin expanded to 32.6%.

However, operating income fell 25.8% to $13.3 million and net income declined 63.0% to $5.4 million as operating expenses rose 32.8% from acquisition amortization, stock-based pay, executive transition costs and higher incentives. Diluted EPS dropped from $1.57 to $0.57, while Adjusted Diluted EPS* fell from $2.29 to $1.84.

Leverage increased meaningfully: total debt rose to $99.9 million and Net Debt* to $94.9 million, with the leverage ratio moving from 0.78 to 2.03 as of March 28, 2026. Net cash from operations was healthy at $34.9 million, but Operating Free Cash Flow* declined to $19.6 million. Management highlights continued high single‑digit service organic growth expectations for fiscal 2027 and emphasizes strategic M&A, including the SCM Metrology acquisition, as key to its growth strategy.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q4 2026 revenue: $89.3 million Fiscal 2026 total revenue: $331.9 million Fiscal 2026 net income: $5.4 million +5 more

8 metrics

Q4 2026 revenue $89.3 million Quarter ended March 28, 2026; up 15.8% year over year

Fiscal 2026 total revenue $331.9 million Full year 2026; up 19.2% from fiscal 2025

Fiscal 2026 net income $5.4 million Full year 2026; down 63.0% from $14.5 million

Fiscal 2026 diluted EPS $0.57 per share Full year diluted earnings per share; down from $1.57

Fiscal 2026 Adjusted EBITDA* $48.7 million Full year 2026; up 22.7% from $39.7 million

Net debt* $94.9 million As of March 28, 2026; up from $31.2 million

Leverage ratio 2.03x Credit agreement leverage ratio as of March 28, 2026; previously 0.78

Operating Free Cash Flow* $19.6 million Fiscal 2026; down from $25.8 million in fiscal 2025

Key Terms

Adjusted EBITDA, service organic revenue, Operating Free Cash Flow, Net Debt, +2 more

6 terms

Adjusted EBITDA financial

"Adjusted EBITDA* was $48.7 million which represented an increase of $9.0 million or 22.7%."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

service organic revenue financial

"Service organic revenue increased 7% compared to the prior year quarter."

Operating Free Cash Flow financial

"Operating Free Cash Flow* for the year ended March 2026 and March 2025 was $19.6 million and $25.8 million, respectively."

Operating free cash flow is the cash a company generates from its core business after paying for the everyday costs needed to keep and grow the business, including spending on equipment or facilities. It matters to investors because it shows how much real, available money a company has to pay dividends, reduce debt, buy back shares, or reinvest—like the cash left in your wallet after paying household bills and necessary repairs, revealing financial health beyond accounting profits.

Net Debt financial

"Net debt* was $94.9 million as of March 28, 2026 versus $31.2 million at the end of the prior fiscal year."

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

leverage ratio financial

"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."

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

non-GAAP financial measures financial

"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..."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

Earnings Snapshot

Total revenue: $331.9 million · Guidance included

Fiscal year 2026 and Q4 2026

Total revenue $331.9 million +19.2% vs fiscal 2025

Q4 2026 revenue $89.3 million +15.8% vs Q4 2025

Fiscal 2026 net income $5.4 million -63.0% vs fiscal 2025

Fiscal 2026 Adjusted EBITDA* $48.7 million +22.7% vs fiscal 2025

Fiscal 2026 diluted EPS $0.57 -63.7% vs fiscal 2025

Guidance

Company guides to high single-digit service organic revenue growth for fiscal 2027, assuming a stable broader economic environment.

Understanding 8-K Material Events →

false 0000099302 0000099302 2026-05-26 2026-05-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 26, 2026

Transcat, Inc.

(Exact name of registrant as specified in its charter)

Ohio	000-03905	16-0874418
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

35 Vantage Point Drive, Rochester, New York	14624
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code (585) 352-7777

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.50 par value	TRNS	Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On May 26, 2026, Transcat, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal fourth quarter and year ended March 28, 2026. The press release is attached to this Form 8-K as Exhibit 99.1.

In addition, on May 26, 2026, the Company posted slides to the Investor Relations section of its website that will accompany the Company’s earnings conference call and webcast at 4:30 p.m. Eastern Time today. The slides are attached to this Form 8-K as Exhibit 99.2.

