CPI Card Group Inc (PMTS)
NASDAQ:PMTS
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CPI Card Group
(NASDAQ:PMTS)
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Rating:59Neutral
Price Target:
$18.00
▲(0.61% Upside)
Action:ReiteratedDate:03/07/26
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.
Positive Factors
Strong cash generation
Consistent operating cash flow (~$59.5M TTM) and material free cash flow ( ~$36.6M TTM; $41M in 2025) give CPI durable internal funding to service debt, fund capex, and finance strategic initiatives. This reduces reliance on external capital and supports balance sheet repair and reinvestment over the next 2–3 years.
Negative Factors
Elevated leverage and negative equity
Material debt (~$287M) and negative shareholders' equity weaken financial flexibility and elevate refinancing and covenant risk. Even with good cash flow, leverage constrains strategic optionality, raises interest expense sensitivity and means deleveraging must be a priority to avoid restricted capital allocation or funding stress over the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent operating cash flow (~$59.5M TTM) and material free cash flow ( ~$36.6M TTM; $41M in 2025) give CPI durable internal funding to service debt, fund capex, and finance strategic initiatives. This reduces reliance on external capital and supports balance sheet repair and reinvestment over the next 2–3 years.
Read all positive factors
CPI Card Group (PMTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$199.76M
Dividend YieldN/A
Average Volume (3M)75.90K
Price to Earnings (P/E)11.1
Beta (1Y)1.81
Revenue Growth12.48%
EPS Growth-7.47%
CountryUS
Employees1,500
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.86
Shares Outstanding11,460,436
10 Day Avg. Volume34,001
30 Day Avg. Volume75,899
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)-9.59
Price to Sales (P/S)0.31
P/FCF Ratio4.02
Enterprise Value/Market Cap2.61
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit3.06
Enterprise Value/Ebitda6.74
Forecast
1Y Price Target
$28.33Price Target Upside58.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.58
Revenue Forecast (FY)$583.59M
CPI Card Group Business Overview & Revenue Model
Company Description
CPI Card Group Inc., together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Cr...
How the Company Makes Money
CPI Card Group makes money primarily by selling payment card products and associated services to financial institutions, fintech program managers, and other card issuers. Key revenue streams include: (1) Card manufacturing and packaging: producing...
CPI Card Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across the company’s business lines (for example, card manufacturing, personalization, instant issuance, and identity services), revealing which operations drive growth and which are vulnerable to industry cycles or large-customer concentration. For CPI Card Group, segment-level revenue highlights how shifts in card demand, government contracts, or new service offerings are affecting overall top-line strength and diversification.
Breaks down sales across the company’s business lines (for example, card manufacturing, personalization, instant issuance, and identity services), revealing which operations drive growth and which are vulnerable to industry cycles or large-customer concentration. For CPI Card Group, segment-level revenue highlights how shifts in card demand, government contracts, or new service offerings are affecting overall top-line strength and diversification.
Data provided by:
The Fly
The FlyCPI Card Group Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive outlook driven by a record fourth quarter, double-digit revenue growth, strong adjusted EBITDA expansion in Q4, substantial cash flow generation, strategic acquisitions (ArrowEye) and investments (Carta), and momentum in high-margin Integrated PayTech. Notable near-term headwinds include prepaid softness versus an exceptional prior period, gross margin compression from higher production costs and tariffs, nondeductible acquisition costs and higher tax rates that reduced net income, and planned incremental investments that temper 2026 EBITDA growth. Overall, the positive operational execution, cash generation, strategic positioning in digital paytech, and clear path to scale outweigh the near-term margin and investment-related challenges.Positive Updates
Record Fourth-Quarter Revenue
Q4 revenue increased 22% year-over-year to $153,000,000, driven by an $18,000,000 contribution from ArrowEye and double-digit organic growth in the debit and credit portfolio.
Negative Updates
Prepaid Revenue Pressure
Prepaid revenue declined 27% in Q4 versus an exceptionally strong prior-year quarter; full-year prepaid declined ~3% after adjusting for an accounting change, and management expects a slow start to prepaid in early 2026 with ramp later in the year.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Fourth-Quarter Revenue
Q4 revenue increased 22% year-over-year to $153,000,000, driven by an $18,000,000 contribution from ArrowEye and double-digit organic growth in the debit and credit portfolio.
