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Cantaloupe (CTLP)
NASDAQ:CTLP

Cantaloupe (CTLP) AI Stock Analysis

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Cantaloupe

(NASDAQ:CTLP)

Rating:83Outperform
Price Target:
$13.00
▲(17.75%Upside)
Cantaloupe's overall stock score reflects its strong financial performance and technical momentum, bolstered by an attractive valuation and positive strategic developments. The merger announcement particularly enhances growth prospects and investor sentiment.
Positive Factors
Acquisition Premium
365’s bid represents an 18% premium to Cantaloupe's recent closing price, indicating a favorable acquisition offer for shareholders.
Regulatory Approval
Antitrust concerns are considered unlikely as the firms have complementary strengths, reducing regulatory risk for the acquisition.
Revenue and Margin Growth
CTLP reported Q3/25 revenue of $75.4 million representing an increase of 11.1% YOY with adjusted EBITDA of $13.9 million representing a 36.6% increase.
Negative Factors
Downgrade in Recommendation
Analyst downgrades recommendation on Cantaloupe (CTLP) to Hold from Buy following the company's agreement to be acquired by 365 Retail Markets.
Mixed Financial Results
CTLP shares are down 6% after reporting mixed March-quarter results; revenue was $4.3 million below estimate as subscription/transaction fee revenue slowed to 10%.
Transaction Revenue Impact
Transaction revenue in Q3/25 was materially impacted by adverse weather events and storms, which led to abnormally low traffic for customer locations.

Cantaloupe (CTLP) vs. SPDR S&P 500 ETF (SPY)

Cantaloupe Business Overview & Revenue Model

Company DescriptionCantaloupe, Inc., a digital payment and software services company, provides technology solutions for the unattended retail market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides ePort, an integrated payment device that is deployed in self-service, unattended market applications, such as vending, amusement, arcade, commercial laundry, air/vacuum, car wash, and others, which facilitates digital payments; and integrated software services for payment devices in the field for the wireless transfer. The company serves vending machine, car wash, electric vehicle charging, amusement, commercial laundry, micro-market, kiosk, and entertainment companies. It has strategic partnership with Bakkt Holdings, LLC to bring a cashless experience for consumers to spend digital assets at unattended retail devices: and Castles Technology to introduce a next-generation cashless device solution. The company was formerly known as USA Technologies, Inc and changed its name to Cantaloupe, Inc. Cantaloupe Inc. was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.
How the Company Makes MoneyCantaloupe makes money through a diversified revenue model that includes transaction fees, subscription services, and hardware sales. The company's primary revenue stream comes from its payment processing services, where it collects transaction fees each time a consumer makes a purchase through one of its connected devices. Additionally, Cantaloupe generates recurring revenue by offering subscription-based services for its cloud-based platform, which provides customers with data analytics, inventory management, and remote monitoring solutions. The sale of point-of-sale hardware, such as card readers and telemetry devices, also contributes to its earnings. Strategic partnerships with financial institutions, hardware manufacturers, and retail operators enhance its market presence and support its revenue generation.

Cantaloupe Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2025)
|
% Change Since: 33.49%|
Next Earnings Date:Sep 10, 2025
Earnings Call Sentiment Positive
Despite some challenges such as weather impacts and economic uncertainty affecting equipment sales, Cantaloupe reported strong revenue growth, increased EBITDA, and significant cash generation. The company also made notable progress in product development and client acquisition.
Q3-2025 Updates
Positive Updates
Revenue Growth
Total revenue increased 11% year over year to $75.4 million, driven by 10% growth in both transaction and subscription revenues.
Equipment Revenue Increase
Equipment revenue increased by 18% to $10.2 million compared to Q3 fiscal year 2024.
Adjusted EBITDA Growth
Adjusted EBITDA for Q3 was $13.9 million, marking a 37% increase from the prior year.
Strong Cash Generation
Q3 saw one of the best quarters for cash generation, with $22.4 million from operating activities.
Gross Margin Expansion
Total adjusted gross margin expanded to 41.6% from 39.6% in the same quarter last year.
Notable Wins and Product Expansion
Cantaloupe gained new enterprise clients and saw strong demand for SmartStore and Engage Pulse products.
Negative Updates
Weather Impact on Transaction Revenue
Adverse weather events in January and February reduced transaction revenue by approximately $2 million.
Economic Uncertainty Affecting Equipment Sales
There was a pullback in large equipment purchases due to economic uncertainty, though this rebounded in April.
Company Guidance
During the Cantaloupe third-quarter fiscal year 2025 earnings call, the company provided updated guidance for the fiscal year. The total revenue for the quarter increased by 11% year-over-year to $75.4 million, with transaction and subscription revenues each growing by 10%. Equipment revenue saw an 18% increase, reaching $10.2 million. Despite weather-related disruptions impacting transaction revenue, the company remains confident in its revised fiscal year guidance due to a strong rebound in April. The total adjusted gross margin expanded to 41.6%, while adjusted EBITDA rose by 37% to $13.9 million. Cantaloupe revised its fiscal year 2025 outlook, projecting total revenues between $302 million and $308 million, representing growth of 13% to 15%. The company also anticipates a GAAP net income between $64 million and $70 million, driven by the release of a $42.2 million valuation allowance on deferred tax assets. Adjusted EBITDA is expected to be around $96 million, with operating cash flow projected to stay between $24 million and $32 million.

