CPI Card Group (NASDAQ:PMTS) Posts Quarterly Earnings Results, Misses Expectations By $0.29 EPS

Key Points

• CPI Card Group missed earnings expectations: The company reported quarterly EPS of $0.17, $0.29 below consensus, although revenue reached $149.18 million, exceeding estimates of $143.88 million.
• Management raised its outlook for 2026 revenue growth to the high-single-digit to low-double-digit range and projected free cash flow of $45 million–$50 million. First-half results included record revenue and $36 million in free cash flow, while net leverage fell to 2.7 times.
• Prepaid Solutions remains a weakness amid uneven customer orders and soft open-loop demand, with management expecting pressure through late 2026. Shares rose 7.6%, and analysts maintain a “Moderate Buy” consensus with an average price target of $27.50.

CPI Card Group (NASDAQ:PMTS - Get Free Report) posted its earnings results on Thursday. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.29), FiscalAI reports. The business had revenue of $149.18 million for the quarter, compared to the consensus estimate of $143.88 million. CPI Card Group had a negative return on equity of 92.16% and a net margin of 2.15%.

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

• Strong first-half performance: Q2 revenue rose 15% to $149 million, while first-half revenue increased 17% to a company record. Adjusted EBITDA grew 7% to $24 million in Q2.
• Guidance was raised for 2026 revenue growth to high single digits to low double digits and free cash flow to $45 million–$50 million; Integrated Paytech growth guidance increased to approximately 20% following the TRISM acquisition.
• Secure Card Solutions continued to gain share, with Q2 revenue up 17% and organic growth of 13%, supported by contactless cards, personalization, and strong Arroweye performance. The Fort Wayne facility provides additional capacity for future growth.
• Cash generation and deleveraging improved materially, with record first-half free cash flow of $36 million, net leverage down to 2.7 times from 3.6 times a year earlier, and $26.5 million of Senior Notes redeemed after quarter-end.
• Prepaid Solutions remains choppy due to uneven customer ordering, tough comparisons, and softness in open-loop demand; management expects weakness to continue through late 2026 despite longer-term opportunities in closed-loop prepaid and anti-fraud packaging.

CPI Card Group Stock Up 7.6%

Shares of CPI Card Group stock traded up $1.72 during trading on Thursday, reaching $24.45. The company's stock had a trading volume of 190,721 shares, compared to its average volume of 34,141. CPI Card Group has a 52-week low of $10.81 and a 52-week high of $24.69. The firm's 50-day moving average is $19.40 and its two-hundred day moving average is $16.49. The company has a market cap of $280.69 million, a price-to-earnings ratio of 23.97 and a beta of 1.05.

Wall Street Analysts Forecast Growth

PMTS has been the subject of several recent research reports. Zacks Research lowered CPI Card Group from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. DA Davidson reaffirmed a "buy" rating and set a $30.00 price objective on shares of CPI Card Group in a report on Tuesday, July 7th. Weiss Ratings upgraded shares of CPI Card Group from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, June 1st. Roth Capital reissued a "buy" rating and issued a $25.00 price target on shares of CPI Card Group in a research report on Tuesday, May 5th. Finally, Lake Street Capital restated a "buy" rating and set a $27.00 price target on shares of CPI Card Group in a research note on Wednesday, May 6th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, CPI Card Group currently has a consensus rating of "Moderate Buy" and an average price target of $27.50.

Insider Buying and Selling at CPI Card Group

In related news, Chairman H Sanford Riley acquired 5,400 shares of the firm's stock in a transaction on Tuesday, May 19th. The stock was acquired at an average cost of $16.00 per share, for a total transaction of $86,400.00. Following the acquisition, the chairman owned 5,400 shares of the company's stock, valued at $86,400. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Donna Abbey Carmignani sold 4,870 shares of the firm's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $15.32, for a total transaction of $74,608.40. Following the completion of the sale, the insider directly owned 5,478 shares of the company's stock, valued at approximately $83,922.96. This represents a 47.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 5.80% of the company's stock.

Hedge Funds Weigh In On CPI Card Group

A number of institutional investors have recently bought and sold shares of the stock. Kestra Advisory Services LLC purchased a new position in shares of CPI Card Group in the fourth quarter valued at about $29,000. Los Angeles Capital Management LLC purchased a new position in CPI Card Group during the fourth quarter valued at $52,000. Lazard Asset Management LLC grew its position in shares of CPI Card Group by 100.4% in the second quarter. Lazard Asset Management LLC now owns 2,928 shares of the company's stock valued at $69,000 after purchasing an additional 1,467 shares during the period. Wells Fargo & Company MN grew its position in shares of CPI Card Group by 73.1% in the fourth quarter. Wells Fargo & Company MN now owns 6,769 shares of the company's stock valued at $99,000 after purchasing an additional 2,859 shares during the period. Finally, Bank of America Corp DE increased its stake in shares of CPI Card Group by 98.7% during the third quarter. Bank of America Corp DE now owns 6,707 shares of the company's stock worth $102,000 after purchasing an additional 3,331 shares in the last quarter. 22.08% of the stock is owned by institutional investors.

About CPI Card Group

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.

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