CPI Card Group (NASDAQ: PMTS) delivered record Q4 2025 revenue of $153.1 million (+22% YoY), beating estimates by $7.83 million, while diluted EPS of $0.62 missed the $0.65 consensus by $0.03. Adjusted EBITDA surged 34% to $29.4 million. Full-year revenue reached $543.5 million (+13%), though net income declined 23% to $15.0 million due to acquisition costs. Shares surged over 32% on March 5, 2026, opening at $14.45 and trading as high as $16.80.
About CPI Card Group
CPI Card Group, Inc. (NASDAQ: PMTS) is a payments technology company founded in 1982 and headquartered in Littleton, Colorado. The company is the largest U.S.-based manufacturer of credit, debit, and prepaid payment cards, serving financial institutions ranging from major national banks to smaller credit unions and fintechs. CPI designs, produces, personalizes, packages, and fulfills secure payment cards while also offering digital credentialing services and cloud-based card management tools.
The company operates through two primary segments (transitioning to three in 2026): Debit and Credit and Prepaid Debit. Key products include EMV-enabled contactless cards, eco-focused payment cards, premium metal cards, and its Card@Once® SaaS-based instant issuance platform, which had approximately 14,000 active installations as of December 31, 2025. In May 2025, CPI acquired Arroweye Solutions for $45.8 million, adding fully integrated, on-demand card production capabilities.
As of March 5, 2026, PMTS trades with a market capitalization of approximately $189 million, a trailing P/E ratio of roughly 13.86, and approximately 1,500 employees. One customer represented about 16% of 2025 revenue, and more than half of revenue came from the company’s top 10 customers. The consensus analyst rating is “Moderate Buy” with an average 12-month price target of $28.25.
Top Financial Highlights
Fourth Quarter 2025
- Total revenue rose 22% to $153.05 million, a quarterly record, beating the analyst estimate of $145.22 million by $7.83 million.
- Debit and Credit segment revenue surged 40% to $128.9 million, boosted by Arroweye’s $18 million contribution and increased contactless card sales.
- Prepaid Debit segment revenue fell 27% to $24.4 million, primarily due to strong prior-year comparisons.
- Gross profit increased 13.3% to $48.3 million, though gross margin decreased to 31.5% from 34.1% due to rising production costs and unfavorable sales mix.
- Net income grew 9% to $7.35 million ($0.62 diluted EPS).
- Adjusted EBITDA climbed 34% to $29.4 million, fueled by sales growth and operational efficiency.
Full Year 2025
- Revenue increased 13% year-over-year to $543.5 million (or 15% excluding an accounting change in Q2).
- Debit and Credit segment revenue rose 20% to $451.5 million, driven by Arroweye’s $43 million full-year contribution and increased contactless/instant issuance sales.
- Prepaid Debit segment revenue decreased 13% to $93 million (or -3% excluding the accounting change).
- Gross profit dipped 1% to $170.1 million; gross margin fell to 31.3% from 35.6%.
- Net income dropped 23% to $14.95 million ($1.32 basic EPS vs. $1.75 YoY), affected by Arroweye acquisition and integration expenses and a higher tax rate.
- Adjusted EBITDA grew 5% to $96.5 million.
- Operating cash flow: $60 million (+37% from $43 million in 2024).
- Free cash flow: $41 million (+21% from $34 million in 2024).
- Cash on hand (year-end): $21.7 million (down from $33.5 million).
- Net leverage ratio: 3.1x.
2026 Guidance
- High single-digit revenue growth projected.
- Low-to-mid single-digit Adjusted EBITDA growth.
- New three-segment operating structure: Secure Card Solutions, Prepaid Solutions, and Integrated Paytech.
- Integrated Paytech segment targeting >15% revenue growth.
- Approximately $4 million in incremental costs for technology and market penetration, plus ~$6 million in expected tariff expenses.
Beat or Miss?
| Metric | Reported | Analyst Estimate | Difference |
| Q4 Revenue | $153.05M | $145.22M | +$7.83M (Beat) |
| Q4 EPS (Diluted) | $0.62 | $0.65 | -$0.03 (Miss) |
| Q4 Adjusted EBITDA | $29.4M | N/A | +34% YoY |
| FY Revenue | $543.5M | N/A | +13% YoY |
| FY EPS (Basic) | $1.32 | N/A | -24.6% YoY |
| FY Adjusted EBITDA | $96.5M | N/A | +5% YoY |
CPI Card Group delivered a revenue beat of 5.4% above consensus while missing on EPS by approximately $0.03. The top-line strength was driven by the Arroweye acquisition and continued growth in contactless card sales. The earnings miss reflected ongoing margin pressures from higher production costs, tariff expenses, and acquisition-related charges.
