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Cantaloupe, Inc. (CTLP)
:CTLP
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Cantaloupe
(NASDAQ:CTLP)
67Neutral
Positive Factors
Financial Performance
CTLP reported Q2/25 revenue of $73.7 million representing an increase of 12.8% YOY with adjusted EBITDA of $10.7 million representing a 25.7% increase.
Operational Leverage
Exhibiting significant operating leverage, CTLP’s adjusted EBITDA increased 25.7% to $10.7 million with a 149-bps increase in adjusted EBITDA margin YOY to 14.5%.
Strategic Options
CTLP's share price jumped by almost 10% after reports that the company engaged investment bankers to explore strategic options, including a possible sale.
Negative Factors
Market Valuation
The value of CTLP's integrated payment solutions, strong recurring cash flow, and expanding margins have yet to be reflected in its share price, suggesting it remains undervalued.
Revenue Expectations
CTLP reported 2Q25 revenue of $73.7m, up 12.8% year-over-year, but it trailed the consensus estimate.
Cantaloupe (CTLP) vs. S&P 500 (SPY)
Market Cap
$571.13M
Dividend YieldN/A
Average Volume (3M)526.27K
Price to Earnings (P/E)39.2
Beta (1Y)1.11
Revenue Growth12.88%
EPS Growth2.89%
CountryUS
Employees348
SectorTechnology
Sector Strength46
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding73,034,580
10 Day Avg. Volume381,197
30 Day Avg. Volume526,266
Financial Highlights & Ratios
PEG Ratio13.57
Price to Book (P/B)N/A
Price to Sales (P/S)2.03
Price to Cash Flow (P/CF)276.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.63Price Target Upside61.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Cantaloupe Business Overview & Revenue Model
Company DescriptionCantaloupe (CTLP) is a technology company specializing in providing software and solutions for the unattended retail market. The company delivers innovative payment and business management solutions that enable operators to track, manage, and optimize their vending, micro market, and other unattended retail operations. With a focus on enhancing the customer experience and operational efficiency, Cantaloupe offers a comprehensive suite of hardware, software, and services designed to meet the unique needs of the unattended retail sector.
How the Company Makes MoneyCantaloupe makes money primarily through the sale of its hardware and software solutions, which include smart vending technology, payment processing systems, and data analytics services. The company generates revenue by selling its products and services directly to operators in the unattended retail industry, who use these solutions to streamline their operations and increase sales. Additionally, Cantaloupe earns income through transaction fees associated with its payment processing services, which facilitate cashless payments at vending machines and other unattended retail locations. Key partnerships with payment processors and technology providers further enhance Cantaloupe's earning potential, allowing it to offer integrated solutions that appeal to a wide range of clients in the retail sector.
Cantaloupe Financial Statement Overview
Summary
Cantaloupe demonstrates strong financial health with consistent revenue growth and efficient operations reflected in its income statement. The balance sheet is robust, with minimal leverage and a solid equity base, reducing financial risks. While cash flow generation from operations is positive, the company needs to improve its free cash flow position to enhance financial flexibility. Overall, Cantaloupe is well-positioned for continued growth in the software industry.Income Statement
Cantaloupe's TTM data shows a strong performance with a Gross Profit Margin of 54.04% and a Net Profit Margin of 5.40%. The company's revenue has grown significantly over the years, with a recent growth rate of 6.15% from the previous year. EBIT and EBITDA margins are healthy at 6.66% and 10.36%, respectively, indicating operational efficiency. The company has shown consistent revenue growth, which is a positive sign for future prospects.85
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with a low Debt-to-Equity Ratio of 0.01, indicating minimal leverage. The Return on Equity is 8.10%, suggesting effective use of equity to generate profits. An Equity Ratio of 62.75% demonstrates a strong capital structure. The company maintains a good balance between debt and equity, reducing financial risk.78
Positive
Cash Flow
Cantaloupe's cash flow performance highlights a positive Operating Cash Flow to Net Income Ratio of 1.13, suggesting good cash generation from operations. However, the Free Cash Flow to Net Income Ratio is much lower at 0.02, indicating limited free cash resources after capital expenditures. The Free Cash Flow Growth Rate is negative, showing potential room for improvement in cash management.72
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 285.11M | 268.60M | 243.64M | 195.20M | 166.94M | 163.15M | Gross Profit |
| 111.08M | 92.08M | 81.24M | 54.20M | 54.03M | 46.27M | EBIT |
| 19.00M | 14.17M | 760.00K | -993.00K | -4.32M | -18.30M | EBITDA |
| 32.69M | 28.12M | 11.95M | 4.33M | 1.19M | -28.58M | Net Income Common Stockholders |
| 15.41M | 11.99M | 633.00K | -1.70M | -8.71M | -40.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 27.68M | 58.92M | 50.93M | 68.13M | 88.14M | 31.71M | Total Assets |
| 303.05M | 335.57M | 289.61M | 255.63M | 237.67M | 181.02M | Total Debt |
| 1.46M | 47.33M | 40.93M | 16.99M | 17.96M | 20.51M | Net Debt |
| -26.22M | -11.59M | -9.99M | -51.14M | -70.17M | -11.20M | Total Liabilities |
| 110.19M | 151.10M | 122.02M | 95.66M | 83.14M | 79.67M | Stockholders Equity |
| 192.86M | 184.47M | 167.59M | 159.97M | 154.53M | 101.35M |
| Cash Flow | Free Cash Flow | ||||
| 377.00K | 12.81M | -1.96M | -17.96M | 6.34M | -16.68M | Operating Cash Flow |
| 17.48M | 27.75M | 14.19M | -8.71M | 8.18M | -14.14M | Investing Cash Flow |
| -30.57M | -18.64M | -51.87M | -12.23M | -1.83M | -2.49M | Financing Cash Flow |
| -1.67M | -1.06M | 20.48M | 920.00K | 50.07M | 20.88M |
Cantaloupe Technical Analysis
Negative
7.82
Price Trends
8.95
Negative
9.07
Negative
8.17
Negative
Market Momentum
-0.45
Positive
36.34
Neutral
69.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTLP, the sentiment is Negative. The current price of 7.82 is below the 20-day moving average (MA) of 8.33, below the 50-day MA of 8.95, and below the 200-day MA of 8.17, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 36.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTLP.
