Cpi Card Group Stock Earnings Reports

CPI Card Group reported a strong start to 2026, with Q1 revenue up 20% to $147 million, driven primarily by Secure Card Solutions (up 35%, including a $16M contribution from Arroweye) and strength in contactless and personalization offerings. Integrated Paytech grew modestly (+1% in Q1) but management expects >15% growth for the full year, supported by a referral/marketing agreement with Fiserv and demand for instant issuance and digital solutions. Prepaid Solutions declined 17% in Q1 due to timing of orders, though closed-loop prepaid showed better-than-expected growth and management expects prepaid to recover and grow over the year. Adjusted EBITDA rose 9%, though GAAP net income fell 57% to $2.1M due to $3M pretax integration costs. Gross margin declined to 30.0% (from 33.2%), impacted by Prepaid mix, higher production costs (including $2M incremental depreciation tied to Arroweye and the new Indiana facility) and $1.2M of tariffs; management expects margins to improve in H2. Cash generation was strong: operating cash flow $13.6M and free cash flow $10.1M in Q1. Balance sheet: $19M cash, $15M ABL borrowings, $265M senior notes; net leverage finished just below 3.0x. The company affirmed its March full-year outlook: high single-digit revenue growth, low-to-mid single-digit adjusted EBITDA growth, similar free cash flow conversion to 2025, and year-end net leverage of 2.5x–3.0x. Integration costs will continue into Q2 but are expected to drop materially in H2 as revenue and operating synergies from the Arroweye acquisition are realized. Management reiterated strategic focus on expanding its proprietary technology platform, broadening customer relationships, and evolving payment solutions (contactless, chip in prepaid, instant issuance) to drive medium- to long-term growth.