CPI Card Group Reports Q2 2025 Earnings Growth

CPI Card Group Inc. ( (PMTS) ) has released its Q2 earnings. Here is a breakdown of the information CPI Card Group Inc. presented to its investors.

CPI Card Group Inc. is a payments technology company that offers a comprehensive range of payment cards and related digital solutions, primarily serving the U.S. market with a focus on building personal relationships and trust with its clients.

In its second quarter of 2025 earnings report, CPI Card Group Inc. announced a 9% increase in net sales, driven by strong performance from Arroweye and growth in debit and credit card sales. However, net income saw a significant decrease due to acquisition costs and restructuring charges, while adjusted EBITDA showed a modest increase.

Key financial highlights include a 15% increase in net sales when excluding a one-time accounting change, with Arroweye contributing significantly to the sales boost. The Debit and Credit segment saw a 16% increase in net sales, while the Prepaid Debit segment experienced a decline. Despite the sales growth, gross profit margins were pressured by increased tariffs and production costs, leading to a 91% drop in net income to $0.5 million.

Looking ahead, CPI Card Group has updated its 2025 net sales outlook to project low double-digit to mid-teens growth, reflecting the addition of Arroweye. The company remains optimistic about the long-term growth trends in the U.S. card market, driven by consumer card growth, while managing challenges such as tariffs and unfavorable sales mix.

Overall, CPI Card Group Inc. continues to focus on strategic investments and market expansion, aiming to leverage synergies from the Arroweye acquisition and enhance its product offerings to drive future profitability and growth.