Cantaloupe, Inc.

Good day and thank you for standing by. Welcome to the Cantaloupe Third Quarter Fiscal Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Meghna Mehra, Investor Relations. Please go ahead. Thank you. Good afternoon, everyone.

Welcome to the Cantaloupe Third Quarter Earnings Conference Call. With me on the call today is Ravi Venkatesan, Chief Executive Officer, and Scott Stewart, Chief Financial Officer. Before we begin today's call, we would like to remind you that all statements included in this call, other than statements of historical facts, are forward-looking in nature. Actual results could differ materially from those contemplated by the forward-looking statements because of certain factors, including but not limited to business, financial markets, and economic conditions. A detailed discussion of the risks and uncertainties that could cause the actual results to defer materially from such forward-looking statements is included in our findings with the SEC and in the press release issued earlier today. Listeners are cautioned to not place undue reliance on any such forward-looking statements, which reflect management's views only as of the date they are made. Cantaloupe undertakes no obligation to update any forward-looking statements, whether because of new information, future events, or otherwise. This call will also include a discussion of certain non-GAAP financial measures that we believe are useful for, among other things, evaluating Cantaloupe's operating results. These non-GAAP financial measures are supplemental to and not substitute for GAAP financial measures such as net income or loss. Details of these non-GAAP financial measures, a presentation of the most directly comparable GAAP financial measures, and a reconciliation between those non-GAAP financial measures, as well as the most comparable GAAP financial measures, can be found in our press release issued this afternoon, which has been posted on the Investor Relations section of our website at www.counselor.com. And with that, I would like to turn the call over to Ravi.

Thank you, Meghna. Good afternoon, everyone, and thank you for joining us today for our third quarter fiscal year 2025 call. I'll first start with a high-level view of our Q3 performance and outlook for fiscal year 2025, before turning it over to Scott to dive deeper into the numbers and our outlook. Q3 financial highlights. During the third quarter, our total revenue increased 11% year over year, to $75.4 million, driven by a 10 percent year-over-year transaction revenue growth and 10 percent year-over-year subscription revenue growth. Our equipment revenue was $10.2 million, an increase of 18 percent compared to Q3 fiscal year 24. Revenue came in lower than anticipated due to one-time weather events impacting transaction revenue and delays in equipment purchases due to economic uncertainty. While we had lower than anticipated equipment sales this quarter, we've seen a strong rebound in April, providing us confidence in our newly revised guidance for the year. Scott will cover this in more detail. Total adjusted gross margin continues to expand for the quarter at 41.6% compared to 39.6% in the same quarter last year. Adjusted EBITDA for Q3 was $13.9 million, a 37% increase compared to prior year, reflecting continued success with expanding margins and operating leverage. Q3 was one of our best quarters for cash generation, with total cash from operating activities achieving $22.4 million. Now on to Q3 operational highlights. We continue to see strong growth in micro markets and penetration of seed software with both existing and new customers. SMB customers continue to go all in with Cantaloupe, including cashless payments and seed software to manage vending micromarkets and smart stores. New wins include NDDN distributions, variety vendors, best vending, and ace vending. Many of these customers have selected Seed software in addition to cashless payment acceptance. A notable win in the enterprise space is DC Vending, who is completing a full replacement of over 1,200 competitive devices and moving from a legacy software platform to Cantaloupe Seed for their vending, micromarket, and office coffee business, and also deploying add-on modules such as analytics and remote price change. We see continued momentum in our micro-market business, including Peppy Foods moving from a competitor's platform to Cantaloupe and booking a large replacement order for 120 micro-markets, and also see wins in the small business segment, including a rollout of micro-markets with amazing raise. Our success in expansion with channel partners and resellers continues with additional orders through the quarter from AVS, and TPI for cashless payment devices to sell downstream into their customer base. The amusement vertical remains a strong focus for cashless expansion for us. We had the opportunity to showcase our Engage Pulse device at the AMOA show in Las Vegas in March. We've sold several Engage Pulse units across multiple customers, including Bar Partners, Hypermusement, and also developed a partnership with CandyMachines.com, where we will become one of their primary cashless payment providers for their customers. During Q3, we shipped over $2 million of smart stores, which drive incremental growth in new verticals and accelerate our foothold in the adjacent areas of residential, airport, and transportation sectors. We continue to gain traction in sports and entertainment venues, at the mid-tier level, including two independent baseball league venues who are adopting Cantaloupe's full point-of-sale platform, along with leveraging our SUIT management for creating a cohesive fan game day experience. Moving on to the product side, at the start of Q3, our Engage Pulse cashless device designed for the arcade and amusement industry became commercially available. It has been well received based on unique differentiated features such as ladder pricing interface for encouraging higher play spend, major price redemption reporting, and single tap multi-vend functionality. We've already received positive response from customers, including Tim Zahn, Vice President of Operations at Lieberman Companies, who stated, we installed crane machines with the EngagePulse units at one of our trampoline park locations, and saw in the first two months sales up 85% year-over-year. In mall locations, we are seeing up to 53% year-over-year sales increases. In late January, we held our largest cantaloupe customer conference to date, Cantaloupe University in Miami, Florida, where we hosted over 250 customers of all sizes, strategic partners, and technology providers. The agenda included a preview of our latest product innovations along with interactive training and education sessions to help customers leverage Cantaloupe's entire platform to run a profitable and growing business. We debuted the Smart Aisle as a preview to what customers can expect to see at the upcoming NAMA show in May. We also showcased new seed features that continue to enhance experience with add-on services such as seed analytics and remote price change. In February, in collaboration with Fundbox, we launched Cantaloupe Capital, a platform built to provide Cantaloupe customers flexible access to cash flow for equipment investments and business growth. Since launch, we've already signed 117 registered users through this platform, approving over 300,000 in capital funds. We continue to look at this as an enabler to help our customers of all sizes get quick access to cash and support their business growth with catalog. Our strategic priorities remain intact. We will continue to focus on scaling our business in Europe and Latin America and continue to refine our go-to-market strategy across both direct and indirect channels to expand our customer base organically and through strategic acquisitions. As always, I want to thank the entire Cantaloupe team for their continued focus on execution. With that, Scott will now review our Q3 results in more detail, as well as our outlook for fiscal year 25. Scott?