CPI Card Group Q4 2024 Earnings Report
Key Takeaways
CPI Card Group delivered a strong Q4 2024, with net sales increasing by 22% to $125.1 million. Net income surged by 148% to $6.8 million, while Adjusted EBITDA grew by 10% to $21.9 million. Growth was driven by the prepaid business and higher demand for contactless debit and credit cards. The company also provided an optimistic outlook for 2025, expecting mid-to-high single-digit growth.
Net sales increased 22% year-over-year to $125.1 million.
Net income surged 148% to $6.8 million, or $0.57 per diluted share.
Adjusted EBITDA increased 10% to $21.9 million.
Strong performance in the prepaid segment, with sales up 59%.
CPI Card Group
CPI Card Group
CPI Card Group Revenue by Segment
Forward Guidance
CPI Card Group expects mid-to-high single-digit growth in net sales and Adjusted EBITDA for 2025, with continued expansion in core markets and investments in digital solutions.
Positive Outlook
- Mid-to-high single-digit net sales growth projected.
- Adjusted EBITDA expected to grow in line with sales.
- Expansion into digital solutions and adjacent markets.
- Strong demand for contactless cards continues.
- Focus on improving market share in core segments.
Challenges Ahead
- Higher expected cash interest payments on senior notes.
- Increased capital expenditures may impact free cash flow.
- Potential macroeconomic uncertainties affecting demand.
- Competitive pressures in the card payments industry.
- Continued investment costs for digital expansion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income