CPI Card Group Inc 10-Q for FY2025 Q2

CPI Card Group Inc. (PMTS)

10-Q 2025-08-08 For: 2025-06-30

Added on April 10, 2026

About this 10-Q

CPI Card Group Inc filed this 10-Q on August 8, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $129.75M; up 9.2% from $118.82M a year earlier
Net income: $518K; down 91.4% from net income of $6M a year earlier
Diluted EPS: $0.04; down 92.2% from $0.51 a year earlier

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Delaware		26-0344657
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer identification no.)

10368 W. Centennial Road
Littleton, CO		80127
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	PMTS	Nasdaq Global Market



Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☒

		Emerging growth company	☐


		Page
Part I — Financial Information

Item 1 — Condensed Consolidated Financial Statements (Unaudited)		3

Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations		20

Item 3 — Quantitative and Qualitative Disclosures About Market Risk		28

Item 4 — Controls and Procedures		28

Part II — Other Information

Item 1 — Legal Proceedings		28

Item 1A — Risk Factors		28

Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds		28

Item 3 — Defaults Upon Senior Securities		29

Item 4 — Mine Safety Disclosures		29

Item 5 — Other Information		29

Item 6 — Exhibits		30

Signatures		31


	June 30,		December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	17,124	$	33,544
Accounts receivable, net		87,495		85,491
Inventories, net		83,872		72,660
Prepaid expenses and other current assets		15,850		11,347
Total current assets		204,341		203,042
Plant, equipment, leasehold improvements and operating lease right-of-use assets, net		104,774		68,648
Intangible assets, net of accumulated amortization of $57,340 and $55,393, respectively		20,945		10,492
Goodwill		48,211		47,150
Other assets		21,524		20,325
Total assets	$	399,795	$	349,657
Liabilities and stockholders’ deficit
Current liabilities:
Accounts payable	$	24,564	$	16,123
Accrued expenses		52,933		57,979
Deferred revenue and customer deposits		1,535		1,485
Total current liabilities		79,032		75,587
Long-term debt		310,911		280,405
Deferred income taxes		—		3,318
Other long-term liabilities		38,878		25,968
Total liabilities		428,821		385,278

Commitments and contingencies (Note 12)

Stockholders’ deficit:
Series A Preferred Stock; $0.001 par value—100,000 shares authorized; 0 shares issued and outstanding at June 30, 2025 and December 31, 2024		—		—
Common stock; $0.001 par value—100,000,000 shares authorized; 11,334,910 and 11,240,507 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively		11		11
Capital deficit		(104,126)		(105,429)
Accumulated earnings		75,089		69,797
Total stockholders’ deficit		(29,026)		(35,621)
Total liabilities and stockholders’ deficit	$	399,795	$	349,657


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net sales:
Products	$	80,950	$	63,844	$	150,125	$	122,002
Services		48,803		54,974		102,389		108,752
Total net sales		129,753		118,818		252,514		230,754
Cost of sales:
Products (exclusive of depreciation and amortization shown below)		54,978		41,893		101,263		79,695
Services (exclusive of depreciation and amortization shown below)		30,546		31,743		63,176		61,672
Depreciation and amortization		4,109		2,794		7,259		5,481
Total cost of sales		89,633		76,430		171,698		146,848
Gross profit		40,120		42,388		80,816		83,906
Operating expenses:
Selling, general and administrative (exclusive of depreciation and amortization shown below)		29,291		26,225		54,786		52,268
Depreciation and amortization		1,406		1,254		2,503		2,584
Total operating expenses		30,697		27,479		57,289		54,852
Income from operations		9,423		14,909		23,527		29,054
Other expense, net:
Interest, net		(8,069)		(6,530)		(15,754)		(12,955)
Other (expense) income, net		(13)		(78)		5		(143)
Total other expense, net		(8,082)		(6,608)		(15,749)		(13,098)
Income before income taxes		1,341		8,301		7,778		15,956
Income tax expense		(823)		(2,300)		(2,486)		(4,500)
Net income	$	518	$	6,001	$	5,292	$	11,456

