Earnings release
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Exhibit 99.1 NEWS RELEASE Transcat, Inc. 35 Vantage Point Drive • Rochester • NY • 14624 • Phone: (585) 352-7777 Transcat Reports Strong Fiscal Second Quarter 2027 Financial Results with Double-Digit Service Organic Revenue* Growth and Significant Service Gross Margin Expansion • Q2’27 Service Revenue Increased 23% to $64.8 Million • Q2'27 Service Gross Margin Expanded 220 Basis Points to 34% • Q2’27 Distribution Revenue Grew 10% to $32.3 Million on Strong Demand for Rentals • Q2'27 Total Revenue Increased 18% to $97.1 Million • Management to Host Conference Call Today at 4:30 p.m. Eastern Time ROCHESTER, NY, November 3, 2026 – Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leader in test, measurement, control and calibration, has reported its financial and operational results for its fiscal second quarter ended September 26, 2026 (the “second quarter”) of fiscal year 2027. Management Commentary "Our fiscal second quarter results demonstrate strong execution across each pillar of our core strategy: driving strong Service organic revenue growth, expanding Service gross margins, executing strategic acquisitions, and growing Rentals consistently,” said Jaime Irick, President and CEO. “Fiscal second quarter 2027 marked our seventieth consecutive quarter of Service revenue growth. Strength in our Calibration business lifted Service revenue 23%, including 16% Service organic revenue* growth, and drove 220 bps of year over year Service gross margin expansion, up from 90 bps in the first quarter. Distribution revenue grew 10%, fueled by continued strength in Rentals and Product sales. “Revenue momentum, combined with productivity gains, enabled a 23% increase in adjusted EBITDA* and 70 bps of Adjusted EBITDA margin* expansion. We believe we are gaining market share in calibration services through organic growth, disciplined M&A and a more productive sales organization, further widening our already substantial competitive moat. “Our August acquisition of Southeastern Biomedical advances our strategy of building scale in regulated, high cost-of-failureend markets, where accredited calibrations are mission-critical to patient safety and regulatory compliance. Southeastern is known for its quality and customer-first approach in supporting hospital networks across the southeastern United States and beyond. That reputation builds on our established leadership in biomedical calibration and extends our reach to a much larger geography, with the same focus on quality and timely service for customers in these critical end markets. “Looking ahead, we remain optimistic about the Service segment’s momentum, supported by high customer retention, conversion of new business wins into revenue, and continued strong demand in life sciences, aerospace and defense, and the other regulated end markets we serve. For the full fiscal year 2027, assuming the broader economic environment remains stable, we now expect Service organic revenue growth in the low double digits, up from our prior outlook of high single digits, along with Service gross margin expansion. We expect year-over-year Service gross margin expansion of at least 100 bps in the second half, driven by initiatives to continuously improve customer-facing business processes by applying proven Lean principles,
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optimizing business mix and pricing, and utilizing technology, including AI, to improve productivity and deliver greater value to customers. These initiatives are beginning to deliver results, reinforcing our confidence in continued progress as we create repeatable levers to expand margins and support sustained growth. These initiatives are beginning to deliver results, reinforcing our confidence in continued progress. Together, they advance our vision for Transcat to be as well known for operational excellence as we have historically been for growth,” concluded Mr. Irick. * See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations. Second Quarter Fiscal 2027 Results (Results are compared with the second quarter of the fiscal year ended March 28, 2026 (“fiscal 2026”)) ($ in thousands) Change FY27 Q2 FY26 Q2 $ % Service Revenue $ 64,770 $ 52,836 $ 11,934 22.6 % Distribution Revenue 32,320 29,436 2,884 9.8% Revenue $ 97,090 $ 82,272 $ 14,818 18.0% Gross Profit $ 32,630 $ 26,762 $ 5,868 21.9% Gross Margin 33.6% 32.5% Operating Income $ 5,033 $ 3,505 $ 1,528 43.6 % Operating Margin 5.2% 4.3% Net Income $ 2,413 $ 1,269 $ 1,144 90.1 % Net Margin 2.5 % 1.5% Adjusted Net Income* $ 6,086 $ 4,155 $ 1,931 46.5 % Adjusted Net Margin* 6.3% 5.1% Adjusted EBITDA* $ 14,909 $ 12,115 $ 2,794 23.1 % Adjusted EBITDA* Margin 15.4% 14.7% Diluted EPS $ 0.25 $ 0.14 $ 0.11 78.6 % Adjusted Diluted EPS* $ 0.64 $ 0.44 $ 0.20 45.5 % Consolidated revenue was $97.1 million, an increase of $14.8 million, or 18.0%, driven by growth in both service and distribution segments. Consolidated gross profit was $32.6 million, an increase of $5.9 million, or 21.9%, while gross margin increased 110 bps when compared to the prior year period. Operating expenses were $27.6 million, an increase of $4.3 million, or 18.7%, driven by incremental expenses from acquired businesses, including intangible assets amortization expense, increased stock-based compensation expense, and executive transition costs. Net income was $2.4 million, and Adjusted EBITDA* was $14.9 million, which represented an increase of $2.8 million, or 23.1%, primarily driven by strong revenue growth. Diluted earnings per share was $0.25 compared to diluted earnings per share of $0.14 in the same quarter last year. Adjusted Diluted Earnings Per Share* was $0.64 versus $0.44 last year. * See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations.
