Transcat, Inc.

transcat.com

What Do They Do?

Provides calibration, repair and asset-management services, and sells and rents test and measurement instruments to regulated manufacturers, utilities, and aerospace and defense companies.

How Do They Make Money?

Customers pay for calibration and repair when the work is completed; managed programs and consulting are billed as work is performed. Instrument sales are billed when shipped, while rentals are billed over the rental period or according to actual use.

revenue

Segment	Share	Revenue	How money arrives
Service Mix	65% FY2023: 63%		Mix
Distribution Service	35% FY2023: 37%

Who Are Their Customers?

Customers include manufacturers in life sciences, energy, defense, aerospace and industrial process control. They can order through Transcat’s website and sales teams; service work is also performed at customer facilities.

Do Revenues Turn Into Profits?

Yes. It kept 2 cents of every revenue dollar as net income in FY2026 and turned 6 cents into free cash flow.

Operating income, FY2026

4% of revenue

▼ −26% vs FY2025 ($17.9M, 6%)

Net income, FY2026

2% of revenue

▼ −63% vs FY2025 ($14.5M, 5%)

Free cash flow, FY2026

6% of revenue

▼ −24% vs FY2025 ($25.8M, 9%)

How Are They Changing?

Since the FY2026 annual report

Latest quarter: Q1 FY2027, the three months to Jun 27, 2026

Revenue: ▲ +22%; vs $76.4M in Q1 FY2026
Net income: ▼ −59%; vs $3.3M in Q1 FY2026

Service Revenue share of revenue vs 64.3% in Q1 FY2026

Aug 4, 2026 Company expects Service organic revenue growth in the high single-digits It also expects Service gross margin expansion for the full fiscal year, assuming a stable broader economic environment.

Growing. Revenue grew 62% in 4 years, from $205M in FY2022 to $331.9M in FY2026, about 13% a year.

Revenue over time

Service Distribution Service

$500M$250M$0

FY2022 FY2023 FY2024 FY2025 FY2026

Comments