CPI Card Group Inc. (PMTS) Market Cap
CPI Card Group Inc. has a market capitalization of $203.9M.
Financials based on reported quarter end 2025-12-31
Price: $17.79
▼ -0.16 (-0.89%)
Market Cap: 203.88M
NASDAQ · time unavailable
CEO: John D. Lowe
Sector: Financial Services
Industry: Financial - Credit Services
IPO Date: 2015-10-08
Website: https://www.cpicardgroup.com
CPI Card Group Inc. (PMTS) - Company Information
Market Cap: 203.88M · Sector: Financial Services
CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing banks. Its products include Europay, Mastercard, And Visa (EMV) and non-EMV financial payment cards and metal cards, as well as private label credit cards. This segment also provides on-demand services and various integrated card services, including card personalization and fulfillment, and instant issuance services. The Prepaid Debit segment primarily offers integrated card services comprising tamper-evident security packaging services to prepaid debit card providers. It also produces financial payment cards issued on the networks of the payment card brands. It serves issuers of debit and credit cards, Prepaid Debit Card program managers, community banks, credit unions, group service providers, and card transaction processors in the United States. The company was formerly known as CPI Holdings I, Inc. and changed its name to CPI Card Group Inc. in August 2015. CPI Card Group Inc. was incorporated in 2007 and is based in Littleton, Colorado.
Analyst Sentiment
Based on 11 ratings
Analyst 1Y Forecast: $28.33
Average target (based on 2 sources)
Consensus Price Target
Low
$25
Median
$30
High
$30
Average
$28
Potential Upside: 59.2%
Price & Moving Averages
Related Companies in Financial Services
FIRST INTERNET BANCORP (INBK)
Financial Services
$0.20B
Mkt Cap
OPEN LENDING CORP (LPRO)
Financial Services
$0.21B
Mkt Cap
CITIZENS COMMUNITY BANCORP INC (CZWI)
Financial Services
$0.20B
Mkt Cap
OP BANCORP (OPBK)
Financial Services
$0.21B
Mkt Cap
EAGLE FINANCIAL SERVICES INC (EFSI)
Financial Services
$0.21B
Mkt Cap
SWK HOLDINGS CORP (SWKH)
Financial Services
$0.19B
Mkt Cap
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"For the year ending December 31, 2025, PMTS reported total revenue of $153.05M and a net income of $7.35M, which translates to an earnings per share of $0.64. The company's operating cash flow was $39.59M, and it generated free cash flow of $30.48M. However, PMTS faces significant challenges with total liabilities exceeding total assets, resulting in negative equity of -$17.33M. Despite this, the company has maintained a notable level of liquidity through operating cash flow. The stock has struggled recently, with a 1-year price decline of 53.26%, leading to questions regarding valuation and investor confidence. The absence of dividends paid in recent years further affects the attractiveness of shareholder returns. Overall, PMTS operates in a highly competitive market and needs to strengthen its balance sheet to improve its future outlook."
Revenue Growth
Revenue of $153.05M reflects moderate growth but needs to be consistently high to compete effectively.
Profitability
Net income at $7.35M shows profitability, but the negative equity situation poses risks.
Cash Flow Quality
Strong operating and free cash flows suggest good cash generation despite leverage issues.
Leverage & Balance Sheet
Negative equity and high net debt illustrate a concerning leverage position.
Shareholder Returns
Significant share price decline and the lack of dividend payments diminish shareholder returns.
Analyst Sentiment & Valuation
Market performance reflects negative sentiment; current price diverges from conservative targets.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management delivered a strong operational print (Q4 revenue +22% to $153M; adjusted EBITDA +34% to $29.4M; margins +170 bps to 19.2%) and highlighted record cash generation ($41M full-year FCF; net leverage ~3.1x). However, the Q&A and guidance framing reveal near-term friction: prepaid is “choppy,” digital investments are still in the drag phase, and 2026 results are modeled with tariff exposure ($6M assumed) amid uncertainty about how new tariffs will be applied. The mitigation is partially financial (seeking refunds after the Supreme Court ruling) but not a clean remove of risk. On upside, the closed-loop market is framed as ~5x larger and the sales cycle slightly accelerated because ArrowEye expands relationships across major program managers (now “more than half the market”). Overall tone sounds confident on 2026 growth, but the analyst-facing reality is that margin durability and quarterly pacing are still constrained by investment spend and tariff uncertainty.
