Cantaloupe, Inc. Reports 6.8% Revenue Growth but Net Loss in Q2 of Fiscal 2026

Cantaloupe, Inc. reported its financial results for the second quarter of fiscal year 2026, revealing total revenues of $78.7 million for the three months ended December 31, 2025, a 6.8% increase from $73.7 million in the same period last year. The growth was primarily driven by a rise in subscription and transaction fees, which reached $69.7 million, up from $65.1 million, alongside equipment sales that increased to $9.0 million from $8.6 million. However, the company experienced a net loss of $70,000 for the quarter, a significant decline from a net income of $4.97 million in the prior year, reflecting challenges in managing costs and expenses.

Comparatively, the first half of fiscal 2026 saw total revenues of $159.6 million, up from $144.6 million in the same period of the previous year. The increase was attributed to a $11.1 million rise in subscription and transaction fees and a $3.9 million increase in equipment sales. Despite this revenue growth, the company reported a net loss of $989,000 for the six months ended December 31, 2025, contrasting with a net income of $8.5 million in the prior year, largely due to increased operating expenses, particularly related to merger and acquisition activities.

Cantaloupe has been actively pursuing strategic growth through acquisitions, including the purchase of SB Software, which was completed in September 2024 for approximately $11.4 million. This acquisition is expected to enhance the company's operational capabilities and market reach in Europe. Additionally, the company is in the process of merging with 365 Retail Markets, with expectations to complete the transaction in the first half of calendar year 2026, pending regulatory approvals.

Operationally, Cantaloupe reported an increase in its customer base, with 36,388 active customers as of December 31, 2025, up from 32,909 a year earlier. The number of active devices also grew to 1.29 million, reflecting a 1.7% increase year-over-year. The total dollar volume of transactions processed reached $953.2 million, a 13.1% increase from the previous year, indicating strong engagement and usage of its services.

Looking ahead, Cantaloupe aims to enhance its cash flow from operations by focusing on improving collection efforts, optimizing inventory usage, and driving operational efficiencies. The company believes its current financial resources, including $53 million in cash and cash equivalents, will be sufficient to support its operational needs and strategic initiatives in the coming year. However, the ongoing merger with 365 Retail Markets and the associated costs may impact short-term financial performance as the company navigates this transition.