Latest news with #CantaloupeInc
Yahoo
30-05-2025
- Business
- Yahoo
Cantaloupe, Inc. (CTLP): A Bull Case Theory
We came across a bullish thesis on Cantaloupe, Inc. (CTLP) on P14 Capital's Substack. In this article, we will summarize the bulls' thesis on CTLP. Cantaloupe, Inc. (CTLP)'s share was trading at $8.58 as of 27th May. CTLP's trailing and forward P/E were 10.72 and 18.25 respectively according to Yahoo Finance. Cantaloupe Inc. (CTLP) reported mixed results for its fiscal third quarter of 2025, with revenue increasing 11.1% year-over-year to $75.4 million, slightly missing consensus estimates by $4.4 million. The quarter's revenue growth was impacted by weather-related disruptions in the Northeast and Midwest, which softened transaction volumes. While both transaction and subscription fees grew approximately 10% year-over-year, this represented a slowdown from previous quarters. However, the company delivered strong operational efficiency, with gross margin expanding by 120 basis points year-over-year to 39.5% and adjusted EBITDA increasing 36.6% to $13.9 million, representing a 21.35% margin. GAAP EPS came in at $0.65 due to a $42.2 million tax benefit, while adjusted EPS was $0.09, up 52% year-over-year. Cantaloupe's Smart Store product line showed strong momentum with over $2 million in sales, and demand is expected to accelerate in the fiscal fourth quarter. The company also highlighted strategic wins, including an exclusive point-of-sale deal with Carnival Cruise Line through Cheq, and new deployments at sports and entertainment venues such as PayPal Park and SAP Center. It launched the Engage Pulse reader tailored for amusement venues, further diversifying its customer base. While international growth remains a future opportunity, it currently contributes minimally to revenue. Management lowered full-year revenue guidance to $302–$308 million from a prior range of $308–$322 million, though EBITDA guidance of $46–$50 million was reaffirmed. Analysts maintain a constructive long-term view, with a 2026 price target of $14.40, representing approximately 87% upside from current levels. Previously, we have covered Cantaloupe, Inc. (CTPL) before their earnings update, wherein we summarized a bullish thesis by the same author. The author highlighted the company's strong fundamentals, margin expansion, and growth in cashless payments. The article also noted potential upside from a strategic review, including a possible sale or go-private deal. Since our last coverage, the stock is up 8.88% as of 28th May. Cantaloupe, Inc. (CTLP) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held CTLP at the end of the first quarter which was 19 in the previous quarter. While we acknowledge the risk and potential of CTLP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CTLP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
Cantaloupe, Inc. (CTLP): Among Billionaire David Abrams' Stock Picks with Huge Upside Potential
We recently published a list of Billionaire David Abrams' 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Cantaloupe, Inc. (NASDAQ:CTLP) stands against other stock picks with huge upside potential. David Abrams founded Abrams Capital Management in 1999. Before forming the Boston-based investment firm, Abrams worked at Seth Klarman's Baupost Group for 10 years. He graduated from the University of Pennsylvania with a BA degree in History, where he also served on the Board of Advisors of the College of Arts and Sciences. Abrams didn't have a finance background when he got his first job in New York in the early 1980s. He learned all about investing under Seth Klarman before setting out independently after a decade. He is a value investor, and in the ~12 years of his fund, he has achieved an annualized return of around 20%. His firm is like a one-man shop, which employs a small staff. Abrams Capital has 9 clients and discretionary assets under management (AUM) of $10.05 billion, as reported in the firm's Form ADV dated 13 January 2025. The last reported 13F filing for Q4 2024 included $6.22 billion in managed 13F securities and a top 10 holdings concentration of 98.7%. Abrams is known for maintaining a low public profile, but in a conversation on Columbia Business School's 'Value Investing with Legends' Podcast series, he discussed the surface of his foundational principles when it comes to his investment philosophy. He starts by looking at the risks first and foremost, without any consideration of prospective gains. This is a reminder that the future remains unpredictable, which Abrams puts in the following words: 'When you look back, there's one path that happened, but that doesn't mean that going forward there's only one path. In the future, there's multiple paths.' Abrams' portfolio reflects a balanced approach with exposure to growth sectors like Industrials and Consumer Cyclical, while also maintaining moderate allocations in established industries such as Communication Services. He also believes that declining industries can present stability because they attract limited new entrants. This also implies that high-growth sectors are, on the contrary, characterized by intense competition, which necessitates a more detailed analysis of potential competitive threats. Here's what Abrams had to say about this: 'If you have a shrinking industry and it's dying, it's like, people are not dying to get into that.' Abrams serves as a director of several private companies. He is currently on the board of MITMCO, which manages the MIT endowment. Previously, he was a trustee of Berklee College of Music for 15 years, where he chaired the investment committee. He was also the trustee of Milton Academy. To compile the list of billionaire David Abrams' 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Abrams Capital Management from Insider Monkey. From these filings, we checked each stock's upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Abrams Capital Management's stake in each stock as well as the broader hedge fund sentiment for it. Note: All data was sourced on May 8. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A woman at a self-service kiosk using a software service to manage logistics. Abrams Capital Management's Stake: $68.28 million Number of Hedge Fund Holders: 19 Average Upside Potential as of May 8: 45.99% Cantaloupe, Inc. (NASDAQ:CTLP) is a digital payments and software services company that provides technology solutions for the self-service commerce market. It offers integrated solutions for payment processing, logistics, and back-office management. It also offers professional network infrastructure, card processing, and customer/consumer services. Cantaloupe's subscription revenue reached $20.7 million in Q2 2025, which was up 14% year-over-year. This was fueled by the strength in micro markets, which is highlighted as the company's fastest-growing segment. This expansion is also driven by the adoption of the company's SEED software among both existing and new customers. This software is Cantaloupe's platform that provides management tools for self-service commerce operations. As the calendar year 2024 concluded, Cantaloupe reported having ~32,000 active customers and 1.3 million active devices within its ecosystem. This represented a year-over-year increase of 10% and 4%, respectively. The average revenue per unit for Q2 was $202, which was also up 12%. New customer wins in the vending sector, like EBS, further support the subscription segment's growth. Laughing Water Capital stated the following regarding Cantaloupe, Inc. (NASDAQ:CTLP) in its Q4 2024 investor letter: 'Cantaloupe, Inc. (NASDAQ:CTLP) – Cantaloupe can most simply be thought of as our vending machine software and payments company, although the industry is evolving to more fully encompass 'unattended retail,' including micro markets and smart stores. After many disappointing years, under new leadership the Company has reached an inflection point and is growing at a high teens level into a cash machine focused on stable end markets, while also growing internationally and into adjacent markets. With time I expect the market will appreciate that cash flow generated from software and payments with very little churn is valuable, and re-rate shares higher. It should be noted that while CTLP is in our top 5, it is a medium sized position.' Overall, CTLP ranks 3rd on our list of billionaire David Abrams' stock picks with huge upside potential. While we acknowledge the potential of CTLP as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CTLP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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Yahoo
09-05-2025
- Business
- Yahoo
Cantaloupe Inc (CTLP) Q3 2025 Earnings Call Highlights: Revenue Growth and Smart Store Success ...
Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cantaloupe Inc (NASDAQ:CTLP) reported an 11% year-over-year increase in total revenue for Q3 2025, reaching $75.4 million. The company achieved a 37% increase in adjusted EBITDA, amounting to $13.9 million, reflecting successful margin expansion and operating leverage. Cantaloupe Inc (NASDAQ:CTLP) experienced strong cash generation, with $22.4 million in cash from operating activities during the quarter. The company saw significant growth in its smart store product, with over $2 million in shipments, indicating strong demand in new verticals. Cantaloupe Inc (NASDAQ:CTLP) released a $42.2 million valuation allowance on deferred tax assets, contributing to a net income of $48.9 million for the quarter. Revenue was lower than anticipated due to one-time weather events impacting transaction revenue and delays in equipment purchases. Transaction revenue was materially impacted by adverse weather events, leading to abnormally low traffic in customer locations. There was a pullback in large equipment purchases due to economic uncertainty, affecting sales in the quarter. The company faced supply constraints for its smart store product, limiting its ability to meet demand. International revenue remains a small portion of total revenue, expected to be only 3-4% by the end of fiscal year 2025. Warning! GuruFocus has detected 3 Warning Signs with CTLP. Q: Can you quantify the weather impact on transaction revenue for the quarter? A: Yes, the weather impact was approximately $2 million, mostly in January and a little in February. - Scott Stewart, CFO Q: What are the early indications of demand for the smart store product, and do you expect it to ramp up quickly? A: We are already seeing a ramp-up in the fourth quarter. The smart store is our hottest selling product, with significant interest at industry conferences. We expect it to translate into strong fourth-quarter equipment revenue. - Ravi Venkates, CEO Q: Can you provide updates on