Basic and diluted earnings per share:
Basic earnings per share	$	0.05	$	0.54	$	0.47	$	1.03
Diluted earnings per share	$	0.04	$	0.51	$	0.44	$	0.97

Basic weighted-average shares outstanding		11,297,785		11,049,968		11,271,815		11,158,334
Diluted weighted-average shares outstanding		11,927,943		11,776,894		11,969,909		11,817,584

Comprehensive income:
Net income	$	518	$	6,001	$	5,292	$	11,456
Total comprehensive income	$	518	$	6,001	$	5,292	$	11,456


	Common stock			Capital		Accumulated		Stockholders
	Shares	Amount		deficit		earnings		deficit
March 31, 2025	11,281,489	$	11	$	(104,299)	$	74,571	$	(29,717)
Shares issued under stock-based compensation plans	53,421		—		(536)		—		(536)
Stock-based compensation	—		—		709		—		709
Components of comprehensive income:
Net income	—		—		—		518		518
June 30, 2025	11,334,910	$	11	$	(104,126)	$	75,089	$	(29,026)


	Common stock			Capital		Accumulated		Stockholders
	Shares	Amount		deficit		earnings		deficit
December 31, 2024	11,240,507	$	11	$	(105,429)	$	69,797	$	(35,621)
Shares issued under stock-based compensation plans	94,403		—		(1,077)		—		(1,077)
Stock-based compensation	—		—		2,380		—		2,380
Components of comprehensive income:
Net income	—		—		—		5,292		5,292
June 30, 2025	11,334,910	$	11	$	(104,126)	$	75,089	$	(29,026)


	Common stock			Capital		Accumulated		Stockholders
	Shares	Amount		deficit		earnings		deficit
March 31, 2024	11,391,476	$	11	$	(104,193)	$	55,731	$	(48,451)
Shares issued under stock-based compensation plans	79,612		—		(1,177)		—		(1,177)
Stock-based compensation			—		2,094		—		2,094
Repurchase and retirement of common shares	(284,492)		—		(3,024)		—		(3,024)
Components of comprehensive income:
Net income	—		—		—		6,001		6,001
June 30, 2024	11,186,596	$	11	$	(106,300)	$	61,732	$	(44,557)


	Common stock			Capital		Accumulated		Stockholders
	Shares	Amount		deficit		earnings		deficit
December 31, 2023	11,446,155	$	11	$	(102,223)	$	50,276	$	(51,936)
Shares issued under stock-based compensation plans	93,191		—		(1,286)		—		(1,286)
Stock-based compensation	—		—		5,154		—		5,154
Repurchase and retirement of common shares	(352,750)		—		(7,945)		—		(7,945)
Components of comprehensive income:
Net income	—		—		—		11,456		11,456
June 30, 2024	11,186,596	$	11	$	(106,300)	$	61,732	$	(44,557)


	Weighted Average	June 30,
	Life (Years)	2025
Trademark	2.5	$	600
Acquired technology	7.0		4,400
Customer relationships	15.0		7,400
Total identifiable intangible assets acquired		$	12,400


	Carrying		Estimated
	Value as of		Fair Value as of		Fair Value Measurement at June 30, 2025
	June 30,		June 30,		(Using Fair Value Hierarchy)
	2025		2025		Level 1		Level 2		Level 3
Liabilities:
Senior Notes	$	285,000	$	302,456	$	—	$	302,456	$	—
ABL Revolver	$	30,000	$	30,000	$	—	$	30,000	$	—


	Three Months Ended June 30, 2025
	Debit and Credit		Prepaid Debit		Other		Intersegment Eliminations		Total
Net sales
Products	$	81,176	$	—	$	—	$	(226)	$	80,950
Services		29,581		19,222		—		—		48,803
Total net sales		110,757		19,222		—		(226)		129,753
Cost of sales
Products ⁽¹⁾		55,204		—		—		(226)		54,978
Services ⁽¹⁾		17,860		12,686		—		—		30,546
Depreciation and amortization		3,044		1,065		—		—		4,109
Total cost of sales		76,108		13,751		—		(226)		89,633
Gross profit		34,649		5,471		—		—		40,120
Operating expenses		11,596		1,300		17,801		—		30,697
Income (loss) from operations	$	23,053	$	4,171	$	(17,801)	$	—	$	9,423

