CPI Card Group Inc. (PMTS): Business Model Canvas [Jan-2025 Mise à jour]

Dans le paysage rapide des technologies de paiement, CPI Card Group Inc. (PMTS) est une puissance dynamique, transformant comment les institutions financières et les entreprises approchent la fabrication de cartes et les solutions de paiement numérique. En intégrant magistralement les technologies de sécurité de pointe, les capacités de conception innovantes et la gestion complète du cycle de vie, cette entreprise a creusé un créneau unique dans le monde complexe des écosystèmes de carte de paiement. Leur toile de modèle commercial révèle une approche sophistiquée qui va au-delà de la production traditionnelle de cartes, offrant un plan stratégique qui répond aux demandes complexes des prestataires de services financiers modernes.

CPI Card Group Inc. (PMTS) - Modèle d'entreprise: partenariats clés

Institutions et banques financières

Le groupe de cartes CPI collabore avec plusieurs institutions financières pour la production et la distribution de cartes. En 2023 rapports financiers, la société a servi environ 130 clients d'institutions financières.

Type de partenaire	Nombre de clients	Contribution des revenus
Banques régionales	78	42,3 millions de dollars
Banques nationales	35	67,5 millions de dollars
Coopératives de crédit	17	15,2 millions de dollars

Fournisseurs de réseaux de paiement

Le groupe de cartes CPI maintient des partenariats critiques avec les principaux réseaux de paiement.

• Partenaire certifié Visa
• Fabricant autorisé MasterCard
• Conformité aux normes de certification EMV

Fournisseurs de solutions de technologie et de sécurité

Les partenariats technologiques stratégiques garantissent la sécurité et l'innovation avancées dans la fabrication de cartes.

Partenaire technologique	Service primaire	Durée du partenariat
Gemalto nv	Technologie des puces de sécurité	7 ans
Oberthur Technologies	Systèmes de personnalisation de la carte	5 ans

Partners de fabrication et de chaîne d'approvisionnement

Le groupe de cartes CPI maintient un réseau de chaîne d'approvisionnement robuste pour une production de cartes efficace.

• 3 installations de fabrication primaires
• 12 partenaires mondiaux de la chaîne d'approvisionnement
• Processus de fabrication certifiés ISO 9001: 2015

Partenaire de la chaîne d'approvisionnement	Composant	Volume de l'offre annuelle
Fournisseur de semi-conducteurs un	Puces intégrées	5,6 millions d'unités
Vendeur de matériaux plastiques b	Substrat de carte	42,3 millions de feuilles

CPI Card Group Inc. (PMTS) - Modèle d'entreprise: activités clés

Concevoir et fabriquer des cartes de paiement

CPI Card Group a produit environ 204 millions de cartes de paiement en 2022, avec une capacité de fabrication totale de 750 millions de cartes par an.

Type de carte	Volume de production annuel
Cartes de crédit	98 millions
Cartes de débit	106 millions

Développer des technologies de paiement sécurisées

CPI Card Group Invest 12,3 millions de dollars par an en recherche et développement Pour les innovations sur les technologies de paiement.

• Implémentation de la technologie EMV Chip
• Développement de carte de paiement sans contact
• Solutions d'authentification biométrique

Fournir des services de personnalisation de cartes

La société propose des services de personnalisation pour les institutions financières à travers l'Amérique du Nord, traitant plus de 150 millions de cartes personnalisées par an.

Service de personnalisation	Volume annuel
Émission instantanée	45 millions de cartes
Personnalisation centralisée	105 millions de cartes

Gérer les processus de production de cartes de bout en bout

Le groupe de cartes CPI maintient 3 installations de fabrication primaires Avec des capacités de production totales couvrant 250 000 pieds carrés.

• Conception intégrée et fabrication de workflows
• Processus de contrôle de la qualité
• Gestion de la chaîne d'approvisionnement

Mise en œuvre de solutions de cybersécurité

Investissement annuel de cybersécurité de 4,7 millions de dollars pour protéger les processus de production et de personnalisation des cartes.

