Overview

* CPI Q2 2025 net sales rise 9%, but miss analysts' expectations

* Net income declines 91% due to acquisition costs and restructuring charges

* Adjusted EBITDA grows 3%, driven by sales growth including Arroweye

Outlook

* Company projects 2025 net sales growth in low double-digit to mid-teens

* CPI maintains adjusted EBITDA growth outlook at mid-to-high single digits

* Outlook excludes potential impact from proposed chip tariffs announced August 6, 2025

Result Drivers

* ARROWEYE PERFORMANCE - Arroweye contributed approximately $10 mln in net sales in less than 2 months

* DEBIT AND CREDIT GROWTH - Increased sales of contactless debit and credit cards, including metal cards, drove segment growth

* INSTANT ISSUANCE SOLUTIONS - Strong performance from SaaS-based instant issuance solutions contributed to sales growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $129.75 $133 mln

mln (4

Analysts

)

Q2 Net Miss $518,000 $6.03

Income mln (4

Analysts

)

Q2 Basic $0.05

EPS

Q2 Gross $40.12

Profit mln

Q2 $9.42

Income mln

From

Operatio

ns

Q2 $1.34

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 $36.50, about 49% above its August 7 closing price of $18.62

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(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.)