Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q1 2025 Earnings Presentation
18 slides from Cpi Card's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025 Investor Presentation
First Quarter 2025 Investor Presentation May 7, 2025
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statements Certain statements and information in this presentation (as well as information included in other written or oral statements we make from time to time) may contain or constitute “forward-looking statements” within the meaning of the Private Securities
Slide 3: Agenda
Agenda 1 Overview and Strategy 2 Q1 Financial Review 3 2025 Outlook 4 Summary CPI Confidential and Proprietary | Not for distribution 3
Slide 4: Overview
Overview Strong customer demand in Q1; sales mix impacted margins ▪ Strong growth from contactless debit and credit cards ▪ Continued growth in Prepaid Arroweye acquisition enhances CPI portfolio 2025 full-year sales and Adjusted EBITDA¹ outlook affirmed ▪ Demand strong, although some uncertainty in
Slide 5: Strategy Review
Strategy Review Vision: To be the most trusted partner for innovative payment technology solutions Strategic Pillars ▪ Customer focus ▪ Quality and efficiency ▪ Innovation and diversification ▪ People and culture Innovation and Diversification: Expand Addressable Markets ▪ Leverage technology connec
Slide 6: Arroweye Acquisition
Arroweye Acquisition CPI acquired Arroweye Solutions, Inc. on May 6, 2025 ▪ A leading provider of digitally-driven on-demand payment card solutions for the U.S. market ▪ State-of-the-art production facility in Las Vegas ▪ Purchase price of $45.55 million; all-cash transaction Complements CPI’s portf
Slide 7: 2025 Q1 Financial Review
2025 Q1 Financial Review CPI Confidential and Proprietary | Not for distribution 7
Slide 8: Q1 Highlights
Q1 Highlights Strong sales growth in debit and credit cards and Prepaid; sales mix impacted margins as expected; investment in new production facility ▪ Q1 net sales increased 10% to $122.8 million ▪ Gross margin decreased from 37.1% to 33.2% ▪ Net income decreased 12% to $4.8 million due to lower g
Slide 9: First Quarter Financial Highlights
First Quarter Financial Highlights (in millions, except per share data) Q1 25 Q1 24 % Change Commentary Net Sales $ 122.8 $ 111.9 10% • Net sales increase driven primarily by strong growth from contactless debit and credit cards and Prepaid Gross Profit $ 40.7 $ 41.5 -2% • Gross margin decrease driv
Slide 10: Financial Highlights - Segments
Financial Highlights - Segments ($ in millions) Debit and Credit Q1 Net Sales & Operating Income $22.8 $21.7 $94.2 $93.2 $88.0 $94.2 $96.5 $93.2 25.9% 22.5% 24.0% 29.8% 26.9% 26.9% 2024 2025 2024 2025 Net Sales Operating Income & Margin Prepaid Debit Q1 Net Sales & Operating Income $8.7 $8.0 $15.9 $
Slide 11: Balance Sheet, Liquidity, Net Leverage and Cash Flow
Balance Sheet, Liquidity, Net Leverage and Cash Flow $ in millions Mar. 31, Dec. 31, Balance Sheet, Liquidity and Net Leverage Ratio Our capital structure and allocation strategies are 2025 2024 focused on: Cash on hand $ 31.5 $ 33.5 1. Investing in the business, including strategic acquisitions 1 A
Slide 12: Visa and Mastercard U.S. Cards in Circulation
Visa and Mastercard U.S. Cards in Circulation Cards in circulation have grown at a 9% CAGR over the last three years to 2.2 billion, up from 1.7 billion 2,151 2,199 2,085 2,109 2,048 1,978 2,008 1,885 1,914 1,829 1,758 1,783 1,714 793 785 760 762 751 725 739 679 693 674 645 656 636 1,347 1,366 1,406
Slide 13: 2025 Outlook
2025 Outlook Net Sales and Adjusted EBITDA outlooks affirmed, dependent on stable economic and tariff environment Full-year outlook 2025 (excludes Arroweye acquisition) ▪ Mid-to-high single-digit increase in net sales ▪ Mid-to-high single-digit increase in Adjusted EBITDA¹ Long-term growth trends re
Slide 14: Summary
Summary Q1 sales strong; margins impacted by mix ▪ Strong demand for debit and credit cards ▪ Continued growth from Prepaid Net sales and Adjusted EBITDA outlooks for 2025 affirmed ▪ Customer demand remains strong ▪ Cost savings activities implemented to respond to projected tariff costs and first h
Slide 15: Contact
Contact (877) 369-9016 investorrelations@cpicardgroup.com www.cpicardgroup.com 15
Slide 16: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin EBITDA represents earnings before interest, taxes, depreciation and Three Months Ended March 31, amortization, all on a continuing operations basis. Adjusted EBITDA is 2025 2024 presented on a continuing operat
Slide 17: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures LTM Adjusted EBITDA Last Twelve Months Ended We define LTM Adjusted EBITDA as adjusted EBITDA March 31, 2025 December 31, 2024 (defined previously) for the last twelve months. ($ in millions) Reconciliation of net income to LTM EBITDA and Adjusted EBITD
Slide 18: Supplemental Financial Measures
Supplemental Financial Measures Net Leverage Ratio Management and various investors use the ratio of debt As of principal outstanding, plus finance lease obligations, less March 31, 2025 December 31, 2024 cash divided by LTM Adjusted EBITDA, or “Net Leverage Calculation of Net Leverage Ratio: ($ in