CPI Card Q4 Revenue Up 22% to $153M on Arroweye Boost
CPI Card Q4 revenue rose 22% to $153 million, driven by $18 million Arroweye contribution and 20% organic growth in its debit and credit segment. Adjusted EBITDA jumped 34% to $29.4 million on operating cash flow of $59.5 million, while net leverage stood at 3.1x under a new three-segment structure.
1. Q4 Financial Highlights
CPI Card reported Q4 2025 revenue of $153 million, up 22% year over year, with adjusted EBITDA rising 34% to $29.4 million and margin expanding to 19.2%. Net income increased 9% to $7.4 million despite higher production costs and a 27% tax rate.
2. Segment Performance
Prepaid revenue declined 27% from the prior-year quarter but rose 4% sequentially, finishing 2025 down 3% when adjusted for an accounting change. The debit and credit segment, including Arroweye, delivered 40% revenue growth with 20% organic expansion driven by contactless cards, SaaS instant issuance and personalization services.
3. Cash Flow and Leverage
Operating cash flow climbed to $59.5 million from $43.3 million, generating $41 million in free cash flow. Capital expenditures reached $18 million on a new Indiana facility, and year-end net leverage stood at 3.1x with a 2026 target of 2.5–3.0x.
4. Strategic Updates and Guidance
Beginning Q1 2026, reporting will shift to three segments: Secure Card Solutions, Prepaid Solutions and Integrated PayTech, with Integrated PayTech already contributing over 20% of profitability at ~40% EBITDA margin. The company guides to high single-digit revenue growth and low- to mid-single-digit EBITDA growth while absorbing $4 million of tech spending and $6 million of tariffs.