Despite achieving 15.8% revenue growth in 2025Q4, operating margins have compressed to 3.6% as rising SG&A expenses of $27.6M continue to outpace top-line expansion.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Sales/Revenue | 331.88M | 278.42M | 259.48M | 230.57M | 204.96M | 173.34M | 173.1M | 160.9M | 155.14M | 143.9M | 122.17M | 123.62M | 118.51M | 112.3M | 110.02M | 91.19M | 81.06M | 75.42M | 70.45M | 66.47M | 60.47M | 55.31M | 53.32M | 57.18M | 66.78M | 75.57M | 79.97M | 69.7M | 78.5M | 47.3M |
| Revenue Growth % | 19.2% | 7.3% | 12.54% | 12.5% | 18.24% | 0.14% | 7.58% | 3.71% | 7.81% | 17.79% | -1.18% | 4.32% | 5.53% | 2.07% | 20.65% | 12.49% | 7.48% | 7.05% | 5.99% | 9.93% | 9.34% | 3.73% | -6.76% | -14.38% | -11.63% | -5.5% | 14.73% | -11.21% | 65.96% | 23.18% |
| Cost of Goods Sold | 223.57M | 188.97M | 175.68M | 162.21M | 146.52M | 127.22M | 130.62M | 121.56M | 117.7M | 108.93M | 93.05M | 94.54M | 88.72M | 84.89M | 82.9M | 67.89M | 61.77M | 56.67M | 51.91M | 49.78M | 45.37M | 41.41M | 39.92M | 43.9M | 49.14M | 47.98M | 52.98M | 43.4M | 50.7M | 27.7M |
| COGS % of Revenue | 67.37% | 67.87% | 67.7% | 70.35% | 71.49% | 73.39% | 75.46% | 75.55% | 75.87% | 75.7% | 76.16% | 76.47% | 74.86% | 75.6% | 75.35% | 74.45% | 76.2% | 75.14% | 73.68% | 74.89% | 75.03% | 74.88% | 74.87% | 76.77% | 73.58% | 63.5% | 66.25% | 62.27% | 64.59% | 58.56% |
| Gross Profit | 108.3M | 89.45M | 83.81M | 68.36M | 58.44M | 46.12M | 42.48M | 39.34M | 37.44M | 34.97M | 29.12M | 29.09M | 29.79M | 27.4M | 27.12M | 23.3M | 19.29M | 18.75M | 18.54M | 16.69M | 15.1M | 13.89M | 13.4M | 13.29M | 17.64M | 27.58M | 26.99M | 26.3M | 27.8M | 19.6M |
| Gross Margin % | 32.63% | 32.13% | 32.3% | 29.65% | 28.51% | 26.61% | 24.54% | 24.45% | 24.13% | 24.3% | 23.84% | 23.53% | 25.14% | 24.4% | 24.65% | 25.55% | 23.8% | 24.86% | 26.32% | 25.11% | 24.97% | 25.12% | 25.13% | 23.23% | 26.42% | 36.5% | 33.75% | 37.73% | 35.41% | 41.44% |
| Gross Profit Growth % | 21.07% | 6.74% | 22.6% | 16.97% | 26.72% | 8.57% | 7.97% | 5.08% | 7.07% | 20.09% | 0.11% | -2.36% | 8.71% | 1.03% | 16.42% | 20.75% | 2.91% | 1.12% | 11.09% | 10.54% | 8.69% | 3.69% | 0.84% | -24.7% | -36.04% | 2.21% | 2.62% | -5.4% | 41.84% | 35.17% |
| Operating Expenses | 95.04M | 71.58M | 64.03M | 52.11M | 44.3M | 35.05M | 31.63M | 29.11M | 28.41M | 27.04M | 22.82M | 22.32M | 23.09M | 21.46M | 21.7M | 18.71M | 16.91M | 16.06M | 15.26M | 14.34M | 13.58M | 12.99M | 13.09M | 12.85M | 23.65M | 24.63M | 26.87M | 22.5M | 23.6M | 16.2M |
