Cantaloupe, Inc.

Q3 FY2025 revenue was $75.4 million, up 11% year over year. Combined transaction and subscription revenue was $65.2 million, including $21.2 million of subscription revenue (+10%) and $44.0 million of transaction revenue (+10%). Equipment revenue was $10.2 million, up 18% year over year. Total adjusted gross margin was 41.6% versus 39.6% last year; subscription adjusted gross margin was 90.7% versus 89.6%, transaction gross margin was 24.8% versus 22.8%, and equipment gross margin was 12.3% versus 7.2%. Net income applicable to common shares was $48.9 million, or $0.65 diluted EPS, aided by a $42.2 million valuation allowance release; excluding that benefit, net income would have been $6.7 million versus $4.4 million, or $0.06 diluted EPS, a year ago. Adjusted EBITDA was $13.9 million, up 37% from $10.2 million. Cash and cash equivalents ended at $46.3 million, up $18.6 million sequentially, with $22.4 million of cash from operating activities. For FY2025, management now expects revenue of $302 million to $308 million, representing 13% to 15% growth; transaction and subscription revenue growth at the low end of the previously guided 15% to 20% range; GAAP net income of $64 million to $70 million; adjusted EBITDA of $96 million to $98 million; and operating cash flow of $24 million to $32 million. For Q4, management said operating cash flow should be around $16 million to $22 million and free cash flow around $15 million to $18 million. International revenue is expected to be 3% to 4% exiting fiscal 2025.

Ravi Venkatesan said the quarter showed the company’s operating model is working: revenue growth was supported by margin expansion, not cost cutting, and the business crossed $200 ARPU for the first time. He emphasized strong adoption of SmartStore, Seed, and cashless payments across vending, micro markets, amusement, and adjacent verticals, calling SmartStore the company’s hottest product. His tone was upbeat and strategic, with continued focus on Europe, Latin America, and a refined go-to-market model across direct and indirect channels.

Scott Stewart highlighted the specific financial drivers: revenue of $75.4 million, adjusted gross margin of 41.6%, adjusted EBITDA of $13.9 million, and cash and cash equivalents of $46.3 million. He said transaction revenue was hurt by about $2 million of weather-related disruption in January and February, while equipment sales slowed due to economic uncertainty, but both improved in March and April. He also explained the $42.2 million valuation allowance release tied to deferred tax assets, which drove reported GAAP net income, and noted guidance for $302 million to $308 million in revenue, $96 million to $98 million in adjusted EBITDA, and $24 million to $32 million of operating cash flow.

Analysts focused on how much weather hurt transaction revenue, how quickly SmartStore sales can ramp, and whether equipment demand was rebounding after tariff- and recession-related caution. Management quantified the weather impact at approximately $2 million and said SmartStore remains supply constrained in demand terms, with a strong pickup in fourth quarter equipment sales already visible. On international expansion, management said Latin America progress is real but not yet ready for detailed disclosure, while Europe and Latin America together should lift international revenue to 3% to 4% exiting the year.