Cantaloupe, Inc (CTLP) Stock Forecast & Price Target

Cantaloupe Inc. demonstrated robust financial performance in Q2/25, highlighted by an 11.2% year-over-year increase in average revenue per unit, reaching $202.20, and a 10.5% growth in dollars per transaction, which rose to $2.81. The company achieved a significant adjusted EBITDA increase of 25.7%, totaling $10.7 million, and improved its adjusted EBITDA margin to 14.5%, reflecting strong operating leverage. Additionally, subscription revenue grew by 14.1% year-over-year to $20.7 million, accompanied by an increase in consolidated adjusted gross margin, which rose to 41.7%, underscoring the company's effective strategy and product adoption in the unattended Point of Sale market.

Cantaloupe Inc. has experienced stagnation in its stock performance, particularly highlighted in its 4Q24 report, which revealed a decrease in cash and cash equivalents to $33 million attributed to delayed customer payments for transaction processing. The company faced significant challenges in FY24, including implementation slowdowns in North America due to labor shortages, issues associated with upgrades to 4G networks in Europe, and the identification of material weaknesses in its internal controls. Despite management's optimistic guidance for FY25, the company's quarterly results did not meet market expectations, contributing to a negative outlook for its financial performance.