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0001641614FALSE00016416142026-08-062026-08-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2026
CPI CARD GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware
001-37584
26-0344657
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
CPI Card Group Inc.
10368 W. Centennial Road
Littleton, CO
 80127
(Address of principal executive offices)
(Zip Code)
(720) 681-6304
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.001 par value PMTS Nasdaq Global Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition
On August 6, 2026, CPI Card Group Inc. (the “Company”) issued a press release announcing financial results for its fiscal quarter ended June 30, 2026 (the “Earnings Release”). A copy of the Earnings Release is attached hereto as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure
In connection with the issuance of the Earnings Release, the Company is holding a public conference call on August 6, 2026, during which John Lowe, President and Chief Executive Officer, and Terra Grantham, Chief Financial Officer, will provide the presentation attached hereto as Exhibit 99.2. Information regarding access to the conference call and webcast is set forth in the Earnings Release.
Item 9.01 Financial Statements and Exhibits
Exhibit No. Description
99.1*
99.2*
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
*The information furnished under Item 2.02 and Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CPI Card Group Inc.
By: /s/ Darren Dragovich
Darren Dragovich
Chief Legal and Compliance Officer
Date: August 6, 2026

EX-99.1 2 pmts-20260630xex991.htm EX-99.1 Document

Exhibit 99.1
CPI Reports Strong Second Quarter 2026 Results
Date: August 6, 2026
Second Quarter Revenue Increased 15% to $149 Million
Net Income Increased 294% to $2 Million; Adjusted EBITDA Increased 7% to $24 Million
Record Cash Flow From Operations of $42 Million in the First Half; Net Leverage Ratio Down to 2.7x
Raising Revenue Growth and Free Cash Flow Guidance; Increasing IPT Revenue Guidance to 20%
Denver, Colo. August 6, 2026 -- CPI Card Group Inc. (Nasdaq: PMTS) (“CPI” or the “Company”), a payments technology leader providing a comprehensive range of physical and digital payment solutions for U.S. financial institutions, processors, fintechs, prepaid program managers and more, today reported financial results for the quarter ended June 30, 2026 and increased its 2026 financial guidance targets for revenue growth and Free Cash Flow, while affirming all other guidance targets.
CPI’s second quarter exceeded the Company’s expectations, increasing revenue 15% to $149 million, driven by strong performance in its Secure Card Solutions segment. Net income in the quarter increased 294% to more than $2 million and Adjusted EBITDA increased 7% to $24 million, primarily driven by Secure Card Solutions overperformance and the benefit of more than $3 million of tariff refunds, partially offset by uneven demand in our Prepaid Solutions segment. Strong performance in CPI's Secure Card Solutions segment is driving significant operating cash flow growth as higher volumes accelerate inventory optimization initiatives.
The Company further advanced its strategy of providing payment technology solutions that help its customers win, driven by three primary growth pillars that underpin CPI’s value proposition:
•A proprietary technology platform with a vast reach into the U.S. payments eco-system;
•A marketable base of thousands of deep and broad relationships across the U.S. payments market; and
•A proven track record of delivering evolving payment solutions that reflect changing market needs.
“Through the first six months of the year CPI generated double-digit revenue growth, strong Adjusted EBITDA growth and record Free Cash Flow, while continuing to gain share by investing in our long-term strategy of growth and diversification to help our customers win,” said John Lowe, President and Chief Executive Officer. "The acquisition of TRISM is an excellent example of how we continue to execute on our strategy and grow our addressable market and solutions with strong profitability and growth potential. With the TRISM acquisition, we believe we have doubled our addressable market in U.S. instant issuance and are now the clear leader."
CPI today also increased its financial guidance for revenue and Free Cash Flow for 2026. The Company now projects high-single-digit to low-double-digit revenue growth, up from previous guidance of high-single-digit growth, and Free Cash Flow ranging from $45 million to $50 million, up from a conversion rate in-line with 2025 results of $41 million. All other financial guidance targets including low-to-mid single-digit Adjusted EBITDA growth and a Net Leverage Ratio between 2.5x to 3.0x were reaffirmed. The Company's Adjusted EBITDA outlook remains unchanged as the benefits from stronger Secure Card Solutions performance and tariff refunds are expected to largely be offset by continued investment in Integrated Paytech ("IPT") and ongoing uneven demand in the higher-margin Prepaid Solutions segment. The Company also raised its


2026 annual revenue growth guidance in the IPT segment from 15% plus to approximately 20% with the acquisition of TRISM.
Strategic, Business, and Capital Highlights
•CPI acquired TRISM to further advance its market leadership position and effectively double CPI's addressable market in U.S. instant issuance solutions by enabling the Company to serve mid-to-large financial institutions that prefer on-premise solutions, complementing Card@Once cloud-based offerings focused on Small and Medium-sized Enterprises ("SME") financial institutions. With the addition of TRISM, CPI now serves more than 3,000 U.S. financial institutions with instant issuance, compared to approximately 2,500 prior to the acquisition.
•The Company continued to successfully integrate Arroweye, a leading provider of digitally-driven on-demand payment card solutions for the U.S. market, which is performing ahead of CPI's original investment case and delivering meaningful revenue and cost synergies.
•CPI is progressing well with Karta, an Australia-based payments technology firm in which CPI purchased a minority investment during 2025, to integrate their SafeToBuy chip-based technology solution with CPI's prepaid solutions in the U.S. market, including the expansion of a pilot with one of the U.S. national retailers.
•The Company continues to advance its market and product expansion strategies, including closed loop prepaid payment solutions and digital offerings such as push provisioning leveraging tokenization capabilities for mobile wallets.
•The Company generated strong Free Cash Flow in the second quarter, ended the quarter with a Net Leverage Ratio of 2.7x, and on July 15 redeemed $26.5 million, or 10%, of its Senior Notes, reflecting a continued focus on reducing leverage and lowering future interest expense.
Second Quarter 2026 Financial Highlights
Revenue increased 15% to $149.2 million in the second quarter of 2026, compared to the prior year period.
•Secure Card Solutions segment revenue increased 17% to $110.9 million, driven by increased sales of contactless cards and personalization services, as well as the addition of Arroweye. Segment gross profit increased 29% and gross margin increased 250 basis points, primarily due to increased revenue and tariff refunds.
•Prepaid Solutions segment revenue increased 18% to $22.6 million, primarily due to the change in accounting that was implemented in the second quarter of 2025, partially offset by comparisons with strong sales of higher-value packaging solutions in the prior year period. Segment gross profit increased 17% and gross margin remained consistent at over 28%.
•Integrated Paytech segment revenue increased 4% to $20.1 million, while gross profit margin remained consistent at over 55%.
Gross profit increased 21% to $48.5 million, driven primarily by sales growth and tariff refunds.
Net income increased 294% to $2.0 million, or $0.17 diluted earnings per share, impacted by $2.8 million of integration costs primarily related to Arroweye, and Adjusted EBITDA increased 7% to $24.1 million.


