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Dec 31, 2025
CPI Card Group Q4 2025 Earnings Report
CPI Card Group reported record fourth quarter revenue and solid full year 2025 results, driven by the Arroweye acquisition and contactless card growth.
Key Takeaways
CPI Card Group achieved record Q4 revenue of $153.1 million, a 22% increase year-over-year, primarily fueled by the acquisition of Arroweye and strong demand for contactless cards. While net income grew 9% in the quarter, full-year profitability was impacted by acquisition and integration costs. The company introduced a new operating structure for 2026 and provided guidance for high single-digit revenue growth.
Q4 revenue reached a record $153.1 million, up 22% year-over-year, driven by the Debit and Credit segment.
Adjusted EBITDA for Q4 increased 34% to $29.4 million, reflecting strong operating leverage.
The acquisition of Arroweye contributed $18 million to Q4 revenue and $43 million for the full year.
A new three-segment operating structure (Secure Card Solutions, Prepaid Solutions, and Integrated Paytech) will be implemented in 2026.
Revenue by Segment
Forward Guidance
CPI Card Group expects growth across its portfolio in 2026, led by the Integrated Paytech segment.
Positive Outlook
- High single-digit revenue growth projected for 2026.
- Targeting greater than 15% revenue growth in the Integrated Paytech segment.
- Free Cash Flow conversion expected to be similar to 2025 levels.
- Anticipated cost savings activities to benefit Adjusted EBITDA.
- Strong long-term growth trends for the U.S. card market.
Challenges Ahead
- Low-to-mid single-digit Adjusted EBITDA growth, lagging revenue growth.
- Approximately $4 million in incremental costs for technology and market penetration.
- Expected $6 million in tariff expenses.
- Unfavorable sales mix impacting margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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