Hello, and welcome, everyone, joining today's TransAct Technologies Second Quarter 2025 Earnings Call. [Operator Instructions] Please note this call is being recorded. I am standing by should you need any assistance. It is now my pleasure to turn the program over to Ryan Gardella from Investor Relations. Please go ahead.

Thank you. Good afternoon, and welcome to the TransAct Technologies Second Quarter 2025 Earnings Call. Today, we'll be discussing the results announced in our press release issued after market close. Joining us from the company is CEO, John Dillon; and President and CFO, Steven DeMartino. Today's call will include a discussion of the company's key operating strategies, the progress on these initiatives and details on the second quarter financial results. We'll then open the call to participants for questions. As a reminder, this conference call contains statements about future events and expectations, which are forward-looking in nature. Statements on this call may be deemed as forward-looking, and actual results may differ materially. For a full list of risks inherent to the business and the company, please refer to the company's SEC filings, including its reports on Form 10-K and 10-Q. TransAct undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances that occur after the call. Today's call and webcast will include non-GAAP financial measures within the meaning of SEC Regulation G. When required, reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in today's press release as well as on the company website. And with that, I'd like to turn the call over to John.

Thanks, Ryan, and good afternoon, everyone, and thank you for joining us today. I'm delighted to report that TransAct delivered a solid quarter, building momentum from a good strong start to the year. We sold 1,942 BOHA! Terminals in Q2, which is a 32% increase year-over-year. That brings the total sold in the first 6 months to 4,292. I'm really happy about this number. It shows progress for sure. The continued strength in the food service business, and we call it FST, food service technology, underscores the effectiveness of what I refer to as a GTM or go-to-market initiatives. We believe this trajectory positions us for sustainable progress and improving results. It's really just continued good process, discipline and resolve, really not too much more than that. There's a lot of low-hanging fruit, and we're trying to be focused as we execute. But process -- good process, discipline and resolve is probably really key to the progress we're making. The focus is to build the business with good execution, consistent results and with a goal to make TransAct a formidable competitor in what we see as a growing, valuable and somewhat transitional market. So before we dive into the results, let me mention today that we announced that we have acquired a perpetual license to a copy of the source code for the BOHA! software for a consideration of $2.55 million, plus approximately $1 million of professional services fees in connection with the in-housing transition that we'll undertake. We see this as a very important step in the life of TransAct and frankly, a decision that should generate significant benefits for the company in the coming years. It's a pretty big deal. So first, let me talk about why this was the correct move at this time. As many of…

Thanks, John, and thanks, everyone, for joining us today. Let's take a look at the second quarter results in a little more detail. Total net sales for the second quarter were $13.8 million. That was up 6% sequentially and also up 19% compared to $11.6 million in the prior year period. Sales from our food service technology market or FST, for the second quarter were $4.7 million. That was down slightly by 3% sequentially, but up 14% compared to $4.2 million in the prior year period. Our recurring FST sales, which include software and service subscriptions as well as consumable label sales for the second quarter were $3 million, and that was up 11% sequentially and 7% compared to $2.8 million in the prior year period. Our ARPU for the second quarter of '25 was $792. That was up 10% year-over-year. As I remind you each quarter, we continue to sell a number of BOHA! Terminals to a large QSR with nonrecurring revenue attached to start. While this presents an opportunity to sell recurring elements in the future, for now, they continue to represent a drag on our ARPU number. In the quarter, a large number of our terminals fell into this category again, and we expect this to continue into the near future. Our casino and gaming sales were $7.6 million, and that was up 14% sequentially and 42% year-over-year. This reflects normalized buying levels from almost all our major OEMs as well as a new OEM win for non-casino charitable gaming applications, which could represent a sizable growth opportunity over time. We believe sales from the casino and gaming market should maintain a similar run rate through at least the third quarter of '25. POS automation sales for the second quarter declined 49% from the prior year to…

[Operator Instructions] And we'll take our first question from Jeff Martin with ROTH Capital Partners.

John, I was wondering if you could dive in a little bit on FST, excluding the QSR, how satisfied you are or maybe detail some of the progress into selling into the newer client base? I know you mentioned 2 new logos in the quarter, but give us a gauge of how you're looking at that.