| OpEx % of Revenue | 28.64% | 25.71% | 24.67% | 22.6% | 21.61% | 20.22% | 18.27% | 18.09% | 18.32% | 18.79% | 18.68% | 18.05% | 19.48% | 19.11% | 19.72% | 20.52% | 20.86% | 21.3% | 21.66% | 21.57% | 22.46% | 23.49% | 24.55% | 22.48% | 35.41% | 32.6% | 33.6% | 32.28% | 30.06% | 34.25% |
| Selling, General & Admin | 95.04M | 71.58M | 64.03M | 52.11M | 44.3M | 35.05M | 31.63M | 29.11M | 28.41M | 27.04M | 22.82M | 22.32M | 23.09M | 21.46M | 21.7M | 18.71M | 16.91M | 16.06M | 15.26M | 14.34M | 13.58M | 12.99M | 13.09M | 12.85M | 18.24M | 18.92M | 20.55M | 17.8M | 19.2M | 13.6M |
| SG&A % of Revenue | 28.64% | 25.71% | 24.67% | 22.6% | 21.61% | 20.22% | 18.27% | 18.09% | 18.32% | 18.79% | 18.68% | 18.05% | 19.48% | 19.11% | 19.72% | 20.52% | 20.86% | 21.3% | 21.66% | 21.57% | 22.46% | 23.49% | 24.55% | 22.48% | 27.31% | 25.04% | 25.69% | 25.54% | 24.46% | 28.75% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 901K | 1.17M | 1.51M | 1.6M | 1.7M | 1.6M |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 1.35% | 1.54% | 1.89% | 2.3% | 2.17% | 3.38% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.51M | 4.55M | 4.81M | 3.1M | 2.7M | 1M |
| Operating Income | 13.26M | 17.87M | 19.78M | 16.25M | 14.14M | 11.07M | 10.85M | 10.23M | 9.03M | 7.93M | 6.3M | 6.77M | 6.71M | 5.95M | 5.43M | 4.59M | 2.38M | 2.69M | 3.28M | 3.89M | 1.52M | 899K | 307K | 434K | -6M | 2.95M | 121.39K | 3.8M | 4.2M | 3.4M |
| Operating Margin % | 4% | 6.42% | 7.62% | 7.05% | 6.9% | 6.39% | 6.27% | 6.36% | 5.82% | 5.51% | 5.16% | 5.47% | 5.66% | 5.29% | 4.93% | 5.03% | 2.94% | 3.56% | 4.66% | 5.86% | 2.51% | 1.63% | 0.58% | 0.76% | -8.99% | 3.91% | 0.15% | 5.45% | 5.35% | 7.19% |
| Operating Income Growth % | -25.8% | -9.64% | 21.74% | 14.88% | 27.73% | 2.06% | 6.07% | 13.33% | 13.76% | 25.9% | -6.89% | 0.94% | 12.76% | 9.54% | 18.33% | 92.65% | -11.36% | -18.18% | -15.67% | 156.46% | 68.85% | 192.83% | -29.26% | 107.23% | -303.45% | 2331.51% | -96.81% | -9.52% | 23.53% | 61.9% |
| EBITDA | 39.44M | 36.44M | 33.33M | 27.2M | 23.71M | 18.65M | 17.51M | 16.59M | 15.02M | 14.12M | 10.25M | 9.86M | 9.65M | 8.65M | 8.32M | 6.88M | 4.46M | 4.58M | 5.04M | 5.57M | 2.96M | 2.52M | 1.71M | 2.48M | 2.59M | 7.5M | 4.93M | 6.9M | 6.9M | 4.4M |
| EBITDA Margin % | 11.88% | 13.09% | 12.84% | 11.8% | 11.57% | 10.76% | 10.12% | 10.31% | 9.68% | 9.81% | 8.39% | 7.97% | 8.14% | 7.7% | 7.57% | 7.54% | 5.5% | 6.08% | 7.16% | 8.37% | 4.9% | 4.56% | 3.2% | 4.34% | 3.88% | 9.92% | 6.16% | 9.9% | 8.79% | 9.3% |
| EBITDA Growth % | 8.22% | 9.35% | 22.5% | 14.73% | 27.11% | 6.53% | 5.54% | 10.47% | 6.37% | 37.76% | 3.96% | 2.16% | 11.59% | 3.89% | 20.99% | 54.23% | -2.66% | -9.14% | -9.39% | 87.76% | 17.66% | 47.8% | -31.28% | -4.17% | -65.47% | 52.12% | -28.57% | 0% | 56.82% | 69.23% |
