Cantaloupe, Inc (CTLP) Stock Forecast & Price Target

Cantaloupe Inc has demonstrated significant financial improvement, evidenced by an 11.2% year-over-year increase in average revenue per unit, which reached $202.20, alongside a notable 10.5% rise in dollars per transaction, now at $2.81. The company’s strong operating performance is highlighted by a 25.7% growth in adjusted EBITDA, which amounted to $10.7 million, alongside a 149 basis points increase in adjusted EBITDA margin to 14.5%. Additionally, Cantaloupe achieved impressive growth in subscription fees, rising 14.1% to $20.7 million, while adjusted gross margins improved significantly, reinforcing the company’s robust financial position within the small ticket electronic payments sector.

Cantaloupe Inc. has faced significant operational challenges, including labor shortages in North America and network upgrade headwinds in Europe, which have contributed to its stagnant performance and revenue decline in recent periods. The company's cash reserves diminished to $33 million, indicating potential liquidity issues exacerbated by delayed payments for transaction processing. Additionally, the identification of material weaknesses in internal controls raises concerns about the company’s operational efficiency and financial reporting, further impacting investor confidence.