Company: CTLPP
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001628280-25-004271
Chunk: 103

Company: CANTALOUPE, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 103
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23.4 %Total gross margin38.4 %35.2 %3.2 %(1) The Company's internal-use software assets and developed technology assets are not associated with transaction fees and equipment revenue.(2) Amortization of internal-use software assets and developed technology assets. 

Revenues. Total revenues increased by $16.5 million for the six months ended December 31, 2024 compared to the same period in 2023. The increase in revenues is attributed to a $17.7 million increase in subscription and transaction fees, offset by a $1.2 million decrease in equipment sales.

The increase in transaction fees was primarily driven by increased average ticket items sold, increased average ticket price, increased processing volumes, and the acquisition Cheq, resulting in a 14.8% increase in total dollar volumes of transactions for the current fiscal year quarter relative to the same quarter in the prior year. There was also an increase in the total number of active devices relative to the same quarter in the prior year.

Our subscription fees have increased 12.8% for the six months ended December 31, 2024 compared to the same period in 2023 which is attributed to a continued focus of management to grow our recurring subscription services to our customer base and an increase in our active devices compared to last year as well as the acquisition of SB Software. 

Equipment revenue decreased slightly to $14.1 million for the six months ended December 31, 2024, compared to $15.8 million for the same period.

Costs of sales. Costs of sales increased $5.6 million for the six months ended December 31, 2024 compared to the prior year period. The increase in costs of sales was primarily due to a $7.3 million increase in subscription and transaction costs as a direct result of increased transaction processing fees corresponding with an increase in processing volumes offset by the decrease in cost of equipment of $1.7 million.

Gross margin. Total gross margin increased to 38.4% for the six months ended December 31, 2024 from 35.2% for the six months ended December 31, 2023. The increase was primarily a result of an increase in subscription and transaction fees which yield higher margins compared to equipment fees.

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Operating Expenses

Six Months Ended December 31,ChangeCategory ($ in thousands)20242023AmountPercentageSales and marketing$10,833 $