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Sep 30, 2022

CPI Card Group Q3 2022 Earnings Report

Net sales and net income increased, driven by strong sales growth and improved margins.

Key Takeaways

CPI Card Group Inc. reported strong third quarter results with net sales increasing by 25% to $124.6 million and net income increasing by 80% to $11.9 million, driven by strong demand for payment solutions and solid execution.

Net sales increased 25% year-over-year to $124.6 million.

Net income increased 80% year-over-year to $11.9 million.

Debit and Credit segment net sales increased 31% to $99.5 million, driven by increased sales of higher-priced contactless cards.

Company increased 2022 outlook for net sales and Adjusted EBITDA.

Total Revenue
$125M
Previous year: $99.6M
+25.1%
EPS
$1.01
Previous year: $0.56
+80.4%
Gross Profit
$48.4M
Previous year: $37.7M
+28.5%
Cash and Equivalents
$21.5M
Previous year: $20.9M
+3.1%
Free Cash Flow
$13.6M
Previous year: -$9.36M
-245.4%
Total Assets
$305M
Previous year: $252M
+20.9%

CPI Card Group

CPI Card Group

CPI Card Group Revenue by Segment

Forward Guidance

The Company now expects full-year growth in the low 20 percent range for sales and high teens for Adjusted EBITDA. The full-year Adjusted EBITDA margin is still expected to be slightly below 20%.

Positive Outlook

  • Strong sales growth expected in Debit and Credit segment.
  • Prepaid Debit segment sales expected to be similar to the record level in 2021.

Challenges Ahead

  • Full-year Adjusted EBITDA margin is still expected to be slightly below 20%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income