EBITDA by segment:
Income (loss) from operations	$	23,053	$	4,171	$	(17,801)	$	—	$	9,423
Depreciation and amortization		3,528		1,126		861		—		5,515
Other income (expense)		(33)		—		20		—		(13)
EBITDA	$	26,548	$	5,297	$	(16,920)	$	—	$	14,925

Gross profit margin		31.3%		28.5%		*		*		30.9%
EBITDA margin		24.0%		27.6%		*		*		11.5%


	Six Months Ended June 30, 2025
	Debit and Credit		Prepaid Debit		Other		Intersegment Eliminations		Total
Net sales
Products	$	150,801	$	—	$	—	$	(676)	$	150,125
Services		56,476		45,935		—		(22)		102,389
Total net sales		207,277		45,935		—		(698)		252,514
Cost of sales
Products ⁽¹⁾		101,939		—		—		(676)		101,263
Services ⁽¹⁾		34,293		28,905		—		(22)		63,176
Depreciation and amortization		5,142		2,117		—		—		7,259
Total cost of sales		141,374		31,022		—		(698)		171,698
Gross profit		65,903		14,913		—		—		80,816
Operating expenses		21,147		2,743		33,399		—		57,289
Income (loss) from operations	$	44,756	$	12,170	$	(33,399)	$	—	$	23,527

EBITDA by segment:
Income (loss) from operations	$	44,756	$	12,170	$	(33,399)	$	—	$	23,527
Depreciation and amortization		5,799		2,242		1,721		—		9,762
Other income (expense)		(40)		6		39		—		5
EBITDA	$	50,515	$	14,418	$	(31,639)	$	—	$	33,294

Gross profit margin		31.8%		32.5%		*		*		32.0%
EBITDA margin		24.4%		31.4%		*		*		13.2%


	Three Months Ended June 30, 2024
	Debit and Credit		Prepaid Debit		Other		Intersegment Eliminations		Total
Net sales
Products	$	64,461	$	—	$	—	$	(617)	$	63,844
Services		31,159		23,815		—		—		54,974
Total net sales		95,620		23,815		—		(617)		118,818
Cost of sales
Products ⁽¹⁾		42,510		—		—		(617)		41,893
Services ⁽¹⁾		16,988		14,755		—		—		31,743
Depreciation and amortization		1,958		836		—		—		2,794
Total cost of sales		61,456		15,591		—		(617)		76,430
Gross profit		34,164		8,224		—		—		42,388
Operating expenses		8,775		1,315		17,389		—		27,479
Income (loss) from operations	$	25,389	$	6,909	$	(17,389)	$	—	$	14,909

EBITDA by segment:
Income (loss) from operations	$	25,389	$	6,909	$	(17,389)	$	—	$	14,909
Depreciation and amortization		2,237		895		916		—		4,048
Other income (expense)		(1)		(1)		(76)		—		(78)
EBITDA	$	27,625	$	7,803	$	(16,549)	$	—	$	18,879

Gross profit margin		35.7%		34.5%		*		*		35.7%
EBITDA margin		28.9%		32.8%		*		*		15.9%


	Six Months Ended June 30, 2024
	Debit and Credit		Prepaid Debit		Other		Intersegment Eliminations		Total
Net sales
Products	$	122,832	$	—	$	—	$	(830)	$	122,002
Services		60,761		48,013		—		(22)		108,752
Total net sales		183,593		48,013		—		(852)		230,754
Cost of sales
Products ⁽¹⁾		80,525		—		—		(830)		79,695
Services ⁽¹⁾		33,580		28,114		—		(22)		61,672
Depreciation and amortization		3,829		1,652		—		—		5,481
Total cost of sales		117,934		29,766		—		(852)		146,848
Gross profit		65,659		18,247		—		—		83,906
Operating expenses		17,516		2,593		34,743		—		54,852
Income (loss) from operations	$	48,143	$	15,654	$	(34,743)	$	—	$	29,054