your progress in Europe and Latin America? A: We have exciting updates, but it's premature to share them. Scaling is continuing with large customers and in the SMB space. Expect releases soon. - Ravi Venkates, CEO Q: How does the revenue opportunity compare between traditional vending, smart stores, and other verticals? A: Vending will grow 5-6%, micro markets 30-40%, and smart stores and related technologies could grow 100-200% in the next 2-3 years, becoming a significant market share. - Ravi Venkates, CEO Q: What do you expect international revenue to be as a percentage by the end of the year? A: We anticipate international revenue to be 3-4% as we exit the fourth quarter of fiscal year 2025, with continued growth expected in FY26. - Scott Stewart, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
07-02-2025
- Business
- Yahoo
Cantaloupe Inc (CTLP) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Margin Expansion
Total Revenue: $73.7 million, up 13% year over year. Transaction Revenue: $44.4 million, an increase of 17% year over year. Subscription Revenue: $20.7 million, a 14% increase year over year. Adjusted Gross Margin: 41.7%, up from 37.2% in the prior year. Adjusted EBITDA: $10.7 million, a 26% increase from the previous year. Net Income: $5 million, or $0.07 earnings per share. Cash and Cash Equivalents: $27.7 million at the end of the quarter. Active Customers: Over 32,000, a 10% increase year over year. Active Devices: 1.3 million, a 4% increase year over year. Average Revenue Per Unit (RPO): $202, up 12% from the prior year period. Equipment Revenue: $8.6 million, a decrease of 7% year over year. Total Operating Expenses: $24.5 million, up from $20.7 million in the prior year. Fiscal Year 2025 Revenue Guidance: $308 to $322 million, representing 15% to 20% growth. Fiscal Year 2025 Adjusted EBITDA Guidance: $44 million to $52 million. Fiscal Year 2025 Operating Cash Flow Guidance: $24 million to $32 million. Warning! GuruFocus has detected 4 Warning Signs with CTLP. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cantaloupe Inc (NASDAQ:CTLP) reported a 13% year-over-year increase in total revenue for Q2, reaching $73.7 million. Transaction revenue grew by 17% and subscription revenue by 14% year-over-year, indicating strong performance in these segments. The company achieved a total adjusted gross margin of 41.7%, up from 37.2% in the same quarter last year. Adjusted EBITDA increased by 26% year-over-year, reflecting successful expansion of operating leverage. Cantaloupe Inc (NASDAQ:CTLP) continues to see strong growth in micro markets and penetration of seed software with both existing and new customers. Equipment revenue decreased by 7% compared to Q2 FY24, indicating potential challenges in this segment. Total operating expenses increased to $24.5 million from $20.7 million in Q2 FY24, largely due to expenses from recent acquisitions. The cash balance decreased compared to the year-end balance as of June 30, 2024, due to timing of payments for transaction processing. The international business mix remains under 5%, suggesting limited growth in international markets. The guidance range for total revenue is relatively wide, indicating uncertainty in achieving the higher end of the forecast. Q: Can you discuss the evolution of your average revenue per unit and how your business mix is changing? A: Scott Stewart, CFO: We've seen significant growth in transaction processing, with average ticket sizes increasing. At our Investor Day in December 2022, we projected that if a customer purchased every product at list price, revenue could reach $400 per unit. This remains true, with potential for further increase due to new software releases and strategic sales targeting high-revenue locations. Q: Any updates on your international strategy and current business mix between the US and international markets? A: Ravi Venkatesan, CEO: We are progressing well internationally, particularly in Latin America, where we've focused on robust deployments to maximize transactions. Our international business mix remains under 5%, but we expect acceleration as we execute our second-half priorities. Q: How does the new micro-lending service through Cantaloupe Capital work, and are you holding any of the loans? A: Ravi Venkatesan, CEO: We do not hold or underwrite the loans. The service is offered through a partner, providing a convenient way for customers to secure loans via our platform. This initiative aims to alleviate capital constraints for our customers, enabling them to expand their business without us being financially liable. Q: What are the key growth drivers for Cantaloupe, particularly regarding micro markets and smart stores? A: Ravi Venkatesan, CEO: Growth is driven by expanded micro market footprints, smart store products, and strategic location placements. We're also seeing increased transaction values from new location types like universities and hospitals, contributing to higher average revenue per unit. Q: Is the improvement in subscription and transaction gross margins sustainable? A: Scott Stewart, CFO: Yes, we believe the current margin levels are sustainable. We've seen an increase in our take rate and continue to benefit from cost reduction measures and improved transaction routing. The higher average ticket price also supports margin improvements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
