CPI Card Group sees FY23 revenue flat to low single-digit growth

The Company updated its full-year net sales outlook for 2023 to a range of flat to low single-digit growth and affirmed its outlook for mid-to-high single-digit Adjusted EBITDA growth, as well as its projections for Free Cash Flow to more than double and the year-end Net Leverage Ratio to improve to between 2.5x and 3.0x. The previous outlook for net sales was mid-single digit growth. The sales outlook change reflects softness in customer demand in the Debit and Credit segment. The Company believes Debit and Credit segment sales are being negatively impacted by cautious spending and utilization of existing inventory by certain customers in the banking industry. The Company currently expects third quarter sales and Adjusted EBITDA to decline and expects to return to growth in the fourth quarter, as the market starts to improve and the impact of new sales initiatives takes hold. Scheirman added, “We remain confident in the long-term secular trends for the U.S. market, supported by the reoccurring nature of the business, ongoing strong card issuance, and continued adoption of contactless and eco-focused cards. Our portfolio of innovative and high-quality end-to-end payment solutions and our strong customer service position us well to continue to gain share and grow the busines