Cantaloupe Inc delivered a solid fourth quarter of fiscal year 2024, with revenue of $72.7 million, up 13% year over year, driven by a 16% rise in transaction revenue and a 14% rise in subscription revenue. The quarter featured ongoing gross-margin recovery (adjusted gross margin for subscriptions/transactions at 43%), a normalization of equipment margins, and strong cash generation. Management reaffirmed a constructive FY2025 outlook, targeting 15% to 20% top-line growth and approximately 40% adjusted EBITDA growth at the midpoint, supported by continued expansion in international markets (Europe and Latin America), robust adoption of Cantaloupe One, and the acceleration of micro-market and CHEQ platform solutions. The company also announced the SB Software acquisition to bolster European market reach, underscoring an emphasis on cross-sell opportunities and a broader software-led vending management solution. While near-term macro headwinds remained a talking point, management noted June 2024 softness did not persist into fiscal 2025, bolstering confidence in the growth trajectory.
Overall, CTLP’s operating leverage is improving as the mix shifts toward recurring revenue and higher-margin software services, while net cash remains strong, supporting strategic investments and potential bolt-on acquisitions. Investors should monitor international execution, integration of SB Software, the expansion of Cantaloupe One and Seed Analytics, and the evolution of the new verticals (sports, entertainment, residential, and retail theft prevention) as key drivers of sustainable growth.