NASDAQ$PMTS
CPI Card Group Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
CPI Card Group's financial performance in Q2 2023 showed resilience with a slight revenue increase and significant profitability growth.
CPI Card Group Inc. reported a 1% increase in net sales to $115 million for Q2 2023. Net income rose by 6% to $6.5 million, and Adjusted EBITDA increased by 18% to $23.3 million, driven by reduced operating expenses. The company has updated its full-year net sales outlook for 2023 to a range of flat to low single-digit growth and affirmed its outlook for mid-to-high single-digit Adjusted EBITDA growth, as well as its projections for Free Cash Flow to more than double and the year-end Net Leverage Ratio to improve to between 2.5x and 3.0x.
- Net sales increased by 1% to $115 million, driven by Prepaid Debit growth offset by Debit and Credit slight decline.
- Net income increased by 6% to $6.5 million, driven by reduced operating expenses.
- Adjusted EBITDA increased by 18% to $23.3 million, driven by reduced operating expenses.
- Company updated its full-year net sales outlook for 2023 to flat to low single-digit growth and affirmed Adjusted EBITDA growth outlook.
Headline financials
Revenue & EPS history
CPI Card Group · Revenue · Quarterly
$115M
Revenue by segment
CPI Card Group · $115M total across 2 segments · Q2 2023
- Debit and Credit$93.2M-1.1%81.0%
- Prepaid Debit$21.8M+13.5%19.0%
Forward guidance
The Company updated its full-year net sales outlook for 2023 to a range of flat to low single-digit growth and affirmed its outlook for mid-to-high single-digit Adjusted EBITDA growth, as well as its projections for Free Cash Flow to more than double and the year-end Net Leverage Ratio to improve to between 2.5x and 3.0x.
Tailwinds
- Affirmed outlook for mid-to-high single-digit Adjusted EBITDA growth.
- Projecting Free Cash Flow to more than double.
- Expecting year-end Net Leverage Ratio to improve to between 2.5x and 3.0x.
- Confident in long-term secular trends for the U.S. market.
- Supported by reoccurring nature of the business, ongoing strong card issuance.
Headwinds
- Updated full-year net sales outlook to flat to low single-digit growth.
- Previous outlook for net sales was mid-single digit growth.
- Sales outlook change reflects softness in customer demand in the Debit and Credit segment.
- Expecting third quarter sales and Adjusted EBITDA to decline.
- Debit and Credit segment sales are being negatively impacted by cautious spending and utilization of existing inventory by certain customers in the banking industry.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2023
-2.1%
Avg return
Earnings day
+0.7%
Avg return
5 days after
+9.6%
Avg return
30 days after
47%
21 / 45 earnings
Positive
+41.3%
Q4 2025
Best reaction
-48.9%
Q1 2016
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -6.5% | -8.8% | +3.7% | |
| Q4 2025 | +41.3% | +26.6% | +23.4% | |
| Q3 2025 | -20.3% | -21.3% | -18.5% | |
| Q1 2025 | +4.5% | -14.1% | -4.0% | |
| Q4 2024 | -6.7% | -11.6% | -16.8% | |
| Q3 2024 | +18.9% | +23.8% | +45.3% | |
| Q2 2024 | -10.8% | -1.8% | +1.2% | |
| Q1 2024 | +16.1% | +19.9% | +52.3% | |
| Q4 2023 | -18.8% | +2.4% | +0.8% | |
| Q3 2023 | -15.4% | -14.0% | +8.8% | |
| Q2 2023 | -3.8% | -4.2% | -15.0% | |
| Q1 2023 | -34.1% | -34.9% | -43.0% | |
| Q4 2022 | +20.7% | +9.0% | +28.5% | |
| Q3 2022 | +21.8% | +17.6% | +11.6% | |
| Q2 2022 | +7.0% | +10.8% | +4.3% | |
| Q1 2022 | +31.8% | +37.4% | +54.3% | |
| Q4 2021 | -5.7% | -0.6% | +17.2% | |
| Q3 2021 | -28.0% | -19.4% | -34.6% | |
| Q2 2021 | +0.3% | +20.6% | +76.0% | |
| Q1 2021 | +1.7% | +3.4% | +7.2% | |
| Q4 2020 | +40.1% | +28.5% | +102.3% | |
| Q3 2020 | +38.9% | +54.1% | +45.6% | |
| Q2 2020 | -23.6% | -28.8% | -43.0% | |
| Q1 2020 | +29.2% | +30.9% | +192.4% | |
| Q4 2019 | -1.9% | +10.1% | -19.0% | |
| Q3 2019 | -1.9% | -8.0% | -40.1% | |
| Q2 2019 | -3.7% | -3.3% | +21.7% | |
| Q1 2019 | +6.3% | +6.9% | +15.1% | |
| Q4 2018 | -1.9% | -3.7% | -12.7% | |
| Q3 2018 | -5.0% | -5.0% | -3.0% | |
| Q2 2018 | +18.0% | +14.7% | +61.6% | |
| Q1 2018 | -11.8% | -2.8% | +10.2% | |
| Q4 2017 | +1.6% | +0.3% | -19.8% | |
| Q3 2017 | -8.0% | -15.6% | -25.9% | |
| Q2 2017 | -42.9% | -60.7% | -65.7% | |
| Q1 2017 | -25.0% | -22.9% | -40.0% | |
| Q4 2016 | +4.4% | +0.0% | -6.7% | |
| Q3 2016 | -21.3% | -19.1% | -25.5% | |
| Q2 2016 | +3.6% | +8.8% | +25.0% | |
| Q1 2015 | -47.4% | — | — | |
| Q1 2016 | -48.9% | — | — | |
| Q2 2015 | +2.7% | — | — | |
| Q4 2015 | +1.4% | — | — | |
| Q3 2014 | +0.2% | — | — | |
| Q3 2015 | -11.3% | — | — | |
| Q4 2014 | — | — | — | |
| Q2 2014 | — | — | — | |
| Q1 2014 | — | — | — |
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