PMTS earnings analysis
What we found in PMTS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CPI Card Group reported a strong Q1 2026 with revenues of $147.1 million, reflecting a 19.8% increase year-over-year, largely driven by the Secure Card Solutions segment. Despite robust sales, EPS of $0.17 fell short of expectations by $0.20 due to integration costs and increased production expenses. Management remains optimistic about high single-digit revenue growth for 2026, even as profitability faces pressure from rising costs and a shift in product mix.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Solid Revenue Growth
- Revenue increased by 19.8% to $147.1 million from $122.8 million in Q1 2025.
- Secure Card Solutions Surge
- Secure Card Solutions revenue grew 34.6%, contributing $109.9 million thanks to Arroweye acquisition benefits.
- Improved Cash Flow
- Operating cash flow rose to $13.6 million from $5.6 million year-over-year, a significant increase.
- Maintained Liquidity
- Cash and cash equivalents totaled $19.3 million, with a $100 million available line under ABL Revolver.
- Segment Performance Diversity
- Integrated Paytech revenue remained stable, showing resilience with a slight increase of 0.7%.
- Cost Management Efforts
- Management's focus on operational efficiencies helped offset some rising production costs.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Integration Costs Impact
- Integration expenses from the Arroweye acquisition negatively affected EPS, resulting in lower net income of $2.1 million.
- Falling Prepaid Solutions Revenue
- Prepaid Solutions revenue declined 17.5% to $22.0 million, impacting overall segment performance.
- Increased Production Expenses
- Higher production costs, including tariffs and depreciation, pressured gross margins, which fell to 30.0% from 33.2%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.17
- Gross margin
- 30.0%
- Operating margin
- 7.5%
- Segment
- Secure Card Solutions
- Segment
- Prepaid Solutions
- Segment
- Integrated Paytech
What they said about what is next.
Management anticipates high single-digit revenue growth and low-to-mid single-digit adjusted EBITDA growth for 2026.
The filing reads worse than the one before it.
What came before.
- 10-K · March 5, 2026
- CPI reported full-year 2025 revenue of $543.5M, up 13.1% versus 2024, driven primarily by the May 6, 2025 Arroweye acquisition (contribution of $42.8M) and higher contactless/Card@Once volumes. Profitability compressed:…
- 10-Q · May 7, 2025
- CPI Card Group reported Q1 2025 revenue of $122.761M, up $10.825M (9.7%) versus Q1 2024, driven by Products sales. Gross profit was $40.696M and operating income was $14.104M, but higher interest expense reduced net…
- 10-Q · May 7, 2024
- CPI Card Group reported Q1 net sales of $111,936,000 and diluted EPS of $0.46 for the quarter ended March 31, 2024. Revenue and net income both declined versus the prior-year quarter (net sales down from $120,852,000…
- 10-K · March 7, 2024
- CPI Card Group (PMTS) reports 2023 net sales of $444.5M, down 6.6% from $475.7M in 2022, with net income of $23.985M (down 34.4%) and diluted EPS of $2.01 (2023 vs $3.11 in 2022). The company emphasizes a leading U.S.…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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