CPI Card Group (NASDAQ:PMTS) Issues Quarterly Earnings Results, Misses Expectations By $0.15 EPS

CPI Card Group (NASDAQ:PMTS) announced its earnings results on Tuesday. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.15), FiscalAI reports. CPI Card Group had a net margin of 2.75% and a negative return on equity of 78.82%. The company had revenue of $147.11 million during the quarter, compared to the consensus estimate of $134.69 million.

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

• Revenue rose 20% to $147 million in Q1, driven by a 35% increase in Secure Card Solutions that included a $16 million contribution from Arroweye.
• Adjusted EBITDA increased 9%, free cash flow was $10.1 million, and net leverage improved to just below 3.0x, while management affirmed its full‑year guidance (high single‑digit revenue growth; low‑ to mid‑single‑digit Adjusted EBITDA growth).
• Net income declined 57% to $2.1 million due to roughly $3 million of pre‑tax integration costs and higher production costs (including ~$2 million of incremental depreciation and $1.2 million of tariffs), and gross margin fell to 30.0% from 33.2%.
• Prepaid Solutions revenue declined 17% in Q1 because of timing of customer orders, which weighed on margins, though management expects sequential improvement and full‑year growth.
• Management highlighted strategic growth drivers — an expanded referral agreement with Fiserv, expected >15% growth in Integrated PayTech (instant issuance/digital), strong contactless/metal demand, and pilots for chip‑embedded prepaid cards — as catalysts for longer‑term growth.

CPI Card Group Price Performance

Shares of NASDAQ:PMTS traded up $0.15 during trading on Tuesday, reaching $17.30. 13,221 shares of the stock were exchanged, compared to its average volume of 53,676. CPI Card Group has a 1-year low of $10.81 and a 1-year high of $27.00. The stock has a fifty day moving average of $15.45 and a two-hundred day moving average of $14.69. The firm has a market cap of $198.21 million, a price-to-earnings ratio of 13.84 and a beta of 1.10.

Hedge Funds Weigh In On CPI Card Group

A number of institutional investors have recently modified their holdings of PMTS. Wasatch Advisors LP raised its position 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 worth $8,486,000 after purchasing an additional 128,808 shares during the period. Vector Capital Management L.P. raised its position in shares of CPI Card Group by 18.6% during the third quarter. Vector Capital Management L.P. now owns 459,314 shares of the company’s stock worth $6,954,000 after purchasing an additional 71,891 shares during the period. Aristeia Capital L.L.C. acquired a new position in shares of CPI Card Group during the fourth quarter worth approximately $597,000. Monimus Capital Management LP raised 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 worth $987,000 after purchasing an additional 38,170 shares during the period. Finally, Creek Drive Management Group LLC acquired a new position in shares of CPI Card Group during the fourth quarter worth approximately $440,000. 22.08% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

PMTS has been the topic of several analyst reports. DA Davidson reiterated a “buy” rating and issued a $30.00 target price on shares of CPI Card Group in a report on Wednesday, March 11th. Wall Street Zen upgraded CPI Card Group from a “buy” rating to a “strong-buy” rating in a report on Sunday, April 5th. Weiss Ratings restated a “sell (d+)” rating on shares of CPI Card Group in a report on Monday, April 20th. Finally, Zacks Research upgraded CPI Card Group from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $28.25.

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.