Billionaire David Abrams’ 10 Stock Picks with Huge Upside Potential

3. Cantaloupe Inc. (NASDAQ:CTLP)

Abrams Capital Management’s Stake: $68.28 million

Number of Hedge Fund Holders: 19

Average Upside Potential as of May 8: 45.99%

Cantaloupe Inc. (NASDAQ:CTLP) is a digital payments and software services company that provides technology solutions for the self-service commerce market. It offers integrated solutions for payment processing, logistics, and back-office management. It also offers professional network infrastructure, card processing, and customer/consumer services.

Cantaloupe’s subscription revenue reached $20.7 million in Q2 2025, which was up 14% year-over-year. This was fueled by the strength in micro markets, which is highlighted as the company’s fastest-growing segment. This expansion is also driven by the adoption of the company’s SEED software among both existing and new customers. This software is Cantaloupe’s platform that provides management tools for self-service commerce operations.

As the calendar year 2024 concluded, Cantaloupe reported having ~32,000 active customers and 1.3 million active devices within its ecosystem. This represented a year-over-year increase of 10% and 4%, respectively. The average revenue per unit for Q2 was $202, which was also up 12%. New customer wins in the vending sector, like EBS, further support the subscription segment’s growth.

Laughing Water Capital stated the following regarding Cantaloupe Inc. (NASDAQ:CTLP) in its Q4 2024 investor letter:

“Cantaloupe, Inc. (NASDAQ:CTLP) – Cantaloupe can most simply be thought of as our vending machine software and payments company, although the industry is evolving to more fully encompass “unattended retail,” including micro markets and smart stores. After many disappointing years, under new leadership the Company has reached an inflection point and is growing at a high teens level into a cash machine focused on stable end markets, while also growing internationally and into adjacent markets. With time I expect the market will appreciate that cash flow generated from software and payments with very little churn is valuable, and re-rate shares higher. It should be noted that while CTLP is in our top 5, it is a medium sized position.”