Read all positive updates
Company Guidance
The company guided to high single‑digit revenue growth in 2026 and low‑ to mid‑single‑digit adjusted EBITDA growth, with Integrated PayTech expected to lead with double‑digit growth (management cited >15% annual top‑line growth over the coming years) and to be the primary margin driver; they noted first‑half adjusted EBITDA could be flat to down slightly as investments ramp and prepaid starts slow, with Q4 again expected to be the largest quarter. Key modeled items include approximately $4.0 million of incremental spending to accelerate Integrated PayTech, about $6.0 million of tariff expense assumed for the year, $5.0–$7.0 million of final ArrowEye integration costs, CapEx likely similar to 2025 levels (roughly $18.0 million), an expected tax rate of 30%–35%, and free cash flow conversion and cash generation targeted to be similar to 2025 (free cash flow was $41.0 million in 2025), while net leverage is expected to improve to roughly 2.5–3.0x by year‑end. On a pro forma basis, management said Integrated PayTech would have represented ~14% of 2025 revenue and >20% of EBITDA with ~40% EBITDA margins, and they expect digital solution profitability to expand materially once revenue scales over the next two to three years.CPI Card Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 543.53M | 480.60M | 444.55M | 475.75M | 375.12M |
| Gross Profit | 170.10M | 171.22M | 155.49M | 175.77M | 141.43M |
| EBITDA | 77.30M | 79.21M | 77.31M | 93.65M | 74.56M |
| Net Income | 14.95M | 19.52M | 23.98M | 36.54M | 15.94M |
Balance Sheet | |||||
| Total Assets | 403.19M | 349.66M | 293.68M | 296.67M | 268.14M |
| Cash, Cash Equivalents and Short-Term Investments | 21.70M | 33.54M | 12.41M | 11.04M | 20.68M |
| Total Debt | 337.47M | 289.47M | 272.31M | 291.22M | 307.74M |
| Total Liabilities | 420.52M | 385.28M | 345.62M | 378.74M | 389.16M |
| Stockholders Equity | -17.33M | -35.62M | -51.94M | -82.08M | -121.02M |
Cash Flow | |||||
| Free Cash Flow | 41.33M | 34.06M | 27.64M | 13.47M | 10.15M |
| Operating Cash Flow | 59.50M | 43.31M | 34.04M | 31.34M | 20.23M |
| Investing Cash Flow | -65.13M | -9.22M | -6.22M | -17.77M | -9.92M |
| Financing Cash Flow | -6.22M | -12.96M | -26.44M | -23.16M | -47.23M |
CPI Card Group Technical Analysis
Positive
17.89
Price Trends
13.84
Positive
14.12
Positive
15.68
Positive
Market Momentum
0.80
Negative
71.49
Negative
94.56
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PMTS, the sentiment is Positive. The current price of 17.89 is above the 20-day moving average (MA) of 14.95, above the 50-day MA of 13.84, and above the 200-day MA of 15.68, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 71.49 is Negative, neither overbought nor oversold. The STOCH value of 94.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PMTS.
CPI Card Group Risk Analysis
CPI Card Group disclosed 40 risk factors in its most recent earnings report. CPI Card Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CPI Card Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $153.80M | 28.48 | 0.54% | 10.37% | 10.48% | -30.67% | |
69 Neutral | $371.86M | 2.38 | 14.37% | 8.86% | -0.60% | 135.15% | |
68 Neutral | $2.78B | 6.09 | 53.92% | 10.18% | -2.51% | 17.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $199.76M | 11.12 | -58.78% | ― | 12.48% | -7.47% | |
49 Neutral | $641.25M | -3.80 | -10.77% | ― | 23.12% | 19.37% |
* Financial Sector Average
PMTS
CPI Card Group
17.89
-6.82
-27.60%
GDOT
Green Dot
11.75
4.17
55.01%
WU
Western Union
9.08
0.22
2.49%
YRD
Yiren Digital
1.87
-3.54
-65.43%
LX
Lexinfintech Holdings
2.29
-4.67
-67.10%
CPI Card Group Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
CPI Card Group Announces Strong Q4 Results, 2026 Outlook
Positive
Mar 5, 2026
On March 5, 2026, CPI Card Group reported that fourth-quarter 2025 revenue rose 22% year-on-year to a record $153.1 million, with net income up 9% to $7.4 million and adjusted EBITDA up 34% to $29.4 million. For full-year 2025, revenue increased 1...
Executive/Board Changes
CPI Card Group Announces CFO Transition, Names Interim Successor
Neutral
Feb 17, 2026
On February 13, 2026, CPI Card Group Inc. announced that Chief Financial Officer Jeffrey Hochstadt would step down from his role effective that same day, remaining with the company as an employee in an advisory capacity through June 30, 2026 to su...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.