Company: CTLPP
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001628280-25-004271
Chunk: 83

Company: CANTALOUPE, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 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 $8,509 $2,324 27.3 %Technology and product development9,023 7,198 1,825 25.4 %General and administrative expenses23,166 20,943 2,223 10.6 %Integration and acquisition expenses241 171 70 40.9 %Depreciation and amortization6,038 5,483 555 10.1 %Total operating expenses$49,301 $42,304 $6,997 16.5 %

Total operating expenses. Operating expenses increased 17% for the six months ended December 31, 2024 compared to the same period in 2023. This is largely driven by increased sales and marketing, technology and product development 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 $2.3 million for the six months ended December 31, 2024 compared to the same period in 2023. Sales and marketing expenses increased $1.3 million due to