Executive Summary
Cantaloupe Inc delivered a solid QQ3 2024 quarter with revenue of $67.90 million, up 12.5% year over year and 3.9% quarter over quarter, underpinned by ongoing demand for digital payments solutions in unattended retail. Gross margin expanded to 39.63% and operating margin reached 7.66%, contributing to a net income of $4.66 million and earnings per share of $0.059 (diluted $0.059). The company generated healthy operating cash flow of $14.71 million and free cash flow of $11.45 million, further supporting a liquid balance sheet with cash and cash equivalents of $50.20 million and a net cash position of approximately $2.33 million. Balance sheet strength is complemented by modest leverage (total debt $47.9 million; debt-to-capitalization 0.209; interest coverage ~32x) and ample liquidity (current ratio 1.56, quick ratio 1.16).
While the quarter showcases improving profitability and robust cash generation, Cantaloupe faces a relatively extended working capital cycle (CCC ~142 days; DSO ~65 days; DIO ~77 days), which warrants continued attention to collections, inventory management, and payable terms. Valuation remains elevated relative to many IT services peers (price-to-sales around 34x; price-to-earnings around 124x), signaling strong growth expectations priced into the stock but also implying sensitivity to any deviation in growth trajectories or margin trajectory. Overall, the QQ3 print reinforces a constructive near-term trajectory with optionality from partnerships and product expansion in unattended retail, balanced against the risk of valuation compression if growth or profitability decelerates.
Key Performance Indicators
QoQ: 19.72% | YoY:-36.32%
QoQ: 49.04% | YoY:-32.99%
QoQ: 39.30% | YoY:-34.82%
Key Insights
Revenue: $67.90m, YoY +12.49%, QoQ +3.88%
Gross Profit: $26.91m, Gross Margin 39.63%
Operating Income: $4.29m, Margin 6.32%
EBITDA: $8.11m, EBITDA Margin 11.94%
Net Income: $4.66m, Net Margin 6.86%
EPS (Diluted): $0.059, weighted avg shares diluted 74.07m
Cash Flow: Operating cash flow $14.71m; Free cash flow $11.45m; Net Change in cash $6.72m; Cash at end of period $50.20m
Liquidity/Leverage: Total debt $47.87m; Cash & equivalents $50.20m; Net debt / net cash position -$2.33m; Current ratio...
Financial Highlights
Revenue: $67.90m, YoY +12.49%, QoQ +3.88%
Gross Profit: $26.91m, Gross Margin 39.63%
Operating Income: $4.29m, Margin 6.32%
EBITDA: $8.11m, EBITDA Margin 11.94%
Net Income: $4.66m, Net Margin 6.86%
EPS (Diluted): $0.059, weighted avg shares diluted 74.07m
Cash Flow: Operating cash flow $14.71m; Free cash flow $11.45m; Net Change in cash $6.72m; Cash at end of period $50.20m
Liquidity/Leverage: Total debt $47.87m; Cash & equivalents $50.20m; Net debt / net cash position -$2.33m; Current ratio 1.56; Quick ratio 1.16; Interest coverage ~32x
Balance Sheet: Total assets $319.90m; Total stockholders’ equity $181.52m; Goodwill $94.01m; Intangibles $26.69m; Total current liabilities $92.29m; Total non-current liabilities $46.09m
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
67.90M |
12.49% |
3.88% |
| Gross Profit |
26.91M |
17.53% |
10.66% |
| Operating Income |
4.29M |
-36.32% |
19.72% |
| Net Income |
4.66M |
-32.99% |
49.04% |
| EPS |
0.06 |
-34.82% |
39.30% |
Key Financial Ratios
operatingProfitMargin
7.66%
operatingCashFlowPerShare
$0.2
freeCashFlowPerShare
$0.16
Management Commentary
Note: The earnings transcript was not provided in the data set. Consequently, there are no management quotes embedded in this analysis. The discussion below synthesizes the QQ3 2024 financial results and the implied strategic direction based on the press release and disclosed figures.
- Growth and monetization: Revenue growth of 12.5% YoY indicates continued demand for Cantaloupe’s digital payments and software services in unattended retail, with margin expansion suggesting favorable product mix and operating leverage.
- Profitability and cash generation: Gross margin near 40% and EBITDA of $8.11m imply improving unit economics. Strong operating cash flow of $14.71m and free cash flow of $11.45m underscore the company’s ability to convert earnings into cash, supporting optionality in capital allocation.
- Balance sheet and liquidity: Net cash position (~$2.33m) and a sizable cash balance ($50.20m) provide a comfortable liquidity runway and optionality for strategy execution, though the company carries a moderate debt load and goodwill/intangible assets that could warrant impairment reviews if growth slows.
Forward Guidance
No formal numeric guidance was included in the provided data. Given the QQ3 2024 results, the prudent interpretation is that management will likely emphasize sustaining revenue growth in core unattended retail channels, leveraging Bakkt-Castles partnerships to expand cashless device adoption, and continuing disciplined cost management to support margin stability. Key factors to monitor for future updates include: (1) trajectory of revenue growth and gross margins as device deployments scale, (2) working capital dynamics given the 142-day CCC, and (3) capital allocation decisions (e.g., use of excess cash, potential acquisitions, or strategic partnerships) in a slowing macro environment. Investors should watch for management commentary on deployment pace of ePort devices, software subscriptions, and potential cross-sell opportunities into micromarkets and EV charging verticals.