First Half 2026 Financial Highlights
Revenue increased 17% to a company record of $296.3 million in the first half of 2026, compared to the prior year period.
•Secure Card Solutions segment revenue increased 25% to $220.7 million, driven by increased sales of contactless cards and personalization services, as well as the addition of Arroweye. Segment gross profit increased 31% and gross margin increased 110 basis points, primarily due to increased revenue and tariff refunds.
•Prepaid Solutions segment revenue decreased 3% to $44.7 million, primarily due to comparisons with strong sales of higher-value packaging solutions in the prior year period, partially offset by the change in accounting that was implemented in the second quarter of 2025. Gross profit and gross margin decreased primarily due to lower operating leverage, partially offset by the change in accounting that was implemented in the second quarter of 2025.
•Integrated Paytech segment revenue increased 2% to $39.5 million compared to strong revenue levels in 2025, while gross profit margins remained consistent at over 55%. Segment revenue growth in the second half of the year is expected to increase driven by momentum in Card@Once and Digital solutions and the addition of TRISM instant issuance.
Gross profit increased 15% to $92.6 million, driven by sales growth. Gross profit margin of 31.3% decreased from 32.0% prior year, primarily due to negative segment sales mix and increased depreciation expenses, partially offset by increased revenue and tariff refunds.
Net income decreased 23% to $4.1 million, or $0.34 diluted earnings per share, impacted by $5.9 million of integration costs primarily related to Arroweye, and Adjusted EBITDA increased 8% to $47.2 million.
Balance Sheet, Liquidity and Cash Flow
The Company generated cash from operating activities of $42.1 million in the first half, which compared to $9.9 million in the prior year period; and set a company record for Free Cash Flow of $36.1 million in the first half, which compared to $0.8 million in the prior year. The increase in Free Cash Flow was primarily driven by company performance, strong working capital management and lower capital spending compared to the prior year period.
As of June 30, 2026, the Company had $21.4 million of cash and cash equivalents and $265.0 million of 10% Senior Secured Notes due 2029. The Net Leverage Ratio decreased to 2.7x, down from 3.6x in the second quarter last year and 3.1x at year-end.
“We are pleased with our execution in the second quarter as we continued to balance disciplined expense management with targeted investments in growth and margin initiatives, technology and the integration of recent acquisitions,” said Terra Grantham, Chief Financial Officer. “We also generated a record $36 million of Free Cash Flow in the first half of 2026, reduced our Net Leverage Ratio to 2.7x, and redeemed $26.5 million of Senior Notes in July, further strengthening our balance sheet while maintaining the flexibility to invest in long-term growth opportunities.”
The Company’s capital structure and allocation priorities are focused on investing in the business, including strategic acquisitions; deleveraging the balance sheet; and returning funds to stockholders.


Outlook for 2026
The Company raised its financial outlook for 2026 revenue growth and Free Cash Flow and reiterated all other guidance targets:
•Revenue: high-single to low-double-digit growth
•Adjusted EBITDA: low-to-mid single-digit growth
•Free Cash Flow in the $45 million to $50 million range
•Year-end Net Leverage Ratio between 2.5x and 3.0x
Conference Call and Webcast
CPI will hold a conference call on August 6, 2026, at 9:00 a.m. Eastern Time to review its second quarter results. To participate in the Company's conference call via telephone or online:
To participate by phone, dial 1-833-461-5787 (U.S. and Canada) or 1-585-542-9983 (international) and enter conference ID 620163779.

In order to join the webcast in a live or archived format, please visit CPI Card Group Inc.’s Investor Relations website: https://investor.cpicardgroup.com.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with U.S. generally accepted accounting principles (“GAAP”), we have provided the following non-GAAP financial measures in this release: Revenue excluding the Impact of an Accounting Change, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, Free Cash Flow conversion, LTM Adjusted EBITDA and Net Leverage Ratio. These non-GAAP financial measures are utilized by management in comparing our operating performance on a consistent basis between fiscal periods and serve as a basis for certain Company compensation programs. We believe that these financial measures are appropriate to enhance an overall understanding of our underlying operating performance trends compared to historical and prospective periods and our peers. Management also believes that these measures are useful to investors in their analysis of our results of operations and provide improved comparability between fiscal periods. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Our non-GAAP measures may be different from similarly titled measures of other companies. Investors are encouraged to review the reconciliation of these historical non-GAAP measures to their most directly comparable GAAP financial measures included in Exhibit E and Exhibit F to this press release.
Revenue excluding the Impact of an Accounting Change
Revenue excluding the Impact of an Accounting Change has been presented in Exhibit F and defined as revenue excluding the impact from an accounting change implemented in the second quarter of 2025 resulting from the Company moving from over-time revenue recognition for certain WIP orders to point-in-time recognition (revenue booked when shipped). This adjustment reflects WIP orders that were recognized at the end of the first quarter of 2025 as if such orders were consistently recognized using point-in-time recognition during the second quarter of 2025 for the results for the second quarter of 2025 and reflects WIP orders that were recognized at December 31, 2024 as if such orders were consistently recognized using point-in-time recognition during the year to date period presented for 2025.


EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, and LTM Adjusted EBITDA
Adjusted EBITDA is defined as EBITDA (which represents earnings before interest, taxes, depreciation and amortization) adjusted for litigation; stock-based compensation expense; restructuring and other charges, including executive retention and severance and acquisition-related costs; costs related to production facility modernization efforts; loss on debt extinguishment; gross profit related to the impact from the accounting change related to revenue described above; and other items that are unusual in nature, infrequently occurring or not considered part of our core operations, as set forth in the reconciliation in Exhibit E. Adjusted EBITDA is intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors, excluding non-operational, unusual or non-recurring losses or gains. Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for, analysis of our results as reported under GAAP. For example, Adjusted EBITDA does not reflect: (a) our capital expenditures, future requirements for capital expenditures or contractual commitments; (b) changes in, or cash requirements for, our working capital needs; (c) the significant interest expenses or the cash requirements necessary to service interest or principal payments on our debt; (d) tax payments that represent a reduction in cash available to us; (e) any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; (f) the impact of earnings or charges resulting from matters that we and the lender under our credit agreement may not consider indicative of our ongoing operations; or (g) the impact of any discontinued operations. In particular, our definition of Adjusted EBITDA allows us to add back certain non-operating, unusual or non-recurring charges that are deducted in calculating net income, even though these are expenses that may recur, vary greatly and are difficult to predict and can represent the effect of long-term strategies as opposed to short-term results. In addition, certain of these expenses represent the reduction of cash that could be used for other purposes. Adjusted EBITDA margin as shown in Exhibit E is computed as Adjusted EBITDA divided by total revenue.
We define LTM Adjusted EBITDA as Adjusted EBITDA (defined previously) for the last twelve months. LTM Adjusted EBITDA is used in the computation of Net Leverage Ratio, and is reconciled in Exhibit E.
Free Cash Flow
We define Free Cash Flow as cash flow provided by (used in) operating activities less capital expenditures. We use this metric in analyzing our ability to service and repay our debt. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to make principal payments on outstanding debt and financing lease liabilities. Free Cash Flow should not be considered in isolation, or as a substitute for, cash (used in) provided by operating activities or any other measures of liquidity derived in accordance with GAAP.
Net Leverage Ratio
Management and various investors use the ratio of debt principal outstanding, plus finance lease obligations, less cash, divided by LTM Adjusted EBITDA, or “Net Leverage Ratio”, as a measure of our financial strength when making key investment decisions and evaluating us against peers.
Financial Expectations for 2026
We have provided Adjusted EBITDA expectations for 2026 on a non-GAAP basis because certain reconciling items are dependent on future events that either cannot be controlled or cannot be reliably predicted because they are not part of the Company’s routine activities, any of which could be significant.


