Cantaloupe's Q2 2025: Contradictions in International Revenue Growth and Margin Expectations

These are the key contradictions discussed in Cantaloupe's latest 2025Q2 earnings call, specifically including: International Revenue Contribution and Growth Expectations, International Growth Strategy and Subscription Revenue Growth Expectations, and International Expansion Strategy and Margin Improvement Expectations:



Revenue and Transaction Growth:
- Cantaloupe reported a 13% increase in total revenue to $73.7 million for the second quarter, driven by a 17% year-over-year increase in transaction revenue and a 14% increase in subscription revenue.
- The growth is attributed to strong performance in micro markets and penetration of Seed software, along with a trend towards cashless payments and higher average ticket sizes.

Operational Leverage and EBITDA:
- The company's adjusted EBITDA saw a 26% increase to $10.7 million, reflecting continued success with achieving operational leverage.
- This improvement was primarily due to better cost management and an increase in transaction margins as a result of higher average ticket sizes and improved transaction processing capabilities.

Micro Markets and Smart Stores:
- Cantaloupe's micro markets and penetration of Seed software showed strong growth, with an expansion into new verticals and locations.
- This growth was fueled by customer adoption and the introduction of Smart Stores, which address labor shortages and theft issues, and expand Cantaloupe's market reach to include new location types.

International Expansion:
- The international segment, with a focus on Europe and Latin America, demonstrated progress, despite some delays in Latin America.
- Cantaloupe's international presence has expanded, with notable wins in micro markets, contributing to overall growth, although it still constitutes less than 5% of total revenue.