| D&A (Non-Cash Add-back) | 26.17M | 18.57M | 13.54M | 10.96M | 9.57M | 7.58M | 6.66M | 6.36M | 5.99M | 6.18M | 3.95M | 3.09M | 2.94M | 2.7M | 2.9M | 2.29M | 2.08M | 1.9M | 1.76M | 1.67M | 1.45M | 1.62M | 1.4M | 2.05M | 8.59M | 4.55M | 4.81M | 3.1M | 2.7M | 1M |
| EBIT | 13.26M | 19.12M | 20.27M | 15.9M | 14M | 11.07M | 10.85M | 10.23M | 9.13M | 7.93M | 6.3M | 6.77M | 7M | 5.95M | 5.43M | 4.55M | 2.35M | 2.62M | 3.28M | 2.35M | 1.36M | 606K | 307K | 469K | -6M | 2.95M | 121.39K | 3.8M | 4.1M | 3.4M |
| Net Interest Income | -5.27M | 27K | -1.03M | -2.42M | -810K | -1.09M | -1.12M | -994K | -1.08M | -770K | -295K | -345K | -259K | -228K | -182K | -73K | -63K | -100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 825K | 808K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -48K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 5.27M | 798K | 1.83M | 2.42M | 810K | 1.09M | 1.12M | 994K | 1.08M | 770K | 295K | 345K | 259K | 228K | 134K | 73K | 63K | 100K | 101K | 334K | 427K | 350K | 434K | 615K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -5.27M | 452K | -1.34M | -2.76M | -953K | -1.09M | -1.12M | -994K | -1.08M | -770K | -295K | -345K | -259K | -228K | -182K | -105K | -98K | -167K | -538K | -617K | -589K | -643K | -146K | 915K | -1.23M | -2.52M | -2.93M | -2.1M | -2.5M | -100K |
| Pretax Income | 7.99M | 18.33M | 18.44M | 13.49M | 13.19M | 9.98M | 9.73M | 9.23M | 7.95M | 7.16M | 6.01M | 6.42M | 6.45M | 5.72M | 5.25M | 4.48M | 2.28M | 2.52M | 2.75M | 3.28M | 929K | 256K | 161K | 1.35M | -7.23M | 428.74K | -2.81M | 1.7M | 1.6M | 3.3M |
| Pretax Margin % | 2.41% | 6.58% | 7.11% | 5.85% | 6.44% | 5.76% | 5.62% | 5.74% | 5.12% | 4.98% | 4.92% | 5.2% | 5.44% | 5.09% | 4.77% | 4.92% | 2.82% | 3.34% | 3.9% | 4.93% | 1.54% | 0.46% | 0.3% | 2.36% | -10.83% | 0.57% | -3.51% | 2.44% | 2.04% | 6.98% |
| Income Tax | 2.61M | 3.81M | 4.79M | 2.8M | 1.81M | 2.19M | 1.66M | 2.09M | 2.03M | 2.64M | 1.88M | 2.4M | 2.46M | 2.01M | 1.94M | 1.69M | 832K | 963K | 382K | 1.22M | -2.65M | 0 | -192K | -408K | -600K | -84.4K | -319K | 700K | 600K | 1.2M |
| Effective Tax Rate % | 32.71% | 20.8% | 25.99% | 20.75% | 13.72% | 21.95% | 17.09% | 22.63% | 25.49% | 36.88% | 31.35% | 37.32% | 38.19% | 35.22% | 37.06% | 37.8% | 36.44% | 38.23% | 13.92% | 37.15% | -285.04% | 0% | -119.25% | -30.24% | 8.3% | -19.69% | 11.36% | 41.18% | 37.5% | 36.36% |
| Net Income | 5.38M | 14.52M | 13.65M | 10.69M | 11.38M | 7.79M | 8.07M | 7.14M | 5.92M | 4.52M | 4.12M | 4.03M | 3.98M | 3.7M | 3.3M | 2.79M | 1.45M | 1.56M | 2.36M | 2.06M | 3.58M | 256K | 353K | -4.71M | -6.63M | 513.14K | -2.49M | 1M | 1M | 2.1M |
