Cantaloupe Inc reported a solid QQ2 2025, underscoring the company’s ongoing transition from a largely hardware-centric provider to a hybrid software-and-payments platform with strong recurring-revenue contributions. Revenue rose 13% year over year to $73.7 million, driven by a 17% increase in transaction revenue and a 14% rise in subscription revenue, resulting in a total combined revenue of $65.4 million for the quarter. Gross margin expanded to 41.7% from 37.2% a year ago, supported by higher transaction margins (234 basis points improvement in transaction gross margin to 25.6%) and robust subscription gross margins (approximately 89.7%). Adjusted EBITDA reached $10.7 million, up 26% year over year, reflecting leverage from higher volumes and ongoing cost discipline.
The company ended the quarter with $27.7 million in cash and cash equivalents and recently completed a refinancing that upsized the credit facility to $100 million ($40 million term loan, $30 million revolver, $30 million delayed-draw term loan). Management reaffirmed full-year 2025 guidance of revenue between $308 million and $322 million (up 15–20%), with adjusted EBITDA of $44–$52 million and operating cash flow of $24–$32 million, signaling confidence in the back-half ramp supported by higher-ticket transactions and the expansion of micro markets, Smart Store offerings, and seed software. Notable strategic initiatives include: international expansion (Europe and Latin America), continued GTM optimization across direct and indirect channels, introduction of the Smart Store 600/700 series, the micro-lending platform via Cantaloupe Capital with SunBox, and the Mastercard-driven Cantaloupe Advantage advertising program.
Key valuation and financial-position takeaways include a solid ARPU of $202 (up 12% YoY) with over 32,000 active customers and 1.3 million active devices, a working capital-light model reinforced by the upgraded credit facility, and an improving, but still cash-flow-sensitive, free cash flow profile. Investors should monitor the pace of equipment-revenue acceleration, international deployment execution, and the sustainability of gross and operating margins as the company scales higher-value deployments and associated capex into the second half of 2025.