Financial Data and Key Metrics Changes - Total revenue increased by 13% year-over-year to $73.7 million, driven by 17% growth in transaction revenue and 14% growth in subscription revenue [8][25] - Adjusted gross margin for the quarter was 41.7%, up from 37.2% in the same quarter last year [9][28] - Adjusted EBITDA for Q2 was $10.7 million, a 26% increase compared to the prior year [9][30] Business Line Data and Key Metrics Changes - Subscription revenue grew to $20.7 million, a year-over-year increase of 14%, while transaction revenue reached $44.4 million, an increase of 17% [26] - Equipment revenue decreased by 7% to $8.6 million compared to Q2 FY2024 [28] - Active customers increased by 10% to over 32,000, and active devices rose by 4% to 1.3 million [27] Market Data and Key Metrics Changes - The company continues to see strong growth in micro markets, which is the fastest-growing segment [27] - The average revenue per unit (ARPU) for Q2 2025 was $202, up 12% from the prior year [27] - The company is expanding its footprint in international markets, particularly in Europe and Latin America [22][45] Company Strategy and Development Direction - The company aims to be a global leader in self-service commerce, focusing on expanding operational support internationally and refining its go-to-market strategy [23][34] - New product launches include the Smart Store series, which addresses challenges like labor shortages and theft [17][85] - The company launched micro-lending services under Cantaloupe Capital to help customers expand their businesses [21][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong demand for cashless payment solutions and the successful deployment of new products [23][81] - The company reaffirmed its fiscal year 2025 guidance, expecting total revenues between $308 million and $322 million, representing growth of 15% to 20% [34][35] - Management noted that the increase in cash flow from operating activities is anticipated to continue throughout the year [31] Other Important Information - The company recently refinanced and upsized its credit facility to a total of $100 million, providing flexibility for future capital uses [32] - The Cantaloupe Advantage program, in partnership with Mastercard, aims to engage consumers through digital advertising at point-of-sale devices [21][88] Q&A Session Summary Question: Can you talk about the average revenue per unit and its evolution? - Management noted that the average ticket size has increased significantly due to transaction processing growth and strategic deployment of solutions [39][40] Question: Any update on your international strategy? - Management confirmed ongoing international expansion efforts, particularly in micro markets, with a current mix of under 5% international revenue [45] Question: How does the microlending program work? - The company clarified that it does not hold any loans but partners with a financial institution to facilitate the lending process for customers [49][50] Question: What are the key growth drivers for your product lines? - Growth is driven by micro markets, smart stores, and a shift in product mix to higher-value locations [58][60] Question: Are the improved margins sustainable? - Management expressed confidence that the current margin levels are sustainable due to cost management and increased average ticket prices [66] Question: What is the economic benefit of the Cantaloupe advertising program? - The company utilizes a marketplace-based model and custom pricing for advertising, sharing revenue streams with customers [87][89]

Core Insights - Cantaloupe (CTLP) reported revenue of $73.72 million for the quarter ended December 2024, marking a year-over-year increase of 12.8% and an EPS of $0.07 compared to $0.04 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $75.17 million, resulting in a surprise of -1.93%, while the EPS exceeded expectations with a surprise of +16.67% [1] Financial Performance Metrics - Gross Margin for Equipment sales was reported at 9.1%, lower than the estimated 10.9% [4] - Subscription and transaction fees generated revenues of $65.09 million, slightly below the estimated $65.69 million, but reflecting a year-over-year increase of 16.2% [4] - Equipment sales revenues were $8.64 million, which is below the estimated $9.63 million, representing a year-over-year decline of 7.4% [4] - Transaction fees within subscription and transaction fees amounted to $44.39 million, compared to the estimated $44.98 million, showing a year-over-year increase of 17.2% [4] - Subscription fees were reported at $20.69 million, slightly below the average estimate of $20.85 million, with a year-over-year increase of 14.1% [4] Stock Performance - Cantaloupe's shares have returned -0.9% over the past month, contrasting with the Zacks S&P 500 composite's increase of +2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Cantaloupe (CTLP) reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing an increase from $0.04 per share a year ago, indicating a 16.67% earnings surprise [1][2] Financial Performance - The company posted revenues of $73.72 million for the quarter ended December 2024, which was 1.93% below the Zacks Consensus Estimate, compared to $65.36 million in the same quarter last year [2] - Over the last four quarters, Cantaloupe has surpassed consensus EPS