CPI Card Group Q3 revenue beats estimates on higher volume of contactless cards

Overview

• U.S. payments tech firm's Q3 revenue rose 15%, beating analyst expectations

• Q3 net income more than doubled but missed analyst estimates

• Company raised 2026 revenue growth and free cash flow guidance

Outlook

• CPI raises 2026 revenue growth outlook to low-double-digit percentage increase

• Company now expects 2026 Free Cash Flow of $50 mln to $55 mln, up from $45 mln to $50 mln

• CPI continues to expect 2026 Adjusted EBITDA growth in the low-to-mid single-digit range

Result Drivers

• SEGMENT GROWTH - Co said revenue growth was driven by double-digit increases across Secure Card Solutions, Prepaid Solutions, and Integrated Paytech segments

• SECURE CARD DEMAND - Secure Card Solutions revenue rose 13% due to higher volumes of contactless cards

• PREPAID SOLUTIONS MIX - Prepaid Solutions revenue rose 15% on higher sales of closed loop prepaid payment solutions and healthy volumes of higher-value open loop packages

• INTEGRATED PAYTECH CONTRIBUTION - Integrated Paytech revenue rose 20%, helped by the TRISM acquisition and growth in cloud-based solutions

• GROSS MARGIN EXPANSION - Gross profit margin improved, supported by better margins in Secure Card and Prepaid Solutions and growth in higher-margin Integrated Paytech

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy"

• Wall Street's median 12-month price target for CPI Card Group Inc is $33.00, about 33.7% above its November 3 closing price of $24.69

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

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• Nov 3 - Fiserv Q3 adjusted EPS beats, revenue slightly tops estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)