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Service Segment Second Quarter Results Represents the accredited calibration, repair, inspection and laboratory instrument services business (66.7% of total revenue for the second quarter of fiscal 2027). ($ in thousands) Change FY 2027 Q2 FY 2026 Q2 $ % Service Segment Revenue $ 64,770 $ 52,836 $ 11,934 22.6 % Gross Profit $ 22,272 $ 16,993 $ 5,279 31.1 % Gross Margin 34.4% 32.2% Operating Income $ 3,672 $ 920 $ 2,752 299.1 % Operating Margin 5.7 % 1.7% Adjusted Operating Income* $ 10,564 $ 7,279 $ 3,285 45.1 % Adjusted Operating Margin* 16.3% 13.8% * See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations. Service segment revenue was $64.8 million, an increase of $11.9 million, or 22.6%, and included $3.5 million of incremental revenue from acquisitions. The segment gross margin was 34.4%, an increase of 220bps from the prior year. Distribution Segment Second Quarter Results Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (33.3% of total revenue for the second quarter of fiscal 2027). ($ in thousands) Change FY 2027 Q2 FY 2026 Q2 $ % Distribution Segment Revenue $ 32,320 $ 29,436 $ 2,884 9.8% Gross Profit $ 10,358 $ 9,769 $ 589 6.0% Gross Margin 32.0% 33.2% Operating Income $ 1,361 $ 2,585 $ (1,224) (47.3%) Operating Margin 4.2% 8.8% Adjusted Operating Income* $ 4,614 $ 5,048 $ (434) (8.6%) Adjusted Operating Margin* 14.3% 17.1% * See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations. Distribution segment revenue was $32.3 million, which represented an increase of $2.9 million, or 9.8%. The revenue increase was driven by continued strength in rentals and product sales. Distribution segment gross margin was 32.0%, which is an increase over the first quarter of fiscal 2027 but a decrease of 120bps compared to the prior year period. The decrease is primarily driven by lower-margin used equipment sales that enable reinvestment in our rental asset portfolio. Balance Sheet and Cash Flow Overview On September 26, 2026, the Company had $5.8 million in cash and cash equivalents on hand and $33.1 million available for borrowing, subject to covenant restrictions, under its secured revolving credit facility. Net cash provided by operations for the six months ended September 26, 2026 and September 27, 2025 was $19.0 million and $16.5 million, respectively. Operating free cash flow* for the six months ended September 26, 2026 was $10.9 million. Total long-term debt as of September 26, 2026 was $116.9 million versus $99.9 million on March 28, 2026.
