Q2 2026 CPI Card Group Inc Earnings Call Transcript
Key Points
- CPI Card Group Inc (PMTS) delivered strong Q2 2026 results with 15% revenue growth and record first-half free cash flow of $36 million.
- The company raised its full-year 2026 revenue growth and free cash flow guidance, reflecting confidence in continued momentum.
- CPI Card Group Inc (PMTS) completed the strategic acquisition of TRISM, expanding its instant issuance market presence and boosting Integrated Paytech growth to approximately 20%.
- The company reduced net leverage to 2.7 times and redeemed $26.5 million of senior notes, strengthening its balance sheet.
- CPI Card Group Inc (PMTS) achieved strong organic growth of 12% in Q2, driven by Secure Card Solutions, and secured 25 new customer wins for Arroweye since its acquisition.
- Prepaid Solutions segment experienced market choppiness and slower-than-expected recovery, with softness expected to continue into late 2026.
- Adjusted EBITDA growth was modest at 7% in Q2, impacted by unfavorable segment mix due to lower-margin Secure Card Solutions growth offsetting higher-margin prepaid softness.
- SG&A expenses increased to $37 million in Q2, driven by Arroweye integration costs and investments in digital and technology, impacting net income.
- Integrated Paytech segment revenue growth was only 4% in Q2, with significant acceleration required in the second half to meet the 20% full-year guidance.
- The company expects continued choppiness in prepaid demand, with high comparables from Q4 2025 and uncertainty in the open-loop market.
Welcome to CPI's second quarter 2026 earnings call. My name is Alexandra and I will be your operator today. (Operator Instructions)
Now I would like to turn the call over to Davis Barker, Head of Investor Relations.
Thank you, operator. Welcome to CPI's second quarter and first half 2026 earnings call. As a brief introduction, I recently joined the CPI team and I'm incredibly excited to partner with CPI's leadership to share our compelling story with the investment community. Joining me on the call today are John Lowe, President and Chief Executive Officer; and Terra Grantham, Chief Financial Officer.
Before we begin on slide 2, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For a discussion of such
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