CPI Card Group Inc. reported third‑quarter 2025 results showing net sales of $138.0 million, up 11% from $124.8 million in Q3 2024, and net income of $2.3 million, a 78% increase from $1.3 million a year earlier. Adjusted EBITDA fell 7% to $23.4 million, and the gross profit margin slipped to 29.7% from 35.8% a year earlier. The company’s diluted earnings per share were $0.04, missing the consensus estimate of $0.63.
The revenue growth was driven by the Arroweye Solutions acquisition, completed on May 6 2025 for $45.8 million, and the expansion of the Card@Once instant‑issuance platform, which now powers more than 17,000 installations across over 2,000 U.S. financial institutions. Segment data show Debit and Credit net sales increased 16% to $115.3 million, while Prepaid Debit net sales declined 7% to $23.3 million.
Margin pressure was intensified by tariff costs, higher depreciation, an unfavorable sales mix, and increased production costs, all of which contributed to the decline in gross margin and adjusted EBITDA. Management noted that debt‑retirement savings helped offset integration expenses, but the overall impact of the acquisition and integration costs weighed on profitability.
The company updated its 2025 outlook, projecting low‑double‑digit to low‑teens net‑sales growth and flat to low‑single‑digit adjusted‑EBITDA growth, a tightening from the prior guidance of low‑double‑digit to mid‑teens net‑sales growth and mid‑to‑high single‑digit adjusted‑EBITDA growth. Management emphasized continued focus on margin improvement, capital allocation, and reducing net leverage, and highlighted the strategic partnership with Karta, in which CPI acquired a 20% equity stake for $10 million to integrate SafeToBuy technology into its prepaid solutions.
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