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Cantaloupe Inc (CTLP) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Margin Expansion

In This Article:

  • Total Revenue: $73.7 million, up 13% year over year.

  • Transaction Revenue: $44.4 million, an increase of 17% year over year.

  • Subscription Revenue: $20.7 million, a 14% increase year over year.

  • Adjusted Gross Margin: 41.7%, up from 37.2% in the prior year.

  • Adjusted EBITDA: $10.7 million, a 26% increase from the previous year.

  • Net Income: $5 million, or $0.07 earnings per share.

  • Cash and Cash Equivalents: $27.7 million at the end of the quarter.

  • Active Customers: Over 32,000, a 10% increase year over year.

  • Active Devices: 1.3 million, a 4% increase year over year.

  • Average Revenue Per Unit (RPO): $202, up 12% from the prior year period.

  • Equipment Revenue: $8.6 million, a decrease of 7% year over year.

  • Total Operating Expenses: $24.5 million, up from $20.7 million in the prior year.

  • Fiscal Year 2025 Revenue Guidance: $308 to $322 million, representing 15% to 20% growth.

  • Fiscal Year 2025 Adjusted EBITDA Guidance: $44 million to $52 million.

  • Fiscal Year 2025 Operating Cash Flow Guidance: $24 million to $32 million.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Cantaloupe Inc (NASDAQ:CTLP) reported a 13% year-over-year increase in total revenue for Q2, reaching $73.7 million.

  • Transaction revenue grew by 17% and subscription revenue by 14% year-over-year, indicating strong performance in these segments.

  • The company achieved a total adjusted gross margin of 41.7%, up from 37.2% in the same quarter last year.

  • Adjusted EBITDA increased by 26% year-over-year, reflecting successful expansion of operating leverage.

  • Cantaloupe Inc (NASDAQ:CTLP) continues to see strong growth in micro markets and penetration of seed software with both existing and new customers.

Negative Points

  • Equipment revenue decreased by 7% compared to Q2 FY24, indicating potential challenges in this segment.

  • Total operating expenses increased to $24.5 million from $20.7 million in Q2 FY24, largely due to expenses from recent acquisitions.

  • The cash balance decreased compared to the year-end balance as of June 30, 2024, due to timing of payments for transaction processing.

  • The international business mix remains under 5%, suggesting limited growth in international markets.

  • The guidance range for total revenue is relatively wide, indicating uncertainty in achieving the higher end of the forecast.

Q & A Highlights

Q: Can you discuss the evolution of your average revenue per unit and how your business mix is changing? A: Scott Stewart, CFO: We've seen significant growth in transaction processing, with average ticket sizes increasing. At our Investor Day in December 2022, we projected that if a customer purchased every product at list price, revenue could reach $400 per unit. This remains true, with potential for further increase due to new software releases and strategic sales targeting high-revenue locations.