CPI Q2 sales rise 9% but miss estimates, net income falls
Overview
CPI Q2 2025 net sales rise 9%, but miss analysts' expectations
Net income declines 91% due to acquisition costs and restructuring charges
Adjusted EBITDA grows 3%, driven by sales growth including Arroweye
Outlook
Company projects 2025 net sales growth in low double-digit to mid-teens
CPI maintains adjusted EBITDA growth outlook at mid-to-high single digits
Outlook excludes potential impact from proposed chip tariffs announced August 6, 2025
Result Drivers
ARROWEYE PERFORMANCE - Arroweye contributed approximately $10 mln in net sales in less than 2 months
DEBIT AND CREDIT GROWTH - Increased sales of contactless debit and credit cards, including metal cards, drove segment growth
INSTANT ISSUANCE SOLUTIONS - Strong performance from SaaS-based instant issuance solutions contributed to sales growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $129.75 mln | $133 mln (4 Analysts) |
Q2 Net Income | Miss | $518,000 | $6.03 mln (4 Analysts) |
Q2 Basic EPS |
| $0.05 |
|
Q2 Gross Profit |
| $40.12 mln |
|
Q2 Income From Operations |
| $9.42 mln |
|
Q2 Pretax Profit |
| $1.34 mln |
|
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 $36.50, about 49% above its August 7 closing price of $18.62
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago
Press Release: ID:nBw5zRJQka
