Cpi Card Group 2025 Q1 Earnings Misses Targets as Net Income Falls 12.5%
Wednesday, May 7, 2025 11:32 pm ET
3min read Cpi Card Group reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company experienced a revenue increase of 9.7%, reaching $122.76 million compared to $111.94 million in 2024 Q1. However, net income decreased 12.5% to $4.77 million. Despite the revenue growth, the decline in net income and EPS, which fell from $0.48 to $0.42, missed market expectations. CPI reaffirmed its 2025 outlook, forecasting mid-to-high single-digit organic growth for both net sales and Adjusted EBITDA. The acquisition of Arroweye Solutions is anticipated to bolster future performance.
Revenue
Cpi Card Group witnessed a 9.7% rise in total revenue, reaching $122.76 million in 2025 Q1, compared to $111.94 million a year prior. The Debit and Credit segment contributed $96.52 million to total revenue, while the Prepaid Debit segment added $26.71 million. The company reported no other revenue, and intersegment eliminations amounted to $472,000, culminating in the overall revenue figure.
Earnings/Net Income
Cpi Card Group's EPS declined 12.5% from $0.48 in 2024 Q1 to $0.42 in 2025 Q1. Additionally, net income fell from $5.46 million to $4.77 million, marking a 12.5% decrease. This decline reflects unfavorable EPS performance.
Price Action
The stock price of Cpi Card Group dropped 5.21% on the latest trading day, fell 22.80% over the most recent trading week, and decreased 16.28% month-to-date.
Post-Earnings Price Action Review
Over the past five years, the strategy of purchasing CPI Card Group shares following quarters with revenue growth and holding them for 30 days has yielded impressive results, boasting a compound annual growth rate (CAGR) of 57% per year. This strategy has substantially outperformed the market, underscoring CPI's effective business model and consistent growth generation. In its recent quarter, CPI Card Group marked its second-largest sales period historically, with product sales surging by 25%, notably in eco-friendly contactless cards. The company's net sales increased by 18%, while the share price appreciated significantly, rising by 861% over the past half-decade and experiencing an 8.7% growth in thirty days, reflecting favorable market sentiment. Strategic acquisitions, such as Arroweye Solutions, have further strengthened CPI's market position, demonstrating the company's commitment to growth and diversification strategies.
CEO Commentary
"Adding Arroweye's digitally-driven on-demand payment card solutions to the CPI portfolio supports our strategic focus of putting our customers first, while aiding long-term growth and diversification," said John Lowe, President and Chief Executive Officer of CPI Card Group. He emphasized that this acquisition enhances CPI's capabilities, technology, and capacity, complementing their existing offerings. Lowe expressed optimism about the transaction, stating, "We believe this transaction will generate a strong return for CPI and our shareholders," highlighting the expected positive impact on business performance and customer relationships.
Guidance
CPI anticipates Arroweye's revenues to be in the mid-$50 million range in 2025 on an annualized basis. The company expects to leverage its resources to increase Arroweye's market share and expand penetration of its solutions to new customers. This acquisition aligns with CPI's strategic initiatives and is expected to enhance their competitive positioning in the payment card industry, reinforcing their commitment to growth and customer-centric services.
Additional News
Cpi Card Group has announced the acquisition of Arroweye Solutions, Inc. for $45.55 million, aiming to enhance its payment card solutions portfolio. Arroweye, known for its digitally-driven on-demand payment card solutions, will augment CPI's offerings with its technology-driven platform, eliminating the need for inventory and enabling rapid personalization. CPI plans to leverage its market presence to expand Arroweye's share and customer reach. This acquisition promises to strengthen CPI's competitive advantage and diversify its product offerings, further solidifying its position in the U.S. payment card industry. Arroweye's revenues are projected to be in the mid-$50 million range for 2025.
Revenue
Cpi Card Group witnessed a 9.7% rise in total revenue, reaching $122.76 million in 2025 Q1, compared to $111.94 million a year prior. The Debit and Credit segment contributed $96.52 million to total revenue, while the Prepaid Debit segment added $26.71 million. The company reported no other revenue, and intersegment eliminations amounted to $472,000, culminating in the overall revenue figure.
Earnings/Net Income
Cpi Card Group's EPS declined 12.5% from $0.48 in 2024 Q1 to $0.42 in 2025 Q1. Additionally, net income fell from $5.46 million to $4.77 million, marking a 12.5% decrease. This decline reflects unfavorable EPS performance.
Price Action
The stock price of Cpi Card Group dropped 5.21% on the latest trading day, fell 22.80% over the most recent trading week, and decreased 16.28% month-to-date.
Post-Earnings Price Action Review
Over the past five years, the strategy of purchasing CPI Card Group shares following quarters with revenue growth and holding them for 30 days has yielded impressive results, boasting a compound annual growth rate (CAGR) of 57% per year. This strategy has substantially outperformed the market, underscoring CPI's effective business model and consistent growth generation. In its recent quarter, CPI Card Group marked its second-largest sales period historically, with product sales surging by 25%, notably in eco-friendly contactless cards. The company's net sales increased by 18%, while the share price appreciated significantly, rising by 861% over the past half-decade and experiencing an 8.7% growth in thirty days, reflecting favorable market sentiment. Strategic acquisitions, such as Arroweye Solutions, have further strengthened CPI's market position, demonstrating the company's commitment to growth and diversification strategies.
CEO Commentary
"Adding Arroweye's digitally-driven on-demand payment card solutions to the CPI portfolio supports our strategic focus of putting our customers first, while aiding long-term growth and diversification," said John Lowe, President and Chief Executive Officer of CPI Card Group. He emphasized that this acquisition enhances CPI's capabilities, technology, and capacity, complementing their existing offerings. Lowe expressed optimism about the transaction, stating, "We believe this transaction will generate a strong return for CPI and our shareholders," highlighting the expected positive impact on business performance and customer relationships.
Guidance
CPI anticipates Arroweye's revenues to be in the mid-$50 million range in 2025 on an annualized basis. The company expects to leverage its resources to increase Arroweye's market share and expand penetration of its solutions to new customers. This acquisition aligns with CPI's strategic initiatives and is expected to enhance their competitive positioning in the payment card industry, reinforcing their commitment to growth and customer-centric services.
Additional News
Cpi Card Group has announced the acquisition of Arroweye Solutions, Inc. for $45.55 million, aiming to enhance its payment card solutions portfolio. Arroweye, known for its digitally-driven on-demand payment card solutions, will augment CPI's offerings with its technology-driven platform, eliminating the need for inventory and enabling rapid personalization. CPI plans to leverage its market presence to expand Arroweye's share and customer reach. This acquisition promises to strengthen CPI's competitive advantage and diversify its product offerings, further solidifying its position in the U.S. payment card industry. Arroweye's revenues are projected to be in the mid-$50 million range for 2025.
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