About CPI
CPI is a payments technology company that is integral to the payments ecosystem. CPI’s connections, people, and solutions enable payments for a broad and expanding customer base including thousands of U.S. financial institutions, processors, fintechs, prepaid program managers and more, and these customers count on us to deliver what's next.
We continue to transform alongside the market, and for decades have invested in building deep connections and flexible solutions for our customers. Our proprietary platform and expertise uniquely position CPI to deliver today, tomorrow, and into the future as the market expands and payment methods evolve.Learn more at www.cpicardgroup.com.
Forward-Looking Statements
Certain statements and information in this release (as well as information included in other written or oral statements we make from time to time) may contain or constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “believe,” “estimate,” “project,” “expect,” “anticipate,” “affirm,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “continue,” “committed,” “attempt,” “aim,” “target,” “objective,” “guides,” “seek,” “focus,” “provides guidance,” “provides outlook” or other similar expressions are intended to identify forward-looking statements, which are not historical in nature. These forward-looking statements, including statements about our strategic initiatives and market opportunities, including our financial outlook for 2026, the impact of our investments in Arroweye and other solutions, and our qualitative color on our business in 2026 and beyond; are based on our current expectations and beliefs concerning future developments and their potential effect on us and other information currently available. Such forward-looking statements, because they relate to future events, are by their very nature subject to many important risks and uncertainties that could cause actual results or other events to differ materially from those contemplated.
These risks and uncertainties include, but are not limited to: (i) risks relating to our business and industry, such as a deterioration in general economic conditions, including due to inflationary conditions, resulting in reduced consumer confidence and business spending, and a decline in consumer credit worthiness impacting demand for our products; the unpredictability of our operating results, including an inability to anticipate changes in customer inventory management practices and its impact on our business; our failure to retain our existing key customers or identify and attract new customers; the highly competitive, saturated and consolidated nature of our marketplace; our inability to develop, introduce and commercialize new products and related services, including due to our inability to undertake research and development activities; new and developing technologies that make our existing technology solutions and products obsolete or less relevant or our failure to introduce new products and related services in a timely manner or at all; system security risks, data protection breaches and cyber-attacks; the usage, or lack thereof, of artificial intelligence technologies; disruptions, delays or other failures in our supply chain, including as a result of inflationary pressures, single-source suppliers, failure or inability of suppliers to comply with our code of conduct or contractual requirements, trade restrictions, tariffs, foreign conflicts or political unrest in countries in which our suppliers operate, and our inability to pass related costs on to our customers or difficulty meeting customers’ delivery expectations due to extended lead times; changes in U.S. and global trade policy and the impact of tariffs on our business and results of operations; interruptions in our operations, including our information technology systems, or in the operations of the third parties that operate computing infrastructure on which we rely; defects in our software and computing systems; disruptions in production at one or more of our facilities due to weather conditions, climate change, political instability, or social unrest; problems in production quality, materials and process and costs relating to product defects and any related product liability and/or warranty claims and damage to our reputation; our inability to recruit, retain and develop qualified personnel, including key personnel, and implement effective succession processes; our substantial indebtedness, including the


restrictive terms of our indebtedness and covenants of future agreements governing indebtedness and the resulting restraints on our ability to pursue our business strategies; our inability to make debt service payments or refinance such indebtedness; our inability to successfully execute on, integrate, or achieve the anticipated benefits of acquisitions, including the acquisition of Arroweye Solutions, Inc. (“Arroweye”), or execute on divestitures, strategic relationships, or investments; our status as an accelerated filer and complying with the Sarbanes-Oxley Act of 2002 and the costs associated with such compliance and implementation of procedures thereunder; our failure to maintain effective internal control over financial reporting and risks relating to investor confidence in our financial reporting; environmental, social and governance (“ESG”) preferences and demands of various stakeholders and the related impact on our ability to access capital, produce our products in conformity with stakeholder preferences, comply with stakeholder demands and comply with any related legal or regulatory requirements or restrictions; negative perceptions of our products due to the impact of our products and production processes on the environment and other ESG-related risks; damage to our reputation or brand image; our inability to adequately protect our trade secrets and intellectual property rights from misappropriation, infringement claims brought against us and risks related to open source software; our inability to renew licenses with key technology licensors; our limited ability to raise capital, which may lead to delays in innovation or the abandonment of our strategic initiatives; costs and impacts related to additional tax collection efforts by states, unclaimed property laws, or future increases in U.S. federal or state income taxes, resulting in additional expenses which we may be unable to pass along to our customers; our inability to realize the full value of our long-lived assets; costs and potential liabilities associated with compliance or failure to comply with laws and regulations, customer contractual requirements and evolving industry standards regarding consumer privacy and data use and security; our failure to operate our business in accordance with the Payment Card Industry Security Standards Council security standards or other industry standards; the effects of ongoing foreign conflicts on the global economy; adverse conditions in the banking system and financial markets, including the failure of banks and financial institutions; our failure to comply with environmental, health and safety laws and regulations that apply to our products and the raw materials we use in our production processes; (ii) risks relating to ownership of our common stock, such as those associated with concentrated ownership of our stock by our significant stockholders and potential conflicts of interests with other stockholders; the impact of concentrated ownership of our common stock and the sale or perceived sale of a substantial amount of common stock on the trading volume and market price of our common stock; potential conflicts of interest that may arise due to our Board of Directors being comprised in part of directors who are principals of or were nominated by our significant stockholders; the influence of securities analysts over the trading market for and price of our common stock, particularly due to the lack of substantial research coverage of our common stock; the impact of stockholder activism or actual or threatened securities litigation on the trading price and volatility of our common stock; certain provisions of our organizational documents and other contractual provisions that may delay or prevent a change in control and make it difficult for stockholders other than our significant stockholders to change the composition of our Board of Directors; and (iii) general risks, such as relating to our ability to comply with a wide variety of complex evolving laws and regulations and the exposure to liability for any failure to comply; the effect of legal and regulatory proceedings and the adequacy of our insurance policies; and other risks that are described in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 5, 2026, and our other reports filed from time to time with the Securities and Exchange Commission (the “SEC”).
We caution and advise readers not to place undue reliance on forward-looking statements, which speak only as of the date hereof. These statements are based on assumptions that may not be realized and involve risks and uncertainties that could cause actual results or other events to differ materially from the expectations and beliefs contained herein. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
####


For more information:
CPI encourages investors to use its investor relations website as a way of easily finding information about the Company. CPI promptly makes available on this website the reports that the Company files or furnishes with the SEC, corporate governance information and press releases.
CPI Investor Relations:
Davis Barker, Head of Investor Relations & Corporate Development
(877) 369-9016
InvestorRelations@cpicardgroup.com
CPI Media Relations:
Media@cpicardgroup.com
CPI Card Group Inc. Earnings Release Supplemental Financial Information
Exhibit A
Condensed Consolidated Statements of Operations and Comprehensive Income - Unaudited for the three and six months ended June 30, 2026 and 2025
Exhibit B
Condensed Consolidated Balance Sheets – Unaudited as of June 30, 2026 and December 31, 2025
Exhibit C
Condensed Consolidated Statements of Cash Flows – Unaudited for the six months ended June 30, 2026 and 2025
Exhibit D
Segment Summary Information – Unaudited for the three and six months ended June 30, 2026 and 2025
Exhibit E
Supplemental GAAP to Non-GAAP Reconciliations – Unaudited for the three and six months ended June 30, 2026 and 2025
Exhibit F
Supplemental GAAP to Non-GAAP Reconciliations – Unaudited for the three and six months ended June 30, 2026 and 2025



cpilogoa.jpg
EXHIBIT A
CPI Card Group Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income
(in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Revenue $ 149,181  $ 129,753  $ 296,289  $ 252,514 
Cost of goods sold 100,695  89,633  203,679  171,698 
Gross profit 48,486  40,120  92,610  80,816 
Selling, general and administrative expenses 36,622  30,697  69,752  57,289 
Income from operations 11,864  9,423  22,858  23,527 
Other expense, net:
Interest, net (7,405) (8,069) (15,061) (15,754)
Other (expense) income, net (35) (13) (3) 5 
Total other expense, net (7,440) (8,082) (15,064) (15,749)
Income before income taxes and equity in losses of unconsolidated affiliates 4,424  1,341  7,794  7,778 
Income tax expense (2,137) (823) (3,295) (2,486)
Equity in losses of unconsolidated affiliates (247) —  (403) — 
Net income $ 2,040  $ 518  $ 4,096  $ 5,292 
Basic and diluted earnings per share:
Basic earnings per share $ 0.18  $ 0.05  $ 0.36  0.47
Diluted earnings per share $ 0.17  $ 0.04  $ 0.34  0.44
Basic weighted-average shares outstanding 11,486,626  11,297,785  11,472,100  11,271,815 
Diluted weighted-average shares outstanding 12,039,657  11,927,943  11,957,587  11,969,909 
Comprehensive income:
Net income $ 2,040  $ 518  $ 4,096  $ 5,292 
Total comprehensive income $ 2,040  $ 518  $ 4,096  $ 5,292 


