CPI Card Group Inc. reported a 22% increase in fourth-quarter 2024 net sales to $125.1 million, contributing to an 8% full-year net sales increase to $480.6 million. The Prepaid segment showed exceptional performance, growing 26% for the year and exceeding $100 million in net sales, driven by demand for fraud prevention packaging and healthcare payment solutions.
For the full year, Adjusted EBITDA increased 3% to $91.9 million, while net income decreased 19% to $19.5 million, primarily due to $8.8 million in pre-tax debt refinancing costs incurred in the third quarter. Despite this, fourth-quarter net income more than doubled to $6.8 million, and the company generated strong free cash flow of $34.1 million for the full year.
Looking ahead to 2025, CPI projects mid-to-high single-digit net sales growth and mid-to-high single-digit Adjusted EBITDA growth, with an expectation to reduce net leverage by year-end. The company also highlighted the sale of over 350 million eco-focused card or packaging solutions since launch, and contactless cards now representing approximately 90% of its chip card volume in 2024.
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