09-05-2025
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.