Cantaloupe Risk Analysis
Cantaloupe disclosed 31 risk factors in its most recent earnings report. Cantaloupe reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cantaloupe Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.93B | 24.98 | 34.88% | 0.67% | 11.19% | 51.03% | |
77 Outperform | $124.27B | 31.55 | 83.72% | 1.90% | 7.09% | 11.51% | |
76 Outperform | $13.07B | 32.35 | 21.90% | 1.26% | 5.36% | 8.62% | |
67 Neutral | $571.13M | 39.16 | 8.36% | ― | 12.88% | 2.89% | |
58 Neutral | $21.67B | 10.60 | -18.43% | 2.42% | 4.66% | -24.45% |
* Technology Sector Average
Performance Comparison
CTLP
Cantaloupe
7.82
1.50
23.73%
ADP
Automatic Data Processing
305.43
65.28
27.18%
JKHY
Jack Henry & Associates
178.59
10.31
6.13%
PAYC
Paycom
218.75
22.02
11.19%
Cantaloupe Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -9.80% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, improved gross margins, and increased EBITDA, driven by successful expansions in micro markets and smart stores, as well as international wins. However, there were challenges such as a decline in equipment revenue and increased operating expenses. Overall, the positive aspects outweighed the negatives, leading to a generally optimistic outlook.Highlights
Significant Revenue Growth
Total revenue increased 13% year over year to $73.7 million, driven by 17% year-over-year transaction revenue growth and 14% year-over-year subscription revenue growth.
Improved Gross Margins
Total adjusted gross margin for the quarter was 41.7%, compared to 37.2% in the same quarter last year.
Increased EBITDA
Adjusted EBITDA for Q2 was $10.7 million, a 26% increase compared to the prior year.
Expansion in Micro Markets and Smart Stores
Continued growth in micro markets and smart store deployments, including a new agreement with Premier Foodservice and significant sales in the Smart Store series.
New International Wins
Secured new international customers in the UK and Mexico, expanding the company's footprint outside the US.
Launch of Cantaloupe Capital
Launched microlending services to help customers expand their business, aimed at addressing capital constraints for SMBs.
Strong Point of Sale Implementation
Added the San Jose Earthquakes at PayPal Park as a point of sale provider, including a suite management platform for stadium guest experiences.
Lowlights
Decline in Equipment Revenue
Equipment revenue was $8.6 million, a decrease of 7% compared to Q2 FY2024.
Increased Operating Expenses
Total operating expenses in Q2 FY2025 increased to $24.5 million compared to $20.7 million in Q2 FY2024, largely due to expenses from recent acquisitions.
Cash and Cash Equivalents Decrease
Ended the second quarter with cash and cash equivalents of $27.7 million, a decrease from the year-ending balance as of June 30, 2024.
Company Guidance
During Cantaloupe's fiscal year 2025 second-quarter earnings call, several key metrics were highlighted. The company reported a 13% year-over-year increase in total revenue, reaching $73.7 million, driven by 17% growth in transaction revenue and 14% growth in subscription revenue. The adjusted gross margin improved to 41.7% from 37.2% the previous year. Adjusted EBITDA rose 26% to $10.7 million. The company also noted an increase in active customers to over 32,000 and 1.3 million active devices. Equipment revenue, however, saw a 7% decline. Cantaloupe reaffirmed its fiscal year 2025 guidance, projecting total revenues between $308 million and $322 million, and adjusted EBITDA between $44 million and $52 million. The company continues to focus on scaling operations internationally and refining its go-to-market strategy.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.