CoreCard Faces Uncertainty as Apple Partnership Nears End and Euronet Acquisition Looms

CoreCard Corp (CCRD) faces challenges with Apple potentially ending its partnership and a merger with Euronet worth $248 million. Analysts forecast a 24.22% downside with a "Hold" rating on CoreCard stock. The average target price is $21.00, and the company has a brokerage recommendation rating of 3.0. Investors should consider these insights when deciding on their portfolio strategies related to CCRD.

CoreCard Corp (CCRD), a software provider for consumer credit operations, is facing significant challenges amidst potential shifts in its partnerships and an upcoming merger. The company is expected to report earnings of $0.27 per share for the quarter ending June 30, 2025, representing a year-over-year increase of 80% [3]. However, analysts have forecasted a 24.22% downside for the stock, rating it as a "Hold" with an average target price of $21.00 [3].

The primary concern for CoreCard is the potential end of its partnership with Apple Inc. The Apple Card, launched in 2019, has been a significant client for CoreCard, accounting for nearly 20% of its revenue in recent quarters. Goldman Sachs Group Inc., Apple’s original banking partner, has faced mounting losses estimated at over $1 billion since inception, prompting the Wall Street giant to seek an exit. JPMorgan Chase & Co. is in advanced talks to assume the portfolio, valued at around $20 billion in outstanding balances [1].

CoreCard’s platform, integral to Goldman’s consumer credit operations, could be sidelined in favor of in-house solutions or established vendors like Fiserv Inc. if JPMorgan takes over the Apple Card. This shift could lead to a significant loss of revenue for CoreCard, which has seen its stock dip by 5% following news of the potential deal [1].

Adding to these challenges, CoreCard has announced a merger with Euronet Worldwide, Inc. in a stock-for-stock transaction valued at approximately $248 million, or $30 per share. The merger is expected to close by the end of 2025 [3]. This move aims to provide CoreCard with access to Euronet’s extensive global payments processing and cross-border transactions infrastructure. However, the proposed sale has been the subject of an investigation by the law firm of Kahn Swick & Foti, LLC, led by former Attorney General of Louisiana Charles C. Foti, Jr. The firm is seeking to determine whether the consideration and process leading to the merger are adequate [4].

Investors should consider these developments when deciding on their portfolio strategies related to CCRD. The company’s ability to navigate these challenges and adapt to the evolving market will be crucial in determining its long-term prospects. As one banking executive told The Wall Street Journal, “These deals look shiny until the bill comes due” [1].

References:
[1] https://www.webpronews.com/apple-nears-jpmorgan-deal-to-replace-goldman-in-apple-card-shift-threatening-corecard-revenue/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TT26E:0-corecard-corp-expected-to-post-earnings-of-27-cents-a-share-earnings-preview/
[3] https://www.nasdaq.com/articles/corecard-ccrd-surges-100-indication-further-gains
[4] https://www.marketscreener.com/news/corecard-investor-alert-by-the-former-attorney-general-of-louisiana-kahn-swick-foti-llc-investig-ce7c5edad98efe2d