EXHIBIT B
CPI Card Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(Unaudited)
June 30,
2026		 December 31,
2025
Assets
Current assets:
Cash and cash equivalents $ 21,368  $ 21,700 
Accounts receivable, net 88,363  95,436 
Inventories, net 62,900  72,243 
Prepaid expenses and other current assets 15,520  15,565 
Total current assets 188,151  204,944 
Plant, equipment, leasehold improvements and operating lease right-of-use assets, net 105,189  108,433 
Intangible assets, net 19,690  18,544 
Goodwill 52,740  48,764 
Other assets 24,638  22,506 
Total assets $ 390,408  $ 403,191 
Liabilities and stockholders’ deficit
Current liabilities:
Accounts payable $ 30,581  $ 27,802 
Accrued expenses 56,613  52,379 
Deferred revenue and customer deposits 2,946  3,916 
Total current liabilities 90,140  84,097 
Long-term debt 262,139  286,668 
Deferred income taxes 3,840  2,251 
Other long-term liabilities 45,763  47,508 
Total liabilities 401,882  420,524 
Commitments and contingencies
Stockholders’ deficit:
Series A Preferred Stock; $0.001 par value—100,000 shares authorized; 0 shares issued and outstanding at June 30, 2026 and December 31, 2025
Common stock; $0.001 par value—100,000,000 shares authorized; 11,520,159 and 11,456,061 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
 12  11 
Capital deficit (100,329) (102,091)
Accumulated earnings 88,843  84,747 
Total stockholders’ deficit (11,474) (17,333)
Total liabilities and stockholders’ deficit $ 390,408  $ 403,191 


EXHIBIT C
CPI Card Group Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Six Months Ended June 30,
2026 2025
Operating activities
Net income $ 4,096  $ 5,292 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense 10,792  7,815 
Amortization expense 1,954  1,947 
Stock-based compensation expense 2,717  3,038 
Amortization of debt issuance costs 656  658 
Deferred income taxes and other, net 1,889  850 
Changes in operating assets and liabilities:
Accounts receivable, net 7,048  7,451 
Inventories 9,678  (7,769)
Prepaid expenses and other assets (2,356) 2,253 
Income taxes, net 57  (3,154)
Accounts payable 2,972  4,977 
Accrued expenses and other liabilities 3,734  (13,471)
Deferred revenue and customer deposits (1,088) 50 
Cash provided by operating activities 42,149  9,937 
Investing activities
Capital expenditures for plant, equipment and leasehold improvements, net (6,098) (9,112)
Cash paid for acquisition, net of cash acquired (6,300) (42,442)
Other 291  50 
Cash used in investing activities (12,107) (51,504)
Financing activities
Proceeds from borrowings on debt —  35,000 
Payments on debt (25,000) (5,000)
Payments on financing lease obligations (4,805) (3,776)
Taxes withheld and paid on stock-based compensation awards (569) (1,077)
Cash (used in) provided by financing activities (30,374) 25,147 
Net decrease in cash and cash equivalents (332) (16,420)
Cash and cash equivalents, beginning of period 21,700  33,544 
Cash and cash equivalents, end of period $ 21,368  $ 17,124 
Supplemental disclosures of cash flow information
Cash paid (refunded) during the period for:
Interest paid $ 15,172  $ 15,453 
Income taxes paid $ 2,140  $ 6,381 
Income taxes refunded $ (529) $ (60)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases $ 187  $ 10,844 
Financing leases $ 4,073  $ 8,761 
Accounts payable and accrued expenses for capital expenditures for plant, equipment and leasehold improvements $ 616  $ 1,815 
Non-cash equity in losses of unconsolidated affiliates $ (403) $ — 


EXHIBIT D
CPI Card Group Inc. and Subsidiaries
Segment Summary Information
For the Three and Six Months Ended June 30, 2026 and 2025
(dollars in thousands)
(Unaudited)
Revenue
Three Months Ended June 30,
2026 2025 $ Change % Change
Revenue by segment:
Secure Card Solutions $ 110,867  $ 94,673  $ 16,194  17.1  %
Prepaid Solutions 22,645  19,222  3,423  17.8  %
Integrated Paytech 20,141  19,326  815  4.2  %
Eliminations (4,472) (3,468) (1,004) *
Total $ 149,181  $ 129,753  $ 19,428  15.0  %
Six Months Ended June 30,
2026 2025 $ Change % Change
Revenue by segment:
Secure Card Solutions $ 220,718  $ 176,315 $ 44,403  25.2  %
Prepaid Solutions 44,694  45,935  (1,241) (2.7) %
Integrated Paytech 39,523  38,579  944  2.4  %
Eliminations (8,646) (8,315) (331) *
Total $ 296,289  $ 252,514  $ 43,775  17.3  %
Gross Profit
Three Months Ended June 30,
2026 % of
Revenue		 2025 % of
Revenue		 $ Change % Change
Gross profit by segment:
Secure Card Solutions $ 30,869  27.8  % $ 23,918  25.3  % $ 6,951  29.1  %
Prepaid Solutions 6,419  28.3  % 5,471  28.5  % 948  17.3  %
Integrated Paytech 11,198  55.6  % 10,731  55.5  % 467  4.4  %
Total $ 48,486  32.5  % $ 40,120  30.9  % $ 8,366  20.9  %
Six Months Ended June 30,
2026 % of
Revenue		 2025 % of
Revenue		 $ Change % Change
Gross profit by segment:
Secure Card Solutions $ 58,571  26.5% $ 44,737  25.4% $ 13,834  30.9%
Prepaid Solutions 12,085  27.0% 14,913  32.5% (2,828) (19.0)%
Integrated Paytech 21,954  55.5% 21,166  54.9% 788  3.7%
Total $ 92,610  31.3% $ 80,816  32.0% $ 11,794  14.6%


Income from Operations
Three Months Ended June 30,
2026 % of
Revenue		 2025 % of
Revenue		 $ Change % Change
Income (loss) from operations by segment:
Secure Card Solutions $ 21,020  19.0  % $ 15,636  16.5  % $ 5,384  34.4  %
Prepaid Solutions 4,982  22.0  % 4,171  21.7  % 811  19.4  %
Integrated Paytech 6,576  32.6  % 7,417  38.4  % (841) (11.3) %
Corporate (20,714) * (17,801) * (2,913) (16.4) %
Total $ 11,864  8.0  % $ 9,423  7.3  % $ 2,441  25.9  %
Six Months Ended June 30,
2026 % of
Revenue		 2025 % of
Revenue		 $ Change % Change
Income (loss) from operations by segment:
Secure Card Solutions $ 38,288  17.3% $ 29,946  17.0% $ 8,342  27.9%
Prepaid Solutions 9,075  20.3% 12,170  26.5% (3,095) (25.4)%
Integrated Paytech 13,441  34.0% 14,810  38.4% (1,369) (9.2)%
Corporate (37,946) * (33,399) * (4,547) (13.6)%
Total $ 22,858  7.7% $ 23,527  9.3% $ (669) (2.8)%
EBITDA
Three Months Ended June 30,
2026 % of
Revenue		 2025 % of
Revenue		 $ Change % Change
EBITDA by segment:
Secure Card Solutions $ 25,247  22.8% $ 19,100  20.2% $ 6,147  32.2%
Prepaid Solutions 5,975  26.4% 5,297  27.6% 678  12.8%
Integrated Paytech 6,754  33.5% 7,448  38.5% (694) (9.3)%
Corporate (20,051) * (16,920) * (3,131) (18.5)%
Total $ 17,925  12.0% $ 14,925  11.5% $ 3,000  20.1%
Six Months Ended June 30,
2026 % of
Revenue		 2025 % of
Revenue		 $ Change % Change
EBITDA by segment:
Secure Card Solutions $ 46,895  21.2% $ 35,643  20.2% $ 11,252  31.6%
Prepaid Solutions 11,186  25.0% 14,418  31.4% (3,232) (22.4)%
Integrated Paytech 13,709  34.7% 14,872  38.5% (1,163) (7.8)%
Corporate (36,592) * (31,639) * (4,953) (15.7)%
Total $ 35,198  11.9% $ 33,294  13.2% $ 1,904  5.7%