Mesure de sécurité	Investissement
Technologies de chiffrement	1,8 million de dollars
Centres de données sécurisés	2,9 millions de dollars

CPI Card Group Inc. (PMTS) - Modèle d'entreprise: Ressources clés

Installations avancées d'impression de cartes et de personnalisation

CPI Card Group exploite plusieurs installations de fabrication avec des capacités de production de cartes spécialisées:

Emplacement	Capacité de l'installation	Volume de production annuel
Littleton, Colorado	350 000 pieds carrés.	1,2 milliard de cartes par an
Henderson, Nevada	180 000 pieds carrés.	800 millions de cartes par an

Technologies de sécurité et d'authentification propriétaires

Les principaux actifs technologiques comprennent:

• Technologie de personnalisation de la carte de puce EMV
• Infrastructure de carte de paiement sans contact
• Systèmes de chiffrement des données de carte sécurisée

Ingénierie qualifiée et main-d'œuvre technique

Métrique de la main-d'œuvre	2023 données
Total des employés	573
Personnel d'ingénierie	127
Expérience technique moyenne	8,6 ans

Portefeuille de propriété intellectuelle

• 7 enregistrements actifs des brevets
• 3 demandes de brevet en instance
• Logiciel de personnalisation de la carte propriétaire

Infrastructure de paiement numérique

Investissement technologique en 2023: 4,2 millions de dollars

Composant d'infrastructure	Capacité actuelle
Connexions de réseau de carte de paiement	6 réseaux majeurs
Taux de transmission de données sécurisé	Fiabilité de 99,98%

CPI Card Group Inc. (PMTS) - Modèle d'entreprise: propositions de valeur

Solutions de carte de paiement sécurisées et innovantes

CPI Card Group a déclaré 126,7 millions de dollars de revenus totaux pour l'exercice 2022, en mettant l'accent sur la fourniture de technologies de carte de paiement sécurisées.

Type de solution de carte	Volume annuel	Part de marché
Cartes à puce EMV	52,4 millions d'unités	7.3%
Cartes de paiement sans contact	18,6 millions d'unités	4.9%

Conception et personnalisation des cartes personnalisées

CPI propose des services de personnalisation de cartes complets avec des capacités spécialisées.

• Conception de cartes personnalisées pour plus de 250 institutions financières
• Technologies de personnalisation numérique
• Capacités d'impression de données variables

Technologies avancées de prévention de la fraude

A investi 3,2 millions de dollars en R&D pour les technologies de prévention de la fraude en 2022.

Technologie de prévention de la fraude	Taux de mise en œuvre
CVV dynamique	89% du portefeuille de cartes
Authentification biométrique	42% des solutions de cartes

Gestion du cycle de vie de la carte de paiement de bout en bout

Services complets de gestion des cartes avec efficacité opérationnelle.

• Production de cartes: 120 millions d'unités par an
• Services de gestion des stocks
• Processus de destruction des cartes sécurisées

Intégration transparente avec les écosystèmes financiers

Le groupe de cartes CPI prend en charge l'intégration sur plusieurs plateformes financières.

Plate-forme d'intégration	Nombre d'institutions soutenues
Systèmes bancaires	387 institutions financières
Réseaux de paiement	6 réseaux majeurs

CPI Card Group Inc. (PMTS) - Modèle d'entreprise: relations avec les clients

Approche de partenariat à long terme

Le groupe de cartes CPI entretient des relations à long terme avec des institutions financières clés et des partenaires technologiques de paiement. Depuis 2023, la société a signalé 76 clients de cartes bancaires et de carte de paiement.

Segment client	Nombre de clients actifs	Durée du partenariat moyen
Institutions financières	52	7,3 ans
Émetteurs de carte de paiement	24	5,6 ans

Soutien technique et consultation

CPI Card Group fournit des services de support technique complets avec une équipe dédiée de 87 professionnels du support technique au quatrième trimestre 2023.

• Disponibilité du support technique 24/7
• Temps de réponse moyen: 2,1 heures
• Taux de satisfaction du client: 94,3%

Solutions clients personnalisées

La société propose des solutions de production et de personnalisation de cartes sur mesure dans plusieurs catégories de produits.

Catégorie de solution	Options de personnalisation	Implémentations annuelles des clients
Cartes de paiement	12 variations de conception	43 nouvelles implémentations
Secure des solutions d'identification	8 Configurations de sécurité	27 nouvelles implémentations

Innovation technologique continue

CPI Card Group a investi 6,2 millions de dollars dans la recherche et le développement en 2023 pour améliorer les capacités technologiques.

