The earnings call presented a mixed outlook. While CPI Card Group showed strong sales growth and completed a strategic acquisition with Arroweye Solutions, the company faced challenges with declining adjusted EBITDA, decreased gross margins, and increased production costs. Despite these challenges, the company remains optimistic about customer demand and future growth.
Company Guidance
During the CPI Card Group's Q1 2025 earnings call, the company provided guidance affirming its outlook for mid-to-high single-digit growth in both net sales and adjusted EBITDA for the year. The company reported a 10% increase in net sales for the first quarter, driven by strong performance in debit and credit cards, as well as prepaid solutions. However, adjusted EBITDA declined by 8% due to negative sales mix and increased production costs. Despite these challenges, CPI Card Group remains optimistic about the remainder of the year, focusing on enhancing margins by managing spending and investing strategically, including the recent acquisition of Arroweye Solutions. The acquisition is expected to contribute to revenue and adjusted EBITDA growth over time, although initial integration costs may impact cash flow and margins in 2025. The company's free cash flow was slightly positive for the quarter, and the net leverage ratio stood at 3.1 times. CPI Card Group anticipates that Arroweye's full-year revenue will be in the mid-$50 million range, with low-double-digit adjusted EBITDA margins.
Acquisition of Arroweye Solutions
CPI Card Group announced the acquisition of Arroweye Solutions, a leading provider of digitally-driven on-demand payment card solutions, aiming to expand its market share and diversify its business offerings.
10% Sales Growth
Net sales increased by 10% in the first quarter, driven by strong performance in both debit and credit card segments, and continued growth in prepaid solutions.
Healthy Customer Demand
Despite economic uncertainties, customer demand remains healthy, supporting a positive outlook for mid-to-high single digit growth for net sales and adjusted EBITDA for 2025.
---
CPI Card Group (PMTS) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
---
PMTS Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
May 07, 2025
$25.34
$20.18
-20.36%
Mar 04, 2025
$31.88
$29.74
-6.71%
Nov 05, 2024
$22.54
$24.14
+7.10%
Aug 05, 2024
$28.58
$23.50
-17.77%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
---
FAQ
When does CPI Card Group Inc (PMTS) report earnings?
CPI Card Group Inc (PMTS) is schdueled to report earning on Aug 11, 2025, TBA Not Confirmed.
What is CPI Card Group Inc (PMTS) earnings time?
CPI Card Group Inc (PMTS) earnings time is at Aug 11, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.