Executive Summary
Cantaloupe Inc delivered a solid QQ1 2025 cash-flow-light but margin-positive quarter, underscoring continued revenue momentum in its core unattended retail and payments ecosystem. Revenue for the quarter ended 2024-09-30 (reported period for QQ1 2025) stood at $70.84 million, up about 13% year-over-year from QQ1 2024, while QoQ revenue declined modestly by about 2.5% as the company lapped a strong prior-period quarter. Gross margins expanded to roughly 40.7%, up from ~38.8% in QQ1 2024 and higher vs Q4 2024, signaling favorable product mix and pricing discipline amid ongoing platform investments. Net income reached $3.57 million with an EPS of $0.0449, up meaningfully versus the prior year, reflecting leverage on higher gross profit despite ongoing operating and acquisition-related expenses. EBITDA rose to approximately $7.93 million, with an EBITDA margin near 11.2%, illustrating improved operating efficiency even as the business continues to invest in growth initiatives.
Key Performance Indicators
Key Insights
Revenue: $70.84m in QQ1 2025; YoY +13.01%, QoQ -2.51%. Gross Profit: $28.85m; Gross Margin: 40.73%; YoY margin up ~1.9pp; Operating Income: $4.11m; Operating Margin: 5.80% (QoQ +16.15%); Net Income: $3.57m; Net Margin: 5.04%; EPS: $0.0449 (diluted $0.0444); EBITDA: $7.93m; EBITDA Margin: 11.20%.
Balance Sheet: Cash $33.12m; Total Debt $48.29m; Net Debt $15.16m; Current Ratio 1.60; Quick Ratio 1.03; Cash at End: $33.12m; Total Assets $312.14m; Total Liabilities $123.19m; Stockholders’ Equity $1...
Financial Highlights
Revenue: $70.84m in QQ1 2025; YoY +13.01%, QoQ -2.51%. Gross Profit: $28.85m; Gross Margin: 40.73%; YoY margin up ~1.9pp; Operating Income: $4.11m; Operating Margin: 5.80% (QoQ +16.15%); Net Income: $3.57m; Net Margin: 5.04%; EPS: $0.0449 (diluted $0.0444); EBITDA: $7.93m; EBITDA Margin: 11.20%.
Balance Sheet: Cash $33.12m; Total Debt $48.29m; Net Debt $15.16m; Current Ratio 1.60; Quick Ratio 1.03; Cash at End: $33.12m; Total Assets $312.14m; Total Liabilities $123.19m; Stockholders’ Equity $188.95m.
Cash Flow: Operating Cash Flow -$12.02m; Free Cash Flow -$15.81m; Capex -$3.79m; Net Change in Cash -$25.80m; Working Capital Change -$20.87m (driven by payables and receivables dynamics).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
70.84M |
13.01% |
-2.51% |
| Gross Profit |
28.85M |
18.59% |
6.46% |
| Operating Income |
4.11M |
49.07% |
16.15% |
| Net Income |
3.57M |
77.98% |
61.92% |
| EPS |
0.04 |
90.25% |
48.18% |
Key Financial Ratios
operatingProfitMargin
5.8%
operatingCashFlowPerShare
$-0.16
freeCashFlowPerShare
$-0.22
priceEarningsRatio
167.48
Management Commentary
Note: No earnings call transcript was provided in the data set. As a result, there are no management quotes or thematic excerpts available to anchor the qualitative discussion to verbatim remarks. In lieu of call-specific quotes, the quantitative results reflect a story of modest top-line growth, margin expansion, and cash flow headwinds from working capital movements and ongoing capex.
Forward Guidance
No formal forward guidance was disclosed for QQ2 2025 or full-year targets in the provided materials. Given the current quarterly trajectory—revenue resilience, improving gross margins, and ongoing investment in platform capabilities—investors should monitor: (i) the pace of revenue growth driven by unattended retail enablement and payments processing volume, (ii) working capital cadence and its impact on operating cash flow, (iii) the margin trajectory as pricing, product mix, and any changes in device mix (ePort and related services) influence profitability, and (iv) the monetization of strategic partnerships (Bakkt and Castles) and any resulting expansion in digital-asset-enabled transactions. If management provides updated guidance, compare it against the QQ1 base case and assess achievability in light of macro conditions and competitive dynamics in the Information Technology Services sector.