estimates two times and topped consensus revenue estimates only once [2] Stock Performance - Cantaloupe shares have declined approximately 9.2% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $79.59 million, and for the current fiscal year, it is $0.32 on revenues of $311.07 million [7] - The trend of estimate revisions for Cantaloupe is mixed, which could change following the recent earnings report [6] Industry Context - The Financial Transaction Services industry, to which Cantaloupe belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Total revenue increased by 13% year over year to $73.7 million, driven by 17% growth in transaction revenue and 14% growth in subscription revenue [7][17] - Adjusted gross margin for the quarter was 41.7%, up from 37.2% in the same quarter last year [7][19] - Adjusted EBITDA for Q2 was $10.7 million, a 26% increase compared to the prior year [7][20] - Net income applicable to common shares for the quarter was $5 million, or $0.07 diluted earnings per share, compared to $3.1 million, or $0.04 diluted earnings per share in the prior period [20] Business Line Data and Key Metrics Changes - Subscription revenue grew by 14% year over year to $20.7 million, while transaction revenue increased by 17% to $44.4 million [17][19] - Equipment revenue decreased by 7% to $8.6 million compared to Q2 FY 2024 [19] - The average revenue per unit (ARPU) for Q2 was $2.00, up 12% from the prior year [18] Market Data and Key Metrics Changes - As of December 31, 2024, the company had over 32,000 active customers and 1.3 million active devices, representing increases of 104% respectively compared to the prior year [18] - The company is expanding its international presence, particularly in Europe and Latin America, with recent wins in micro markets [30] Company Strategy and Development Direction - The company aims to continue expanding operational support internationally and refine its go-to-market strategy across both direct and indirect channels [16] - New product launches, such as the SmartStore series, are designed to address challenges like labor shortages and theft, while expanding into new retail opportunities [13][14] - The company is focusing on enhancing its micro lending services to help customers overcome capital constraints [15][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, particularly in micro markets and smart stores, which are driving higher transaction values [41][52] - The company reaffirmed its fiscal year 2025 guidance, expecting total revenue to be between $308 million and $322 million, representing growth of 15% to 20% [23][24] Other Important Information - The company has recently refinanced and upsized its credit facility to $100 million, providing flexibility for future capital uses [21] - The Cantaloupe Advantage program aims to engage consumers through digital advertising at point-of-sale devices, generating over 1 million impressions in the first ten weeks [16][62] Q&A Session Summary Question: Can you talk about the average revenue per unit and its evolution? - Management noted significant growth in transaction processing and an increase in average ticket size due to product mix shifts [25][26] Question: Any update on your international strategy and business mix? - Management confirmed ongoing international expansion efforts, particularly in Latin America and EMEA, with a current mix of under 5% international revenue [30] Question: How does the new microlending program work? - The company clarified that it does not hold any loans but partners with a trusted provider to facilitate loans for customers [34][35] Question: What are the key growth drivers among product lines? - Growth is driven by micro markets, smart stores, and a shift in product placement to higher-value locations [41][42] Question: Is the current margin level sustainable? - Management expressed confidence that the current margin levels are sustainable due to cost reduction measures and increased average ticket prices [46][47] Question: Can you elaborate on the guidance range for revenue and EBITDA? - The guidance range is primarily driven by larger equipment sales expected in the back half of the year, with a focus on maintaining transaction and subscription revenue growth [66][68]

Part I [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Total assets decreased to **$303.0 million** by December 31, 2024, while net income for the six months increased to **$8.5 million**, with **$11.5 million** net cash used in operations [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$303.0 million** by December 31, 2024, driven by lower cash and receivables, while total liabilities decreased and equity increased Condensed Consolidated Balance Sheet Highlights ($ in thousands) | Account | Dec 31, 2024 (Unaudited) | June 30, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $27,679 | $58,920 | | Total current assets | $117,009 | $157,794 | | Goodwill | $102,292 | $94,903 | | **Total assets** | **$303,045** | **$335,568** | | **Liabilities & Equity** | | | | Accounts payable | $41,081 | $78,895 | | Total current liabilities | $64,813 | $105,895 | | **Total liabilities** | **$110,185** | **$151,102** | | **Total shareholders' equity** | **$190,140** | **$181,746** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues for the quarter grew **12.8%** to **$73.7 