Transcat, Inc. reported fiscal third‑quarter 2026 revenue of $83.9 million, a 25.6% year‑over‑year increase that surpassed the consensus estimate of $83.72 million. The top‑line lift was driven by 29.1% growth in the Service segment to $53.7 million and 19.8% growth in Distribution to $30.2 million, with a higher mix of high‑margin rentals boosting overall revenue momentum.
Adjusted EBITDA rose to $10.1 million, up 27.2% from the same period a year earlier, and the margin expanded to 12.1% (calculated from $10.1 million ÷ $83.9 million). The margin improvement reflects a favorable shift toward rental‑heavy mix and better operating leverage, partially offset by increased amortization related to the Martin Calibration and Essco Calibration acquisitions.
Profitability slipped to a net loss of $1.1 million, compared with a $2.4 million income in Q3 FY25. Adjusted diluted earnings per share were $0.26, missing the consensus estimate of $0.34. The EPS miss was largely driven by one‑time acquisition amortization, higher interest expense, and integration costs associated with the recent acquisitions, which also contributed to the net loss.
Management reaffirmed guidance for the fourth quarter of fiscal 2026, projecting high single‑digit organic service revenue growth. The company maintained its full‑year revenue outlook, indicating confidence in continued demand while acknowledging the short‑term cost impact of recent acquisitions.
Market reaction was muted to slightly positive, as investors weighed the revenue beat against the EPS miss and net loss, highlighting concerns over acquisition‑related costs and increased debt levels.
CEO Lee D. Rudow emphasized the company’s 67 consecutive quarters of year‑over‑year growth and a 7% organic service growth rate, while CFO Tom Barbato noted that revenue growth was driven by acquisitions and that the net loss stemmed from amortization and interest expenses.
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