Thu, May 8, 8:50 PM (43 days ago)
**Cantaloupe, Inc. (CTLP) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $75.4 million, up 11.1% YoY, driven by increases in transaction fees (10.0%), subscription fees (10.3%), and equipment sales (17.9%). - **Profit Margins:** Gross margin decreased to 34.5% from 37.4% YoY due to increased amortization expenses. Adjusted Gross Margin (non-GAAP) increased to 41.6% from 39.6% YoY. - **Net Income:** Q1 2025 net income was $49.2 million, a significant increase from $4.7 million in Q1 2024, primarily due to a $42.2 million valuation allowance release. - **Cash Flow:** Operating cash flow was $10.9 million, down from $13.5 million in Q1 2024, due to increased working capital usage. **Key Metrics & Trends:** - **Active Devices:** Increased by 3.6% YoY to 1.26 million. - **Active Customers:** Grew by 11.2% YoY to 34,115. - **Transaction Volume:** Total dollar volume increased by 11.1% YoY to $852.4 million. - **ARPU:** Average Revenue Per Unit increased by 10.9% YoY to $205.92. **Uncertainties & Future Operations:** - **Economic Factors:** Inflation, interest rates, and geopolitical conflicts may impact consumer spending and operational costs. - **Competition:** Intensifying competition may affect market share and pricing power. - **Integration:** Successful integration of acquired companies (SB Software and Cheq) is crucial for realizing expected synergies. - **Regulatory Compliance:** Ensuring compliance with evolving regulations is essential for smooth operations. - **Technology:** Continued investment in technology and innovation is vital for maintaining a competitive edge. **Management's Outlook:** - **Growth Strategy:** Focus on expanding recurring subscription services, increasing active devices, and growing internationally. - **Operational Efficiency:** Prioritize collection efforts, optimize inventory usage, and enhance profitability through operational efficiencies. - **Financial Resources:** Current financial resources are expected to be sufficient for the next twelve months, with a focus on debt management and cash flow generation. **Ticker:** CTLP