million**, with net income increasing to **$5.0 million**, and six-month revenues reaching **$144.6 million** Statement of Operations Highlights ($ in thousands, except per share data) | Metric | Q2 2024 (3 months) | Q2 2023 (3 months) | 6 Months 2024 | 6 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $73,722 | $65,359 | $144,558 | $128,042 | | Subscription & transaction fees | $65,086 | $56,029 | $128,877 | $111,164 | | Operating Income | $6,163 | $3,585 | $10,270 | $6,340 | | Net Income | $4,974 | $3,124 | $8,546 | $5,131 | | Diluted EPS | $0.07 | $0.04 | $0.11 | $0.07 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$11.5 million** for the six months, with investing activities using **$17.8 million**, leading to a **$31.2 million** decrease in cash Cash Flow Summary - Six Months Ended Dec 31 ($ in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,496) | $(1,232) | | Net cash used in investing activities | $(17,842) | $(5,912) | | Net cash used in financing activities | $(926) | $(310) | | **Net decrease in cash** | **$(31,241)** | **$(7,449)** | - The significant increase in cash used in operating activities was mainly driven by a **$40.9 million** use of cash for accounts payable and accrued expenses, partially offset by a **$13.3 million** cash inflow from accounts receivable collections[22](index=22&type=chunk)[153](index=153&type=chunk) - Investing activities included **$9.8 million** for the acquisition of SB Software and **$8.1 million** for capital expenditures[22](index=22&type=chunk)[156](index=156&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's digital payments business, recent acquisitions of SB Software for **$11.4 million** and Cheq for **$4.7 million**, and a new **$100 million** credit facility post-quarter end - The company is a digital payments and software services company providing end-to-end technology solutions for self-service commerce, including vending, micro-markets, and smart retail[24](index=24&type=chunk) - On September 5, 2024, the Company acquired SB Software for a purchase price of approximately **$11.4 million**, resulting in **$7.8 million** of goodwill[58](index=58&type=chunk)[61](index=61&type=chunk)[64](index=64&type=chunk) - On February 1, 2024, the Company acquired Cheq for an aggregate purchase price of **$4.7 million**, resulting in **$2.0 million** of goodwill[59](index=59&type=chunk)[66](index=66&type=chunk)[68](index=68&type=chunk) - Subsequent to the quarter end, on January 31, 2025, the company entered into a new credit facility totaling **$100 million**, which was used to repay the prior facility's outstanding balance of **$37.3 million**[90](index=90&type=chunk)[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a **12.8%** revenue increase to **$73.7 million** for the quarter, with gross margin improving to **38.6%**, and Adjusted EBITDA reaching **$10.7 million** [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Quarterly revenue grew **12.8%** to **$73.7 million**, with gross margin expanding to **38.6%**, while six-month revenue reached **$144.6 million** with increased operating expenses Revenue and Gross Profit Comparison (Three Months Ended Dec 31) | ($ in thousands) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$73,722** | **$65,359** | **12.8%** | | Transaction fees | $44,392 | $37,892 | 17.2% | | Subscription fees | $20,694 | $18,137 | 14.1% | | **Total Gross Profit** | **$28,472** | **$22,643** | **25.7%** | | **Total Gross Margin** | **38.6%** | **34.6%** | **+4.0%** | Revenue and Gross Profit Comparison (Six Months Ended Dec 31) | ($ in thousands) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$144,558** | **$128,042** | **12.9%** | | Transaction fees | $87,995 | $74,922 | 17.4% | | Subscription fees | $40,882 | $36,242 | 12.8% | | **Total Gross Profit** | **$55,576** | **$45,028** | **23.4%** | | **Total Gross Margin** | **38.4%** | **35.2%** | **+3.2%** | - Operating expenses for the six months ended Dec 31, 2024 increased by **16.5%** to **$49.3 million**, driven by higher spending in Sales & Marketing (**+27.3%**), Technology & Product Development (**+25.4%**), and General & Administrative (**+10.6%**) to support growth and recent acquisitions[132](index=132&type=chunk) [Key Metrics](index=29&type=section&id=Key%20Metrics) Key operating metrics showed growth, with Active Devices reaching **1.27 million** and Total Dollar Volume of Transactions increasing **15.5%** to **$843.1 million** Key Operating Metrics (as of Dec 31) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Active Devices (thousands) | 1,269 | 1,226 | 3.5% | | Active Customers | 32,909 | 30,027 | 9.6% | | Total Dollar Volume of Transactions (millions, for the quarter) | $843.1 | $730.1 | 15.5% | | Average revenue per unit (ARPU, TTM) | $202.20 | $181.91 | 11.2% | [Non-GAAP Financial Measures](index=36&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP Total Adjusted Gross Margin improved to **41.7%**, and Adjusted EBITDA for the quarter increased to **$10.7 million**, reaching **$19.6 million** for the six-month period Adjusted EBITDA Reconciliation ($ in thousands) | | Q2 2024 (3 months) | Q2 2023 (3 months) | 6 Months 2024 | 6 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net income | $4,974 | $3,124 | $8,546 | $5,131 | | Adjustments | $5,694 | $5,363 | $11,069 | $11,177 | | **Adjusted