CPI Card Group (NASDAQ:PMTS) Posts Quarterly Earnings Results, Misses Estimates By $0.42 EPS

Key Points

• CPI Card Group reported EPS of $0.41, missing analysts’ $0.83 estimate by $0.42, while quarterly revenue of $158.36 million topped the $149.67 million consensus.
• Revenue reached a record, rising 15% year over year, with growth across all three segments; gross profit increased 23% and adjusted EBITDA rose 17%.
• Management raised its 2026 revenue-growth outlook to low double digits and forecast $50 million–$55 million in free cash flow, but maintained its adjusted EBITDA growth outlook and expects prepaid revenue to moderate in Q4.

CPI Card Group (NASDAQ:PMTS - Get Free Report) announced its earnings results on Wednesday. The company reported $0.41 earnings per share for the quarter, missing analysts' consensus estimates of $0.83 by ($0.42), FiscalAI reports. CPI Card Group had a negative return on equity of 145.74% and a net margin of 2.34%. The firm had revenue of $158.36 million for the quarter, compared to the consensus estimate of $149.67 million.

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

• CPI reported record third-quarter revenue of $158 million, up 15%, with double-digit growth across all three segments. Gross profit rose 23% and Adjusted EBITDA increased 17%, alongside gross-margin expansion of about 200 basis points.
• The company raised its 2026 revenue-growth outlook to low double digits and its Free Cash Flow forecast to $50 million–$55 million, while reaffirming low-to-mid-single-digit Adjusted EBITDA growth. Management expects year-end net leverage toward the low end of its 2.5x–3.0x range.
• Year-to-date Free Cash Flow reached a record $46 million, up from $6 million a year earlier, and quarter-end net leverage improved to 2.6x from 3.6x. Management said strong cash generation supports both debt reduction and strategic investment.
• Management cited momentum in growth initiatives, including more than 30 Arroweye customer wins and the addition of Navy Federal Credit Union. Integrated Paytech revenue grew 20% in Q3, and the company expects its Q4 growth rate to more than double Q3’s, supported by Card@Once, TRISM and digital solutions.
• Management expects Prepaid Solutions revenue to moderate to about $20 million in Q4 as seasonal holiday ordering normalizes. Higher spending on technology, digital capabilities and personnel is also expected to continue weighing on expenses, while the company maintained—not raised—its Adjusted EBITDA growth outlook.

CPI Card Group Stock Performance

Shares of CPI Card Group stock traded up $2.40 during trading on Wednesday, reaching $27.09. 167,779 shares of the company's stock were exchanged, compared to its average volume of 88,394. CPI Card Group has a 1-year low of $10.81 and a 1-year high of $31.25. The company has a market cap of $314.03 million, a P/E ratio of 23.56 and a beta of 1.24. The firm's 50-day moving average price is $25.95 and its 200 day moving average price is $19.57.

Wall Street Analyst Weigh In

Several brokerages have recently commented on PMTS. DA Davidson raised their target price on shares of CPI Card Group from $30.00 to $34.00 and gave the stock a "buy" rating in a report on Tuesday, August 11th. Wall Street Zen raised CPI Card Group from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 25th. B. Riley Financial reiterated a "buy" rating on shares of CPI Card Group in a research report on Friday, August 7th. Weiss Ratings raised CPI Card Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. Finally, Roth Capital reaffirmed a "buy" rating and set a $32.00 price objective on shares of CPI Card Group in a research report on Tuesday, August 11th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $30.25.

Insiders Place Their Bets

In other CPI Card Group news, Director Nicholas Peters bought 11,628 shares of the firm's stock in a transaction on Monday, September 14th. The shares were purchased at an average price of $21.50 per share, for a total transaction of $250,002.00. Following the completion of the transaction, the director directly owned 11,628 shares in the company, valued at approximately $250,002. The trade was a ∞ increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Marc Sheinbaum bought 4,651 shares of the stock in a transaction on Monday, September 14th. The shares were acquired at an average cost of $21.50 per share, with a total value of $99,996.50. Following the purchase, the director owned 26,500 shares of the company's stock, valued at approximately $569,750. This represents a 21.29% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders acquired 31,232 shares of company stock valued at $671,488. 5.80% of the stock is owned by corporate insiders.

CPI Card Group Company Profile

CPI Card Group Inc is a payment technology company that designs, manufactures and distributes payment cards and related services in North America. Its customers include banks, credit unions, fintech companies and other financial institutions that issue credit, debit, prepaid and commercial payment cards.

The company's products and services include EMV chip cards, contactless and dual-interface cards, prepaid cards, card personalization, fulfillment and packaging. CPI Card Group also provides instant-issuance solutions that allow financial institutions to produce payment cards at branch locations, along with digital and physical card programs designed to support modern payment experiences.

Founded in 1995, CPI Card Group serves customers across the United States and Canada through manufacturing, personalization and service operations.

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