CPI Card's 2025 Q2 Earnings: Unraveling Key Contradictions on Arroweye Revenue, Tariff Impacts, and Market Position

Arroweye revenue contribution and synergies, tariff impact on financials, Arroweye's customer base and market position, and tariff impact on costs are the key contradictions discussed in CPI Card's latest 2025Q2 earnings call.



Revenue Growth and Strategic Acquisitions:
- CPI Card reported a 9% rise in net sales to $129.8 million in Q2 2025, excluding the impact of an accounting change.
- The growth was driven by the acquisition of Arroweye, which contributed approximately $10 million revenue in less than two months, and strong performance in the Debit and Credit segment.

Impact of Tariffs and Operational Costs:
- The company experienced a negative impact of approximately $5 million from tariffs in 2025 and incremental costs from Indiana facility transition, affecting sales and profitability.
- These challenges are being managed through cost containment efforts, including supplier negotiations and operational efficiencies.

Card@Once and Government Program Expansion:
- Card@Once, CPI's SaaS instant issuance solution, grew more than 20% in the first half, with 17,000 locations.
- The expansion into government disbursement programs provides recurring revenue streams and is part of the strategy to penetrate nonfinancial institution verticals.

Arroweye Acquisition and Market Expansion:
- The acquisition of Arroweye is expected to open new market segments, with a focus on health care payments and government programs.
- This acquisition allows CPI to leverage its financial backing and expand customer bases, positioning it for future sales synergy and growth.