Cantaloupe(US:CTLP)2026-02-06 21:03Financial Position - Accounts receivable, net of the allowance for uncollectible accounts, were $36.8 million as of December 31, 2025, down from $37.9 million as of June 30, 2025[45]. - The allowance for credit losses increased to $15.48 million as of December 31, 2025, compared to $11.15 million as of December 31, 2024[46]. - Total finance receivables amounted to $11.46 million as of December 31, 2025, with a projected total of $9.33 million to be collected after accounting for interest and uncollectible receivables[49]. - Total lease liabilities were $9.22 million as of December 31, 2025, compared to $9.93 million as of June 30, 2025[51]. - As of December 31, 2025, total accrued expenses amounted to $25.3 million, an increase from $19.7 million as of June 30, 2025[69]. - The company has total outstanding borrowings of $38.0 million as of December 31, 2025, with a potential increase in interest expense of $0.4 million per year if the SOFR Rate increases by 100 basis points[185]. Revenue and Growth - The Company recognized $4.6 million in revenue from its device rental program for the six months ended December 31, 2025, slightly up from $4.5 million in the same period of 2024[53]. - Total revenues for the three months ended December 31, 2025, were $78.712 million, a 6.7% increase from $73.722 million in the same period of 2024[87]. - Subscription and transaction fees for the six months ended December 31, 2025, totaled $140.002 million, up from $128.877 million in 2024, reflecting an 8.5% growth[87]. - The Company recognized total lease revenues of $4.977 million for the six months ended December 31, 2025, down from $5.442 million in 2024[88]. - Revenue for the three months ended December 31, 2025, was $78,712,000, an increase from $73,722,000 in 2024, while revenue for the six months ended December 31, 2025, was $159,565,000 compared to $144,558,000 in 2024[112]. Expenses and Losses - Segment expenses for the three months ended December 31, 2025, totaled $78,782,000, up from $73,722,000 in 2024[112]. - For the three months ended December 31, 2025, the company reported a net loss of $70,000 compared to a net income of $4,974,000 for the same period in 2024[104]. - Basic and diluted earnings per share for the six months ended December 31, 2025, were both $(0.02), down from $0.11 in 2024[104]. - The income tax provision for the three months ended December 31, 2025, was $1.1 million, compared to $0.4 million in the same period of 2024[101]. Acquisitions - The Company acquired SB Software for approximately $11.4 million, enhancing operational capabilities and market reach in Europe[75]. - The acquisition of SB Software included $10.0 million in cash and $1.4 million in contingent consideration based on revenue growth targets[75]. - Total identifiable net assets acquired from SB Software were valued at $3.6 million, with goodwill of $7.8 million recognized[78]. - The Company acquired Cheq for $4.5 million, including $1.1 million in accounts payable, to expand into sports, entertainment, and restaurant sectors[81]. - The fair value of identifiable net assets acquired from Cheq was $2.458 million, with $2 million recognized as goodwill[83][84]. Financing and Credit Facilities - The 2025 Credit Facility had a total of $37.71 million as of December 31, 2025, down from $38.66 million as of June 30, 2025[55]. - The 2025 Credit Facility includes a $40 million secured term loan, a $30 million secured revolving credit facility, and a $30 million delayed draw term loan facility[57]. - Proceeds from the 2025 Term Loan Facility were used to repay $37.3 million in borrowings under the 2022 Amended JPMorgan Credit Facility[66]. - The weighted average interest rate for the 2025 Credit Facility is approximately 7.16%, with interest rates ranging from 1.75% to 3.50% based on the type of loan[60]. - The Company has not borrowed against the 2025 Revolving Facility or the Delayed Draw Term Loan Facility as of the reporting date[58]. - The Company was in compliance with its financial covenants for the 2025 Credit Facility as of December 31, 2025, maintaining a total leverage ratio of not more than 3.50 to 1.00[63]. Accounting and Compliance - 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[40][41]. - The Company’s finance receivables agreements are predominantly classified as non-cancellable sixty-month sales-type leases[47]. - The company has not accrued for any legal proceedings as there are currently no loss exposures considered probable and reasonably estimable[108]. - The total expense recognized for related party transactions was $0.1 million for the six months ended December 31, 2025, and 2024[109]. - The company has approximately 4.6 million potentially anti-dilutive shares excluded from the calculation of diluted earnings per share for the six months ended December 31, 2025[104]. Cash Management - Cash paid for operating lease liabilities was $1.52 million for the six months ended December 31, 2025, compared to $1.06 million for the same period in 2024[51]. - The company invests excess cash in money market funds, which are not held for trading or speculative purposes, indicating a low exposure to interest rate changes[186]. Contractual Obligations - The estimated fees to be recognized in future periods related to unsatisfied performance obligations total $5.647 million as of December 31, 2025[93]. - Contract assets increased to $4.3 million as of December 31, 2025, compared to $3.3 million as of June 30, 2025[89]. - Deferred revenue at the end of the period was $3.645 million for the three months ended December 31, 2025, compared to $1.356 million in 2024[91].