What factors drove the changes in Cpi Card Group's revenue and profit?

Did Cpi Card Group beat or miss consensus estimates last quarter?

What guidance did Cpi Card Group's management provide for the next earnings period?

What is Cpi Card Group's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Cpi Card Group year over year?

What does Cpi Card Group do and what are its main business segments?

What is the market's earnings forecast for Cpi Card Group next quarter?

What were the key takeaways from Cpi Card Group’s earnings call?

- **Revenue Growth**: Q3 net sales +11% (Arroweye, instant issuance), but EBITDA -7% due to margin pressures.
- **Strategic Investments**: New Indiana facility operational; Karta partnership for chip-enabled prepaid cards (Q4 shipments expected).
- **Tariff Impact**: Q3 tariffs $1.6M, annualized $4-5M; 2026 impact could rise with full-year effect.
- **Prepaid Outlook**: Q3 sales down 7% (timing), but long-term growth driven by chip adoption (ASP 2x+ higher).

**【CEO Summary Section】**
- **Q3 2025 Highlights**: Net sales grew 11% (driven by Arroweye and instant issuance), but adjusted EBITDA declined 7% due to unfavorable sales mix and tariffs. Full-year outlook revised to low double-digit sales growth and flat to low single-digit EBITDA growth.
- **Strategic Initiatives**: New Indiana facility fully operational; partnership with Karta for chip-enabled prepaid cards (piloting with a large U.S. retailer). Closed-loop prepaid shipments expected in Q4.
- **Prepaid Segment**: Market leader with rising complexity in packaging; Q3 sales down 7% due to timing, but long-term growth driven by fraud prevention innovations.

**【CFO Financial Commentary】**
- **Q3 Financials**: GAAP net income up 78% to $23.4M (vs. prior year with debt retirement costs). Tariffs added $1.6M in Q3, with annualized impact now $4-5M. Tax rate 38% (year-to-date 34%), expecting 30-35% for 2025.
- **Balance Sheet**: $16M cash, $47M ABL revolver, $265M senior notes. Net leverage 3.6x, targeting reduction with cash flow. Capital spending up $10M YTD for new facilities and equipment.
- **Prepaid Accounting Change**: Year-to-date prepaid sales +8% (excluding accounting change), reflecting delayed orders.

**【Q&A Key Highlights】**
- **Tariffs**: Q3 tariffs $1.6M, annualized $4-5M. Pushing suppliers to absorb costs; 2026 impact could rise with full-year effect.
- **Prepaid Lumpiness**: Q3 orders delayed to 2026; long-term growth driven by chip adoption (ASP 2x+ higher than mag stripe cards).
- **Karta Partnership**: $10M equity investment (20% stake) for U.S. chip-enabled prepaid solutions; pilot with major retailer.
- **Semiconductor Tariffs**: Suppliers with U.S. facilities likely exempt; inventory levels elevated to mitigate potential impacts.

CPI Card Group Inc. (PMTS) Q3 2025 Earnings Call Transcript

Revenue

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PMTS fundamentals

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