EBITDA by segment:
Income (loss) from operations	$	48,143	$	15,654	$	(34,743)	$	—	$	29,054
Depreciation and amortization		4,387		1,766		1,912		—		8,065
Other income (expense)		(63)		(2)		(78)		—		(143)
EBITDA	$	52,467	$	17,418	$	(32,909)	$	—	$	36,976

Gross profit margin		35.8%		38.0%		*		*		36.4%
EBITDA margin		28.6%		36.3%		*		*		16.0%


Exhibit Number		Exhibit Description
10.1*		Form of 2025 Executive Short-Term Incentive Plan.
10.2		Amendment No. 1 to Credit Agreement, by and among CPI Card Group Inc., CPI CG Inc., the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative and collateral agent (incorporated by reference to the Company’s Current Report on Form 8-K filed on July 7, 2025).
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).



	CPI CARD GROUP INC.
August 8, 2025	/s/ John Lowe
	John Lowe
	President and Chief Executive Officer
	(Principal Executive Officer)

August 8, 2025	/s/ Jeffrey Hochstadt
	Jeffrey Hochstadt
	Chief Financial Officer
	(Principal Financial Officer)

August 8, 2025	/s/ Donna Abbey Carmignani
	Donna Abbey Carmignani
	Chief Accounting Officer
	(Principal Accounting Officer)


	Six Months Ended June 30,
	2025		2024
Operating activities
Net income	$	5,292	$	11,456
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		7,815		6,188
Amortization expense		1,947		1,877
Stock-based compensation expense		3,038		5,154
Amortization of debt issuance costs		658		917
Deferred income taxes and other, net		850		(1,879)
Changes in operating assets and liabilities:
Accounts receivable, net		7,451		(2,720)
Inventories		(7,769)		(15,584)
Prepaid expenses and other assets		2,253		(20,316)
Income taxes, net		(3,154)		1,598
Accounts payable		4,977		7,079
Accrued expenses and other liabilities		(13,471)		9,858
Deferred revenue and customer deposits		50		480
Cash provided by operating activities		9,937		4,108
Investing activities
Capital expenditures for plant, equipment and leasehold improvements, net		(9,112)		(2,744)
Cash paid for acquisition, net of cash acquired		(42,442)		—
Other		50		—
Cash used in investing activities		(51,504)		(2,744)
Financing activities
Proceeds from borrowings on debt		35,000		4,000
Payments on debt		(5,000)		—
Payments on finance leases and other obligations		(3,776)		(2,413)
Common stock repurchased		—		(6,481)
Debt issuance costs		—		(118)
Taxes withheld and paid on stock-based compensation awards		(1,077)		(1,286)
Cash provided by (used in) financing activities		25,147		(6,298)
Net decrease in cash and cash equivalents		(16,420)		(4,934)
Cash and cash equivalents, beginning of period		33,544		12,413
Cash and cash equivalents, end of period	$	17,124	$	7,479
Supplemental disclosures of cash flow information
Cash paid (refunded) during the period for:
Interest	$	15,453	$	12,332
Income taxes paid	$	6,381	$	6,481


		June 30,		December 31,
		2025		2024
Trade accounts receivable	$	87,885	$	78,464
Unbilled accounts receivable		—		7,213
		87,885		85,677
Less allowance for credit losses		(390)		(186)
Total accounts receivable, net	$	87,495	$	85,491


		June 30,		December 31,
		2025		2024
Raw materials	$	72,208	$	63,863
Work in process		4,850		955
Finished goods		6,814		7,842
Total inventories, net	$	83,872	$	72,660


		June 30,		December 31,
		2025		2024
Machinery and equipment	$	82,362	$	71,781
Machinery and equipment under financing leases		41,030		32,272
Furniture, fixtures and computer equipment		4,451		1,123
Leasehold improvements		23,549		18,875
Construction in progress		10,618		5,141
Operating lease right-of-use assets		27,459		15,090
		189,469		144,282
Less accumulated depreciation and amortization		(84,695)		(75,634)
Total plant, equipment, leasehold improvements and operating lease right-of-use assets, net	$	104,774	$	68,648