CPI Card Group Inc. Earnings Recaps
Q1 2026
May 6, 2026
Shares dropped 11.5% as investors reacted negatively to margin compression driven by higher integration costs and declining profitability despite solid revenue growth, alongside weakness in the Prepaid segment and a cautious margin outlook.
Key takeaways
- Revenue rose 20% to $147 million, led by a 35% increase in Secure Card Solutions fueled by Arroweye’s $16 million contribution.
- Prepaid Solutions revenue fell 17%, impacted by timing of key customer orders, partially offset by stronger closed-loop card sales.
- Integrated Paytech grew only 1% due to tough prior year comps, though the company maintains full-year growth expectations above 15%.
- Adjusted EBITDA increased 9%, but net income plunged 57% to $2.1 million due to $3 million in pretax integration costs, which are expected to remain elevated in Q2.
- Gross margin dropped from 33.2% to 30.0%, hurt by lower Prepaid margins, rising production costs including tariffs, and increased depreciation despite Secure Card Solutions’ margin benefits.
Q3 2025
Nov 4, 2025
CPI Card Group reported a solid third quarter with an 11% increase in sales despite a 7% decline in adjusted EBITDA, primarily driven by a shift in product mix and tariff impacts. The company is focused on strategic initiatives to counter margin pressures while anticipating strong growth in the fourth quarter.
Key takeaways
- Strong performance in Software-as-a-Service instant issuance and ongoing success with Arroweye contributed to Q3 sales growth.
- Adjusted EBITDA faced a 7% decline due to unfavorable sales mix and tariff expenses, prompting a revised full-year guidance for adjusted EBITDA growth to be flat to low single-digit.
- The new Indiana facility is operational, expected to enhance efficiencies and production capabilities moving into 2026.
- CPI is experiencing growth in its digital solutions, particularly with new verticals in the instant issuance space, contributing to long-term growth expectations.
- The company has entered a strategic partnership with Karta, enhancing its offerings in closed-loop prepaid solutions with advanced fraud prevention technologies.