CPI Card | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 137.97 M

LB filings
2025.11.04 12:09
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Revenue: As of FY2025 Q3, the actual value is USD 137.97 M, missing the estimate of USD 140.62 M.

EPS: As of FY2025 Q3, the actual value is USD 0.19, missing the estimate of USD 0.4533.

EBIT: As of FY2025 Q3, the actual value is USD 12.49 M.

Debit and Credit Segment

  • Net Sales: Increased by 15.6% to $115.3 million for the three months ended September 30, 2025, and by 13.8% to $322.5 million for the nine months ended September 30, 2025, primarily due to increased product sales, including contributions from the Arroweye acquisition and increased Card@Once printer sales.
  • Gross Profit: Decreased by 6.1% to $33.9 million for the three months ended September 30, 2025, and by 1.9% to $99.8 million for the nine months ended September 30, 2025, due to negative sales mix and increased production costs.
  • Income from Operations: Decreased by 21.3% to $21.3 million for the three months ended September 30, 2025, and by 12.2% to $66.0 million for the nine months ended September 30, 2025, primarily due to decreased gross profit and increased operating expenses.

Prepaid Debit Segment

  • Net Sales: Decreased by 7.3% to $23.3 million for the three months ended September 30, 2025, and by 5.4% to $69.3 million for the nine months ended September 30, 2025, primarily due to decreased sales from existing customers and a change in accounting resulting in reduced revenue recognition for work-in-process orders.
  • Gross Profit: Decreased by 17.7% to $7.0 million for the three months ended September 30, 2025, and by 18.1% to $22.0 million for the nine months ended September 30, 2025, primarily due to decreased net sales and changes in accounting.
  • Income from Operations: Decreased by 17.3% to $5.9 million for the three months ended September 30, 2025, and by 20.7% to $18.1 million for the nine months ended September 30, 2025.

Other Segment

  • Operating Expenses: Decreased by 13.5% to $14.1 million for the three months ended September 30, 2025, and by 6.9% to $47.5 million for the nine months ended September 30, 2025, primarily due to decreased compensation-related expenses and executive severance, partially offset by increased professional service fees related to the acquisition of Arroweye.

Cash Flow

  • Operating Cash Flow: Increased to $19.9 million for the nine months ended September 30, 2025, from $16.7 million for the same period in 2024, primarily due to reduced working capital usage.
  • Investing Activities: Cash used in investing activities was $56.2 million for the nine months ended September 30, 2025, primarily due to the acquisition of Arroweye and capital expenditures.

Future Outlook and Strategy

  • Core Business Focus: The company plans to continue leveraging the Arroweye acquisition to enhance its product offerings and expand its market presence in the Debit and Credit segment. The focus will be on increasing sales of contactless and eco-focused cards, as well as expanding digital services.
  • Non-Core Business: The company acquired a 20% equity interest in Karta, a digital card technology company, to explore new market opportunities and enhance its technological capabilities.
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