Table Trac's Q2 System Sales Plummet, But H1 Net Income Rises

TL;DR

**TBTC's Q2 system sales are a disaster, but H1 net income is up, making it a mixed bag that warrants caution.**

AI Summary

TABLE TRAC INC (TBTC) reported a mixed financial performance for the six months ended June 30, 2025. Total revenues increased by 7.27% to $5,874,778 from $5,476,991 in the prior year period. Net income also saw a positive jump, rising 13.29% to $927,021 compared to $818,231 in the first six months of 2024. However, the three months ended June 30, 2025, showed a significant revenue decline of 32.33% to $2,338,845 from $3,456,195, primarily due to a sharp 86.47% decrease in system revenue from $2,035,094 to $275,585. Despite this, maintenance revenue grew by 19.36% to $1,580,992 for the quarter. Cash and cash equivalents surged to $5,854,422 as of June 30, 2025, up from $2,257,696 at December 31, 2024, driven by strong operating cash flow of $1,212,220 and proceeds from short-term investments of $2,570,085. The company also increased its cash dividends paid to $185,579 for the six months ended June 30, 2025, from $46,347 in the prior year.

Why It Matters

For investors, the sharp decline in quarterly system revenue by 86.47% to $275,585 is a red flag, suggesting potential issues with new client acquisition or large project delays, which could impact future growth. While maintenance revenue is stable, the core business of system sales is critical for expansion and market share against competitors. Employees might face uncertainty if this trend continues, potentially affecting job security or growth opportunities. Customers could see this as a sign of market saturation or a shift in the company's product focus. The broader market might view this as a signal of a slowdown in the casino technology sector, especially if TBTC's performance is indicative of industry-wide trends.

Risk Assessment

Risk Level: medium — The significant 86.47% drop in system revenue for the three months ended June 30, 2025, to $275,585 from $2,035,094 in the prior year, indicates a high operational risk related to core product sales. While overall H1 revenue and net income increased, this quarterly decline in a key segment is concerning and could signal future instability if not addressed.

Analyst Insight

Investors should closely monitor TBTC's next earnings report for signs of recovery in system sales. Consider holding existing positions but refrain from adding new capital until there's clear evidence of renewed growth in their core casino management system installations. Diversify exposure within the gaming technology sector.

Financial Highlights

debt To Equity

0.11

revenue

$5,874,778

operating Margin

17.01%

total Assets

$13,653,842

total Debt

$1,397,405

net Income

$927,021

gross Margin

74.28%

cash Position

$5,854,422

revenue Growth

+7.27%

Revenue Breakdown

Key Numbers

• $5.87M — Total Revenues (H1 2025) (Increased 7.27% from $5.48M in H1 2024)
• $927K — Net Income (H1 2025) (Increased 13.29% from $818K in H1 2024)
• $2.34M — Total Revenues (Q2 2025) (Decreased 32.33% from $3.46M in Q2 2024)
• $275K — System Revenue (Q2 2025) (Decreased 86.47% from $2.04M in Q2 2024)
• $1.58M — Maintenance Revenue (Q2 2025) (Increased 19.36% from $1.32M in Q2 2024)
• $5.85M — Cash and Cash Equivalents (Increased from $2.26M at Dec 31, 2024)
• $1.21M — Net Cash Provided by Operating Activities (H1 2025) (Increased from $1.06M in H1 2024)
• $185K — Payment of Dividends (H1 2025) (Increased from $46K in H1 2024)

Key Players & Entities

• TABLE TRAC INC (company) — Registrant
• $5,874,778 (dollar_amount) — Total revenues for six months ended June 30, 2025
• $5,476,991 (dollar_amount) — Total revenues for six months ended June 30, 2024
• $927,021 (dollar_amount) — Net income for six months ended June 30, 2025
• $818,231 (dollar_amount) — Net income for six months ended June 30, 2024
• $2,338,845 (dollar_amount) — Total revenues for three months ended June 30, 2025
• $3,456,195 (dollar_amount) — Total revenues for three months ended June 30, 2024
• $275,585 (dollar_amount) — System revenue for three months ended June 30, 2025
• $2,035,094 (dollar_amount) — System revenue for three months ended June 30, 2024
• $5,854,422 (dollar_amount) — Cash and cash equivalents as of June 30, 2025

FAQ

Risk Factors

• Dependence on System Sales [high — market]: The significant 86.47% decrease in system revenue in Q2 2025 highlights a potential over-reliance on this segment. A continued downturn in system sales could severely impact overall financial performance.
• Revenue Volatility [medium — operational]: The stark contrast between H1 2025 revenue growth (+7.27%) and Q2 2025 revenue decline (-32.33%) indicates significant revenue volatility. This makes forecasting and strategic planning more challenging.
• Customer Deposit Fluctuations [low — financial]: Customer deposits decreased from $870,602 at December 31, 2024, to $170,396 at June 30, 2025. While this could be due to project completions, a significant drop might signal reduced future business or cash flow implications.

Industry Context

TABLE TRAC INC operates in a sector likely involving technology solutions and maintenance services. The industry often faces rapid technological advancements, requiring continuous innovation and adaptation. Competition can be intense, with players differentiating on product features, service quality, and pricing. Recurring revenue models, such as maintenance contracts, are crucial for stability, while new system sales can drive significant growth but may be subject to market cycles and customer capital expenditure budgets.

Regulatory Implications

As a publicly traded company, TABLE TRAC INC is subject to SEC regulations and accounting standards (GAAP). Any significant shifts in revenue recognition, particularly concerning system sales versus maintenance, could attract scrutiny. Compliance with data privacy and cybersecurity regulations is also paramount, especially if the company handles sensitive customer information.

