Cantaloupe(CTLP) - 2026 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2025, were $80,853,000, representing a 14.3% increase from $70,836,000 in the same period of 2024[80]. - Transaction fees increased to $48,060,000 in Q3 2025, up from $43,604,000 in Q3 2024, reflecting an increase of 10.1%[80]. - Subscription fees rose to $22,265,000 in Q3 2025, compared to $20,188,000 in Q3 2024, marking a growth of 10.3%[80]. - Segment net loss for the same period was $(919,000), a significant decline from a net income of $3,572,000 in 2024[103]. - Revenue for the three months ended September 30, 2025, was $80,853,000, an increase of 14.3% compared to $70,836,000 in 2024[103]. Accounts Receivable and Allowance for Credit Losses - Accounts receivable net of the allowance for uncollectible accounts increased to $41.9 million as of September 30, 2025, from $37.9 million as of June 30, 2025, representing a growth of 5.3%[40]. - The allowance for credit losses at the end of the quarter was $14.179 million, up from $13.646 million at the end of the previous quarter, indicating an increase of 3.9%[41]. - The provision for expected losses for finance receivables was $(167,000) for the three months ended September 30, 2025, compared to $391,000 for the same period in 2024, indicating a significant reduction in provisions[44]. Debt and Financing - The Company’s total debt and other financing arrangements decreased to $38.289 million as of September 30, 2025, from $38.663 million as of June 30, 2025, a decline of 1.0%[50]. - The total outstanding debt as of September 30, 2025, is $38.289 million, with principal amounts payable totaling $38.605 million[63]. - The 2025 Credit Facility includes a $40 million secured term loan facility and a $30 million secured revolving credit facility, aimed at financing working capital needs and general corporate purposes[52]. - The weighted average interest rate for the 2025 Credit Facility is approximately 7.13% as of September 30, 2025[55]. - Interest on the 2025 Credit Facility is based on a base rate or SOFR, with margins ranging from 1.75% to 3.50% depending on the loan type[159]. Acquisitions - The Company acquired SB Software for approximately $11.4 million, enhancing operational capabilities in Europe[69]. - The Company acquired Cheq for $4.5 million, positioning itself for expansion into the sports and entertainment sectors[75]. - Goodwill of $7.8 million from the SB Software acquisition reflects expected synergies[73]. - Goodwill from the acquisition amounted to $2.0 million, reflecting expected synergies between Cheq and the Company[78]. - The Company recognized a $0.8 million loss due to the increase in the fair value of contingent consideration related to SB Software[70]. Revenue Recognition and Deferred Revenue - Deferred revenue at the end of Q3 2025 was $3,975,000, significantly higher than $1,471,000 at the end of Q3 2024, indicating a growth of 170.5%[84]. - Future performance obligations estimated to be recognized in revenue total $6,310,000 as of September 30, 2025[85]. Expenses - Total accrued expenses increased to $22.480 million as of September 30, 2025, compared to $19.748 million as of June 30, 2025[64]. - Other general and administrative expenses include marketing, bad debt expense, and various selling expenses, totaling $(2,867,000) for the period[103]. - Professional services expenses increased significantly to $(9,044,000) in 2025 from $(3,125,000) in 2024[103]. - Depreciation and amortization expenses rose to $(3,795,000) in 2025, compared to $(2,672,000) in 2024[103]. Compliance and Accounting Standards - The Company was in compliance with its financial covenants for the 2025 Credit Facility as of September 30, 2025[58]. - The Company performed an annual goodwill impairment test and did not recognize any impairment charges during the three months ended September 30, 2025[67]. - The Company is currently assessing the impact of new accounting standards on its consolidated financial statements and disclosures, including ASU 2023-09 and ASU 2024-03, which will affect future reporting periods[36][37]. Cash Management - The company invests excess cash in money market funds, which are highly liquid and marketable, earning a floating rate of interest[160]. - There are no freestanding derivative instruments held by the company as of September 30, 2025[161].