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Tom Barbato, Transcat’s Chief Financial Officer, added, “Transcat delivered excellent fiscal second quarter results, with total revenue increasing 18%, translating into gross profit growth of 22%, operating income growth of 44%, and net income growth of 90%. Gross margin expanded 110 bps to 33.6% and Adjusted EBITDA* margin expanded 70 bps to 15.4%, reflecting strong profit flow-through and operating leverage. Fiscal year-to-date operating free cash flow has grown 46% year over year, further strengthening our financial position. Our cash generation and strong balance sheet will provide greater flexibility to accelerate investment in organic growth initiatives while pursuing strategic M&A opportunities. Moreover, our continued momentum with financial performance and line of sight to new large customer wins enables the Company to increase our full- year Service organic revenue* growth outlook to low double digits.” * See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations. Fiscal Second Quarter 2027 Results Webcast and Conference Call Transcat will host a conference call and webcast on Tuesday, November 3, 2026, at 4:30 p.m. ET. Management will review the financial and operating results for the second quarter, 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 (833) 419-0865. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations. Tuesday, November 3, 2026 4:30 p.m. Eastern Time Dial-in – Toll-Free US / Canada: 1-833-419-0865 Dial-in – Toll / International: 1-785-838-9333 Conference ID: TRANSCAT (THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY) Webcast and accompanying slide presentation: https://viavid.webcasts.com/starthere.jsp?ei=1778889&tp_key=13ef016dde A telephonic replay will be available from 8:30 p.m. ET on the day of the conference call through Tuesday, November 17, 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 11162777 or access the webcast replay at https://www.transcat.com/investor- relations, where a transcript will be posted once available. NOTE 1 – Non-GAAP Financial Measures In addition to reporting service revenue, net income, operating income, diluted earnings per share, net cash provided by operating activities and long-term debt, which are U.S. generally accepted accounting principle ("GAAP") measures, we present service organic revenue, adjusted net income, adjusted EBITDA, adjusted EBITDA margin, adjusted operating income, adjusted diluted earnings per share, operating free cash flow and net debt, which are non-GAAP measures. Management uses these non-GAAP measures as indicators to better assess comparability between periods and as a basis for planning and forecasting because management believes these non-GAAP measures reflect our core business operations. These non-GAAP measures are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the SEC. As such, they should not be considered a substitute for the corresponding GAAP measures and, therefore, they should not be used in isolation, but in conjunction with the GAAP measures. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See the accompanying tables for reconciliations.
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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.
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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 “anticipate,” “assuming,” “believe,” “can,” “continue,” “expect,” “focus,” “looking ahead,” “may,” “opportunity,” “outlook,” “potential,” “strategy,” "vision," “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 placedon 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.
