Company: CTLPP
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023882
Chunk: 87

Company: CANTALOUPE, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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 processing volumes. Equipment cost of sales increased by $0.9 million as a result of increased equipment sales. 

Amortization. Amortization of internal-use software assets and developed technology assets increased $3.8 million for the three months ended March 31, 2025 compared to the prior year period primarily as a result of certain capitalized internal use software is no longer expected to provide future economic benefits as a result of changes in business strategy and evolving technology initiatives and our acquisitions of Cheq and SB Software.

Gross margin. Total U.S. GAAP gross margin decreased to 34.5% for the three months ended March 31, 2025 from 37.4% for the three months ended March 31, 2024. The decrease was primarily a result of the additional amortization expense described above.

Operating Expenses

Three months ended March 31,ChangeCategory ($ in thousands)20252024AmountPercentageSales and marketing$5,830 $5,747 $83 1.4 %Technology and product development4,328 4,916 (588)(12.0)%General and administrative expenses8,471 8,552 (81)(0.9)%Integration and acquisition expenses(534)907 (1,441)(158.9)%Depreciation and amortization6,367 2,493 3,874 155.4 %Total operating expenses$24,462 $22,615 $1,847 8.2 %

Total operating expenses. Operating expenses increased 8.2% for the three months ended March 31, 2025 compared to the same period in 2024. This was primarily driven by increased depreciation and amortization related expenses. Total operating expense also increased as a result of the acquisitions of Cheq and SB Software. See further details on individual categories below.

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Sales and marketing. Sales and marketing expenses increased approximately $0.1 million for the three months ended March 31, 2025 compared to the same period in 2024. This was due to a $0.4 million increase in advertising costs, offset by a $0.2 million decrease in compensation costs and a decrease in various sales and marketing expense reductions of approximately $0.1 million.

Technology and product development. Technology and product development expenses decreased by $0.6 million for the three months ended March 31, 2025 compared to the