The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

	Exhibit No.		Description
	99.1		Transcat, Inc. Press Release dated May 26, 2026
	99.2		Slides for the May 26, 2026 Earnings Conference Call and Webcast
	104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			TRANSCAT, INC.
Dated: May 26, 2026		By:	/s/ Thomas L. Barbato
			Thomas L. Barbato
			Senior Vice President of Finance and Chief Financial Officer

Exhibit 99.1

NEWS
RELEASE

Transcat, Inc. 35 Vantage Point Drive • Rochester • NY • 14624 • Phone: (585) 352-7777

IMMEDIATE RELEASE

Transcat Reports Strong Fiscal Fourth Quarter 2026 Financial Results with Continued

High Single-Digit Service Organic Revenue* Growth

	●	Q4’26 Service Revenue Increased 18% to $61.6 Million
	●	Q4’26 Distribution Revenue Grew 11% to $27.8 Million on Increased Demand for Rentals
	●	Q4’26 Gross Margins Expanded 50 Basis Points to 34.1%
	●	Fiscal 2026 Full Year Revenue Increased 19% to $331.9 Million
	●	Company Guides to High Single-Digit Service Organic Revenue Growth for Fiscal 2027
	●	Management to Host Conference Call Today at 4:30 p.m. Eastern Time

ROCHESTER, NY, May 26, 2026 – 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.

Transcat Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results

May 26, 2026
Page 2 of 17

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.

Transcat Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 3 of 17

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.

Transcat Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 4 of 17

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.

Transcat Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 5 of 17

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.

Transcat Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 6 of 17

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. 

Transcat Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 7 of 17

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.

Transcat Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 8 of 17

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.

Investor Relations

Chris Tyson

Executive Vice President

MZ Group - MZ North America
Phone: (949) 491-8235

TRNS@mzgroup.us

www.mzgroup.us

FINANCIAL TABLES FOLLOW.

Transcat Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 9 of 17

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 Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 10 of 17

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 Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 11 of 17

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 Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 12 of 17

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 Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results

May 26, 2026
Page 13 of 17

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 Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 14 of 17

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 Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 15 of 17

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 Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 16 of 17

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 Reports Fiscal Fourth Quarter and Full Year 2026 Financial Results
May 26, 2026
Page 17 of 17

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

Exhibit 99.2

FAQ

How did Transcat (TRNS) perform financially in fiscal 2026?

Transcat grew total revenue 19.2% to $331.9 million in fiscal 2026, with gross margin improving to 32.6%. However, net income declined to $5.4 million and diluted EPS fell to $0.57, reflecting sharply higher operating expenses tied to acquisitions and compensation.

What were Transcat (TRNS) fiscal fourth quarter 2026 results?

In Q4 2026, Transcat’s revenue rose 15.8% to $89.3 million, driven by 18.4% service and 10.5% distribution growth. Gross margin reached 34.1%, but net income decreased to $1.9 million and diluted EPS dropped to $0.21 as operating expenses increased significantly.

How did Transcat’s service and distribution segments perform in 2026?

For fiscal 2026, service revenue grew 19.7% to $217.2 million, while distribution revenue increased 18.2% to $114.7 million. Service gross margin was 32.5% and distribution gross margin 32.9%, with both segments contributing to higher consolidated gross profit and Adjusted EBITDA*.

What guidance did Transcat (TRNS) provide for fiscal 2027?

Management guides to continued high single-digit service organic revenue growth for fiscal 2027, assuming a stable broader economic environment. The company also emphasizes strategic M&A, including the SCM Metrology acquisition, as a core pillar of its long-term growth strategy.

What is Transcat’s debt and leverage position after fiscal 2026?

As of March 28, 2026, Transcat had total debt of $99.9 million and cash of $4.9 million, resulting in Net Debt* of $94.9 million. The company’s leverage ratio under its credit agreement rose to 2.03, up from 0.78 a year earlier.

How did Transcat’s cash flow and Operating Free Cash Flow* trend in 2026?

Net cash provided by operating activities was $34.9 million in fiscal 2026, down from $39.0 million in 2025. Operating Free Cash Flow* declined to $19.6 million from $25.8 million, reflecting higher capital expenditures alongside increased acquisition and growth investments.

Filing Exhibits & Attachments

6 documents

Press Releases

• EX-99.1 EXHIBIT 99.1 893.5 KB
• EX-99.2 EXHIBIT 99.2 9.7 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 3.5 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE 11.2 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 15.0 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 11.3 KB