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CPI Card Group Inc

CPI Card Group Inc

PMTS
$22.50USD↓-16.48%-4.44 today

MARKET CAP

259.4M

P/E (TTM)

22.3x

FWD P/E

—

DAY RANGE

$22 – $23

52W RANGE

$11
$31

AI Summary

Stalk
Sell NowMedium

Support failure below the $22.50 level on a large red candle signals loss of buyer absorption and potential acceleration of downside. Price has broken below the 9- and 20-day EMAs with strong momentum, favoring immediate sell-side engagement. While the long-term trend remains up, failure to reclaim the broken support and EMAs would confirm a medium-term bearish shift.

  • ↑Revenue up 15% YoY to $149M in Q2 2026
  • ↑Gross margin expanded to 32.5% from 30.9% YoY
  • ↓Prepaid market remains choppy with slower-than-anticipated recovery
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

CPI Card Group Inc. (NASDAQ: PMTS) is a leading provider of secure payment card solutions, focusing on prepaid and chip-embedded technologies. Positioned as a key player in the prepaid market, CPI has secured partnerships with major prepaid program managers in the U.S., enhancing its competitive edge in both traditional and innovative payment solutions. With a commitment to evolving its product offerings, the company aims to drive growth amidst the increasing demand for secure and fraud-resistant payment technologies.

Bull says

  • ↑Revenue up 15% YoY to $149M in Q2 2026
  • ↑Gross margin expanded to 32.5% from 30.9% YoY
  • ↑Free cash flow totaled $36M in H1 2026 on lower working capital
  • ↑TRISM acquisition doubles instant-issuance market opportunity
  • ↑High earnings yield indicates attractive valuation
  • ↑Chip-embedded and closed-loop focus taps a large growth market

Bear says

  • ↓Prepaid market remains choppy with slower-than-anticipated recovery
  • ↓SG&A costs rose to $37M from $31M YoY, weighing on profits
  • ↓Unfavorable segment mix and inflation-driven costs could shrink margins
  • ↓Negative profitability factors signal challenges in converting revenue
  • ↓Weak momentum factors reflect near-term underperformance
  • ↓Volatile sector outlook risks revenue consistency into late 2026

Investment themes with PMTS

Technology Hardware↓ -1.58%

Manufacturers of computers, peripherals, and devices

SNDK · CRDO · CSCO

Earnings Call · Q4 2024 · Mgmt. Guidance

Updated 05-01-2026bullish

Transcript signals

Bull points

  • Net sales increased 22% in the fourth quarter, led by great performance from prepaid, as well as growth in debit and credit card volumes and personalization services.
  • Adjusted EBITDA increased 10% to $21.9 million, while adjusted EBITDA margins declined from 19.3% to 17.5%.
  • Adjusted EBITDA increased 10% to $21.9 million, while adjusted EBITDA margins declined from 19.3% to 17.5%.

Bear points

  • Net income for the full year decreased 19% to $19.5 million, with the reduction primarily due to the $8.8 million of pre-tax debt refinancing costs incurred in 2024 and increased SG&A, partially offset by sales growth, gross margin expansion, and a lower effective tax rate.
  • We expect our full-year 2025 free cash flow to be slightly below the 2024 level due to increased cash interest expense driven by the timing of our refinancing last year and higher rates and increased capital spending.
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