Operations by Segment to EBITDA by Segment
Three Months Ended June 30, 2026
Secure Card Solutions Prepaid Solutions Integrated Paytech Corporate Total
EBITDA by segment:
Income (loss) from operations $ 21,020  $ 4,982  $ 6,576  $ (20,714) $ 11,864 
Depreciation and amortization 4,258  1,241  178  666  6,343 
Other expense, net (31) (248) —  (3) (282)
EBITDA $ 25,247  $ 5,975  $ 6,754  $ (20,051) $ 17,925 
Three Months Ended June 30, 2025
Secure Card Solutions Prepaid Solutions Integrated Paytech Corporate Total
EBITDA by segment:
Income (loss) from operations $ 15,636  $ 4,171  $ 7,417  $ (17,801) $ 9,423 
Depreciation and amortization 3,497  1,126  31  861  5,515 
Other (expense) income, net (33) —  —  20  (13)
EBITDA $ 19,100  $ 5,297  $ 7,448  $ (16,920) $ 14,925 
Six Months Ended June 30, 2026
Secure Card Solutions Prepaid Solutions Integrated Paytech Corporate Total
EBITDA by segment:
Income (loss) from operations $ 38,288  $ 9,075  $ 13,441  $ (37,946) $ 22,858 
Depreciation and amortization 8,604  2,515  268  1,359  12,746 
Other income (expense), net 3  (404) —  (5) (406)
EBITDA $ 46,895  $ 11,186  $ 13,709  $ (36,592) $ 35,198 
Six Months Ended June 30, 2025
Secure Card Solutions Prepaid Solutions Integrated Paytech Corporate Total
EBITDA by segment:
Income (loss) from operations $ 29,946  $ 12,170  $ 14,810  $ (33,399) $ 23,527 
Depreciation and amortization 5,737  2,242  62  1,721  9,762 
Other (expense) income, net (40) 6  —  39  5 
EBITDA $ 35,643  $ 14,418  $ 14,872  $ (31,639) $ 33,294 
_____________________________________________________________________
*Calculation not meaningful


EXHIBIT E
CPI Card Group Inc. and Subsidiaries
Supplemental GAAP to Non-GAAP Reconciliation
(dollars in thousands)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
EBITDA and Adjusted EBITDA:
Net income $ 2,040 $ 518 $ 4,096 $ 5,292
Interest, net 7,405 8,069 15,061 15,754
Income tax expense 2,137 823 3,295 2,486
Depreciation and amortization 6,343 5,515 12,746 9,762
EBITDA $ 17,925 $ 14,925 $ 35,198 $ 33,294
Adjustments to EBITDA:
Stock-based compensation expense $ 1,314 $ 1,367 $ 2,717 $ 3,038
Acquisition and integration costs (1)
2,760 1,621 5,913 2,261
Restructuring and other charges (2)
1,806 1,645 2,978 2,127
Change in revenue recognition (3)
— 2,929 — 2,929
Equity in losses of unconsolidated affiliates (4)
247 — 403 —
Subtotal of adjustments to EBITDA $ 6,127 $ 7,562 $ 12,011 $ 10,355
Adjusted EBITDA $ 24,052 $ 22,487 $ 47,209 $ 43,649
Net income margin (% of Revenue) 1.4  % 0.4  % 1.4  % 2.1  %
Net income growth (% Change 2026 vs. 2025) 293.8  % (22.6) %
Adjusted EBITDA margin (% of Revenue) 16.1  % 17.3  % 15.9  % 17.3  %
Adjusted EBITDA growth (% Change 2026 vs. 2025) 7.0  % 8.2  %

Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Free Cash Flow:
Cash provided by operating activities $ 28,501 $ 4,344 $ 42,149 $ 9,937
Capital expenditures for plant, equipment and leasehold improvements, net (2,585) (3,811) (6,098) (9,112)
Free Cash Flow $ 25,916 $ 533 $ 36,051 $ 825
______________________________________________________________________
(1)Balance represents acquisition and integration costs primarily related to the Arroweye acquisition that occurred on May 6, 2025.
(2)Balance includes expenses related to executive retention and severance. The 2025 balance also includes expenses related to production facility modernization efforts.
(3)In the second quarter of 2025, the Company reassessed certain aspects of its revenue recognition accounting under ASC 606 and prospectively began recognizing revenue for certain contracts at a point-in-time rather than over-time.
(4)On October 7, 2025, the Company entered into a strategic relationship with and acquired a 20% equity interest in Karta (Gift Card Co Pty Ltd), an Australia-based payments technology firm also backed by the Commonwealth Bank of Australia. This balance represents the Company’s equity in Karta’s net losses for the quarter ended June 30, 2026.


Last Twelve Months Ended
June 30, December 31,
2026 2025
Reconciliation of net income to LTM EBITDA and Adjusted EBITDA:
Net income $ 13,754 $ 14,950
Interest, net 31,773 32,466
Income tax expense 7,465 6,656
Depreciation and amortization 25,445 22,461
EBITDA $ 78,437 $ 76,533
Adjustments to EBITDA:
Stock-based compensation expense $ 6,642 $ 6,963
Acquisition and integration costs (1)
9,606 5,954
Restructuring and other charges (2)
4,567 3,716
Loss on debt extinguishment 287 287
Change in revenue recognition (3)
— 2,929
Equity in losses of unconsolidated affiliates (4)
537 134
Subtotal of adjustments to EBITDA $ 21,639 $ 19,983
LTM Adjusted EBITDA $ 100,076 $ 96,516
______________________________________________________________________
(1)Balance represents acquisition and integration costs primarily related to the Arroweye acquisition that occurred on May 6, 2025.
(2)Balance includes expenses related to executive retention and severance, as well as production facility modernization efforts.
(3)In the second quarter of 2025, the Company reassessed certain aspects of its revenue recognition accounting under ASC 606 and prospectively began recognizing revenue for certain contracts at a point-in-time rather than over-time.
(4)On October 7, 2025, the Company entered into a strategic relationship with and acquired a 20% equity interest in Karta (Gift Card Co Pty Ltd), an Australia-based payments technology firm also backed by the Commonwealth Bank of Australia. This balance represents the Company’s equity in Karta’s net losses for the quarter ended June 30, 2026.
As of
June 30, December 31,
2026 2025
Calculation of Net Leverage Ratio:
Senior Notes $ 265,000 $ 265,000
ABL Revolver — 25,000
Financing lease obligations 30,581 31,058
Total debt 295,581 321,058
Less: Cash and cash equivalents (21,368) (21,700)
Total net debt (a) $ 274,213 $ 299,358
LTM Adjusted EBITDA (b) $ 100,076 $ 96,516
Net Leverage Ratio (a)/(b) 2.7 3.1


