Cantaloupe (CTLP) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue grew 11.1% year-over-year to $75.4 million, led by 10% growth in transaction and subscription revenues and 17.9% growth in equipment sales, driven by SmartStore demand.

• Net income for Q3 was $48.9 million ($0.65 diluted EPS), up from $4.4 million, primarily due to a $42.2 million one-time tax benefit from the release of a deferred tax asset valuation allowance.

• Adjusted EBITDA increased 37% to $13.9 million, with margin expansion and strong cash from operating activities of $22.4 million.

• Active customers grew 11% to over 34,100 and active devices rose 4% to 1.26 million, with average revenue per unit reaching $206.

• Operational highlights include new product launches, expansion in amusement and sports verticals, and acquisitions of SB Software and Cheq to strengthen international and sector presence.

Financial highlights

• Adjusted gross margin improved to 41.6% from 39.6% year-over-year; subscription margin reached 90.7%, transaction margin 24.8%, and equipment margin 12.3%.

• Total adjusted gross profit (non-GAAP) was $31.4 million, up 16.6% year-over-year.

• Total dollar volume of transactions was $852.4 million, up 11.1% year-over-year, with 296 million transactions processed.

• Cash and cash equivalents ended at $46.3 million, up $18.6 million sequentially.

• Adjusted EBITDA margin for the quarter was 18.4%.

Outlook and guidance

• FY2025 revenue guidance is $302–$308 million, representing 13–15% growth.

• Subscription and transaction revenue growth is expected at the low end of the prior 15–20% range.

• GAAP net income forecasted at $64–$70 million, driven by the deferred tax asset valuation allowance release.

• Adjusted EBITDA expected between $46–$50 million; operating cash flow guidance remains $24–$32 million.