CPI Card Group (NASDAQ:PMTS) Issues Earnings Results, Beats Estimates By $0.27 EPS

CPI Card Group (NASDAQ:PMTS) posted its quarterly earnings results on Thursday. The company reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.27, Zacks reports. The company had revenue of $153.05 million during the quarter, compared to analysts’ expectations of $145.22 million. CPI Card Group had a negative return on equity of 71.26% and a net margin of 2.75%.

Here are the key takeaways from CPI Card Group’s conference call:

• Record Q4 performance — Revenue rose 22% to $153M and Adjusted EBITDA increased 34% (19.2% margin), while operating cash flow was $60M for the year and Free Cash Flow was $41M, leaving net leverage around 3.1x at year-end.
• Arroweye acquisition meaningfully boosted results, contributing $43M of revenue and >$6M of Adjusted EBITDA in under eight months, with early customer wins and expected revenue/cost synergies still to come.
• Integrated PayTech breakout — management created a new high‑margin segment (roughly 55% gross, ~40% EBITDA), driven by SaaS instant issuance and new processor access, with management targeting >15% annual growth over the coming years.
• Prepaid and margin headwinds — prepaid revenue declined (Q4 down 27% YoY vs a strong prior comp), gross margin fell to 31.5% (impacted by higher depreciation and ~$4M tariffs), and full‑year net income decreased 23% due to acquisition/integration costs and a higher tax rate.
• 2026 outlook is mixed — management guides to high single‑digit revenue growth but only low‑to‑mid single‑digit Adjusted EBITDA growth as it invests ~$4M to accelerate Integrated PayTech, expects ~$6M of tariffs, similar CapEx with a shift to tech, and a year‑end net leverage target of 2.5–3.0x.

CPI Card Group Trading Down 11.8%

Shares of PMTS stock opened at $15.52 on Friday. CPI Card Group has a 1-year low of $10.81 and a 1-year high of $31.85. The stock has a market cap of $176.77 million, a price-to-earnings ratio of 12.42 and a beta of 1.22. The stock has a 50-day moving average of $13.23 and a 200-day moving average of $14.46.

More CPI Card Group News

Here are the key news stories impacting CPI Card Group this week:

• Positive Sentiment: Revenue beat / topline strength: Q4 revenue came in around $153.1M, above consensus estimates (~$145.2M), showing demand resilience. Investors view the revenue beat as a positive sign for the business. Read More.
• Positive Sentiment: Strategic update with growth targets: Management outlined a new segment strategy and is targeting over 15% growth in its Integrated Paytech segment as it pushes digital initiatives — a clear growth narrative that could support longer-term revenue expansion. Read More.
• Neutral Sentiment: Full earnings / call transcripts available: Multiple transcripts and the slide deck are posted for investors to review management commentary and guidance in detail. (See the Q4 earnings transcript and conference materials.) Read More. | Read More.
• Neutral Sentiment: Short-interest data appears anomalous: Reports flag a “large increase” in short interest for early March, but the published figures show 0 shares / NaN increases — this looks like a reporting error rather than a clear signal of rising short selling. (Treat the short-interest item with caution.)
• Negative Sentiment: Mixed / confusing EPS headlines and profitability metrics: Coverage shows mixed takes on EPS (reports cite roughly $0.62 to $0.77), producing some confusion about whether the quarter was a clean beat. Meanwhile net margin (~2.8%) and a negative return on equity (around -59%) underscore weak profitability; that likely weighed on sentiment despite revenue strength. Read More. | Read More.
• Negative Sentiment: Heavy selling / volume spike: Trading volume was well above average, and the stock declined — a sign some investors sold into the quarter, likely reacting to the mixed EPS take, weak margins/ROE, and near-term uncertainty despite the strategic plan. Read More.

Wall Street Analyst Weigh In

PMTS has been the topic of several research reports. B. Riley Financial decreased their price target on shares of CPI Card Group from $34.00 to $28.00 and set a “buy” rating on the stock in a report on Monday, November 10th. DA Davidson restated a “buy” rating and issued a $30.00 target price on shares of CPI Card Group in a research report on Wednesday, February 18th. Weiss Ratings reiterated a “sell (d+)” rating on shares of CPI Card Group in a report on Wednesday, January 21st. Zacks Research upgraded CPI Card Group from a “strong sell” rating to a “hold” rating in a research note on Monday, January 5th. Finally, Wall Street Zen raised CPI Card Group from a “hold” rating to a “strong-buy” rating in a report on Saturday. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $28.25.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in PMTS. Vanguard Group Inc. lifted its position in shares of CPI Card Group by 5.7% in the 3rd quarter. Vanguard Group Inc. now owns 498,101 shares of the company’s stock worth $7,541,000 after purchasing an additional 26,848 shares during the period. Vector Capital Management L.P. increased its position in shares of CPI Card Group by 18.6% during the third quarter. Vector Capital Management L.P. now owns 459,314 shares of the company’s stock worth $6,954,000 after buying an additional 71,891 shares during the period. Wasatch Advisors LP lifted its holdings in CPI Card Group by 56.3% in the second quarter. Wasatch Advisors LP now owns 357,754 shares of the company’s stock valued at $8,486,000 after buying an additional 128,808 shares during the period. Geode Capital Management LLC lifted its holdings in CPI Card Group by 5.2% in the fourth quarter. Geode Capital Management LLC now owns 145,450 shares of the company’s stock valued at $2,136,000 after buying an additional 7,236 shares during the period. Finally, Marshall Wace LLP boosted its position in CPI Card Group by 11.9% during the second quarter. Marshall Wace LLP now owns 102,834 shares of the company’s stock valued at $2,439,000 after acquiring an additional 10,930 shares during the last quarter. Institutional investors own 22.08% of the company’s stock.

About CPI Card Group

CPI Card Group, Inc (NASDAQ: PMTS) is a leading provider of payment, identification and related credential solutions for financial institutions, governments and private enterprises. The company specializes in the design, manufacturing and personalization of secure plastic and metal cards, including EMV chip, magnetic-stripe and contactless cards. CPI Card Group also offers digital credentialing services and cloud-based card management tools that enable real-time controls, mobile wallet integration, fraud monitoring and analytics.

With a focus on security and innovation, CPI Card Group integrates advanced features such as holograms, microprinting, RFID/NFC technology and laser-engraved artwork into its card products.