Company: CTLPP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050174
Chunk: 97

Company: CANTALOUPE, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 97
---
 period in 2024.  The increase in revenues is attributed to a $4.5 million increase in transaction revenue, a $3.5 million increase in equipment revenue and a $2.1 million increase in subscription revenue. 

The increase in transaction fees was primarily driven by increased processing volumes and increased average ticket size, resulting in a 14.6% increase in total dollar volumes of transactions for the current fiscal year quarter relative to the same quarter in the prior year. Our subscription fees have increased 10.3% for the three months ended September 30, 2025 compared to the same period in 2024, which is attributed to a continued focus of management to grow our recurring subscription services to our customer base. 

Equipment revenue increased 49.5% to $10.5 million for the three months ended September 30, 2025, compared to $7.0 million for the same period in 2024 primarily due to our Smart Stores product, which launched in December 2024.

Costs of sales. Costs of sales increased $5.4 million for the three months ended September 30, 2025 compared to the prior year period. The increase in costs of sales was partially due to a $3.0 million increase in transaction costs as a direct result of increased transaction processing fees corresponding with an increase in processing volumes. Additionally, equipment cost of goods sold increased $2.9 million for the three months ended September 30, 2025 compared to the prior year period due to the increased equipment sales volumes.

Gross margin.  Total gross margin decreased to 38.1% for the three months ended September 30, 2025 from 38.3% for the three months ended September 30, 2024. The decrease was primarily a result of a $1.0 million increase in amortization expenses related to internal use software and developed technology acquired in our SB Software acquisition.

Operating Expenses

Three months ended September 30,ChangeCategory ($ in thousands)20252024AmountPercentageSales and marketing$6,523 $5,448 $1,075 19.7 %Technology and product development5,014 4,499 515 11.4 %General and administrative expenses9,357 11,928 (2,571)(21.6)%Merger, acquisition and integration expenses7,197 197 7,000 3,553.3 %Deprec