CPI Card Group (PMTS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 15% year-over-year to $149.2 million, driven by Secure Card Solutions, contactless cards, personalization, and Arroweye contributions.

• Record first half revenue of $296.3 million and free cash flow of $36.1 million achieved, with net income rising to $2 million in Q2 and $4.1 million for the half.

• Adjusted EBITDA increased 7% in Q2 to $24 million, supported by revenue growth, operational improvements, and tariff refunds.

• Completed the strategic acquisition of TRISM, doubling the instant issuance addressable market and expanding the Integrated Paytech segment.

• Guidance for revenue and free cash flow was raised for 2026, with continued deleveraging and strengthened market leadership.

Financial highlights

• Q2 2026 revenue: $149.2 million (+15% YoY); organic revenue up 12% excluding Arroweye.

• Gross profit for Q2 2026 rose 21% to $48.5 million, with gross margin up to 32.5% from 30.9%, aided by tariff refunds.

• Adjusted EBITDA for Q2 2026 was $24.1 million (+7% YoY), margin at 17.3%.

• Diluted EPS for Q2 2026 was $0.17, up from $0.04 in Q2 2025.

• Free cash flow reached $36.1 million in the first half, up from $0.8 million a year ago.

Outlook and guidance

• 2026 revenue growth guidance raised to high single digits/low double digits; Free Cash Flow guidance increased to $45–$50 million.

• Adjusted EBITDA growth expected in low to mid-single digits; year-end net leverage ratio targeted between 2.5x and 3.0x.

• Integrated Paytech segment annual revenue growth guidance increased to approximately 20% for 2026.

• Q3 revenue and adjusted EBITDA expected to be slightly better than Q2.