EXHIBIT F
CPI Card Group Inc. and Subsidiaries
Supplemental GAAP to Non-GAAP Reconciliation
(dollars in thousands)
(Unaudited)
Three Months Ended June 30, 2026 Three Months Ended June 30, 2025
As Reported Impacts from Change in Revenue Recognition As Adjusted As Reported Impacts from Change in Revenue Recognition As Adjusted
Consolidated CPI
Revenue (1)
$ 149,181 $ — $ 149,181 $ 129,753 $ 7,723  $ 137,474
Revenue growth (% Change 2026 vs. 2025) 15.0  % 8.5%
Secure Card Solutions
Revenue $ 110,867 $ — $ 110,867 $ 94,673 $ 2,671  $ 97,344
Revenue growth (% Change 2026 vs. 2025) 17.1% 13.9%
Prepaid Solutions
Revenue $ 22,645 $ — $ 22,645 $ 19,222 $ 5,052 $ 24,274
Revenue growth (% Change 2026 vs. 2025) 17.8% (6.7)%
Integrated Paytech
Revenue $ 20,141 $ — $ 20,141 $ 19,326 $ — $ 19,326
Revenue growth (% Change 2026 vs. 2025) 4.2% 4.2%
Six Months Ended June 30, 2026 Six Months Ended June 30, 2025
As Reported Impacts from Change in Revenue Recognition As Adjusted As Reported Impacts from Change in Revenue Recognition As Adjusted
Consolidated CPI
Revenue (1)
$ 296,289 $ — $ 296,289 $ 252,514 $ 7,427  $ 259,939
Revenue growth (% Change 2026 vs. 2025) 17.3% 14.0%
Secure Card Solutions
Revenue $ 220,718 $ — $ 220,718 $ 176,315 $ 2,059  $ 178,374
Revenue growth (% Change 2026 vs. 2025) 25.2% 23.7%
Prepaid Solutions
Revenue $ 44,694 $ — $ 44,694 $ 45,935 $ 5,368 $ 51,303
Revenue growth (% Change 2026 vs. 2025) (2.7)% (12.9)%
Integrated Paytech
Revenue $ 39,523 $ — $ 39,523 $ 38,579 $ — $ 38,579
Revenue growth (% Change 2026 vs. 2025) 2.4% 2.4%
______________________________________________________________________
(1)For the three months ended June 30, 2026 and 2025, consolidated revenue include $4,472 and $3,468 of intersegment eliminations, respectively. For the six months ended June 30, 2026 and 2025, consolidated revenue include $8,646 and $8,315 of intersegment eliminations, respectively.

EX-99.2 3 pmts-20260630xex992.htm EX-99.2 pmts-20260630xex992
Second Quarter & First Half 2026 Earnings Presentation John Lowe President & Chief Executive Officer Terra Grantham Chief Financial Officer Exhibit 99.2

 
2 Cautionary Statements Forward Looking Statements Certain statements and information in this presentation (as well as information included in other written or oral statements we make from time to time) may contain or constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “believe,” “estimate,” “project,” “expect,” “anticipate,” “affirm,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” “continue,” “committed,” “attempt,” “aim,” “target,” “objective,” “guides,” “seek,” “focus,” “provides guidance,” “provides outlook” or other similar expressions are intended to identify forward-looking statements, which are not historical in nature. These forward-looking statements, including statements about our strategic initiatives and market opportunities, including our financial outlook for 2026, the impact of our investments in Arroweye and other solutions, and our qualitative color on our business in 2026 and beyond; are based on our current expectations and beliefs concerning future developments and their potential effect on us and other information currently available. Such forward-looking statements, because they relate to future events, are by their very nature subject to many important risks and uncertainties that could cause actual results or other events to differ materially from those contemplated. These risks and uncertainties include, but are not limited to: (i) risks relating to our business and industry, such as a deterioration in general economic conditions, including due to inflationary conditions, resulting in reduced consumer confidence and business spending, and a decline in consumer credit worthiness impacting demand for our products; the unpredictability of our operating results, including an inability to anticipate changes in customer inventory management practices and its impact on our business; our failure to retain our existing key customers or identify and attract new customers; the highly competitive, saturated and consolidated nature of our marketplace; our inability to develop, introduce and commercialize new products and related services, including due to our inability to undertake research and development activities; new and developing technologies that make our existing technology solutions and products obsolete or less relevant or our failure to introduce new products and related services in a timely manner or at all; system security risks, data protection breaches and cyber-attacks; the usage, or lack thereof, of artificial intelligence technologies; disruptions, delays or other failures in our supply chain, including as a result of inflationary pressures, single-source suppliers, failure or inability of suppliers to comply with our code of conduct or contractual requirements, trade restrictions, tariffs, foreign conflicts or political unrest in countries in which our suppliers operate, and our inability to pass related costs on to our customers or difficulty meeting customers’ delivery expectations due to extended lead times; changes in U.S. and global trade policy and the impact of tariffs on our business and results of operations; interruptions in our operations, including our information technology systems, or in the operations of the third parties that operate computing infrastructure on which we rely; defects in our software and computing systems; disruptions in production at one or more of our facilities due to weather conditions, climate change, political instability, or social unrest; problems in production quality, materials and process and costs relating to product defects and any related product liability and/or warranty claims and damage to our reputation; our inability to recruit, retain and develop qualified personnel, including key personnel, and implement effective succession processes; our substantial indebtedness, including the restrictive terms of our indebtedness and covenants of future agreements governing indebtedness and the resulting restraints on our ability to pursue our business strategies; our inability to make debt service payments or refinance such indebtedness; our inability to successfully execute on, integrate, or achieve the anticipated benefits of acquisitions, including the acquisition of Arroweye Solutions, Inc. (“Arroweye”), or execute on divestitures, strategic relationships, or investments; our status as an accelerated filer and complying with the Sarbanes-Oxley Act of 2002 and the costs associated with such compliance and implementation of procedures thereunder; our failure to maintain effective internal control over financial reporting and risks relating to investor confidence in our financial reporting; environmental, social and governance (“ESG”) preferences and demands of various stakeholders and the related impact on our ability to access capital, produce our products in conformity with stakeholder preferences, comply with stakeholder demands and comply with any related legal or regulatory requirements or restrictions; negative perceptions of our products due to the impact of our products and production processes on the environment and other ESG-related risks; damage to our reputation or brand image; our inability to adequately protect our trade secrets and intellectual property rights from misappropriation, infringement claims brought against us and risks related to open source software; our inability to renew licenses with key technology licensors; our limited ability to raise capital, which may lead to delays in innovation or the abandonment of our strategic initiatives; costs and impacts related to additional tax collection efforts by states, unclaimed property laws, or future increases in U.S. federal or state income taxes, resulting in additional expenses which we may be unable to pass along to our customers; our inability to realize the full value of our long-lived assets; costs and potential liabilities associated with compliance or failure to comply with laws and regulations, customer contractual requirements and evolving industry standards regarding consumer privacy and data use and security; our failure to operate our business in accordance with the Payment Card Industry Security Standards Council security standards or other industry standards; the effects of ongoing foreign conflicts on the global economy; adverse conditions in the banking system and financial markets, including the failure of banks and financial institutions; our failure to comply with environmental, health and safety laws and regulations that apply to our products and the raw materials we use in our production processes; (ii) risks relating to ownership of our common stock, such as those associated with concentrated ownership of our stock by our significant stockholders and potential conflicts of interests with other stockholders; the impact of concentrated ownership of our common stock and the sale or perceived sale of a substantial amount of common stock on the trading volume and market price of our common stock; potential conflicts of interest that may arise due to our Board of Directors being comprised in part of directors who are principals of or were nominated by our significant stockholders; the influence of securities analysts over the trading market for and price of our common stock, particularly due to the lack of substantial research coverage of our common stock; the impact of stockholder activism or actual or threatened securities litigation on the trading price and volatility of our common stock; certain provisions of our organizational documents and other contractual provisions that may delay or prevent a change in control and make it difficult for stockholders other than our significant stockholders to change the composition of our Board of Directors; and (iii) general risks, such as relating to our ability to comply with a wide variety of complex evolving laws and regulations and the exposure to liability for any failure to comply; the effect of legal and regulatory proceedings and the adequacy of our insurance policies; and other risks that are described in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 5, 2026, and our other reports filed from time to time with the Securities and Exchange Commission (the “SEC”). We caution and advise readers not to place undue reliance on forward-looking statements, which speak only as of the date hereof. These statements are based on assumptions that may not be realized and involve risks and uncertainties that could cause actual results or other events to differ materially from the expectations and beliefs contained herein. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. Non-GAAP Financial Measures In addition to financial results reported in accordance with U.S. generally accepted accounting principles (“GAAP”), we have provided the following non-GAAP financial measures in this presentation: revenue excluding the impact of an accounting change, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, LTM Adjusted EBITDA and Net Leverage Ratio. These non-GAAP financial measures are utilized by management in comparing our operating performance on a consistent basis between fiscal periods and serve as a basis for certain Company compensation programs. We believe that these financial measures are appropriate to enhance an overall understanding of our underlying operating performance trends compared to historical and prospective periods and our peers. Management also believes that these measures are useful to investors in their analysis of our results of operations and provide improved comparability between fiscal periods. Non- GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Our non-GAAP measures may be different from similarly titled measures of other companies. Investors are encouraged to review the reconciliation of these historical non-GAAP measures to their most directly comparable GAAP financial measures included in the appendix to this presentation.