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TRANSCAT, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In Thousands, Except Per Share Amounts) Second Quarter Ended Six Months Ended September 26, 2026 September 27, 2025 September 26, 2026 September 27, 2025 Service Revenue $ 64,770 $ 52,836 $ 127,329 $ 101,980 Distribution Revenue 32,320 29,436 62,706 56,716 Total Revenue 97,090 82,272 190,035 158,696 Cost of Service Revenue 42,498 35,843 83,879 68,778 Cost of Distribution Revenue 21,962 19,667 42,792 37,335 Total Cost of Revenue 64,460 55,510 126,671 106,113 Gross Profit 32,630 26,762 63,364 52,583 Selling, Marketing and Warehouse Expenses 11,751 10,627 23,125 20,142 General and Administrative Expenses 15,846 12,630 31,487 23,598 Total Operating Expenses 27,597 23,257 54,612 43,740 Operating Income 5,033 3,505 8,752 8,843 Interest Expense 1,586 1,269 3,157 1,720 Interest Income (2) (5) (5) (16) Other Expense 269 212 235 545 Total Interest and Other Expense, net 1,853 1,476 3,387 2,249 Income Before Provision for Income Taxes 3,180 2,029 5,365 6,594 Provision for Income Taxes 767 760 1,621 2,064 Net Income $ 2,413 $ 1,269 $ 3,744 $ 4,530 Basic Earnings Per Share $ 0.26 $ 0.14 $ 0.40 $ 0.49 Basic Average Shares Outstanding 9,390 9,321 9,361 9,319 Diluted Earnings Per Share $ 0.25 $ 0.14 $ 0.40 $ 0.48 Diluted Average Shares Outstanding 9,547 9,399 9,470 9,392
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TRANSCAT, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In Thousands, Except Share and Per Share Amounts) September 26, 2026 March 28, 2026 ASSETS Current Assets: Cash and Cash Equivalents $ 5,758 $ 4,942 Accounts Receivable, less allowance for credit losses of $986 and $851 as of September 26, 2026 and March 28, 2026, respectively 70,287 65,170 Other Receivables 1,539 672 Inventory 14,859 13,705 Prepaid Expenses and Other Current Assets 7,438 7,973 Total Current Assets 99,881 92,462 Property and Equipment, net 58,588 57,801 Goodwill 233,961 218,185 Intangible Assets, net 79,789 77,706 Right to Use Assets 32,926 32,365 Other Assets 1,911 1,968 Total Assets $ 507,056 $ 480,487 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $ 21,125 $ 17,931 Accrued Compensation and Other Current Liabilities 17,770 21,697 Total Current Liabilities 38,895 39,628 Long-Term Debt 116,885 99,885 Deferred Tax Liabilities, net 11,545 10,167 Lease Liabilities 29,387 29,000 Other Liabilities 1,168 1,188 Total Liabilities 197,880 179,868 Commitments and Contingencies (Note 6) Shareholders' Equity: Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 9,404,380 and 9,333,953 shares issued and outstanding as of September 26, 2026 and March 28, 2026, respectively 4,702 4,670 Capital in Excess of Par Value 204,620 199,115 Accumulated Other Comprehensive Loss (931) (923) Retained Earnings 100,785 97,757 Total Shareholders' Equity 309,176 300,619 Total Liabilities and Shareholders' Equity $ 507,056 $ 480,487
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TRANSCAT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In Thousands) Six Months Ended September 26, 2026 September 27, 2025 Cash Flows from Operating Activities: Net Income $ 3,744 $ 4,530 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Net Loss on Disposal of Property and Equipment 237 77 Noncash Lease Expense 3,176 2,034 Deferred Income Taxes 184 11 Depreciation and Amortization 13,803 12,092 Amortization of Deferred Financing Costs 77 26 Provision for Accounts Receivable and Inventory Reserves 209 258 Stock-Based Compensation Expense 4,194 2,970 Changes in Assets and Liabilities, net of acquisitions: Accounts Receivable and Other Receivables (4,721) (3,550) Inventory 1,162 1,798 Prepaid Expenses and Other Assets 645 1,039 Accounts Payable 2,436 (1,573) Accrued Compensation and Other Current Liabilities (3,189) (3,035) Lease Liabilities (2,992) (722) Net Cash Provided by Operating Activities 18,965 16,504 Cash Flows from Investing Activities: Purchase of Property and Equipment (8,070) (9,030) Business Acquisitions, net of Cash Acquired (25,878) (82,526) Net Cash Used in Investing Activities (33,948) (91,556) Cash Flows from Financing Activities: Proceeds from Revolving Credit Facility, net of Lender Fees 37,345 131,036 Repayment of Revolving Credit Facility (20,345) (50,042) Repayments of Term Loan - (1,816) Payments of Deferred Financing Costs - (366) Issuance of Common Stock, net of Direct Costs 2,120 491 Repayment of Financing Leases (190) - Taxes Paid Related to Net Share Settlement of Equity Awards (3,140) (110) Net Cash Provided by Financing Activities 15,790 79,194 Effect of Exchange Rate Changes on Cash and Cash Equivalents 9 (576) Net Increase in Cash and Cash Equivalents 816 3,565 Cash and Cash Equivalents at Beginning of Period 4,942 1,517 Cash and Cash Equivalents at End of Period $ 5,758 $ 5,082
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TRANSCAT, INC. Adjusted EBITDA Reconciliation Table (In thousands) (Unaudited) Fiscal 2027 Q1 Q2 Q3 Q4 YTD Net Income $ 1,331 $ 2,413 $ - $ - $ 3,744 Interest Expense, Net 1,568 1,584 - - 3,152 Tax Provision 854 767 - - 1,621 Depreciation & Amortization 6,914 6,889 - - 13,803 Executive Transition Costs 736 568 - - 1,304 Transaction Expenses 628 472 - - 1,100 Non-cash Stock Compensation 1,978 2,216 - - 4,194 Adjusted EBITDA* $ 14,009 $ 14,909 $ - $ - $ 28,918 Adjusted EBITDA Margin 15.1% 15.4% 15.2% Fiscal 2026 Q1 Q2 Q3 Q4 YTD Net Income (Loss) $ 3,261 $ 1,269 $ (1,101) $ 1,947 $ 5,376 Interest Expense, Net 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 Expenses 28 496 45 175 744 Non-cash Stock Compensation 1,130 1,839 2,061 2,519 7,549 Adjusted EBITDA* $ 11,768 $ 12,115 $ 10,068 $ 14,788 $ 48,739 Adjusted EBITDA Margin 15.4% 14.7% 12.0% 16.6% 14.7% * See Note 1 for a description of the non-GAAP financial measures. Calculated by dividing Adjusted EBITDA* by Revenue. Costs incurred in connection with the CEO transition plan. Expenses incurred in connection with acquisitions. (1) (2) # (1) (2) # # (1) (2)
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TRANSCAT, INC. Operating Income Reconciliation Table (In thousands) (Unaudited) Fiscal 2027 Segment Breakdown Q1 Q2 Q3 Q4 YTD Service Operating Income $ 2,280 $ 3,672 $ - - 5,952 Depreciation & Amortization 5,005 4,953 - - 9,958 Executive Transition Costs 491 379 - - 870 Transaction Expenses 524 349 - - 873 Non-cash Stock Compensation 1,328 1,211 - - 2,539 Service Adjusted Operating Income* $ 9,628 $ 10,564 $ - $ - $ 20,192 Distribution Operating Income $ 1,439 $ 1,361 $ - - 2,800 Depreciation & Amortization 1,909 1,936 - - 3,845 Executive Transition Costs 245 189 - - 434 Transaction Expenses 104 123 - - 227 Non-cash Stock Compensation 650 1,005 - - 1,655 Distribution Adjusted Operating Income* $ 4,346 $ 4,614 $ - $ - $ 8,961 Fiscal 2026 Segment Breakdown Q1 Q2 Q3 Q4 YTD Service Operating Income (Loss) $ 2,566 $ 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 Expenses 28 496 45 175 744 Non-cash 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 $ 2,772 $ 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 Expenses - - - - - Non-cash Stock Compensation 329 538 602 773 2,242 Distribution Adjusted Operating Income* $ 4,942 $ 5,048 $ 4,949 $ 3,709 $ 18,648 * See Note 1 for a description of the non-GAAP financial measures. Costs incurred in connection with the CEO transition plan. Expenses incurred in connection with acquisitions. (1) (2) (1) (2) (1) (2) (1) (2) (1) (2)