EBITDA** | **$10,668** | **$8,487** | **$19,615** | **$16,308** | - Total Adjusted Gross Profit (non-GAAP) for the three months ended Dec 31, 2024 was **$30.7 million** (**41.7%** margin), compared to **$24.3 million** (**37.2%** margin) in the prior year period[143](index=143&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$27.7 million** in cash as of December 31, 2024, with operations using **$11.5 million** in cash, supplemented by a new **$100 million** credit facility - The company's primary sources of capital are cash on hand (**$27.7 million** as of Dec 31, 2024) and cash expected from operating activities[150](index=150&type=chunk) - Net cash used in operating activities for the six months ended Dec 31, 2024 was **$11.5 million**, largely due to a **$40.9 million** cash outflow for accounts payable and accrued expenses[153](index=153&type=chunk) - In January 2025, the company amended its debt agreement, securing a new **$100 million** credit facility which increases its borrowing capacity and defers certain repayments[160](index=160&type=chunk)[91](index=91&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risk from **$37.1 million** in variable-rate debt, where a **100-basis-point** SOFR increase would raise annual interest expense by **$0.4 million** - The company has **$37.1 million** in total outstanding borrowings subject to variable interest rates[164](index=164&type=chunk) - A **100 basis point** increase in the SOFR Rate would change annual interest expense by **$0.4 million**[164](index=164&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2024, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[168](index=168&type=chunk) - No material changes to internal control over financial reporting occurred during the fiscal quarter ended December 31, 2024[169](index=169&type=chunk) Part II [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings information is incorporated by reference, with no expected material impact on the company's financial condition - The company is not party to any litigation expected to have a material impact on its financial condition[88](index=88&type=chunk)[170](index=170&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K - For a discussion of risk factors, refer to the Company's Annual Report for the fiscal year ended June 30, 2024[171](index=171&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) The report includes key exhibits such as CEO/CFO certifications, Inline XBRL financial data, and the Second Amended and Restated Credit Agreement - Key exhibits filed include CEO/CFO certifications and financial data formatted in Inline XBRL[174](index=174&type=chunk) - The Second Amended and Restated Credit Agreement, dated January 31, 2025, is incorporated by reference[174](index=174&type=chunk)

Cantaloupe, Inc. Reports Second Quarter Fiscal Year 2025 Financial Results Second Quarter 2025 Revenue increased 12.8% Year-Over-Year, to $73.7 million, driven by 16% YoY growth in Subscription and Transaction revenue growth Second Quarter 2025 U.S. GAAP Net Income Applicable to Common Shares of $5.0 million and Adjusted EBITDA of $10.7 million [1] Reiterates Fiscal Year 2025 Guidance Exhibit 99.1 MALVERN, Pa. -- February 6, 2025 -- Cantaloupe, Inc. (Nasdaq: CTLP) ("Cantaloupe" or the "Company"), a global l ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.Inves ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

Cantaloupe, Inc. (NASDAQ:CTLP) Q1 2025 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Ravi Venkatesan - Chief Executive Officer Scott Stewart - Chief Financial Officer Conference Call Participants Josh Nichols - B. Riley Marc Feldman - William Blair Gary Prestopino - Barrington Operator Hello, and thank you for standing by. Welcome to the Cantaloupe First Quarter Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being r ...

Core Insights - Cantaloupe (CTLP) reported revenue of $70.84 million for the quarter ended September 2024, marking a 13% year-over-year increase and exceeding the Zacks Consensus Estimate of $70.54 million by 0.42% [1] - The company's EPS for the same period was $0.04, up from $0.02 a year ago, aligning with the consensus EPS estimate [1] Financial Performance Metrics - Gross Margin for Equipment sales was 11.4%, surpassing the average estimate of 6.8% from two analysts [3] - Gross Margin for Subscription and transaction fees was 41.2%, slightly below the average estimate of 43.1% from two analysts [3] - Revenue from Subscription and transaction fees reached $63.79 million, matching the three-analyst average estimate and reflecting a year-over-year increase of 15.7% [3] - Revenue from Equipment sales was $7.04 million, exceeding the average estimate of $6.66 million from three analysts, but showing a year-over-year decline of 6.7% [3] - Revenue from Subscription and transaction fees - Transaction fees amounted to $43.60 million, above the average estimate of $43.03 million, with a year-over-year increase of 17.9% [3] - Revenue from Subscription and transaction fees - Subscription fees totaled $20.19 million, slightly below the average estimate of $20.53 million, reflecting a year-over-year increase of 11.5% [3] Stock Performance - Cantaloupe shares have returned 4.2% over the past month, outperforming the Zacks S&P 500 composite's 3.2% change [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [4]