CPI Card Group Inc. ( (PMTS) ) has released its Q3 earnings. Here is a breakdown of the information CPI Card Group Inc. presented to its investors.
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CPI Card Group Inc. is a payments technology company that offers a wide range of payment cards and digital solutions, primarily serving the U.S. market with a focus on innovation and customer relationships.
In its third-quarter 2025 earnings report, CPI Card Group Inc. announced an 11% increase in net sales, reaching $138 million, driven by its Arroweye and instant issuance solutions. However, the company experienced a 7% decrease in adjusted EBITDA, which stood at $23.4 million, primarily due to lower gross margins and increased tariff expenses.
Key financial highlights include a 78% increase in net income to $2.3 million, attributed to reduced debt retirement costs from the prior year. The Debit and Credit segment saw a 16% rise in net sales, while the Prepaid Debit segment experienced a 7% decline. The company also made strategic moves, such as acquiring Arroweye Solutions and entering a strategic relationship with Karta, to bolster its market position.
CPI Card Group updated its 2025 outlook, projecting low double-digit to low teens growth in net sales and flat to low single-digit growth in adjusted EBITDA. This revision reflects anticipated sales mix impacts and order timing in its segments.
Looking ahead, CPI Card Group remains optimistic about the long-term growth trends in the U.S. card market, supported by consumer card growth, and plans to focus on improving margins, achieving synergies from acquisitions, and reducing net leverage.