What Investors Should Do

1. Monitor Q3 2025 system revenue trends closely.
2. Analyze the sustainability of maintenance revenue growth.
3. Evaluate the impact of increased cash dividends.
4. Assess the strategic shift indicated by the balance sheet changes.

Key Dates

• 2025-06-30: End of Q2 and H1 2025 reporting period — Revealed a mixed financial performance with strong H1 growth but a significant Q2 revenue decline, particularly in system sales.
• 2025-06-30: Cash and cash equivalents reached $5,854,422 — Substantial increase from $2,257,696 at year-end 2024, indicating improved liquidity and cash generation.
• 2024-12-31: End of Fiscal Year 2024 — Provided the comparative baseline for H1 2025 financial results and cash position.

Glossary

Net investment in sales type leases

Represents the net amount expected to be collected from leases that transfer substantially all the risks and rewards of ownership to the lessee. (This is a component of both current and long-term assets, reflecting revenue generated from leasing activities.)

Software development costs, net

Costs incurred in the development of software that are capitalized and amortized over their useful life. (Indicates investment in intangible assets related to the company's technology or product offerings.)

Operating lease right-of-use assets

Assets recognized by lessees for their right to use a leased asset over the lease term. (Reflects the company's use of leased properties or equipment, impacting operating expenses and liabilities.)

Customer deposits

Payments received from customers in advance for goods or services to be provided in the future. (A significant decrease in Q2 2025 suggests a potential shift in order patterns or project timelines.)

Deferred tax liability

Taxes that are expected to be paid in future years due to temporary differences between accounting income and taxable income. (Represents a future tax obligation that impacts the company's long-term financial position.)

Year-Over-Year Comparison

Compared to the prior year period, TABLE TRAC INC (TBTC) demonstrated positive momentum in the first six months of 2025, with total revenues increasing by 7.27% to $5.87M and net income rising by 13.29% to $927K. However, the second quarter of 2025 presented a starkly different picture, with revenues falling 32.33% year-over-year, primarily due to an 86.47% drop in system revenue. This was partially mitigated by a healthy 19.36% increase in maintenance revenue. The company's cash position has significantly improved, with cash and cash equivalents more than doubling from the end of 2024 to $5.85M, supported by strong operating cash flow.

Key Financial Figures

• $250,000 — ments below the FDIC insurance limit of $250,000 per institution, per ownership category

Filing Documents

• tbltrc20250630_10q.htm (10-Q) — 852KB
• ex_827875.htm (EX-31.1) — 12KB
• ex_827876.htm (EX-31.2) — 12KB
• ex_827877.htm (EX-32) — 6KB
• tabletraclogo2.jpg (GRAPHIC) — 5KB
• 0001437749-25-026504.txt ( ) — 5001KB
• tbtc-20250630.xsd (EX-101.SCH) — 41KB
• tbtc-20250630_cal.xml (EX-101.CAL) — 38KB
• tbtc-20250630_def.xml (EX-101.DEF) — 286KB
• tbtc-20250630_lab.xml (EX-101.LAB) — 279KB
• tbtc-20250630_pre.xml (EX-101.PRE) — 314KB
• tbltrc20250630_10q_htm.xml (XML) — 820KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 1

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 12

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 15

Controls and Procedures

Item 4. Controls and Procedures 15

OTHER INFORMATION

PART II. OTHER INFORMATION

Risk Factors

Item 1A. Risk Factors 16

Other Information

Item 5. Other Information

Exhibits

Item 6. Exhibits 17

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements TABLE TRAC, INC. CONTENTS Page CONDENSED FINANCIAL STATEMENTS (Unaudited) Condensed Balance Sheets 2 Condensed Statements of Operations 3 Condensed Statements of Stockholders' Equity 4 Condensed Statements of Cash Flows 5 Notes to Condensed Financial Statements 6 1 TABLE TRAC, INC. CONDENSED BALANCE SHEETS (Unaudited) June 30, December 31, 2025 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 5,854,422 $ 2,257,696 Short-term investments 2,121,354 4,627,744 Accounts receivable, net 2,133,459 2,343,062 Inventory, net 1,529,437 1,935,679 Prepaid expenses 432,503 534,767 Net investment in sales type leases - current 67,475 75,858 Income tax receivable 0 50,156 TOTAL CURRENT ASSETS 12,138,650 11,824,962 LONG-TERM ASSETS Accounts receivable - long-term 883,969 1,011,355 Property and equipment, net 130,871 149,669 Net investment in sales type leases - long term 70,892 46,924 Software development costs, net 11,687 13,355 Operating lease right-of-use assets 417,773 474,157 TOTAL LONG-TERM ASSETS 1,515,192 1,695,460 TOTAL ASSETS $ 13,653,842 $ 13,520,422 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 261,220 $ 216,944 Customer deposits 170,396 870,602 Current portion of operating lease liabilities 87,443 80,999 Income tax payable 28,336 0 TOTAL CURRENT LIABILITIES 547,395 1,168,545 LONG-TERM LIABILITIES Operating lease liabilities 381,010 435,796 Deferred tax liability 469,000 454,000 TOTAL LIABILITIES 1,397,405 2,058,341 STOCKHOLDERS' EQUITY Common stock, $ 0.001 par value; 25,000,000 shares authorized: 4,756,734 shares issued; and 4,639,523 and 4,635,568 shares outstanding at June 30, 2025 and December 31, 2024, respectively. 4,640 4,636 Additional paid-in capital 2,519,805 2,470,850 Retained earnings 9,950,472 9,209,030 12,474,917 11,684,516 Treasury stock, 117,2

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