Cantaloupe Inc delivered a solid QQ3 2025 to date, with revenue of $75.43 million reflecting 11.1% year-over-year growth and a modest 2.3% sequential uptick. Gross margin stood at 41.58%, and operating margin reached 9.15%, supported by disciplined operating expenses and meaningful D&A. A notable feature of the quarter was a non-cash tax benefit of $41.9 million, which produced a reported net income of $49.16 million and earnings per share of $0.67 (GAAP) and $0.65 (diluted). Excluding the tax benefit, the core operating metrics imply healthier but more normal tax treatment; EBITDA was $14.15 million with an EBITDA margin of approximately 18.8%, underscoring quality operating profitability.
Cash flow remained strong, with $22.41 million of net cash provided by operating activities and $18.57 million of free cash flow. The company ended the period with a net cash position (net debt of -$5.73 million) and total cash of $46.34 million, alongside a conservative balance sheet posture: total debt of $40.61 million and total stockholders’ equity of $243.41 million. Management commentary themes (where disclosed) emphasize ongoing expansion within the unattended retail payments ecosystem and optimization of back-office efficiencies, supported by strategic partnerships with Bakkt and Castles Technology.
Looking ahead, the QQ3 2025 results reinforce a favorable growth trajectory but investors should regard the large tax benefit as non-recurring in nature. The business exhibits solid revenue growth, strong liquidity, and favorable cash conversion, yet valuation remains elevated on a revenue and cash-flow basis. Key questions for the next quarters include the sustainability of the tax-related benefit, the trajectory of the core revenue growth in a competitive payments landscape, and the company’s ability to scale operating leverage without compromising working capital resources.