NASDAQ$PMTS

CPI Card Group Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

CPI Card Group reported strong growth in net sales and adjusted EBITDA, but net income decreased due to debt refinancing costs.

CPI Card Group Inc. reported an 18% increase in third-quarter net sales, reaching $124.8 million, driven by growth in both Debit and Credit and Prepaid segments. Net income decreased 66% to $1.3 million due to debt refinancing costs, while Adjusted EBITDA increased 18% to $25.1 million.

  • Net sales increased 18% year-over-year to $124.8 million.
  • Debit and Credit segment net sales increased 19% to $99.8 million.
  • Prepaid Debit segment net sales increased 13% to $25.2 million.
  • Net income decreased 66% to $1.3 million due to pre-tax debt refinancing costs.

Headline financials

Total Revenue

$125M

Previous: $106M+17.8%
EPS

$0.11

Previous: $0.33-66.7%
Adjusted EBITDA

$25.1M

No prior period
Adjusted EBITDA Margin

20.1%

No prior period
Net Income Margin

1.0%

No prior period
Gross Profit Margin

35.8%

Previous: 34.1%+5.0%
Capital Expenditures

-$4.2M

Previous: -$6.08M+30.9%
Free Cash Flow

-$2.91M

Previous: -$2.22M-31.0%
Net Income

$1.29M

Previous: $3.86M-66.5%
Operating Income

$17.8M

Previous: $13M+37.3%
Gross Profit

$44.7M

Previous: $36.2M+23.6%
Cash & Equivalents

$14.7M

Previous: $10.5M+39.9%
Total Assets

$342M

Previous: $292M+17.2%
Stock-Based Comp

$1.78M

Previous: $2.6M-31.5%

Revenue & EPS history

CPI Card Group · Revenue · Quarterly

$125M

Q3 2024+17.8%vs Q3 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

CPI Card Group · $106M total across 2 segments · Q3 2023

  • Debit and Credit
    $83.8M-15.8%
  • Prepaid Debit
    $22.3M-12.0%

Forward guidance

The Company updated its outlook for 2024 to mid-to-high single-digit net sales growth and low single-digit Adjusted EBITDA growth.

Tailwinds

  • Net sales growth expected to be in the mid-to-high single-digit range.
  • Adjusted EBITDA growth expected to be in the low single-digit range.
  • Free Cash Flow outlook updated to be slightly below the 2023 level.
  • Working capital improvements expected.
  • Lower expected capital spending anticipated.

Headwinds

  • Guidance is an estimate and subjected to change
  • Unclear how the foreign conflicts will impact the company
  • Future events that either cannot be controlled or cannot be reliably predicted because they are not part of the Company’s routine activities, any of which could be significant.
  • Failure to maintain effective internal control over financial reporting
  • Potential liabilities associated with compliance or failure to comply with regulations

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 Q3 2024

Historical avgQ3 2024

-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

Earnings price reactions
QuarterReport dateReaction (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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