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CPI Card Group
(NASDAQ:PMTS)
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Rating:57Neutral
Price Target:
$25.00
▼(-12.00% Downside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by a mixed financial profile: strong cash flow improvement and scaling revenue are tempered by thin margins and elevated balance-sheet risk from negative equity and leverage. Technicals add some caution due to short-term weakness/oversold readings despite longer-term trend support. Valuation is moderate at ~20x earnings, and the earnings call provides a positive support from raised revenue/FCF guidance, though EBITDA and prepaid volatility remain key constraints.
Positive Factors
Revenue Growth
Broad revenue expansion, including organic growth and strength in Secure Card Solutions, indicates improving demand across CPI’s issuer and program-manager customer base. The raised full-year outlook supports the view that growth can persist over the next several quarters rather than being limited to one reporting period.
Negative Factors
Negative Equity and Leverage
Negative equity and substantial debt leave CPI less resilient if operating conditions weaken, even after recent debt reduction. This capital structure can constrain investment choices, increase sensitivity to cash-flow volatility, and limit the company’s ability to absorb prolonged pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Broad revenue expansion, including organic growth and strength in Secure Card Solutions, indicates improving demand across CPI’s issuer and program-manager customer base. The raised full-year outlook supports the view that growth can persist over the next several quarters rather than being limited to one reporting period.
Read all positive factors
CPI Card Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across the company’s business lines (for example, card manufacturing, personalization, instant issuance, and identity services), revealing which operations drive growth and which are vulnerable to industry cycles or large-customer concentration. For CPI Card Group, segment-level revenue highlights how shifts in card demand, government contracts, or new service offerings are affecting overall top-line strength and diversification.
Breaks down sales across the company’s business lines (for example, card manufacturing, personalization, instant issuance, and identity services), revealing which operations drive growth and which are vulnerable to industry cycles or large-customer concentration. For CPI Card Group, segment-level revenue highlights how shifts in card demand, government contracts, or new service offerings are affecting overall top-line strength and diversification.
Data provided by:
The Fly
The FlyCPI Card Group (PMTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$296.06M
Dividend Yield7.5%
Average Volume (3M)208.84K
Price to Earnings (P/E)21.3
Beta (1Y)1.77
Revenue Growth16.91%
EPS Growth1.03%
CountryUS
Employees1,700
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.20
Shares Outstanding11,591,982
10 Day Avg. Volume121,486
30 Day Avg. Volume208,841
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)-9.59
Price to Sales (P/S)0.31
P/FCF Ratio4.02
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit2.77
Enterprise Value/Ebitda6.33
Forecast
1Y Price Target
$32.50Price Target Upside14.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.96
Revenue Forecast (FY)$604.38M
CPI Card Group Business Overview & Revenue Model
Company Description
CPI Card Group Inc., along with its affiliated entities, specializes in the full spectrum of financial payment card services. This includes everything from the initial design and manufacturing to the personalized data integration, secure packaging...
How the Company Makes Money
CPI Card Group primarily generates revenue by selling payment-card products and associated services to customers such as card issuers, fintechs, and program managers. Key revenue streams typically include: (1) card manufacturing revenue from produ...
CPI Card Group Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial performance: double-digit revenue growth, margin expansion, record first-half free cash flow and meaningful deleveraging, supported by strategic acquisitions (Arroweye and TRISM) and continued traction in Secure Card Solutions and Integrated Paytech. Key challenges include choppiness and softness in the higher-margin Prepaid segment, integration and investment-related SG&A pressure, and some working-capital timing effects that may temper near-term free cash flow repeatability. Management raised revenue and free cash flow guidance while holding adjusted EBITDA guidance steady, indicating confidence in growth but ongoing investment and mix pressures.Positive Updates
Strong Revenue Growth and Record First-Half Revenue
Consolidated revenue grew 15% in Q2 to $149 million (from $130 million prior year) and 17% in the first half, producing a record first-half revenue. Organic revenue (ex-Arroweye) grew ~12% in Q2 and ~14% in the first half.
Negative Updates
Prepaid Solutions Softness and Choppy Demand
Prepaid segment experienced uneven customer ordering and a slower-than-expected start to the year; management expects prepaid to remain choppy into late 2026. Q2 prepaid revenue rose 18% to $23 million but was influenced by a 2025 accounting change and stronger prior-year packaging sales.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth and Record First-Half Revenue
Consolidated revenue grew 15% in Q2 to $149 million (from $130 million prior year) and 17% in the first half, producing a record first-half revenue. Organic revenue (ex-Arroweye) grew ~12% in Q2 and ~14% in the first half.
