CoreCard (CCRD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 28% year-over-year to $16.7 million, driven by higher professional services and processing revenue, especially from Goldman Sachs, which accounted for 65% of total revenue.

• Net income rose to $1.9 million from $0.4 million in Q1 2024, reflecting improved operating margins and higher service revenues.

• Revenue growth excluding Goldman Sachs was in line with expectations, with ongoing customer onboarding and multiple implementations in progress.

• Management expects the rest of the year to be as strong or better, maintaining a positive outlook.

• Ongoing investments in platform and processing capabilities continue to yield positive results and new customer onboarding.

Financial highlights

• Total Q1 2025 revenue was $16.7 million, up from $13.1 million in Q1 2024.

• Professional Services revenue: $8.7 million; Processing and Maintenance: $6.3 million; Third-Party: $1.6 million.

• Income from operations was $2.8 million, up from $0.5 million a year ago; operating margin rose to 16.8% from 4%.

• Diluted EPS was $0.24 vs. $0.05 in Q1 2024; adjusted diluted EPS (excl. stock comp) was $0.28 vs. $0.07.

• Adjusted EBITDA reached $4.0 million, up from $1.7 million year-over-year.

Outlook and guidance

• Full-year 2025 revenue expected between $65 million and $69 million; EPS between $1.10 and $1.18.

• Q2 2025 revenue guidance: $16.2–$16.9 million; EPS: $0.23–$0.28; Professional Services revenue: $8.4–$8.8 million.

• Revenue growth excluding the largest customer, legacy Kabbage, and one-time items projected at 30%-35% for 2025.

• Processing services expected to continue growing as customer base expands, though timing of new implementations may be delayed by third-party factors.

• Company expects sufficient liquidity to support operations and capital investments, with cash in excess of current needs targeted for FinTech expansion opportunities.