Cantaloupe Financial Statement Overview

Summary
Cantaloupe demonstrates robust financial health with impressive revenue growth and profitability improvements. The company maintains a strong balance sheet with low leverage and has shown positive cash flow trends. Continued focus on liquidity and cash flow conversion will be crucial for sustained growth.
Income Statement
85
Very Positive
Cantaloupe has shown impressive revenue growth over the years, with a revenue increase from $163.2 million in 2020 to $292.6 million in TTM (Trailing-Twelve-Months) 2025. The gross profit margin stands at 40.3% for TTM, reflecting efficient cost management. The net profit margin has significantly improved, reaching 20.5% in TTM from negative figures in previous years, indicating strong profitability advancements. EBITDA and EBIT margins have also shown positive trends, suggesting healthy operational performance.
Balance Sheet
78
Positive
The company's balance sheet reflects a strong equity base with a debt-to-equity ratio of 0.008 in TTM 2025, indicating low leverage. The equity ratio has remained above 60%, showing financial stability. Return on equity has improved to 24.9% in TTM, demonstrating effective use of shareholders' funds. However, the decrease in cash and equivalents from previous periods might indicate potential liquidity management challenges.
Cash Flow
75
Positive
Cantaloupe's free cash flow has returned to positive in TTM, growing from previous negative values, which is a positive indicator of cash generation capability. The operating cash flow to net income ratio is approximately 0.42, suggesting moderate cash conversion efficiency. While free cash flow growth reflects improvement, consistent positive operating cash flow will be crucial for sustaining growth.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue292.64M268.60M243.64M195.20M166.94M163.15M
Gross Profit118.03M102.65M81.24M54.20M54.03M46.27M
EBITDA39.19M28.12M11.95M4.33M1.19M-28.58M
Net Income59.91M11.99M633.00K-1.70M-8.71M-40.59M
Balance Sheet
Total Assets370.52M335.57M289.61M255.63M237.67M181.02M
Cash, Cash Equivalents and Short-Term Investments46.34M58.92M50.93M68.13M88.14M31.71M
Total Debt1.93M47.33M40.93M16.99M17.96M20.51M
Total Liabilities46.14M151.10M122.02M95.66M83.14M79.67M
Stockholders Equity240.69M184.47M167.59M159.97M154.53M101.35M
Cash Flow
Free Cash Flow7.50M12.81M-1.96M-17.96M6.34M-16.68M
Operating Cash Flow25.18M27.75M14.19M-8.71M8.18M-14.14M
Investing Cash Flow-27.76M-18.64M-51.87M-12.23M-1.83M-2.49M
Financing Cash Flow-1.18M-1.06M20.48M920.00K50.07M20.88M

Cantaloupe Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.04
Price Trends
50DMA
9.04
Positive
100DMA
8.88
Positive
200DMA
8.78
Positive
Market Momentum
MACD
0.64
Positive
RSI
74.71
Negative
STOCH
62.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTLP, the sentiment is Positive. The current price of 11.04 is above the 20-day moving average (MA) of 10.29, above the 50-day MA of 9.04, and above the 200-day MA of 8.78, indicating a bullish trend. The MACD of 0.64 indicates Positive momentum. The RSI at 74.71 is Negative, neither overbought nor oversold. The STOCH value of 62.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$806.42M13.9028.20%12.51%390.09%
75
Outperform
$528.38M24.6410.42%1.14%17.89%-23.37%
75
Outperform
$501.15M25.5422.21%0.62%42.25%65.02%
63
Neutral
$33.61B6.06-11.53%1.82%5.53%-18.79%
62
Neutral
$848.40M-0.34%-4.76%97.93%
59
Neutral
$620.48M57.39%15.76%82.78%
52
Neutral
$463.10M-1.64%2.26%85.37%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CTLP
Cantaloupe
11.04
4.57
70.63%
FARO
Faro Technologies
43.92
27.93
174.67%
LYTS
Lsi Industries
17.61
3.73
26.87%
CLMB
Climb Global Solutions
108.89
51.10
88.42%
RPAY
Repay Holdings
4.90
-4.72
-49.06%
PRTH
Priority Technology Holdings
7.78
2.82
56.85%

Cantaloupe Corporate Events

Delistings and Listing ChangesM&A Transactions
Cantaloupe Announces Merger Agreement with 365 Retail Markets
Positive
Jun 16, 2025

On June 15, 2025, Cantaloupe, Inc. entered into a merger agreement to be acquired by 365 Retail Markets, LLC in an all-cash transaction valued at approximately $848 million. This merger, unanimously approved by Cantaloupe’s Board of Directors, is expected to close in the second half of 2025, pending shareholder and regulatory approvals. The transaction aims to combine the strengths of both companies, enhancing their offerings in unattended retail technologies and expanding their customer base and product suite across North America, Latin America, and Europe. The merger is anticipated to unlock significant synergies, including customer cost savings and growth through new product rollouts, increased software adoption, and payments expansion. Upon completion, Cantaloupe will become a privately-held company, and its common stock will be delisted from public stock exchanges.

The most recent analyst rating on (CTLP) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Cantaloupe stock, see the CTLP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 17, 2025