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Sep 30
CPI Card Group Q3 2025 Earnings Report
CPI Card Group reported its financial results for the third quarter ended September 30, 2025, with increased net sales and net income, but a decrease in Adjusted EBITDA.
Key Takeaways
CPI Card Group delivered a strong third quarter in 2025, with net sales increasing by 11% to $138 million, primarily driven by the Arroweye acquisition and growth in instant issuance solutions. Net income saw a significant 78% increase to $2.3 million, largely due to lower debt retirement costs compared to the prior year. However, Adjusted EBITDA decreased by 7% to $23.4 million, impacted by lower gross margins and tariff expenses.
Net sales increased 11% to $138.0 million, driven by the Arroweye acquisition and instant issuance solutions.
Net income surged 78% to $2.3 million, primarily due to reduced debt retirement costs in the prior year.
Adjusted EBITDA decreased 7% to $23.4 million, impacted by lower gross margins and tariff expenses.
Gross profit declined 8% to $41.0 million, with gross profit margin decreasing to 29.7% from 35.8% in the prior year.
CPI Card Group
CPI Card Group
CPI Card Group Revenue by Segment
Revenue by Segment
Debit and Credit Revenue
CapyFin.comPrepaid Debit Revenue
CapyFin.com Forward Guidance
CPI Card Group updated its full-year 2025 outlook, refining net sales growth to low double-digit to low teens and adjusting Adjusted EBITDA growth to a range of flat to low single-digit, primarily due to projected sales mix impacts in the Debit and Credit segment and order timing in the Prepaid segment.
Positive Outlook
- Core payment solutions gained market share.
- Arroweye business continues to perform well.
- Card@Once business delivered strong growth, increasing market penetration.
- Advancing strategic growth initiatives in prepaid, instant issuance, and digital payment solutions.
- Long-term growth trends for the U.S. card market remain strong, with consumer card growth.
Challenges Ahead
- Refined net sales outlook to low double-digit to low teens growth, a slight reduction from previous mid-teens.
- Adjusted EBITDA outlook adjusted to flat to low single-digit growth, down from previous mid-to-high single digit growth.
- Projected sales mix impacts in the Debit and Credit segment.
- Order timing issues in the Prepaid segment.
- Lower gross margins and impact of tariff expenses in the current year period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income