Slides
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Cantaloupe Second Quarter 2025 Earnings Supplement Financial Results & Company Highlights February 6th, 2025
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© 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Forward Looking Statements Forward-looking Statements: All statements other than statements of historical fact included in this release, including without limitation Cantaloupe’s future prospects and performance, the business strategy and the plans and objectives of Cantaloupe's management for future operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, words such as “estimate,” “could,” “should,” “would,” “likely,” “may,” “will,” “plan,” “intend,” “believes,” “expects,” “anticipates,” “projected,” and variations of these terms and similar expressions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Actual results or business conditions may differ materially from those projected or suggested in forward-looking statements as a result of various factors including, but not limited to, those described below and in Part I, Item 1A, “Risk Factors” of our most recent Annual Report. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to general economic, market or business conditions unrelated to our operating performance, including inflation, elevated interest rates, supply chain disruptions, financial institution disruptions, geopolitical conflicts, public health emergencies and declines in consumer confidence and discretionary spending; our ability to compete with our competitors and increase market share; failure to comply with the financial covenants in our debt facilities; our ability to maintain compliance with rules and regulations applicable to our business operations and industry; disruptions in other card payment processors, software and manufacturing partners upon whom we rely; whether our customers continue to utilize our transaction processing and related services, as our customer agreements are generally cancellable by the customer with thirty days’ notice; our ability to acquire and develop relevant technology offerings for current, new and potential customers and partners; risks and uncertainties associated with our expansion into and our operations in Europe, Mexico and other foreign markets, including general economic conditions, policy changes affecting international trade, imposition of tariffs by the new presidential administration, or changes and adjustments to existing tariffs, political instability, inflation rates, recessions, sanctions, foreign currency exchange rates and controls, foreign investment and repatriation restrictions, legal and regulatory constraints, civil unrest, armed conflict, war and other economic and political factors; our ability to satisfy our trade obligations included in accounts payable and accrued expenses; our ability to attract, develop and retain key personnel, or our loss of the services of our key executives; the incurrence by us of any unanticipated or unusual non-operating expenses, which may require us to divert our cash resources from achieving our business plan; our ability to predict or estimate our future quarterly or annual revenue and expenses given the developing and unpredictable market for our products; our ability to successfully integrate acquired companies into our current products and services structure; our ability to add new customers and retain key existing customers from whom a significant portion of our revenue is derived; the ability of a key customer to reduce or delay purchasing products from us; our ability to obtain widespread commercial acceptance of our products and service offerings; whether any patents issued to us will provide any competitive advantages or adequate protection for our products, or would be challenged, invalidated or circumvented by others; the ability of our products and services to avoid disruptions to our systems or unauthorized hacking or credit card fraud; risks associated with cyber-attacks and data breaches; and our ability to maintain effective internal controls and to timely file periodic and current reports with the Securities and Exchange Commission ("SEC"). Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by us in this release speaks only as of the date of this release. Unless required by law, Cantaloupe does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events. If Cantaloupe updates one or more forward-looking statements, no inference should be drawn that Cantaloupe will make additional updates with respect to those or other forward-looking statements.
