CPI Card Group Reports $480.6 Million Revenue for Fiscal Year 2024, Driven by Service Revenue Growth

CPI Card Group Inc. reported a total revenue of $480.6 million for the fiscal year ending December 31, 2024, marking an 8.1% increase from $444.5 million in 2023. The growth was primarily driven by an 18.1% rise in service revenues, which reached $230.6 million, while product sales remained relatively stable at $250 million. The company's gross profit also saw an increase, rising to $171.2 million from $155.5 million, resulting in a gross profit margin of 35.6%, up from 35.0% in the previous year. However, net income decreased by 18.6% to $19.5 million, down from $24 million in 2023, largely due to increased interest expenses and a loss on debt extinguishment.

In terms of operational changes, CPI Card Group has made significant strides in expanding its service offerings, particularly in the Prepaid Debit segment, which experienced a 26.5% increase in net sales to $106.5 million. This growth was attributed to higher sales of packaging solutions and healthcare payment cards. The company also reported an increase in its customer base, with over 16,000 installations of its Card@Once® instant issuance solution, up from approximately 11,000 in 2019. This reflects a strategic focus on enhancing customer engagement and expanding into non-traditional markets, including healthcare and gig economy sectors.

CPI Card Group's financial position has been bolstered by a refinancing of its debt, which included the issuance of $285 million in 10% Senior Secured Notes due 2029. This move allowed the company to redeem its previous 2026 Senior Notes and manage its interest expenses more effectively. As of December 31, 2024, the company reported total long-term debt of $280.4 million, an increase from $265 million in 2023. The company also maintained a strong liquidity position with $33.5 million in cash and cash equivalents, alongside a $72.8 million available borrowing capacity under its revolving credit facility.

Looking ahead, CPI Card Group expressed optimism about its growth trajectory, emphasizing its commitment to innovation and customer service. The company plans to continue diversifying its product offerings and expanding its market reach, particularly in digital solutions and eco-focused products. However, it acknowledged potential challenges, including economic uncertainties and supply chain disruptions, which could impact future performance. The company remains focused on maintaining operational efficiencies and enhancing its competitive position in the payments technology sector.