Company: CTLPP
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001628280-25-004271
Chunk: 106

Company: CANTALOUPE, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 106
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 financial measures have limitations in that they do not reflect all of the items associated with our net income as determined in accordance with GAAP, and are not a substitute for or a measure of our profitability or net earnings.

Adjusted Gross Profit and Margin (non-GAAP)

We define Adjusted Gross Profit (non-GAAP) as revenue less cost of sales, exclusive of depreciation of internally-developed software and amortization of intangible assets related to technologies obtained through acquisitions. We believe this non-GAAP measure is useful to view the resulting figures excluding the aforementioned non-cash charges because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and such amounts vary substantially from company to company depending on their financing and capital structures and the method by which their assets were acquired. We define Adjusted Gross Margin as Adjusted Gross Profit divided by revenue.

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We have provided below a reconciliation of U.S. GAAP gross profit to Adjusted Gross Profit and Adjusted Gross Margin for the three and six months ended December 31, 2024 and 2023:

Three Months Ended December 31,ChangePercent Change($ in thousands)202420232024 v. 2023Gross profit, transaction (GAAP)$11,380 $8,000 $3,380 42.3 %Gross margin, transaction (GAAP)25.6 %21.1 %4.5 %Gross profit, subscription (GAAP)16,306 14,471 1,835 12.7 %Amortization (1)2,248 1,673 575 34.4 %Adjusted Gross Profit, subscription (non-GAAP)$18,554 $16,144 2,410 14.9 %Adjusted Gross Margin, subscription (non-GAAP)89.7 %89.0 %0.6 %Gross profit, equipment (GAAP)$786 $172 614 357.0 %Gross margin, equipment (GAAP)9.1 %1.8 %7.3 %Total Adjusted Gross Profit (non-GAAP)$30,720 $24,316 6,404 26.3 %Total Adjusted Gross Margin (non-GAAP)41.7 %37.2 %4.5 %(1) Amortization of internal-use software assets and developed technology assets.

Total Adjust