 
3 Strong First Half of the Year Strong Revenue & Profitability Growth Q2 revenue increased 15%, led by contactless, personalization and Arroweye Generated record first half revenue of $296M Gross profit increased more than 20% in Q2, driven by revenue growth and tariff refunds Adjusted EBITDA¹ increased 7% in Q2 Good Progress on Our Digital Diversification Strategy Closed all-cash acquisition of TRISM instant issuance business New wins with Blossom and CU*Answers for cloud-based push provisioning; Arroweye achieves 25th new win since acquisition Contract extension with Vericast across physical & cloud solutions Advancing prepaid pilot with large national retailer for Karta’s SafeToBuy chip-embedded cards Improved Free Cash Flow and Balance Sheet Generated record $36M of Free Cash Flow1 in the first half Sequentially improved Net Leverage Ratio1 to 2.7x; down from 3.6x this time last year In July, redeemed $26.5M, or 10% Senior Notes, to further reduce future leverage and interest expense Increasing Revenue and Free Cash Flow Guidance; Affirming All Other Targets 1 2 3 1) Adjusted EBITDA, Free Cash Flow, and Net Leverage Ratio are not measurements of financial performance prepared in accordance with GAAP. See “Reconciliations of Non-GAAP Financial Measures” at the end of this document for more information and reconciliations to the most directly comparable GAAP financial measures.

 
4 Proprietary Technology Platform Marketable Customer Base Evolving Payment Solutions An end-to-end payment credential platform enabling seamless connectivity across the vast U.S. payment ecosystem Integrations to thousands of deep, broad, and recurring customer relationships across the U.S. payments market A proven track record of rapidly delivering innovative payment solutions aligned to changing market needs CPI is hyper-focused on delivering long-term profitable growth through these growth pillars Our Growth Pillars Our Strategy is Accelerating Growth & Diversification

 
5 Acquisition of TRISM Instant Issuance Combining the scale of two established U.S. instant issuance platforms + Doubles CPI’s addressable market in U.S. instant issuance to access larger FI opportunities + Supports cloud and on-premise environments + Adds recurring revenue and multi-year customer relationships + Highly profitable gross margins of >50%; consistent with existing IPT segment + Strong new cross-sell opportunities, including in Digital + Expected to accelerate CPI’s IPT segment revenue growth to ~20% in 2026 × TRISM Combining Cloud and On-Premise Solutions to Expand U.S. Instant Issuance Market Leadership and Reach FI Customers >2,500 Solution Cloud-based Customer Type Small-to-medium FIs TRISM FI Customers >500 Solution On-premise Customer Type Mid-to-large FIs FI Customers >3,000 Active Installations ~20,000

 
Second Quarter & First Half 2026 Financial Results

 
$22.5 $24.1 Q2 2025 Q2 2026 $40.1 $48.5 Q2 2025 Q2 2026 $129.8 $149.2 Q2 2025 Q2 2026 7 Second Quarter 2026 Financial Highlights 1) Adjusted EBITDA and Adjusted EBITDA margin are not measurements of financial performance prepared in accordance with GAAP. See “Reconciliations of Non-GAAP Financial Measures” at the end of this document for more information and reconciliations to the most directly comparable GAAP financial measures. +15% +21% Revenue $USD millions Gross Profit & Margin $USD millions Adjusted EBITDA & Margin1 $USD millions Diluted EPS +7% Key Highlights Q2 revenue increased 15%, driven by increased contactless cards, personalization solutions and contributions from Arroweye o Q2 organic revenue increased 12%, excluding Arroweye o Generated a company record for first half revenue Gross profit increased 21%, driven by strong revenue increase and benefits from tariff refunds Adjusted EBITDA¹ increased 7%, driven by revenue growth and benefits from tariff refunds 30.9% 32.5% 17.3% 16.1% $0.04 $0.17 Q2 2025 Q2 2026

 
$19.3 $20.1 Q2 2025 Q2 2026 $19.2 $22.6 Q2 2025 Q2 2026 8 Segment Revenue Performance Se co nd Q ua rt er Fi rs t H al f Secure Card Solutions Prepaid Solutions Integrated Paytech (“IPT”) +18% +4% $94.7 $110.9 Q2 2025 Q2 2026 +17% $176.3 $220.7 H1 2025 H1 2026 $45.9 $44.7 H1 2025 H1 2026 $38.6 $39.5 H1 2025 H1 2026 -3% +2%+25% Total +15% +17%

 
$74.7 $92.3 $21.7 $21.4 Q4 2025 Q2 2026 $0.8 $36.1 H1 2025 H1 2026 9 Improving Balance Sheet With Healthy Liquidity Investment in the Business, Including Strategic M&A Continue to Deleverage our Balance Sheet Return Capital to Shareholders Capital Allocation Priorities Free Cash Flow1 $USD millions Q2 2026 Available Liquidity2 $USD millions Net Leverage Ratio2 1) Free Cash Flow is not a measurement of financial performance prepared in accordance with GAAP. See “Reconciliations of Non-GAAP Financial Measures” at the end of this document for more information and reconciliations to the most directly comparable GAAP financial measures. 2) “Net Leverage Ratio” is a Supplemental Financial Measure, see “Supplemental Financial Measures” at the end of this document for more information. “Available Liquidity” is cash plus borrowing available on our ABL Revolver. “Total Debt” includes financing leases. ABL Revolver Cash & Cash Equivalents $96.4 $113.7 Total Debt2 $321.1 $295.6 3.6x 2.7x Q2 2025 Q2 2026 Company Record

 
10 May 2026August 2026 High-single-digit growthHigh-single to low-double-digit growth Revenue Growth • Growth expected in each segment • 15% growth in Integrated Paytech • Higher growth in Secure Card Solutions • Slight decline in Prepaid Solutions • ~20%1 growth in Integrated Paytech Segment Growth Low-to-mid single-digit growthLow-to-mid single-digit growthAdj. EBITDA2 In-line with 2025 levels (~$41 million)$45 – $50 millionFree Cash Flow2 Between 2.5x – 3.0xBetween 2.5x – 3.0x Year-end Net Leverage Ratio2 2026 Outlook Raising Revenue Growth & Free Cash Flow Guidance; Affirming All Other Targets Expect to continue disciplined strategic investments First Half Highlights Q2 revenue growth of 15% drove record first half revenue and a 7% Q2 Adjusted EBITDA2 increase Continued customer wins across the business, including new wins in Digital Strong traction on advancing diversification through higher-growth, higher-margin cloud solutions Closed strategic acquisition of TRISM instant issuance Delivered record first half Free Cash Flow and making excellent progress on our Net Leverage Ratio2 1 2 3 4 5 1) On June 24, 2026, CPI raised its Integrated Paytech (“IPT”) segment revenue growth outlook in 2026 from 15% to approximately 20% which includes revenue generated from the TRISM acquisition 2) Adjusted EBITDA, Free Cash Flow and Net Leverage Ratio are not measurements of financial performance prepared in accordance with GAAP