Listen, it's a great question. I'm excited about the progress we've made. It's progress in -- as I mentioned, it's sort of like discipline, process and execution. And we are making good progress there. We have more to make. The good thing about the GTM, the go-to- market, is it's almost an area where no matter how good your product is, you can always improve your customer engagement, how you engage, how do you find clients, how do you engage with them and how do you execute against that engagement and ultimately land business. So I think the progress is good. It's still lumpy because customers -- we do this land and expand thing that I mentioned, where the goal is to try to get the camel's nose into the tent. And if the product works well, which it does, the customer is delighted and then it's a lot easier to sell more product than trying to get a very large order upfront. The other thing that we're doing in addition to focusing on that is we've targeted specifically the clients that can make the sales effort worthwhile. In other words, they have the potential to buy enough or spend enough money with us over time that the economics of the sales process is more than covered the CAC, the customer acquisition cost is covered. So we're pretty focused on that, and the numbers there are getting better and better. And then the kind of the final thing I'll say is that we have done a lot in the area of sales training, where we're not so much training the people how to sell stuff, but more what is the value, the ROI to the customer, why should the client care and then how do we express that. And we have to express that both in literature, the website and then in the narrative that our salespeople engage with their clients. And so I guess kind of a long answer here, it's lots of little things added together. And generally speaking, I'm quite pleased with the progress. The good news is there's a lot more progress to be made.

Great. And on the sale of terminals to the large QSR, are you having dialogue today about potentially adding software components to that? I know that would be a nice incremental benefit to the business longer term.

The answer to that question is yes.

Excellent. That's great to hear. And then on the casino and gaming side, I know you mentioned Q3 would be similar to Q2, which is great to hear. I think that exceeded people's expectations. Is this kind of a new level of market share? And do you think you've gained that market share on an ongoing basis?

I'll say a few things, and then Steve is going to be closer to the specific numbers we might be expecting in the next quarter or 2. I think we're executing with a greater degree of focus and a greater degree of passion. We -- I wouldn't say we've whipped the sales team into a frenzy, but I mean our expectation is that gradually, we want to erode the positions that other large vendors have in our marketplace. And that's got to be a focus on where new opportunities are emerging. Are we there? Are we present? Are we suited up? Are we in the playing field? When we show up, what do we do when we get there? What are our differentiators? How do we win and why do we win? It's basically, if you will, an injection of additional discipline, including even adjusting the compensation plans to create a focus on winning and landing new business, paying the sales team more money for taking a customer away or expanding a new customer as opposed to follow-on replacement units and existing client. All those things are sort of adding up. And I would say, slowly, we're gradually making incursions into the installed base of some of our customer -- of our competitors. And I like that. And if there's a new casino that's going to be open, I want our team to be there. I want them to be suited up, ready for battle, and I expect them to win. And I think we're just bringing a greater degree of intensity to that market. And then as I pointed out, we have some exciting progress. The CasinoTrac partnership is going quite well. And we had one of our innovative and creative sales individuals bring that deal to the table, which is great. And then that's encouraging the sale of Epicentral, and it generates recurring software revenue, SaaS revenue, which is good for us. We like that, high margin. And the other thing is this area of this non-casino-based gambling is an area that seems to be on the cusp of a pretty big upsell -- not upsell, but kind of an updraft. And we kind of got in there early, and we're taking a look at that. And we think there's probably an opportunity for machines to go into marketplaces that really were not much of a focus for us, but frankly, for the industry. So that's exciting as well. And I think our attention to the market dynamics has improved, and I'm pleased with that progress, and I think you're going to see more of that sort of finding its way into our results.

[Operator Instructions] It appears we have no further questions on the line. I will turn the program back over to John Dillon for any additional or closing remarks.

All right, everybody. Well, listen, thanks so much for joining us today. We appreciate your time and attention. Steve and I are always willing to take a call even between cycles in these quarterly reports. So I appreciate your support and continued attention to our progress. And with that, I'd like to wish you fair winds and following speed and farewell until next time.

Thank you, at this time. Thank you. That brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. Thank you.