What Leadership Is Saying?
“Our teams delivered exceptional fourth quarter performance, leading to solid results in a year defined by significant strategic and operational advancements.” – John Lowe, President and Chief Executive Officer
CEO John Lowe has consistently emphasized the company’s strategic progress throughout 2025, highlighting the successful integration of Arroweye’s on-demand solutions, the completion of a state-of-the-art secure card facility in Indiana, entry into the closed-loop prepaid market, and expansion of CPI’s digital solutions ecosystem. On the Q3 call, Lowe noted: “We gained share with our core payment solutions and the Arroweye business continues to perform well. Our Card@Once business also once again delivered strong growth, as we further penetrated the market with our leading SaaS-based solution”.
CFO Note: Former CFO Jeff Hochstadt departed the company effective February 13, 2026, after a challenging tenure that saw the stock decline approximately 65% from his start in May 2023. On the Q3 call, Hochstadt had noted the company was “pushing back every single day on our suppliers to try to reduce the impact” of tariffs, but could only get the impact down to the $4 million range. No CFO quote was available from the Q4 earnings announcement due to this leadership transition.
Historical Performance
Q4 2025 vs. Q4 2024
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Revenue | $153.05M | $125.10M | +22.4% |
| Net Income | $7.35M | $6.77M | +8.6% |
| Diluted EPS | $0.62 | $0.57 | +8.8% |
| Gross Profit | $48.3M | $42.6M | +13.3% |
| Gross Margin | 31.50% | 34.10% | -260 bps |
| Adjusted EBITDA | $29.4M | $21.9M | +34.2% |
| Debit & Credit Revenue | $128.9M | $91.9M | +40.3% |
| Prepaid Debit Revenue | $24.4M | $33.4M | -26.9% |
Full Year 2025 vs. Full Year 2024
| Category | FY 2025 | FY 2024 | Change (%) |
| Revenue | $543.5M | $480.6M | +13.1% |
| Net Income | $14.95M | $19.52M | -23.4% |
| Basic EPS | $1.32 | $1.75 | -24.6% |
| Gross Profit | $170.1M | $171.2M | -0.6% |
| Gross Margin | 31.30% | 35.60% | -430 bps |
| Adjusted EBITDA | $96.5M | $91.9M | +5.0% |
| Operating Cash Flow | $60M | $43M | +37.2% |
| Free Cash Flow | $41M | $34M | +20.6% |
Competitor Landscape
Payment Card Industry Performance
CPI Card Group competes with a mix of global conglomerates and specialized payment card manufacturers including CompoSecure (CMPO), IDEMIA, Giesecke+Devrient, Thales, Entrust, FIS, Fiserv, and HID Global. Among publicly traded U.S. peers, CompoSecure is the closest comparable.
CPI Card Group vs. CompoSecure
| Category | CPI Card Group (FY 2025) | CPI Card Group (FY 2024) | CompoSecure (FY 2024) |
| Revenue | $543.5M | $480.6M | $420.6M |
| Revenue Growth | +13.1% | +8.1% | +8.0% |
| Net Income | $14.95M | $19.52M | N/A (restructuring) |
| Adjusted EBITDA | $96.5M | $91.9M | ~$134M est. |
| Operating Cash Flow | $60M | $43M | $129.6M |
| Market Cap | ~$189M | – | ~$741M |
| Gross Margin | 31.3% | 35.6% | ~55-59% |
CompoSecure commands significantly higher gross margins (~59% in Q3 2025) due to its premium metal card focus, while CPI Card Group operates at lower margins but generates greater top-line revenue from a broader product portfolio. The global financial smart card market was valued at $65.2 billion in 2025 and is projected to grow at a 6.3% CAGR through 2035, with Thales, IDEMIA, Giesecke+Devrient, HID Global, NXP Semiconductors, CPI Card Group, and Infineon Technologies collectively holding about 8.9% of the market.
How the Market Reacted?
Shares of PMTS responded emphatically to the Q4 results, surging approximately 32% on March 5, 2026. The stock opened at $14.45 nearly $2 above its previous close of $12.46 and reached an intraday high of $16.80 before settling around $16.49. This marked the largest single-day gain for PMTS in recent memory, recovering from a difficult 12-month stretch where shares had fallen roughly 52% from their 52-week high of $34.25.
However, the stock still trades well below its 200-day simple moving average of approximately $14.47 and its 52-week high, suggesting investor caution remains regarding margin compression, tariff headwinds, and the recent CFO departure. Analyst price targets ranging from $25 to $30 imply significant upside from current levels.
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