Table Trac, Inc. reported third‑quarter 2025 results that showed a sharp decline in revenue and net income, but an improvement in gross profit margin. Total revenue fell to $2.14 million from $2.55 million in the same quarter a year earlier, a 16.5% drop. Net income for the quarter was $58,352, or $0.01 per share, compared with $292,379 ($0.06 per share) in Q3 2024. Gross profit margin expanded to 73.7% from 70.7% year‑over‑year, reflecting a shift toward higher‑margin maintenance services.
The nine‑month period ending September 30, 2025, also saw a decline in profitability. Net income for the first nine months of 2025 was $985,374 ($0.21 basic EPS), down from $1,110,610 ($0.24 basic EPS) in 2024. Revenue for the nine‑month period dropped to $6.42 million from $7.65 million a year earlier, a 16.5% decline that mirrors the quarterly trend. These figures illustrate a consistent contraction in top‑line growth while the company’s cost structure has remained relatively stable, allowing margin expansion.
Revenue fell largely because the company delivered no new systems during the quarter. The absence of new system installations removed a key revenue driver that had supported higher sales in previous periods. At the same time, the mix of services shifted toward maintenance contracts, which carry higher gross margins. This mix shift is the primary reason for the 3.0 percentage‑point increase in gross profit margin, even as overall sales declined. The company’s operating expenses did not rise proportionally, which helped preserve profitability despite lower revenue.
Liquidity remains strong. At the end of the quarter, Table Trac held $6.11 million in cash and $2.14 million in short‑term investments, with an undrawn $0.5 million credit line. These resources provide a comfortable cushion for the next 12 months and support ongoing operations while the company works to convert signed contracts into new system deliveries. The company also announced a quarterly cash dividend of $0.02 per share, payable on December 12, 2025, underscoring its commitment to returning value to shareholders.
Management did not provide commentary on the results, and no analyst expectations or market reaction data were available. The company’s backlog includes one system contract expected to be installed in Q1 2026, which could help offset the current revenue decline if the installation proceeds as scheduled. Overall, the results signal a short‑term revenue slowdown but also demonstrate the company’s ability to improve margins through a higher‑margin service mix and maintain solid liquidity.
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