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© 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Non-GAAP Measures Discussion of Non-GAAP Financial Measures: This press release contains discussion of Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA, which are non-GAAP financial measures that are not required or defined under U.S. GAAP (Generally Accepted Accounting Principles). Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Reconciliations between non-GAAP financial measures and the most comparable GAAP financial measures are set forth below. However, we do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are unable to predict certain items contained in the U.S. measures without unreasonable efforts. These items may include acquisition and integration related costs, severance expenses, litigation charges or settlements, and certain other unusual adjustments. We use Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA for financial and operational decision-making purposes and prospects evaluate period-to-period comparisons. We believe that these non-GAAP financial measure provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allows for greater transparency with respect to metrics used by our management in its financial and operational decision making. The presentation of these financial measure is not intended to be considered in isolation or as a substitute for the financial measures prepared and presented in accordance with GAAP, including our net income or net cash provided in operating activities. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with our net income as determined in accordance with GAAP, and are not a substitute for or a measure of our profitability or net earnings. Adjusted Gross Profit, Adjusted Gross Margin and Adjusted EBITDA are presented because we believe they are useful to investors as measures of comparative operating performance. Additionally, we utilize Adjusted EBITDA as a metric in our executive officer and management incentive compensation plans. We define Adjusted Gross Profit as revenue less cost of sales, exclusive of depreciation of internally-developed software and amortization of intangible assets related to technologies obtained through acquisitions. We believe this non-GAAP measure is useful to view the resulting figures excluding the aforementioned non-cash charges because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and such amounts vary substantially from company to company depending on their financing and capital structures and the method by which their assets were acquired. We define Adjusted Gross Margin as Adjusted Gross Profit divided by revenue. We define Adjusted EBITDA as U.S. GAAP net income (loss) before (i) interest income from cash and leases, (ii) interest expense from debt and tax liabilities, (iii) income tax provision, (iv) depreciation, (v) amortization, (vi) stock-based compensation expense, and (vii) certain other significant infrequent or unusual losses and gains that are not indicative of our core operations such as integration and acquisition expenses and auditor transition cost and remediation expense.
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© 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Ravi Venkatesan Chief Executive Officer Scott Stewart Chief Financial Officer CTLP Second Quarter 2025 Earnings Call Participants
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© 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. The global technology leader powering self-service commerce. logo
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Driving profitability & consumer satisfaction with innovative self- service solutions. Cantaloupe Platform Vertical-Specific Field Service & Location Management Ordering Supply Chain Management Real-Time Inventory Management Pre-kitting & Delivery Seamless Consumer Experience Optimized Merchandising Increased Revenue + Decreased Operational Costs + Frictionless Self-Service Experiences Powering Self-Service Marketplaces with Enterprise Software © 2025 Cantaloupe, Inc. All rights reserved. Confidential Information.
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Second Quarter 2025 Highlights © 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Continuing our strong progress of 2025 priorities. •17% YoY Transaction revenue growth •14% YoY Subscription revenue growth. Recurring Revenue Growth 16% Year over year increase in recurring revenue, to $65.1 million •The increase in gross margin was driven by higher margins for both subscription and transaction revenue. Adjusted Gross Margin 41.7% Total adjusted gross margin compared to 37.2% in 2Q 2024 •Reflects continued success with our strategy of expanding operating leverage. Adjusted EBITDA $10.7M Adjusted EBITDA for Q2, a 26% increase compared to prior year. -Recurring Revenue is the combination of Subscription and Transaction revenue as reported in our 10-Q for the period ending 12/31/2024. -Adjusted figures represent non-GAAP measures. Please refer to slides in the appendix for reconciliations to the equivalent GAAP measures.
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32,900 total customers 10% YoY growth © 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. 19.8 24.0 28.6 31.5 32.9 FY'21 FY'22 FY'23 FY'24 2Q'25 Number of Active Customers (Thousands) CAGR: 17% 1,094 1,137 1,167 1,223 1,269 FY'21 FY'22 FY'23 FY'24 2Q'25 Number of Active Devices (Thousands) CAGR: 4% YoY Growth: 21% 19% 10% YoY Growth: 4% 3% 5% Proven Ability to Grow Customers & Expand Footprint Strategic focus on expanding footprint of active devices to drive the long-tail “pull through” of recurring revenue.
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$139 $169 $200 $231 $56 $65 $28 $36 $43 $37 $9 $9 FY'21 FY'22 FY'23 FY'24 2Q'24 2Q'25 Total Revenue ($ in millions) Recurring* Equipment $85 $111 $133 $156 $38 $44 FY'21 FY'22 FY'23 FY'24 2Q'24 2Q'25 Transaction Fee Revenue ($ in millions) Recurring Nature of our Business Drives Consistent Revenue Growth © 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. CAGR: 17% YoY Growth: 13% CAGR: 12% CAGR: 22% YoY Growth: 14% YoY Growth: 17% 17% Total revenue CAGR driven by strong growth in recurring revenue. 18% CAGR on recurring revenue indicating focus on expanding margins. $54 $58 $68 $75 $18 $21 FY'21 FY'22 FY'23 FY'24 2Q'24 2Q'25 Subscription Fee Revenue ($ in millions) *Recurring Revenue is the combination of Subscription and Transaction revenue as reported in our 10-Q for the period ending 12/31/2024.
