Cantaloupe (CTLP) Q3 2026 earnings summary

Executive summary

• Revenue for the quarter ended March 31, 2026, increased 4.3% year-over-year to $78.7 million, driven by higher transaction and subscription fees, partially offset by lower equipment sales.

• Net loss for the quarter was $2.2 million, compared to net income of $49.2 million in the prior year, which included a $42.2 million tax valuation allowance release.

• The company is in the process of being acquired by 365 Retail Markets, with the merger expected to close in May 2026.

Financial highlights

• Transaction fees rose 9.2% year-over-year to $48.1 million; subscription fees increased 7.2% to $22.7 million.

• Equipment sales declined 22.3% to $8.0 million due to prior year demand spikes.

• Gross margin remained flat at 34.5% for the quarter; adjusted gross margin decreased to 38.7% from 41.6% year-over-year.

• Operating expenses increased 27.6% to $31.2 million, mainly due to merger and integration costs.

• Adjusted EBITDA for the quarter was $11.3 million, down from $13.9 million in the prior year.

Outlook and guidance

• Management expects the merger with 365 Retail Markets to close in May 2026, after regulatory clearance.

• The company anticipates continued growth in subscription and transaction revenues, with a focus on operational efficiencies and international expansion.