Overview

* CPI Card Q3 2025 sales up 11% to $138 mln, driven by Arroweye and instant issuance

* Net income increased 78% to $2.3 mln, but missed analyst expectations

* Adjusted EBITDA decreased 7% to $23.4 mln due to lower gross margins and tariffs

Outlook

* CPI forecasts 2025 net sales growth in low double-digit to low teens range

* Company expects 2025 Adjusted EBITDA to be flat to low single-digit growth

* Outlook change due to sales mix impacts in Debit and Credit, order timing in Prepaid

Result Drivers

* ARROWEYE ACQUISITION - Sales growth driven by the addition of Arroweye and increased instant issuance solutions

* GROSS MARGIN PRESSURE - Adjusted EBITDA decreased due to lower gross margins and tariff expenses

* STRATEGIC INITIATIVES - Co continues to advance growth initiatives in prepaid, instant issuance, and digital payment solutions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $137.96 $140.62

mln mln (3

Analysts

)

Q3 Net Miss $2.30 $5.45

Income mln mln (3

Analysts

)

Q3 Basic $0.20

EPS

Q3 Gross $40.99

Profit mln

Q3 $13.01

Income mln

From

Operatio

ns

Q3 $3.74

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the consumer lending peer group is "buy"

* Wall Street's median 12-month price target for CPI Card Group Inc ( PMTS ) is $33.00, about 46.9% above its November 3 closing price of $17.53

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)