Table Trac Q3 Profit Falls as Nine-Month Earnings More Than Double

Casino-management systems supplier Table Trac reported higher revenue but lower profit for the quarter ended 2026年9月30日, in a quarterly filing submitted 2026年11月12日. Quarterly net income fell to $38,219 from $58,352 despite revenue rising 12.7% to $2.41 million, while nine-month net income more than doubled to $2.01 million from $985,374 as system deliveries increased.

Table Trac delivered no new systems in either third-quarter period. Maintenance revenue increased to $1.62 million from $1.47 million and supplied 67.3% of quarterly sales, while service and other revenue rose to $734,467 from $576,566. Ongoing support and services therefore drove the revenue increase, offsetting lower system revenue.

Higher costs limited the benefit of that growth. Cost of sales climbed to $680,983 from $561,048, while selling, general and administrative expenses reached $1.77 million from $1.62 million. Management attributed the higher cost of sales mainly to assigning more personnel to customer service and support, and the administrative increase primarily to the timing of the G2E trade show. The company recorded a $49,135 operating loss, compared with a $47,530 loss a year earlier.

Interest income of $104,859 exceeded the operating loss and helped keep Table Trac profitable. Income-tax expense nevertheless rose to $28,000 from $11,000, and management attributed the higher effective tax rate primarily to a true-up of state tax apportionment estimates.

Chief Executive Randy Gilbert said in the results announcement that the “timing and mix of revenue continued to influence quarterly profitability,” and that Table Trac remained focused on customers, CasinoTrac development and investment in products and capabilities.

System Deliveries Drove Nine-Month Growth

The nine-month results show how those deliveries changed Table Trac’s revenue mix. Total revenue increased 31.9% to $10.57 million, and system revenue nearly doubled to $3.76 million from $1.92 million. The company delivered nine new systems and upgraded three existing systems, compared with six deliveries and three customer expansions in the prior-year period.

That expansion also carried higher costs. Nine-month gross margin declined to 69.5% from 74.1%, which management attributed to material costs and the added complexity of the installed systems. Separately, research and development spending increased, with those costs included in administrative expenses.

Table Trac has also applied for a patent on an AI-based system to assist casino back-office functions, following earlier applications covering AI-based pit-boss training, gaming-ticket management and progressive-jackpot tracking. The company said the technologies are intended to improve operational visibility and processing efficiency.

At quarter-end, Table Trac had two systems in backlog, versus one a year earlier, and had signed two new system-installation contracts by the filing date. Table Trac reported that its casino-management and ancillary products were installed with ongoing support at more than 115 casino operators across more than 300 casinos worldwide. The open question for subsequent results is whether the backlog and new contracts become completed installations without repeating the margin pressure reported for the first nine months.