| Net Margin % | 1.62% | 5.21% | 5.26% | 4.64% | 5.55% | 4.49% | 4.66% | 4.44% | 3.82% | 3.14% | 3.38% | 3.26% | 3.36% | 3.3% | 3% | 3.06% | 1.79% | 2.06% | 3.35% | 3.1% | 5.92% | 0.46% | 0.66% | -8.25% | -9.93% | 0.68% | -3.11% | 1.43% | 1.27% | 4.44% |
| Net Income Growth % | -62.96% | 6.36% | 27.69% | -6.08% | 46.07% | -3.42% | 12.9% | 20.65% | 30.96% | 9.65% | 2.43% | 1.05% | 7.56% | 12.17% | 18.44% | 92.14% | -6.75% | -34.15% | 14.76% | -42.44% | 1297.27% | -27.48% | 107.49% | 28.89% | -1392.23% | 120.61% | -349.01% | 0% | -52.38% | 75% |
| Net Income (Continuing) | 5.38M | 14.52M | 13.65M | 10.69M | 11.38M | 7.79M | 8.07M | 7.14M | 5.92M | 4.52M | 4.12M | 4.03M | 3.98M | 3.7M | 3.3M | 2.79M | 1.45M | 1.56M | 2.36M | 2.06M | 3.58M | 256K | 353K | 1.76M | -6.63M | 513.14K | -2.49M | 1M | 1M | 2.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.57 | 1.57 | 1.63 | 1.40 | 1.50 | 1.03 | 1.08 | 0.95 | 0.81 | 0.64 | 0.58 | 0.57 | 0.54 | 0.49 | 0.43 | 0.37 | 0.19 | 0.21 | 0.32 | 0.28 | 0.50 | 0.04 | 0.05 | -0.77 | -1.09 | 0.09 | -0.41 | 0.16 | 0.16 | 0.33 |
| EPS Growth % | -63.69% | -3.68% | 16.43% | -6.67% | 45.63% | -4.63% | 13.68% | 17.28% | 26.56% | 10.34% | 1.75% | 5.56% | 10.2% | 13.95% | 16.22% | 94.74% | -9.52% | -34.38% | 14.29% | -44% | 1262.4% | -29.29% | 106.74% | 29.36% | -1311.11% | 121.95% | -356.25% | 0% | -51.52% | 37.5% |
| EPS (Basic) | 0.58 | 1.58 | 1.66 | 1.42 | 1.52 | 1.05 | 1.10 | 0.99 | 0.83 | 0.65 | 0.60 | 0.59 | 0.56 | 0.50 | 0.45 | 0.38 | 0.20 | 0.21 | 0.33 | 0.30 | 0.54 | 0.04 | 0.06 | -0.77 | -1.09 | 0.09 | -0.42 | 0.17 | 0.17 | 0.34 |
| Diluted Shares Outstanding | 9.33M | 9.25M | 8.35M | 7.64M | 7.59M | 7.55M | 7.49M | 7.51M | 7.3M | 7.11M | 7.12M | 7.06M | 7.36M | 7.59M | 7.65M | 7.52M | 7.55M | 7.47M | 7.27M | 7.33M | 7.18M | 6.97M | 6.81M | 6.15M | 6.1M | 5.7M | 6.02M | 6.25M | 6.25M | 6.27M |
| Basic Shares Outstanding | 9.33M | 9.19M | 8.24M | 7.55M | 7.5M | 7.42M | 7.33M | 7.2M | 7.12M | 6.99M | 6.89M | 6.8M | 7.08M | 7.4M | 7.31M | 7.29M | 7.35M | 7.3M | 7.13M | 6.91M | 6.65M | 6.4M | 5.88M | 6.15M | 6.1M | 5.7M | 5.88M | 5.85M | 5.88M | 6.09M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operating margin compression risk
According to recent quarterly filings, Transcat achieved a 15.8% year-over-year revenue growth in 2025Q4, signaling robust demand for its calibration services, yet this top-line expansion has failed to translate into consistent bottom-line growth, as evidenced by the significant volatility in quarterly earnings per share figures.
