Cpi Card Group Inc. · NASDAQ:PMTS
Cpi Card — Q2 2025 Earnings Presentation
21 slides from Cpi Card's earnings presentation, Aug 8, 2025
Slide 1: Second Quarter 2025 Investor Presentation
Second Quarter 2025 Investor Presentation August 8, 2025
Slide 2: Cautionary Statements
2 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 Securiti
Slide 3: Agenda
3 Agenda Overview and Strategy Q2 Financial Review 2025 Outlook Summary 1 2 3 4
Slide 4: Overview
Overview 4 Core business performing well Secure card Card@Once® instant issuance Prepaid solutions Arroweye off to strong start Margin pressures from sales mix and increased production costs, including tariffs 2025 full-year sales and Adjusted EBITDA¹ outlook updated Net sales outlook range increase
Slide 5: Strategy Review
Strategy Review 5 The Contactless Indicator mark, consisting of four graduating arcs, is a trademark owned by and used with permission of EMVCo, LLC. Strategic Pillars Customer focus Quality and efficiency Innovation and diversification People and culture Expand Addressable Markets Leverage technolo
Slide 6: Strategy: Arroweye
6 Strategy: Arroweye Opportunities for CPI + Arroweye Complementary businesses Arroweye digitally-driven, all-in-one delivery process targets diverse use cases vs. CPI primary focus on debit and credit payment cards for financial institutions Arroweye serves prepaid program managers, payroll-related
Slide 7: Strategy: Key Investments to Enhance Long-term Growth
Strategy: Key Investments to Enhance Long-term Growth 7 Beginning to realize benefits from investment spending Card@Once® instant issuance Entry into closed-loop prepaid packages market in U.S. Expanded healthcare payment card solutions Growing interest in other digital solutions Sales of metal card
Slide 8: Financial Review
2025 Q2 Financial Review €ecpi.
Slide 9: Q2 Highlights
Q2 Highlights 9 Solid sales growth from debit and credit card solutions portfolio; Arroweye acquisition completed; gross margins pressured Q2 net sales increased 9% to $129.8 million Sales increased 15% excluding the impact of accounting change affecting revenue recognition for work-in-process ord
Slide 10: Impact of Accounting Change
Impact of Accounting Change 10 Under new point-in-time revenue recognition, the Company did not recognize revenue for work-in-process orders in the second quarter, impacting Q2 results and comparisons, primarily in the Prepaid Debit segment.
Slide 11: Second Quarter Financial Highlights
Second Quarter Financial Highlights 11 1) Adjusted EBITDA and Adjusted EBITDA margin are not measurements of financial performance prepared in accordance with GAAP. See “Reconciliations of Non-GAAP Financial Measures” at the end of this document for more information and reconciliations to the most d
Slide 12: First Half Financial Highlights
First Half Financial Highlights 12 1) Adjusted EBITDA and Adjusted EBITDA margin are not measurements of financial performance prepared in accordance with GAAP. See “Reconciliations of Non-GAAP Financial Measures” at the end of this document for more information and reconciliations to the most direc
Slide 13: Financial Highlights - Segments
Financial Highlights - Segments Debit and Credit Q2 Net Sales & Operating Income Q2 Net Sales & Operating Income Prepaid Debit ($ in millions) 24.0% 29.8% Operating Income & Margin Net Sales 37.0% 27.7% Operating Income & Margin $20.4 $19.2 $15.9 $22.1 24.3% 23.4% Net Sales $94.2 $93.2 $93.2 $94.2 2
Slide 14: Balance Sheet, Liquidity, Net Leverage and Cash Flow
Balance Sheet, Liquidity, Net Leverage and Cash Flow 14 $ in millions 2025 Highlights: Completed Arroweye acquisition for a purchase price of $45.6 million in May Ongoing investment in new Indiana secure card production facility to expand capacity and increase capabilities Redeemed $20 million of 10
Slide 15: Visa and Mastercard U.S. Cards in Circulation
1,113 1,127 1,155 1,206 1,221 1,253 1,269 1,298 1,325 1,347 1,366 1,387 1,404 645 656 674 679 693 725 739 753 763 766 792 793 807 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Debit Credit 15 2,051 2,088 2,113 2,158 2,180 1,758 2,211 1,783 1,829 1,885 1,914 1,978 2,00
Slide 16: 2025 Outlook
2025 Outlook 16 Net Sales and Adjusted EBITDA outlooks updated; changes from previous outlook primarily reflect addition of Arroweye, increased tariffs, and unfavorable sales mix Full-year outlook 2025 Net Sales: low double-digit to mid-teens increase (previously mid-to-high single-digit increase)
Slide 17: Summary
Summary 17 Core businesses performing; Arroweye off to strong start Net sales and Adjusted EBITDA outlook for 2025 updated Organic sales growth on track with prior outlook Long-term secular trends remain intact CPI well-positioned with innovative and high-quality solutions and strong customer focus
Slide 18: Contact
Contact (877) 369-9016 investorrelations@cpicardgroup.com www.cpicardgroup.com 18
Slide 19: Reconciliations of Non-GAAP Financial Measures: Adjusted EBITDA
Reconciliations of Non-GAAP Financial Measures 19 Adjusted EBITDA and Adjusted EBITDA Margin EBITDA represents earnings before interest, taxes, depreciation and amortization, all on a continuing operations basis. Adjusted EBITDA is presented on a continuing operations basis and is defined as EBITDA
Slide 20: Reconciliations of Non-GAAP Financial Measures: LTM Adjusted EBITDA
Reconciliations of Non-GAAP Financial Measures 20 LTM Adjusted EBITDA We define LTM Adjusted EBITDA as adjusted EBITDA (defined previously) for the last twelve months. Free Cash Flow We define Free Cash Flow as cash flow from operating activities less capital expenditures. We use this metric in anal
Slide 21: Supplemental Financial Measures
Supplemental Financial Measures 21 Net Leverage Ratio Management and various investors use the ratio of debt principal outstanding, plus finance lease obligations, less cash divided by LTM Adjusted EBITDA, or “Net Leverage Ratio,” as a measure of our financial strength when making key investment dec