Growth Catalysts
- Record Q4 revenue growth of 22%, driven by ArrowEye contribution plus double-digit organic growth in debit/credit from contactless cards
- Software-as-a-service (SaaS) instant issuance delivering double-digit growth (organic debit/credit growth 20% in Q4)
- Strong Integrated PayTech momentum (nearly 20% revenue growth in 2025; penetration/integrations expanding addressable market)
Business Development
- ArrowEye acquisition: $46,000,000 purchase price (announced/closed May 6, 2025); signed 12+ new customers post-acquisition
- Valera: won another four years; Valera is premier U.S. credit union service organization serving ~4,000 financial institutions
- TDS Gift Cards (closed-loop prepaid): deal with a provider serving blue-chip customers including Uber and DoorDash
- Carta (Australian fintech/program manager): 20% ownership with option to purchase additional 31%; exclusive U.S. supplier of Carta’s Safe to Buy chip-embedded solution (pilot with a large national retailer across hundreds of locations)
- Recently signed deal with a large U.S. processor/global payments leader: preferential access to 450 financial institutions and 3,500 banking locations; expected to grow instant issuance footprint by 25% over coming years
Financial Highlights
- Q4 revenue: +22% to $153,000,000; $18,000,000 of growth attributed to ArrowEye
- Q4 adjusted EBITDA: +34% to $29,400,000; adjusted EBITDA margin +170 bps to 19.2% (from 17.5%)
- Q4 gross margin declined from 34.1% to 31.5% (up from 29.7% in Q3); decline driven by increased production costs including depreciation and tariffs, plus unfavorable sales mix (operating leverage partially offset)
- Q4 production cost headwinds: +$2,000,000 increased depreciation (ArrowEye + new Secure Card facility) and +$1,600,000 tariff expenses
- Q4 SG&A: +$3,300,000 YoY, driven by $1,800,000 ArrowEye integration costs and ArrowEye operating expenses (partially offset by lower medical benefit expenses)
- Q4 tax rate: 27%; full-year tax rate 31%, higher than anticipated due to nondeductible ArrowEye acquisition expenses
- Full-year revenue: +13%; full-year adjusted EBITDA: +5% to $96,500,000
- Full-year tariff expenses: >$4,000,000 (in 2025); full-year adjusted EBITDA impacted by $4,400,000 tariff expenses and unfavorable sales mix
- Cash flow: $60,000,000 operating cash flow in Q4; full-year operating cash flow $59,500,000; full-year free cash flow $41,000,000
- Net leverage: ~3.1x at year-end
Capital Funding
- Cash on hand at quarter end: $22,000,000
- ABL revolver borrowings: $25,000,000
- Senior notes outstanding: $265,000,000
- Debt actions: retired $20,000,000 principal of 10% senior notes in July 2025
- CapEx: $18,000,000 in 2025 (double prior year), driven by Indiana facility and advanced machinery
Strategy & Ops
- Secure Card production: transition/build-out of new Indiana state-of-the-art facility (efficiencies, increased capacity, added capabilities)
- Automation: invested in automation in Colorado facility to drive further efficiencies
- Personalization ops improvements: increased capacity while maintaining quality and improving efficiency as volume grows
- Secure Card portfolio expansion: expanded metal card offerings; nearly $15,000,000 in metal sales in 2025
- Prepaid closed-loop operational ramp: began closed-loop prepaid shipments in 2025; expects significant ramp in 2026
- Segment reporting reorganization effective Q1 2026: Secure Card Solutions, Prepaid Solutions, Integrated PayTech (with Integrated PayTech now representing >20% of profitability)
Market Outlook
- 2026 revenue outlook: high single-digit revenue growth
- 2026 adjusted EBITDA outlook: low- to mid-single-digit growth
- Integrated PayTech expected growth driver: double-digit growth (top-line) with EBITDA growth pressured by investment spending
- 2026 incremental spending: approximately $4,000,000 to drive Integrated PayTech growth/penetration and other technology investments
- Tariff expense assumption in 2026 outlook: $6,000,000 of tariff expenses (similar to 2025 instant issuance trajectory setup)
- Tax rate outlook for 2026: 30%–35%
- Integration costs in 2026: approximately $5,000,000 to $7,000,000 of final ArrowEye integration costs
- Pacing commentary: adjusted EBITDA in 1H 2026 expected to be flat to down slightly vs prior year due to digital/technology investments and a slow start in prepaid; Q4 expected to be largest again
Risks & Headwinds
- Tariff uncertainty: management cited uncertainty around how newly announced tariffs will be applied and whether permanent tariffs will be enacted later in the year; 2026 outlook reflects estimates based on full-year 2025 tariff payments
- Tariff refunds/mitigation attempt: actively pursuing refunds for tariffs paid in 2025 based on a recent Supreme Court ruling
- Gross margin pressure: Q4 gross margin fell YoY due to increased production costs (depreciation + tariffs) and unfavorable sales mix
- Digital investment drag: management stated they are still in the investment phase for digital solutions impacting near-term profitability; expects digital profitability to expand once revenue ramps in 2–3 years
- Prepaid demand volatility: prepaid growth described as “choppy” and 2026 has a slow start in prepaid impacting 1H adjusted EBITDA
Sentiment: MIXED
Note: This summary was synthesized by AI from the PMTS Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.