CPI Card posts higher Q3 sales, profit

Overview

• CPI Card Q3 2025 sales up 11% to $138 mln, driven by Arroweye and instant issuance

• Net income increased 78% to $2.3 mln, but missed analyst expectations

• Adjusted EBITDA decreased 7% to $23.4 mln due to lower gross margins and tariffs

Outlook

• CPI forecasts 2025 net sales growth in low double-digit to low teens range

• Company expects 2025 Adjusted EBITDA to be flat to low single-digit growth

• Outlook change due to sales mix impacts in Debit and Credit, order timing in Prepaid

Result Drivers

• ARROWEYE ACQUISITION - Sales growth driven by the addition of Arroweye and increased instant issuance solutions

• GROSS MARGIN PRESSURE - Adjusted EBITDA decreased due to lower gross margins and tariff expenses

• STRATEGIC INITIATIVES - Co continues to advance growth initiatives in prepaid, instant issuance, and digital payment solutions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy"

• Wall Street's median 12-month price target for CPI Card Group Inc is $33.00, about 46.9% above its November 3 closing price of $17.53

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBwmLDZBa

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