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CPI Card Group
(NASDAQ:PMTS)
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Rating:65Neutral
Price Target:
$30.00
▲(53.69% Upside)
Action:Reiterated
Date:08/06/26
PMTS scores as a balanced opportunity: strong technical uptrend and a positive earnings update with raised revenue/free-cash-flow guidance support the stock, but the overall score is held back by elevated financial risk from negative equity and thin profitability. Valuation appears reasonable rather than compelling given these balance-sheet and margin constraints.
Positive Factors
Strong Revenue Growth
Double-digit revenue growth, including organic gains, indicates sustained demand for CPI’s secure-card and payment technology offerings. Continued issuer adoption and program activity can support durable sales expansion over the next several months.
Negative Factors
Negative Equity and Meaningful Leverage
Negative equity and substantial debt leave CPI less resilient during demand or margin pressure. Although deleveraging is progressing, the capital structure limits financial flexibility and increases dependence on consistent cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Double-digit revenue growth, including organic gains, indicates sustained demand for CPI’s secure-card and payment technology offerings. Continued issuer adoption and program activity can support durable sales expansion over the next several months.
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
$317.21M
Dividend YieldN/A
Average Volume (3M)40.30K
Price to Earnings (P/E)23.4
Beta (1Y)1.73
Revenue Growth16.91%
EPS Growth1.03%
CountryUS
Employees1,700
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.20
Shares Outstanding11,530,669
10 Day Avg. Volume35,002
30 Day Avg. Volume40,298
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$31.75Price Target Upside62.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.96
Revenue Forecast (FY)$602.58M
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 | 77.68M | 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
19.52
Price Trends
21.79
Positive
19.36
Positive
16.65
Positive
Market Momentum
2.16
Positive
67.60
Neutral
27.89
Neutral
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 19.52 is below the 20-day moving average (MA) of 25.49, below the 50-day MA of 21.79, and above the 200-day MA of 16.65, indicating a bullish trend. The MACD of 2.16 indicates Positive momentum. The RSI at 67.60 is Neutral, neither overbought nor oversold. The STOCH value of 27.89 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $225.47M | 1.05 | 12.18% | 25.81% | -3.40% | 8.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $317.21M | 23.37 | -80.34% | ― | 16.91% | 1.03% | |
58 Neutral | $760.18M | -28.19 | -2.82% | ― | 17.73% | -9.69% | |
56 Neutral | $2.27B | 5.84 | 42.65% | 11.44% | -1.65% | -53.21% | |
49 Neutral | $99.57M | -0.33 | -7.18% | 37.29% | -13.83% | -154.13% |
* Financial Sector Average
PMTS
CPI Card Group
28.04
12.47
80.09%
GDOT
Green Dot
13.44
-0.03
-0.22%
WU
Western Union
7.30
-0.47
-6.09%
YRD
Yiren Digital
1.14
-4.81
-80.85%
LX
Lexinfintech Holdings
1.33
-4.83
-78.41%
CPI Card Group Corporate Events
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...
Executive/Board ChangesShareholder Meetings
CPI Card Group Shareholders Back Board, Auditor, Executive Pay
Positive
May 26, 2026
CPI Card Group Inc. reported the results of its 2026 annual meeting of stockholders held on May 21, 2026, where shareholders elected eight directors, including Thomas Furey and Valerie Soranno Keating, to one-year terms expiring at the 2027 annual...
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.