CPI Card Group Inc. reported first-quarter 2025 net sales of $122.8 million, representing a 10% increase year-over-year. This growth was primarily driven by strong performance in contactless debit and credit cards, as well as continued expansion in prepaid card solutions.
However, profitability metrics showed a decline, with net income decreasing 12% to $4.8 million, or $0.40 diluted earnings per share, and Adjusted EBITDA falling 8% to $21.2 million. These reductions were attributed to an unfavorable sales mix, increased production costs, and higher interest expenses.
The company affirmed its 2025 outlook for mid-to-high single-digit organic growth in both net sales and Adjusted EBITDA, noting that this guidance does not yet include any contribution from the recently announced Arroweye acquisition. Free Cash Flow for the quarter was $0.3 million, down from $7.4 million in the prior year, largely due to increased capital expenditures for the new Indiana secure card production facility.
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