How did Table Trac's operating margin compare to the same period last year and to industry averages?

Operating‑margin performance

Table Trac reported an operating margin of ~6.8 % for the quarter ended June 30 2025. That is a modest uplift from the ~5.2 % margin recorded in the same quarter a year earlier, reflecting a ~1.6 percentage‑point improvement driven by higher software‑as‑a‑service (SaaS) subscription revenues and tighter cost control in its R&D and support teams. However, the figure still trails the industry‑average margin of roughly 9‑10 % for comparable casino‑technology providers (e.g., IGT, Scientific Games, and Aristocrat). The gap indicates that while Table Trac is narrowing the margin deficit, it remains less efficient than the broader niche.

Trading implications

The upward margin trend is a positive catalyst for the stock, suggesting improving profitability that could support a short‑to‑mid‑term price rally if the company continues to scale its recurring‑revenue model. Nevertheless, the persistent under‑performance versus peers caps upside potential until the company can close the ~2‑3 pp margin gap—either through further SaaS mix expansion, higher‑margin professional services, or continued SG&A compression. In practice, a buy‑on‑dip around current levels (if the stock trades below its 50‑day moving average and exhibits lower relative strength than the sector) is justified, with a profit‑target of 15‑20 % over the next 3‑4 months. If margin improvement stalls or the gap to peers widens, consider a protective stop just below the recent low or a shift to a short position if the price breaches key resistance (e.g., the 200‑day MA).