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TRANSCAT, INC. Adjusted Net Income and Diluted EPS Reconciliation Table (Unaudited) Fiscal 2027 (In Thousands, Except Per Share Amounts) Q1 Q2 Q3 Q4 YTD Net Income $ 1,331 $ 2,413 $ - $ - $ 3,744 Amortization Expense 3,598 3,602 - - 7,201 Executive Transition Costs 736 568 - - 1,304 Transaction Expenses 628 472 - - 1,100 Acquisition Stock Expense 186 197 - - 383 Income Tax Effect (1,627) (1,166) - - (3,016) Adjusted Net Income* $ 4,852 $ 6,086 $ - $ - $ 10,716 Diluted Average Shares Outstanding 9,473 9,547 - 9,470 Diluted Earnings Per Share $ 0.14 $ 0.25 $ - $ - $ 0.40 Amortization Expense 0.38 0.38 - - 0.76 Executive Transition Costs 0.08 0.06 - - 0.14 Transaction Expenses 0.06 0.05 - - 0.11 Acquisition Stock Expense 0.02 0.02 - - 0.04 Income Tax Effect (0.17) (0.12) - - (0.32) Adjusted Diluted Earnings Per Share* $ 0.51 0.64 - - $ 1.13 Fiscal 2026 Q1 Q2 Q3 Q4 YTD Net Income (Loss) $ 3,261 $ 1,269 $ (1,101) $ 1,947 $ 5,376 Amortization Expense 2,844 3,461 3,977 3,488 13,770 Executive Transition Costs - - 771 935 1,706 Transaction Expenses 28 496 45 175 744 Acquisition Stock Expense 145 226 291 290 952 Income Tax Effect (754) (1,297) (1,601) (1,598) (5,251) Adjusted Net Income* $ 5,524 $ 4,155 $ 2,382 $ 5,237 $ 17,297 Diluted Average Shares Outstanding 9,389 9,399 9,329 9,398 9,380 Diluted Earnings (Loss) Per Share $ 0.35 $ 0.14 $ (0.12) $ 0.21 $ 0.57 Amortization Expense 0.30 0.37 0.43 0.37 1.47 Executive Transition Costs - - 0.08 0.10 0.18 Transaction Expenses - 0.05 - 0.02 0.08 Acquisition Stock Expense 0.02 0.02 0.03 0.03 0.10 Income Tax Effect (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 * See Note 1 for a description of the non-GAAP financial measures. Calculated by dividing Adjusted EBITDA* by Revenue. Costs incurred in connection with the CEO transition plan. Expenses incurred in connection with acquisitions. Stock compensation expense incurred that is related to grants to employees that were acquired with recent acquisitions. (1) (2) (3) (1) (2) (3) (1) (2) (3) (1) (2) (3) # (1) (2) (3)
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TRANSCAT, INC. Additional Information - Business Segment Data (Dollars in thousands) (Unaudited) Change SERVICE FY 2027 Q2 FY 2026 Q2 $ % Service Revenue $ 64,770 $ 52,836 $ 11,934 22.6% Cost of Revenue 42,498 35,843 6,655 18.6% Gross Profit $ 22,272 $ 16,993 $ 5,279 31.1% Gross Margin 34.4% 32.2% Selling, Marketing & Warehouse Expenses $ 7,421 $ 6,825 $ 596 8.7% General and Administrative Expenses 11,179 9,248 1,931 20.9% Operating Income $ 3,672 $ 920 $ 2,752 299.1 % % of Revenue 5.7 % 1.7% Change DISTRIBUTION FY 2027 Q2 FY 2026 Q2 $ % Distribution Revenue $ 32,320 $ 29,436 $ 2,884 9.8% Cost of Revenue 21,962 19,667 2,295 11.7% Gross Profit $ 10,358 $ 9,769 $ 589 6.0% Gross Margin 32.0% 33.2% Selling, Marketing & Warehouse Expenses $ 4,330 $ 3,803 $ 527 13.9% General and Administrative Expenses 4,667 3,381 1,286 38.0% Operating Income $ 1,361 $ 2,585 $ (1,224) (47.3%) % of Revenue 4.2% 8.8% Change TOTAL FY 2027 Q2 FY 2026 Q2 $ % Total Revenue $ 97,090 $ 82,272 $ 14,818 18.0% Total Cost of Revenue 64,460 55,510 8,950 16.1% Gross Profit $ 32,630 $ 26,762 $ 5,868 21.9% Gross Margin 33.6% 32.5% Selling, Marketing & Warehouse Expenses $ 11,751 $ 10,627 $ 1,124 10.6% General and Administrative Expenses 15,846 12,630 3,216 25.5% Operating Income $ 5,033 $ 3,505 $ 1,528 43.6 % % of Revenue 5.2% 4.3%
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TRANSCAT, INC. Service Organic Revenue, Operating Free Cash Flow, and Net Debt (Dollars in thousands) (Unaudited) Service Organic Revenue Second Quarter Ended September 26, September 27, Change 2026 2025 $ % Service Revenue $ 64,770 $ 52,836 $ 11,934 23% Less: Acquired Revenue (3,514) - Less: Freight Billed to Customer (881) (706) Service Organic Revenue * $ 60,375 $ 52,130 $ 8,245 16% Operating Free Cash Flow Six Months Ended September 26, September 27, 2026 2025 Net cash provided by operations $ 18,965 $ 16,504 Capital Expenditures (8,070) (9,030) Operating Free Cash Flow* $ 10,895 $ 7,474 Net Debt September 26, March 28, 2026 2026 Long-Term Debt $ 116,885 $ 99,885 Less: Cash and Cash Equivalents (5,758) (4,942) Net Debt * $ 111,127 $ 94,943 * See Note 1 for a description of the non-GAAP financial measures.