CPI Card Group Inc. ( (PMTS) ) has released its Q1 earnings. Here is a breakdown of the information CPI Card Group Inc. presented to its investors.
CPI Card Group Inc. is a payments technology company that provides a wide range of payment cards and related digital solutions, primarily serving the U.S. market with a focus on innovation and eco-friendly products.
In its first quarter of 2025 earnings report, CPI Card Group Inc. announced a 10% increase in net sales, reaching $122.8 million, while net income decreased by 12% to $4.8 million. The company also reported a decrease in Adjusted EBITDA by 8% to $21.2 million and affirmed its financial outlook for 2025. Additionally, CPI announced the acquisition of Arroweye Solutions, a provider of on-demand payment card solutions.
The company’s sales growth was driven by strong performance in contactless debit and credit cards, as well as prepaid card solutions. However, the decline in net income was attributed to an unfavorable sales mix and increased interest expenses. The acquisition of Arroweye Solutions is expected to enhance CPI’s capabilities and expand its market presence.
CPI continues to lead in eco-focused payment card solutions, having sold over 350 million such cards since their launch. The company also maintains a strong presence in the instant issuance solutions market with over 16,000 installations across financial institutions. CPI’s strategic focus includes expanding into healthcare payment solutions and enhancing digital offerings.
Looking ahead, CPI Card Group Inc. remains optimistic about its growth prospects, anticipating mid-to-high single-digit organic growth in net sales and Adjusted EBITDA for 2025. The company plans to continue investing in market expansion and strategic acquisitions while managing costs and adapting to economic conditions.