Company: CTLPP
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001628280-25-004271
Chunk: 100

Company: CANTALOUPE, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 100
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 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 14.1% for the three 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, an increase in our active devices compared to last year, and the acquisition of SB Software.

Equipment revenue decreased slightly from $8.6 million for the three months ended December 31, 2024, compared to $9.3 million for the same period in 2023.

Costs of sales. Costs of sales increased $2.0 million for the three months ended December 31, 2024 compared to the prior year period. The increase in costs of sales was primarily due to a $3.3 million increase in subscription and transaction costs as a result of increased processing volumes, offset by a $1.3 million decrease in equipment costs. 

Gross margin. Total gross margin increased to 38.6% for the three months ended December 31, 2024 from 34.6% for the three months ended December 31, 2023. The increase was primarily a result of an increase in transaction fees.

Operating Expenses

Three months ended December 31,ChangeCategory ($ in thousands)20242023AmountPercentageSales and marketing$5,385 $4,367 $1,018 23.3 %Technology and product development4,523 3,030 1,493 49.3 %General and administrative expenses11,239 10,505 734 7.0 %Integration and acquisition expenses44 93 (49)(52.7)%Depreciation and amortization3,366 2,736 630 23.0 %Total operating expenses$24,557 $20,731 $3,826 18.5 %

Total operating expenses. Operating expenses increased 18.5% for the three months ended December 31, 2024 compared to the same period in 2023. This is largely driven by increased technology and product development, sales and market and general and administrative expenses. Total operating expense also increased as a result of the acquisitions of Cheq and SB Software. See further details on individual categories below.

Sales and marketing. Sales and marketing expenses increased approximately $1.0 million for