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CPI Card Group Q1 2025 Earnings Report
CPI Card Group Inc. reported its first quarter 2025 financial results, with net sales increasing by 10% to $122.8 million, while net income decreased by 12% to $4.8 million and Adjusted EBITDA decreased by 8% to $21.2 million.
Key Takeaways
CPI Card Group Inc. reported a 10% increase in net sales to $122.8 million for the first quarter of 2025, driven by strong performance in contactless debit and credit cards and growth in prepaid card solutions. However, net income decreased by 12% to $4.8 million and Adjusted EBITDA decreased by 8% to $21.2 million, primarily due to unfavorable sales mix, strong prior-year prepaid margin comparisons, and higher interest expense.
Net sales increased 10% year-over-year to $122.8 million in Q1 2025.
Net income decreased 12% to $4.8 million in Q1 2025.
Adjusted EBITDA decreased 8% to $21.2 million in Q1 2025.
The company acquired Arroweye Solutions, Inc., a provider of digitally-driven on-demand payment card solutions.
CPI Card Group
CPI Card Group
CPI Card Group Revenue by Segment
Revenue by Segment
Debit & Credit Revenue
CapyFin.comPrepaid Debit Revenue
CapyFin.com Forward Guidance
CPI affirmed its 2025 outlook for mid-to-high single-digit organic growth for both net sales and Adjusted EBITDA, assuming a stable U.S. economic environment and reflecting the impact of known tariffs. The outlook does not include any contribution from the Arroweye acquisition.
Positive Outlook
- Expects mid-to-high single-digit organic growth for net sales.
- Expects mid-to-high single-digit organic growth for Adjusted EBITDA.
- Plans to gain share in core markets in 2025.
- Continues to invest in market expansion strategy.
- Long-term growth trends for the U.S. card market remain strong, driven by consumer card growth, eco-focused cards, and contactless card conversion.
Challenges Ahead
- Results could be further impacted if the U.S. economy enters recessionary conditions.
- Results could be further impacted if additional significant tariffs are introduced.
- Outlook does not include any expected contribution from the Arroweye acquisition.
- Sales growth was offset by unfavorable sales mix in Q1 2025.
- Higher interest expense impacted net income in Q1 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income