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Jun 30
CPI Card Group Q2 2025 Earnings Report
CPI Card Group reported Q2 2025 results with net sales up 9% to $129.8M, net income down to $0.5M, and Adjusted EBITDA up 3% to $22.5M:contentReference[oaicite:0]{index=0}.
Key Takeaways
Revenue grew to $129.8M on strong Debit & Credit and Arroweye contributions, but net income fell sharply due to acquisition/integration and restructuring costs, higher interest expense, and an accounting change that shifted revenue timing. Adjusted EBITDA increased with a 17.3% margin:contentReference[oaicite:1]{index=1}.
Net sales reached $129.8M (+9% YoY), or +15% excluding a one-time accounting change; Arroweye delivered roughly $10M in less than two months:contentReference[oaicite:2]{index=2}.
Net income declined to $0.5M, driven by Arroweye transaction/integration costs, restructuring charges, higher interest, and the accounting change:contentReference[oaicite:3]{index=3}.
Adjusted EBITDA rose to $22.5M (17.3% margin):contentReference[oaicite:4]{index=4}.
Segments: Debit & Credit $110.8M (+16%); Prepaid Debit $19.2M (−19%), or +4% excluding the accounting change:contentReference[oaicite:5]{index=5}.
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
2025 outlook raised for net sales to low double-digit to mid-teens growth; Adjusted EBITDA outlook unchanged at mid-to-high single-digit growth. Outlook excludes potential impacts from proposed chip tariffs announced Aug 6, 2025:contentReference[oaicite:10]{index=10}.
Positive Outlook
- Net sales growth outlook increased:contentReference[oaicite:11]{index=11}
- Arroweye expected to contribute to revenue and operations:contentReference[oaicite:12]{index=12}
- Continued strength in contactless and metal cards:contentReference[oaicite:13]{index=13}
- Recurring SaaS revenue from Card@Once installations supports growth:contentReference[oaicite:14]{index=14}
- New production facility investments aimed at capacity and efficiency gains:contentReference[oaicite:15]{index=15}
Challenges Ahead
- Higher tariff expenses expected to pressure margins:contentReference[oaicite:16]{index=16}
- Unfavorable sales mix may offset some benefits:contentReference[oaicite:17]{index=17}
- Higher interest expense weighed on profitability:contentReference[oaicite:18]{index=18}
- Accounting change impacts quarterly revenue timing:contentReference[oaicite:19]{index=19}
- Restructuring and integration costs impact earnings:contentReference[oaicite:20]{index=20}
Revenue & Expenses
Visualization of income flow from segment revenue to net income