CANTALOUPE, INC. (CTLP)·Q3 2025 Earnings Summary

Executive Summary

• Q3 FY2025 revenue grew 11.1% YoY to $75.4M, but missed consensus ($79.8M); GAAP diluted EPS was $0.65, inflated by a $42.2M one-time tax valuation allowance release; Adjusted EBITDA was $13.9M, roughly in line with consensus . Q3 consensus: EPS $0.09*, revenue $79.8M*, EBITDA $13.1M* [Values retrieved from S&P Global].
• Mix and margin held up: subscription fees $21.2M (+10.3% YoY), transaction fees $44.0M (+10.0% YoY), equipment sales $10.2M (+17.9% YoY); total dollar volume processed rose 11.1% to $852.4M .
• Management narrowed FY25 outlook: total revenue lowered to $302–$308M (from $308–$322M), Adjusted EBITDA to $46–$50M (from $44–$52M), GAAP net income introduced at $64–$70M; management expects to be at the low end of the revenue growth range .
• Call drivers: weather reduced transaction revenue and equipment demand delays hurt sales; Smart Store demand strong with >$2M shipments and margin expansion continued; investors focused on revenue miss vs. EPS quality given one-time tax benefit .

What Went Well and What Went Wrong

What Went Well

• Recurring revenue strength and margin expansion: “continued success increasing operating leverage through margin expansion,” with recurring revenue (subscription + transaction) at $65.2M and Adjusted EBITDA up 37% YoY to $13.9M [CEO commentary; earnings supplement] .
• Smart Store adoption: management called out “exciting adoption of our smart stores,” with >$2M shipments in the quarter and strong interest heading into Q4, positioning equipment revenue to rebound [CEO; call transcript/highlights] .
• Healthy processing growth: total dollar volume processed rose 11.1% YoY to $852.4M, underscoring resilient end-market transaction growth despite adverse weather [press release] .

What Went Wrong

• Top-line miss and macro/weather headwinds: revenue of $75.4M missed consensus due to “one-time weather events impacting transaction revenue” and deferred equipment purchases amid economic uncertainty [press/call] .
• Quality of EPS: GAAP EPS of $0.65 was boosted by a $42.2M one-time tax valuation allowance release; without it, net income increase vs. prior year would have been ~$2.3M, tempering the perceived earnings beat [press release] .
• Supply constraints and international mix: Smart Store supply constraints limited ability to meet demand in-quarter, and management reiterated international mix expected only 3–4% by FY25 exit, slowing diversified growth contribution [call highlights] .

Financial Results

Headline metrics across recent quarters

Q3 FY2025 actuals vs. consensus

Estimates marked with * are Values retrieved from S&P Global.

Revenue mix

KPIs

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “In the third quarter, we saw exciting adoption of our smart stores as well as strong earnings growth and cash flow generation… pleased with our continued success increasing operating leverage through margin expansion.” — Ravi Venkatesan, CEO .
• “Revenue came in lower than anticipated due to one-time weather events impacting transaction revenue, and delays in equipment purchases due to economic uncertainty.” — Management remarks on call .
• “We anticipate being at the low end of the guidance range” for FY2025 revenue growth. — Management guidance slide .

Q&A Highlights

• Weather impact quantification: CFO estimated ~$2M impact on transaction revenue, concentrated in January/February .
• Smart Store ramp: Management expects a ramp in Q4; called it the “hottest selling product,” with strong conference interest supporting equipment sales recovery .
• International outlook: International revenue expected to be 3–4% by FY25 exit, with continued growth into FY26 .
• Demand and macro: Delayed large equipment purchases due to macro uncertainty weighed on the quarter; supply constraints limited Smart Store fulfillment .

Estimates Context

• Q3 FY2025 vs S&P Global consensus: Revenue $75.4M vs $79.8M* (miss), GAAP EPS $0.65 vs $0.09* (beat; driven by one-time tax item), EBITDA $13.9M vs $13.1M* (in line to slight beat). Expect estimate revisions to reflect lower top-line trajectory and updated FY guide, while adjusting EPS quality for non-recurring tax benefits .
• Consensus inputs: EPS 0.094*, revenue $79.83M*, EBITDA $13.12M*, with 5 EPS and 6 revenue estimates contributing to the quarter*. Values retrieved from S&P Global.

Key Takeaways for Investors

• Underlying performance solid but overshadowed by a one-time tax allowance release; focus on Adjusted EBITDA growth (+37% YoY) and sustained 41%+ adjusted gross margins as better indicators of core momentum .
• The revenue miss was largely exogenous (weather) and timing-related (equipment deferrals); near-term recovery hinges on Smart Store supply normalization and macro stabilization .
• FY25 revenue guidance cut and narrowed range likely temper top-line expectations; EBITDA outlook tightened to $46–$50M suggests operating discipline remains intact .
• Watch for Q4 equipment revenue inflection as Smart Store ramps; strong pipeline commentary indicates potential sequential rebound .
• International remains a modest contributor near term (3–4% by FY25 exit); larger profit drivers remain North America recurring revenues and ARPU uplift .
• Strategic enablers (Cantaloupe Capital financing) may accelerate SMB customer growth and equipment conversion without balance sheet risk to CTLP .
• Corporate actions update: subsequent to Q3, CTLP announced a definitive agreement to be acquired by 365 Retail Markets at $11.20/share in cash (June 16, 2025), a separate catalyst path for the equity .

Supporting primary sources read:

• Q3 FY2025 8-K 2.02 and press release (May 8, 2025) .
• Q3 FY2025 Earnings Call Transcript (May 8/10, 2025) .
• Q3 FY2025 Earnings Supplement (May 8, 2025) .
• Prior quarters: Q2 FY2025 press release (Feb 6, 2025) ; Q1 FY2025 press release (Nov 7, 2024) .

Additional relevant press releases during/around Q3 FY2025:

• Announcement of Q3 FY2025 earnings call schedule (Apr 17, 2025) .

Notes on non-GAAP:

• Adjusted EBITDA is presented as a supplemental measure; reconciliations provided in press releases and the earnings supplement. Management emphasizes Adjusted EBITDA and adjusted gross margin as measures of comparative operating performance .