CPI Card | 10-Q: FY2025 Q2 Revenue Misses Estimate at USD 129.75 M

LB filings
2025.08.08 11:16
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Revenue: As of FY2025 Q2, the actual value is USD 129.75 M, missing the estimate of USD 132.96 M.

EPS: As of FY2025 Q2, the actual value is USD 0.04, missing the estimate of USD 0.5025.

EBIT: As of FY2025 Q2, the actual value is USD 9.423 M, missing the estimate of USD 16.45 M.

Debit and Credit Segment

  • Net Sales: Increased by 15.8% to $110,757,000 for the three months ended June 30, 2025, and by 12.9% to $207,277,000 for the six months ended June 30, 2025, primarily due to increased Products net sales, including contributions from the Arroweye acquisition.
  • Gross Profit: Increased by 1.4% to $34,649,000 for the three months ended June 30, 2025, and by 0.4% to $65,903,000 for the six months ended June 30, 2025.
  • Income from Operations: Decreased by 9.2% to $23,053,000 for the three months ended June 30, 2025, and by 7.0% to $44,756,000 for the six months ended June 30, 2025, due to increased operating expenses.

Prepaid Debit Segment

  • Net Sales: Decreased by 19.3% to $19,222,000 for the three months ended June 30, 2025, and by 4.3% to $45,935,000 for the six months ended June 30, 2025, primarily due to a change in accounting resulting in reduced revenue recognition for work-in-process orders.
  • Gross Profit: Decreased by 33.5% to $5,471,000 for the three months ended June 30, 2025, and by 18.3% to $14,913,000 for the six months ended June 30, 2025.
  • Income from Operations: Decreased by 39.6% to $4,171,000 for the three months ended June 30, 2025, and by 22.3% to $12,170,000 for the six months ended June 30, 2025.

Other Segment

  • Operating Expenses: Increased by 2.4% to $17,801,000 for the three months ended June 30, 2025, and decreased by 3.9% to $33,399,000 for the six months ended June 30, 2025, primarily due to changes in professional service fees and compensation-related expenses.

Cash Flow

  • Operating Cash Flow: Increased to $9,937,000 for the six months ended June 30, 2025, from $4,108,000 for the same period in 2024, primarily due to reduced working capital usage.
  • Investing Activities: Cash used in investing activities was $51,504,000 for the six months ended June 30, 2025, primarily due to the acquisition of Arroweye and capital expenditures.
  • Financing Activities: Cash provided by financing activities was $25,147,000 for the six months ended June 30, 2025, primarily due to proceeds from borrowings on debt.

Future Outlook and Strategy

  • Core Business Focus: The company plans to continue leveraging the Arroweye acquisition to enhance its product offerings in the Debit and Credit segment, focusing on increasing sales of contactless and metal cards.
  • Non-Core Business: The company is evaluating the impact of macroeconomic factors such as tariffs and supply chain challenges, aiming to mitigate these through pricing actions and cost savings efforts.
Source: LB filings The copyright of this article belongs to the original author/organization.
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