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CPI Card Group Posts Strong Q1 2026 Revenue Growth

Story Highlights
  • CPI’s Q1 2026 revenue surged 20%, but net income fell on Arroweye integration costs.
  • The company advanced Arroweye integration, strengthened cash flow, and reaffirmed its 2026 growth outlook.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
CPI Card Group Posts Strong Q1 2026 Revenue Growth

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The latest update is out from CPI Card Group ( (PMTS) ).

On May 5, 2026, CPI Card Group reported first-quarter 2026 revenue up 20% year-on-year to $147.1 million, driven by the Arroweye acquisition and higher sales of contactless cards and personalization services. Net income fell 57% to $2.1 million due to $3 million in Arroweye integration costs, while Adjusted EBITDA rose 9% to $23.2 million.

The company highlighted progress integrating Arroweye, which has added nearly $60 million of revenue since its May 2025 acquisition, and advancing partnerships such as its SafeToBuy-enabled prepaid pilot with a national retailer via Karta. CPI also underscored strong free cash flow of $10.1 million, a lower net leverage ratio of 3.0x, continued growth in instant issuance and digital solutions, and affirmed its 2026 outlook for high single-digit revenue growth and low-to-mid single-digit Adjusted EBITDA growth, signaling confidence in its strategy and balance-sheet deleveraging.

The most recent analyst rating on (PMTS) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on CPI Card Group stock, see the PMTS Stock Forecast page.

Spark’s Take on PMTS Stock

According to Spark, TipRanks’ AI Analyst, PMTS is a Neutral.

The score is held back primarily by elevated balance-sheet risk (negative equity and sizable debt) and margin compression, despite solid operating and free cash flow generation. Technicals are moderately supportive (bullish vs shorter-term averages but still below the 200-day), while valuation looks reasonable on a ~11x P/E. Earnings call tone is positive with growth and deleveraging targets, but near-term tariffs, integration costs, and investment spend limit EBITDA upside.

To see Spark’s full report on PMTS stock, click here.

More about CPI Card Group

CPI Card Group Inc. is a U.S.-focused payments technology company that provides a comprehensive range of physical and digital payment solutions to financial institutions, processors, fintechs and prepaid program managers. Its offerings span secure card manufacturing, Software-as-a-Service-based instant issuance, prepaid and closed-loop card products, and emerging digital services such as push provisioning for mobile wallets and fraud solutions.

The company leverages a proprietary technology platform, thousands of customer relationships across the U.S. payments ecosystem, and a track record of adapting to changing market needs. CPI also holds a leading position in SaaS-based instant issuance, with installations at more than 2,500 financial institutions and strong recurring revenue underpinned by high customer retention and growing demand for secure, digitally enabled payment experiences.

Average Trading Volume: 62,857

Technical Sentiment Signal: Hold

Current Market Cap: $196.5M

See more data about PMTS stock on TipRanks’ Stock Analysis page.

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