Cantaloupe, Inc (CTLP) Stock Forecast & Price Target

Cantaloupe Inc. has demonstrated a positive financial trajectory, highlighted by a significant 11.2% year-over-year increase in average revenue per unit, reaching $202.20, and a notable growth in transaction dollars per transaction, rising by 10.5% to $2.81. The company reported a robust 25.7% increase in adjusted EBITDA to $10.7 million, along with an improved adjusted EBITDA margin of 14.5%, reflecting strong operating leverage. Additionally, subscription revenues grew by 14.1% to $20.7 million, underpinned by an enhanced adjusted gross margin of 89.7% for subscription fees, suggesting a solid foundation for ongoing revenue expansion.

Cantaloupe Inc. has experienced stagnation in its stock performance, illustrated by a notable decline in cash and cash equivalents to $33 million as of Q1/25, primarily due to timing issues related to customer payments for transaction processing. The company faced significant operational challenges during FY24, including labor shortages impacting implementations in North America and difficulties arising from necessary upgrades to 4G networks in Europe, alongside the revelation of material weaknesses in its internal control systems. Despite some positive guidance from management for FY25, the overall disappointing quarterly results that fell short of market expectations contribute to a negative outlook for the stock.