CANTALOUPE, INC. Annual Report - Key Investor Takeaways

1. What They Do & Yearly Snapshot

Cantaloupe provides tech for vending machines, self-checkout kiosks, and EV chargers, handling payments, inventory tracking, and machine maintenance. This year saw 15% revenue growth ($260M) but continued losses (-$8M) as they invested in acquisitions like Three Square Market (self-checkout tech) and EV charging expansion.

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2. Financial Performance

• Growth: Revenue up 15% (from $226M to $260M)
• Losses Narrowing: Net loss improved to $8M (vs. $15M last year)
• Hidden Strength: Subscription revenue now 60% of total sales (up from 50%) – stable recurring income

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3. Wins vs. Challenges

✅ Wins:

• EV charging now 25% of sales with partnerships poised to double segment revenue by 2025
• Secured $40M+ in multi-year payment processing contracts through 2028
• Acquired key tech to boost self-checkout capabilities

⚠️ Challenges:

• Debt increased 25% to $100M (partly from acquisitions)
• Supply chain delays hurt equipment sales

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4. Risks to Watch

• $28M in pending customer obligations – delays could strain cash
• Competitors like Nayax offering cheaper alternatives
• Rising interest rates increasing debt costs

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5. Why It Matters for Investors

• Long-Game Strategy: Sacrificing short-term profits to build subscription/EV revenue (60% of sales now recurring)
• Debt Concerns: $100M debt load requires careful monitoring as rates rise
• Market Trends Aligned: 85% of new contracts include AI inventory tools + 30% YOY cashless payment growth

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Bottom Line: Cantaloupe is betting big on subscriptions and EV infrastructure, with visible growth ($40M+ contract backlog) but real debt and execution risks. Ideal for investors comfortable with moderate-risk, high-potential plays in payment tech and EV ecosystems.

Think of it like a startup phase for established tech: they’re building the pipes for tomorrow’s automated retail, but need time (and cash) to prove the model.