The consistent double-digit revenue growth suggests that Transcat is successfully capturing market share within the life sciences sector. However, investors should monitor whether this growth is organic or driven by acquisition-heavy capital deployment, as the lack of corresponding margin expansion implies that the company is struggling to achieve meaningful economies of scale.
As reported in financial statements, Transcat's operating margin has compressed to 3.6% in 2025Q4, reflecting a challenging cost environment where gross margins of 34.1% are insufficient to absorb rising SG&A expenses, which have consistently trended upward over the last ten quarters of reported operational data.
The persistent gap between gross and operating margins suggests that the company's hub-and-spoke laboratory model carries a high fixed-cost burden that is not scaling efficiently. This indicates that management may be facing difficulty in optimizing technician utilization rates, which are critical for maintaining profitability in a labor-intensive service business.
Based on the company's historical income statements, SG&A expenses have risen to $27.6M in 2025Q4, a significant increase from $14.8M in 2023Q4, suggesting that the costs associated with integrating acquisitions and maintaining a specialized workforce are currently outpacing the company's ability to generate incremental operating income.
The sharp rise in SG&A relative to revenue growth warrants further investigation into whether these costs are truly one-time integration expenses or a permanent shift in the company's operating cost structure. If these expenses remain elevated, the company's ability to achieve long-term margin expansion appears increasingly limited.
Data from recent income statements indicates that net income has fluctuated significantly, dropping to $1.9M in 2025Q4 from $6.9M in 2023Q4, a trend that appears heavily influenced by non-operating items and inconsistent stock-based compensation charges that complicate the assessment of true recurring profitability for shareholders.
The volatility in net income suggests that investors should focus on adjusted metrics to better understand the company's core operational health. The impact of stock-based compensation, which reached $3.9M in 2025Q3, further complicates the quality of reported earnings and suggests that dilution may be a recurring concern for long-term equity holders.
While the company's growth strategy relies on the premise of achieving scale, the reported 2025Q4 operating margin of 3.6% suggests that the business model may be inherently limited by high variable labor costs, challenging the narrative that Transcat can significantly improve its profitability through further geographic expansion.
Short-sellers might focus on the fact that despite years of acquisition-led growth, the company has yet to demonstrate a clear path to margin expansion. This raises the risk that the company is merely trading revenue growth for lower-quality earnings, which may not be sustainable if the labor market for specialized metrologists continues to tighten.
Quick answers to the most common questions about buying TRNS stock.
For fiscal year 2025, Transcat, Inc. (TRNS) reported total revenue of $331.9M. This represents a 601.6% increase compared to $47.3M in 1996.
Transcat, Inc. (TRNS) is profitable, generating $5.4M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Transcat, Inc. (TRNS) reported an operating income of $13.3M, resulting in an operating profit margin of 4.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Transcat, Inc. (TRNS) generated $108.3M in gross profit for the year, representing a gross profit margin of 32.6%. This demonstrates the company's core pricing power and production efficiency.