CPI Card Group (NASDAQ:PMTS) Announces Quarterly Earnings Results

CPI Card Group (NASDAQ:PMTS) posted its quarterly earnings data on Thursday. The company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.46 by ($0.29), FiscalAI reports. The firm had revenue of $149.18 million for the quarter, compared to analysts’ expectations of $143.88 million. CPI Card Group had a negative return on equity of 92.16% and a net margin of 2.15%.

Here are the key takeaways from CPI Card Group’s conference call:

• Strong first-half performance: Q2 revenue rose 15% to $149 million, while first-half revenue increased 17% to a company record. Adjusted EBITDA grew 7% to $24 million in Q2.
• Guidance was raised for 2026 revenue growth to high single digits to low double digits and free cash flow to $45 million–$50 million; Integrated Paytech growth guidance increased to approximately 20% following the TRISM acquisition.
• Secure Card Solutions continued to gain share, with Q2 revenue up 17% and organic growth of 13%, supported by contactless cards, personalization, and strong Arroweye performance. The Fort Wayne facility provides additional capacity for future growth.
• Cash generation and deleveraging improved materially, with record first-half free cash flow of $36 million, net leverage down to 2.7 times from 3.6 times a year earlier, and $26.5 million of Senior Notes redeemed after quarter-end.
• Prepaid Solutions remains choppy due to uneven customer ordering, tough comparisons, and softness in open-loop demand; management expects weakness to continue through late 2026 despite longer-term opportunities in closed-loop prepaid and anti-fraud packaging.

CPI Card Group Stock Performance

PMTS stock traded up $1.72 during mid-day trading on Thursday, reaching $24.45. The company had a trading volume of 190,721 shares, compared to its average volume of 34,141. The firm has a fifty day simple moving average of $19.40 and a 200 day simple moving average of $16.49. The company has a market capitalization of $280.69 million, a price-to-earnings ratio of 23.97 and a beta of 1.05. CPI Card Group has a fifty-two week low of $10.81 and a fifty-two week high of $24.69.

Wall Street Analyst Weigh In

PMTS has been the topic of a number of research analyst reports. Roth Capital reaffirmed a “buy” rating and issued a $25.00 price target on shares of CPI Card Group in a research note on Tuesday, May 5th. Lake Street Capital reissued a “buy” rating and issued a $27.00 price objective on shares of CPI Card Group in a research note on Wednesday, May 6th. Weiss Ratings upgraded CPI Card Group from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, June 1st. DA Davidson reaffirmed a “buy” rating and set a $30.00 target price on shares of CPI Card Group in a research note on Tuesday, July 7th. Finally, Wall Street Zen raised shares of CPI Card Group from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 25th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $27.50.

Insider Buying and Selling

In other news, Chairman H Sanford Riley bought 5,400 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was purchased at an average price of $16.00 per share, for a total transaction of $86,400.00. Following the completion of the purchase, the chairman owned 5,400 shares in the company, valued at approximately $86,400. This trade represents a ∞ increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Donna Abbey Carmignani sold 4,870 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $15.32, for a total value of $74,608.40. Following the completion of the transaction, the insider directly owned 5,478 shares in the company, valued at $83,922.96. This trade represents a 47.06% decrease in their position. The SEC filing for this sale provides additional information. 5.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On CPI Card Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jane Street Group LLC purchased a new position in shares of CPI Card Group during the first quarter valued at approximately $223,000. Acadian Asset Management LLC purchased a new stake in CPI Card Group in the 1st quarter worth approximately $248,000. Geode Capital Management LLC grew its stake in CPI Card Group by 12.6% in the 2nd quarter. Geode Capital Management LLC now owns 125,500 shares of the company’s stock worth $2,977,000 after acquiring an additional 14,039 shares during the period. First Trust Advisors LP raised its holdings in CPI Card Group by 5.5% in the 2nd quarter. First Trust Advisors LP now owns 14,987 shares of the company’s stock valued at $355,000 after acquiring an additional 782 shares during the last quarter. Finally, Marshall Wace LLP raised its holdings in CPI Card Group by 11.9% in the 2nd quarter. Marshall Wace LLP now owns 102,834 shares of the company’s stock valued at $2,439,000 after acquiring an additional 10,930 shares during the last quarter. 22.08% of the stock is owned by institutional investors and hedge funds.

CPI Card Group Company Profile

CPI Card Group, Inc (NASDAQ: PMTS) is a leading provider of payment, identification and related credential solutions for financial institutions, governments and private enterprises. The company specializes in the design, manufacturing and personalization of secure plastic and metal cards, including EMV chip, magnetic-stripe and contactless cards. CPI Card Group also offers digital credentialing services and cloud-based card management tools that enable real-time controls, mobile wallet integration, fraud monitoring and analytics.

With a focus on security and innovation, CPI Card Group integrates advanced features such as holograms, microprinting, RFID/NFC technology and laser-engraved artwork into its card products.