Company: CTLPP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050174
Chunk: 80

Company: CANTALOUPE, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 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 %Depreciation and amortization3,795 2,672 1,123 42.0 %Total operating expenses$31,886 $24,744 $7,142 28.9 %

Total operating expenses. Operating expenses increased 28.9% for the three months ended September 30, 2025 compared to the same period in 2024. This is primarily driven by an $7.0 million increase in Merger, acquisition, and integration expenses as well as an increase in Sales and marketing and Depreciation and amortization, offset by a decrease in General and administrative expenses. See further details on individual categories below.

Sales and marketing. Sales and marketing expenses increased approximately $1.1 million for the three months ended September 30, 2025 compared to the same period in 2024, due to a $1.0 million increase in compensation and benefits as a result of increased headcount with the launch of Vine Digital Studios and a $0.1 million increase in various sales and marketing expenses.

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Technology and product development. Technology and product development expenses increased by $0.5 million for the three months ended September 30, 2025. The increase is due to a $0.