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$79 $99 $115 $131 $137 $49 $52 $59 $63 $65 FY'21 FY'22 FY'23 FY'24 2Q'25 Average Revenue per Unit Transaction Fes Subscription Fees Strong Growth on Driving Increased Average Revenue per Unit © 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. 15% CAGR In average revenue per unit FY ‘21 to FY ‘24 9% Subscription Driven by increased diversity of products and value-added services. 18% Transaction CAGR: 15% $128 per unit $151 per unit $174 per unit $194 per unit $202 per unit
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© 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Driving Outsized Transaction & Payment Volumes $843M total dollar volume of transactions 15% YoY growth Expanded product offerings provide our customers the ability to sell higher dollar ticket items, increasing average ticket sizes. $869 $1,053 $1,096 $1,144 $287 $300 FY'21 FY'22 FY'23 FY'24 2Q'24 2Q'25 Number of Transactions (Millions) CAGR: 10% $1,757 $2,287 $2,646 $3,038 $730 $843 FY'21 FY'22 FY'23 FY'24 2Q'24 2Q'25 Dollar Volume of Transactions (Millions) CAGR: 20% YoY Growth: 21% 4% 4% YoY Growth: 30% 16% 15% YoY Growth: 5% YoY Growth: 15%
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-6% -3% 2% 7% 2% 9% FY'21 FY'22 FY'23 FY'24 2Q'24 2Q'25 85% 84% 87% 89% 89% 90% FY'21 FY'22 FY'23 FY'24 2Q'24 2Q'25 11% 15% 16% 21% 21% 26% FY'21 FY'22 FY'23 FY'24 2Q'24 2Q'25 Driving Strong Transaction and Subscription Margins © 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Equipment Gross Margin Subscription Fees Adjusted Gross Margin Transaction Fees Gross Margin Key Takeaways •The growth of product mix beyond food and beverage in automated retail is driving a higher average transaction size. •A strong emphasis on COGS reduction is increasing margins across all revenue lines -Adjusted figures represent non-GAAP measures. Please refer to slides in the appendix for reconciliations to the equivalent GAAP measures.
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Building Operating Leverage to Increase Profitability © 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Scalability ($ in thousands) Total Revenue Total CGS Total SG&A $7,618 $9,892 $17,794 $33,960 $8,487 $10,668 FY'21 FY'22 FY'23 FY'24 2Q'24 2Q'25 Adjusted EBITDA ($ in thousands) CAGR: 65% YoY Growth:30% 80% 91% •Continued increases in ARPU drive attractive contribution margins and operating leverage. •Transaction margin improvement falls directly to the bottom line. Key Takeaways •Subscription revenue, has ~89%+ adjusted gross margins with nominal incremental opex. •SG&A expense discipline provides increased profitability. YoY Growth: 26% -Adjusted figures represent non-GAAP measures. Please refer to slides in the appendix for reconciliations to the equivalent GAAP measures.
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Reaffirming 2025 Guidance 2025 Outlook $Millions Total Revenue $308 to $322 Subscription & Transaction Revenue Growth 15% to 20% GAAP Net Income $22 to $32 Adjusted EBITDA $44 to $52 Operating Cash Flow $24 to $32 © 2025 Cantaloupe, Inc. All rights reserved. Confidential Information.
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© 2025 Cantaloupe, Inc. All rights reserved. Confidential Information.
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Appendix © 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Note: FYE 6/30
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© 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Cantaloupe, Inc. U.S. GAAP Gross Profit (unaudited)
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© 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Cantaloupe, Inc. Reconciliation of U.S. GAAP Gross Profit to Adjusted Gross Profit (non-GAAP) (unaudited)
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© 2025 Cantaloupe, Inc. All rights reserved. Confidential Information. Cantaloupe, Inc. Reconciliation of U.S. GAAP Net Income to Adjusted EBITDA (non-GAAP) (unaudited)