Read all positive updates
Company Guidance
CPI raised its 2026 outlook, now expecting full-year revenue growth of high single digits to low double digits and increasing Integrated Paytech (IPT) revenue growth to ~20% (IPT gross margin >50%), while reaffirming adjusted EBITDA guidance of low- to mid-single-digit growth; free cash flow guidance was raised to $45–$50 million (versus $41 million in 2025) and year-end net leverage is targeted at 2.5x–3.0x. Management said Q3 revenue and adjusted EBITDA should be slightly better than Q2, noted that stronger Secure Card Solutions performance and >$3 million of tariff refunds largely offset continued investment in IPT and prepaid choppiness, and expects full-year CapEx to be slightly below 2025 levels.CPI Card Group Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
28
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 587.31M | 543.53M | 480.60M | 444.55M | 475.75M | 375.12M |
| Gross Profit | 181.89M | 170.10M | 171.22M | 155.49M | 175.77M | 141.43M |
| EBITDA | 79.61M | 77.30M | 79.21M | 77.31M | 93.65M | 74.56M |
| Net Income | 13.75M | 14.95M | 19.52M | 23.98M | 36.54M | 15.94M |
Balance Sheet | ||||||
| Total Assets | 390.41M | 403.19M | 349.66M | 293.68M | 296.67M | 268.14M |
| Cash, Cash Equivalents and Short-Term Investments | 21.37M | 21.70M | 33.54M | 12.41M | 11.04M | 20.68M |
| Total Debt | 275.18M | 337.47M | 289.47M | 272.31M | 291.22M | 307.74M |
| Total Liabilities | 401.88M | 420.52M | 385.28M | 345.62M | 378.74M | 389.16M |
| Stockholders Equity | -11.47M | -17.33M | -35.62M | -51.94M | -82.08M | -121.02M |
Cash Flow | ||||||
| Free Cash Flow | 76.55M | 41.33M | 34.06M | 27.64M | 13.47M | 10.15M |
| Operating Cash Flow | 91.72M | 59.50M | 43.31M | 34.04M | 31.34M | 20.23M |
| Investing Cash Flow | -25.73M | -65.13M | -9.22M | -6.22M | -17.77M | -9.92M |
| Financing Cash Flow | -61.74M | -6.22M | -12.96M | -26.44M | -23.16M | -47.23M |
CPI Card Group Technical Analysis
Positive
28.41
Price Trends
26.26
Negative
22.49
Positive
18.61
Positive
Market Momentum
-0.22
Negative
52.69
Neutral
90.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PMTS, the sentiment is Positive. The current price of 28.41 is above the 20-day moving average (MA) of 24.63, above the 50-day MA of 26.26, and above the 200-day MA of 18.61, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 52.69 is Neutral, neither overbought nor oversold. The STOCH value of 90.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PMTS.
CPI Card Group Risk Analysis
CPI Card Group disclosed 40 risk factors in its most recent earnings report. CPI Card Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CPI Card Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $118.41M | 0.76 | 8.64% | 54.34% | -4.17% | -34.34% | |
58 Neutral | $718.58M | -26.45 | -2.82% | ― | 17.73% | -9.69% | |
57 Neutral | $296.06M | 21.28 | -80.34% | 7.50% | 16.91% | 1.03% | |
53 Neutral | $1.91B | 4.90 | 42.65% | 15.36% | -1.65% | -53.21% | |
52 Neutral | $87.34M | -0.18 | -16.95% | 20.00% | -27.36% | -220.29% |
* Financial Sector Average
PMTS
CPI Card Group
25.54
10.29
67.48%
GDOT
Green Dot
12.61
0.40
3.28%
WU
Western Union
6.12
-1.12
-15.50%
YRD
Yiren Digital
1.00
-5.05
-83.47%
LX
Lexinfintech Holdings
0.70
-4.02
-85.11%
CPI Card Group Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
CPI Card Group Completes Secondary Public Share Offering
Neutral
Sep 14, 2026
On September 10, 2026, CPI Card Group Inc. and selling stockholders Tricor Pacific Capital Partners funds entered into an underwriting agreement with B. Riley Securities for a public offering of 2,337,323 shares of CPI common stock, with an additi...
Business Operations and StrategyExecutive/Board Changes
CPI Card Group Appoints New Chief Accounting Officer
Positive
Aug 26, 2026
On August 26, 2026, CPI Card Group announced the appointment of Brennan Hughes as Chief Accounting Officer, effective August 24, 2026, succeeding Donna Abbey Carmignani, who ceased serving in the role on August 20, 2026. Hughes brings more than 25...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
CPI Card Group Lifts 2026 Outlook on Strong Results
Positive
Aug 6, 2026
CPI Card Group reported that for the quarter ended June 30, 2026, revenue rose 15% to $149.2 million, led by strong growth in its Secure Card Solutions segment and aided by tariff refunds, driving a 294% jump in net income to $2 million and a 7% g...
Business Operations and Strategy
CPI Card Group Announces Partial Senior Notes Redemption
Positive
Jul 6, 2026
On July 2, 2026, CPI Card Group announced it will redeem $26.5 million of its outstanding $265.0 million 10.000% senior secured notes due 2029, with the redemption scheduled for July 15, 2026. The notes will be redeemed at 103.000% of par plus acc...
Business Operations and StrategyExecutive/Board Changes
CPI Card Group Confirms Terra Grantham as New CFO
Positive
Jul 1, 2026
On June 29, 2026, CPI Card Group appointed Terra Grantham as Chief Financial Officer, confirming her in the role after she had served as interim CFO since February 2026. The board’s compensation committee set her annual base salary at $450,0...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.