 
11 Contacts Davis Barker Head of Investor Relations & Corporate Development (877) 369-9016 InvestorRelations@cpicardgroup.com

 
1,221 1,252 1,267 1,296 1,332 1,354 1,379 1,411 1,407 1,369 1,389 1,425 1,424 693 725 738 751 760 762 783 830 846 863 880 884 914 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 12 2,253 2,116 2,162 2,241 2,232 2,269 1,914 1,977 2,005 2,0922,047 Source: Visa and Mastercard Operational Performance Data Note: Compound Annual Growth Rate (“CAGR”) represents the average annualized growth rate in Visa and Mastercard debit and credit card count over the period shown, based on reported quarterly card totals Cards in circulation have grown at a 7% CAGR over the last three years to 2.3B, up from 1.9B 2,309 Visa and Mastercard U.S. Cards in Circulation 2,338 +7% CAGR Debit Credit

 
Adjusted EBITDA and Adjusted EBITDA Margin EBITDA represents earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA (which represents earnings before interest, taxes, depreciation and amortization) adjusted for litigation; stock-based compensation expense; restructuring and other charges, including executive retention and severance and acquisition-related costs; costs related to production facility modernization efforts; loss on debt extinguishment; gross profit related to the impact from the accounting change related to revenue; and other items that are unusual in nature, infrequently occurring or not considered part of our core operations. Adjusted EBITDA is intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors, excluding non- operational, unusual or non-recurring losses or gains. Adjusted EBITDA has important limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for, analysis of our results as reported under GAAP. For example, Adjusted EBITDA does not reflect: (a) our capital expenditures, future requirements for capital expenditures or contractual commitments; (b) changes in, or cash requirements for, our working capital needs; (c) the significant interest expenses or the cash requirements necessary to service interest or principal payments on our debt; (d) tax payments that represent a reduction in cash available to us; (e) any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; (f) the impact of earnings or charges resulting from matters that we and the lender under our credit agreement may not consider indicative of our ongoing operations; or (g) the impact of any discontinued operations. In particular, our definition of Adjusted EBITDA allows us to add back certain non-operating, unusual or non-recurring charges that are deducted in calculating net income, even though these are expenses that may recur, vary greatly and are difficult to predict and can represent the effect of long-term strategies as opposed to short-term results. In addition, certain of these expenses represent the reduction of cash that could be used for other purposes. Reconciliations of Non-GAAP Financial Measures 13 1) Balance represents acquisition and integration costs primarily related to the Arroweye acquisition that occurred on May 6, 2025. 2) Balance includes expenses related to executive retention and severance. The 2025 balance also includes expenses related to production facility modernization efforts. 3) In the second quarter of 2025, the Company reassessed certain aspects of its revenue recognition accounting under ASC 606 and prospectively began recognizing revenue for certain contracts at a point-in-time rather than over- time. 4) On October 7, 2025, the Company entered into a strategic relationship with and acquired a 20% equity interest in Karta (Gift Card Co Pty Ltd), an Australia-based payments technology firm also backed by the Commonwealth Bank of Australia. This balance represents the Company’s equity in Karta’s net losses for the quarter ended June 30, 2026.           Reconciliation of net income to EBITDA and Adjusted EBITDA: Net income $ 2.0 $ 0.5 $ 4.1 $ 5.3 Interest, net 7.4 8.1 15.1 15.8 Income tax expense 2.1 0.8 3.3 2.5 Depreciation and amortization 6.3 5.5 12.7 9.8 EBITDA $ 17.9 $ 14.9 $ 35.2 $ 33.3 Adjustments to EBITDA: Stock-based compensation expense $ 1.3 $ 1.4 $ 2.7 $ 3.0 Acquisition and integration costs (1) 2.8 1.6 5.9 2.3 Restructuring and other charges (2) 1.8 1.6 3.0 2.1 Change in revenue recognition (3) — 2.9 — 2.9 Equity in losses of unconsolidated affiliates (4) 0.2 — 0.4 — Subtotal of adjustments to EBITDA $ 6.1 $ 7.6 $ 12.0 $ 10.4 Adjusted EBITDA $ 24.1 $ 22.5 $ 47.2 $ 43.6 Net income margin (% of Revenue) 1.4% 0.4% 1.4% 2.1% Net income growth (% Change 2026 vs. 2025) 293.8% (22.6)% Adjusted EBITDA margin (% of Revenue) 16.1% 17.3% 15.9% 17.3% Adjusted EBITDA growth (% Change 2026 vs. 2025) 7.0% 8.2% ($ in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025

 
14 LTM Adjusted EBITDA We define LTM Adjusted EBITDA as adjusted EBITDA (defined previously) for the last twelve months. Free Cash Flow We define Free Cash Flow as cash flow from operating activities less capital expenditures. We use this metric in analyzing our ability to service and repay our debt. However, this measure does not represent funds available for investment or other discretionary uses since it does not deduct cash used to make principal payments on outstanding debt and financing lease liabilities. Reconciliations of Non-GAAP Financial Measures 1) Balance represents acquisition and integration primarily costs related to the Arroweye acquisition that occurred on May 6, 2025. 2) Balance includes expenses related to executive retention and severance, as well as production facility modernization efforts. 3) In the second quarter of 2025, the Company reassessed certain aspects of its revenue recognition accounting under ASC 606 and prospectively began recognizing revenue for certain contracts at a point-in-time rather than over-time. 4) On October 7, 2025, the Company entered into a strategic relationship with and acquired a 20% equity interest in Karta (Gift Card Co Pty Ltd), an Australia-based payments technology firm also backed by the Commonwealth Bank of Australia. This balance represents the Company’s equity in Karta’s net losses for the quarter ended June 30, 2026. Reconciliation of net income to LTM EBITDA and Adjusted EBITDA: Net income $ 13.8 $ 15.0 Interest, net 31.8 32.5 Income tax expense 7.5 6.7 Depreciation and amortization 25.4 22.5 EBITDA $ 78.4 $ 76.5 Adjustments to EBITDA: Stock-based compensation expense $ 6.6 $ 7.0 Acquisition and integration costs (1) 9.6 6.0 Restructuring and other charges (2) 4.6 3.7 Loss on debt extinguishment 0.3 0.3 Change in revenue recognition (3) — 2.9 Equity in losses of unconsolidated affiliates (4) 0.5 0.1 Subtotal of adjustments to EBITDA $ 21.6 $ 20.0 LTM Adjusted EBITDA $ 100.1 $ 96.5       Reconciliation of cash provided by operating activities - (GAAP) to Free Cash Flow: Cash provided by operating activities $ 28.5 $ 4.3 $ 42.1 $ 9.9 Capital expenditures for plant, equipment and leasehold improvements, net (2.6) (3.8) (6.1) (9.1) Free Cash Flow $ 25.9 $ 0.5 $ 36.1 $ 0.8 Three Months Ended June 30, Six Months Ended June 30, Last Twelve Months Ended June 30, 2026 December 31, 2025 ($ in millions) 2026 2025 2026 2025 ($ in millions)

 
15 Net Leverage Ratio Management and various investors use the ratio of debt principal outstanding, plus finance lease obligations, less cash divided by LTM Adjusted EBITDA, or “Net Leverage Ratio,” as a measure of our financial strength when making key investment decisions and evaluating us against peers. Supplemental Financial Measures    Calculation of Net Leverage Ratio: Senior Notes $ 265.0 $ 265.0 ABL Revolver — 25.0 Financing lease obligations 30.6 31.1 Total debt 295.6 321.1 Less: Cash and cash equivalents (21.4) (21.7) Total net debt (a) $ 274.2 $ 299.4 LTM Adjusted EBITDA (b) $ 100.1 $ 96.5 Net Leverage Ratio (a)/(b) 2.7 3.1 As of June 30, 2026 December 31, 2025 ($ in millions)