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Dec 27, 2025
Transcat Q3 2026 Earnings Report
Transcat reported strong fiscal third quarter 2026 financial results with a return to high single-digit service organic revenue growth.
Key Takeaways
Transcat delivered strong performance across its entire business portfolio in the fiscal third quarter, with consolidated revenue increasing by 25.6% to $83.9 million and gross profit rising by 28.3% to $25.3 million. Despite a net loss of $1.1 million, Adjusted EBITDA* grew 27.2% to $10.1 million, driven by robust revenue growth in both service and distribution segments.
Q3'26 Revenue increased 26% to $83.9 million.
Q3'26 Service Revenue increased 29% to $53.7 million.
Q3'26 Distribution Revenue grew 20% to $30.2 million on increased demand for rentals.
Q3 '26 Gross Margin expanded 60 basis points to 30.1%.
Revenue by Segment
Forward Guidance
Transcat is optimistic about continued high single-digit service organic revenue growth for the fourth quarter of Fiscal 2026, assuming no increased economic uncertainty. The company believes its strong value proposition and recent acquisitions position it well for sustainable, long-term shareholder value.
Positive Outlook
- Expect continued high single-digit service organic revenue growth for the fourth quarter of Fiscal 2026.
- Momentum building in the service segment driven by strong retention and increased customer activity.
- Realization of new business wins.
- Strong value proposition and recent acquisitions expanding geographical footprint.
- Well-positioned to drive sustainable, long-term shareholder value.
Challenges Ahead
- Potential for increased economic uncertainty impacting growth.
- Experienced a lag with service gross margins in the third quarter due to start-up costs for new customers.
- Need for start-up costs related to onboarding new customers to normalize.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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