CPI Card Group (PMTS) investor relations material

Executive summary

• Achieved record Q4 2025 with 22% revenue growth to $153.1M and 9% net income increase, driven by Arroweye acquisition and strong debit/credit portfolio performance.

• Full-year 2025 revenue grew 13% to $544M, while net income declined 23% to $15M due to acquisition and integration costs; Adjusted EBITDA rose 5% to $96.5M.

• Strategic initiatives included Arroweye acquisition, investment in Karta, new Indiana facility, and entry into closed-loop prepaid market.

• Reorganized into three segments: Secure Card Solutions, Prepaid Solutions, and Integrated Paytech to reflect business evolution.

• Expansion in core and integrated paytech solutions set the stage for continued growth in 2026.

Financial highlights

• Q4 gross profit rose 13% to $48.3M, but gross margin declined to 31.5% from 34.1% due to higher production costs and tariffs.

• Q4 Adjusted EBITDA increased 34% to $29.4M; full-year Adjusted EBITDA up 5% to $96.5M.

• Q4 diluted EPS was $0.62; full-year EPS was $1.25, down 24% year-over-year.

• Operating cash flow for 2025 was $59.5M, up 37% from 2024; free cash flow rose 21% to $41.3M.

• SG&A expenses increased due to Arroweye integration and higher operating costs.

Outlook and guidance

• 2026 outlook projects high single-digit revenue growth, led by double-digit growth in Integrated Paytech.

• Adjusted EBITDA expected to grow low to mid single digits, reflecting investments in digital and technology.

• Free cash flow conversion and capital spending expected to be similar to 2025; net leverage ratio targeted at 2.5x–3x by year-end.

• Tariff expenses estimated at $6M; tax rate expected between 30%-35%.

• Q1/Q2 2026 Adjusted EBITDA expected flat to slightly down due to investments and slow prepaid start; ramping in H2.