CPI Card Group (NASDAQ:PMTS) Issues Earnings Results

CPI Card Group (NASDAQ:PMTS) issued its quarterly earnings data on Thursday. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.50 by $0.12, FiscalAI reports. CPI Card Group had a net margin of 2.79% and a negative return on equity of 58.98%. The firm had revenue of $153.05 million during the quarter, compared to analysts’ expectations of $145.22 million.

Here are the key takeaways from CPI Card Group’s conference call:

• Record Q4 performance — Revenue rose 22% to $153M and Adjusted EBITDA increased 34% (19.2% margin), while operating cash flow was $60M for the year and Free Cash Flow was $41M, leaving net leverage around 3.1x at year-end.
• Arroweye acquisition meaningfully boosted results, contributing $43M of revenue and >$6M of Adjusted EBITDA in under eight months, with early customer wins and expected revenue/cost synergies still to come.
• Integrated PayTech breakout — management created a new high‑margin segment (roughly 55% gross, ~40% EBITDA), driven by SaaS instant issuance and new processor access, with management targeting >15% annual growth over the coming years.
• Prepaid and margin headwinds — prepaid revenue declined (Q4 down 27% YoY vs a strong prior comp), gross margin fell to 31.5% (impacted by higher depreciation and ~$4M tariffs), and full‑year net income decreased 23% due to acquisition/integration costs and a higher tax rate.
• 2026 outlook is mixed — management guides to high single‑digit revenue growth but only low‑to‑mid single‑digit Adjusted EBITDA growth as it invests ~$4M to accelerate Integrated PayTech, expects ~$6M of tariffs, similar CapEx with a shift to tech, and a year‑end net leverage target of 2.5–3.0x.

CPI Card Group Trading Up 40.1%

CPI Card Group stock traded up $5.00 during trading on Thursday, hitting $17.46. 275,636 shares of the company were exchanged, compared to its average volume of 45,809. The company has a market capitalization of $198.87 million, a P/E ratio of 14.55 and a beta of 1.22. CPI Card Group has a 52 week low of $10.81 and a 52 week high of $31.85. The business’s 50 day moving average is $13.18 and its 200 day moving average is $14.44.

Institutional Trading of CPI Card Group

Several hedge funds have recently made changes to their positions in PMTS. Wasatch Advisors LP raised its holdings in shares of CPI Card Group by 56.3% during the second quarter. Wasatch Advisors LP now owns 357,754 shares of the company’s stock valued at $8,486,000 after acquiring an additional 128,808 shares in the last quarter. Vector Capital Management L.P. boosted its position in CPI Card Group by 18.6% during the 3rd quarter. Vector Capital Management L.P. now owns 459,314 shares of the company’s stock valued at $6,954,000 after acquiring an additional 71,891 shares in the last quarter. Aristeia Capital L.L.C. purchased a new position in shares of CPI Card Group during the 4th quarter worth approximately $597,000. Monimus Capital Management LP boosted its position in shares of CPI Card Group by 131.2% during the fourth quarter. Monimus Capital Management LP now owns 67,257 shares of the company’s stock valued at $987,000 after purchasing an additional 38,170 shares in the last quarter. Finally, Creek Drive Management Group LLC bought a new position in CPI Card Group in the fourth quarter worth $440,000. 22.08% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Lake Street Capital set a $25.00 price target on shares of CPI Card Group in a research note on Wednesday, November 5th. DA Davidson reissued a “buy” rating and issued a $30.00 price objective on shares of CPI Card Group in a research report on Wednesday, February 18th. Zacks Research upgraded CPI Card Group from a “strong sell” rating to a “hold” rating in a research note on Monday, January 5th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of CPI Card Group in a report on Wednesday, January 21st. Finally, B. Riley Financial cut their price target on shares of CPI Card Group from $34.00 to $28.00 and set a “buy” rating for the company in a report on Monday, November 10th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, CPI Card Group presently has an average rating of “Hold” and a consensus target price of $28.25.

CPI Card Group Company Profile

CPI Card Group, Inc (NASDAQ: PMTS) is a leading provider of payment, identification and related credential solutions for financial institutions, governments and private enterprises. The company specializes in the design, manufacturing and personalization of secure plastic and metal cards, including EMV chip, magnetic-stripe and contactless cards. CPI Card Group also offers digital credentialing services and cloud-based card management tools that enable real-time controls, mobile wallet integration, fraud monitoring and analytics.

With a focus on security and innovation, CPI Card Group integrates advanced features such as holograms, microprinting, RFID/NFC technology and laser-engraved artwork into its card products.