Cantaloupe Inc (CTLP) reported a solid first quarter of fiscal year 2025, with total revenue of $70.8 million, up 13% year over year, driven by an 18% rise in transaction revenue and a 12% rise in subscription revenue. The quarter featured margin expansion, with total adjusted gross margin at 40.7% (up from 38.8% a year earlier) and a 14% year-over-year increase in adjusted EBITDA to $9.0 million. ARPU rose to $198, up 11% YoY, supported by higher average ticket sizes and stronger mix into higher-value offerings such as Seed analytics and micro markets. Management reiterated FY2025 guidance, signaling continued confidence in 15â20% revenue growth and healthy earnings progression, while noting near-term cash flow pressures tied to timing of transaction-processing payments and a recent acquisition-related cash outlay.
Strategically, Cantaloupe is accelerating international expansion (Europe, LATAM) and operational efficiencies, while advancing cross-sell initiatives (Vendmanager integration, Seed analytics, Cantaloupe One) and introducing new product lines (Suites for hospitality venues, Smart Stores) that mitigate theft and boost average ticket prices. Management highlighted notable customer wins across micro markets, the Cheq platform for sports/entertainment, and growing adoption of higher-ticket items in residential and non-traditional verticals. The combination of a robust top line, improved gross margins on core revenue, and a disciplined path to profitability underpins a constructive longer-term investment thesis, albeit with near-term cash-flow headwinds and execution risk in international markets.
Key takeaway for investors: CTLP is emerging as a multi-product, global self-service technology platform with a favorable margin trajectory and a clear set of growth catalysts (international expansion, elevated ARPU, cross-sell via Seed and One, and expanded verticals). The stock trades at elevated multiples relative to some peers, reflecting expectations for sustained growth and market leadership in unattended retail technology.