Subscription and transaction revenue growth drive gains at Cantaloupe
Cantaloupe Inc. reported strong results for the third quarter of fiscal year 2025, highlighting revenue growth, increased profitability and key product and partnership developments during an earnings call on May 8.
Revenue reached $75.4 million, an 11.1% increase year-over-year, driven by gains in all core segments: transaction fees rose 10% to $44.0 million, subscription fees increased 10.3% to $21.2 million, and equipment sales grew 17.9% to $10.2 million.
Net income rose to $48.9 million ($0.65 per diluted share), compared to $4.4 million in the same quarter last year, largely due to a one-time $42.2 million tax benefit. Adjusted EBITDA rose 36.6% to $13.9 million, and adjusted gross margin improved to 41.6%, up from 39.6%.
Operationally, Cantaloupe processed 296.1 million transactions totaling $852.4 million, with transaction volume increasing by 4.5% and dollar volume up 11.1% year-over-year. The company reported 34,115 active customers, an 11.2% increase, and 1.26 million active devices, up 3.6%. Average revenue per unit rose 10.7% to $206. These gains reflect some of the trends noted in its recent report on micropayments, which cited the continued growth of micro markets, the growing adoption of smart markets, the dominance of mobile and contactless payments, and growing consumer comfort with higher ticket sizes as drivers for higher per-transaction sales.
For the full fiscal year 2025, Cantaloupe revised its outlook, projecting total revenue between $302 million and $308 million. Subscription and transaction revenue growth is now forecast to be at the low end of the previously projected 15 to 20% range. It expects adjusted EBITDA between $46 million and $50 million, net income between $64 million and $70 million, and operating cash flow between $24 million to $32 million.