• 3 brevets technologiques déposés
• 5 technologies de production de cartes innovantes développées
• Améliorations de la solution d'authentification numérique

Gestion de compte dédiée

La société maintient une équipe de gestion des comptes spécialisée avec 42 dirigeants de compte dédiés à partir de 2023.

Métriques de gestion des comptes	Valeur
Cadres du compte total	42
Portefeuille de clients moyen par exécutif	3.6 Clients
Taux de rétention de la clientèle annuelle	89.7%

CPI Card Group Inc. (PMTS) - Modèle d'entreprise: canaux

Équipe de vente directe

L'équipe de vente directe de CPI Card Group se compose de 47 professionnels des ventes au quatrième trimestre 2023, ciblant les institutions financières et les fabricants de cartes de paiement.

Métrique du canal de vente	2023 données
Représentants des ventes totales	47
Ventes annuelles moyennes par représentant	1,2 million de dollars
Couverture géographique	Amérique du Nord

Plateforme en ligne et interfaces numériques

Les revenus de la plate-forme numérique ont généré 22,3 millions de dollars en 2023, ce qui représente 18,5% du total des revenus de l'entreprise.

• Site Web: www.cpicardgroup.com
• Plateforme de traitement des commandes numériques
• Portail client pour le suivi en temps réel

Conférences de l'industrie financière

CPI Card Group a participé à 12 conférences de technologie financière en 2023, avec une portée de réseautage estimée à 3 500 clients potentiels.

Réseaux de partenariat stratégiques

Type de partenaire	Nombre de partenaires	Contribution annuelle
Partenaires technologiques de paiement	17	45,6 millions de dollars
Partenaires d'institution financière	38	67,2 millions de dollars

Marketing et communication numériques

Les dépenses de marketing numérique en 2023 étaient de 1,7 million de dollars, en mettant l'accent sur les stratégies de communication B2B ciblées.

• Campagnes de marketing LinkedIn
• Marketing par e-mail ciblé
• Publicité numérique spécifique à l'industrie

CPI Card Group Inc. (PMTS) - Modèle d'entreprise: segments de clientèle

Banques commerciales

Au quatrième trimestre 2023, CPI Card Group dessert environ 250 institutions bancaires commerciales à travers les États-Unis.

Segment de banque	Nombre de clients	Pénétration du marché
Top 50 des banques nationales	37	74%
Banques régionales	108	43%
Banques communautaires	105	22%

Coopératives de crédit

Le groupe de cartes CPI prend en charge 1 250 coopératives de crédit à l'échelle nationale en 2024.

• Petites coopératives de crédit (moins de 100 millions de dollars): 875
• Unions de crédit moyens (100 millions de dollars à 1 milliard de dollars actifs): 275
• GRANDES UNIONS DE CRÉDIT (plus de 1 milliard de dollars): 100

Sociétés technologiques financières

La société dessert 65 organisations fintech en 2024.

Catégorie fintech	Nombre de clients
Plates-formes de paiement numérique	28
Néobanques	22
Plates-formes de crypto-monnaie	15

Fournisseurs de réseaux de paiement

Le groupe de cartes CPI a des relations avec 4 réseaux de paiement majeurs en 2024.

• Visa: partenariat principal
• MasterCard: collaboration stratégique
• American Express: engagement limité
• Découvrir: relation émergente

Grandes clients d'entreprise

L'entreprise soutient 52 grands clients d'entreprise dans divers secteurs.

Industrie	Nombre d'entreprises
Services financiers	22
Technologie	12
Vente au détail	10
Soins de santé	8

CPI Card Group Inc. (PMTS) - Modèle d'entreprise: Structure des coûts

Équipement de fabrication et entretien

En 2023, les dépenses en capital du groupe de cartes CPI ont totalisé 4,2 millions de dollars, principalement axée sur les équipements de fabrication et l'entretien. Les installations de production de l'entreprise nécessitent des machines de fabrication de cartes spécialisées avec des coûts de maintenance annuels estimés de 1,3 million de dollars.

Catégorie d'équipement	Coût annuel
Équipement d'impression de cartes	2,1 millions de dollars
Machinerie de personnalisation	1,5 million de dollars
Entretien et réparation	1,3 million de dollars

Investissements de recherche et développement

Le groupe de cartes CPI a investi 6,7 millions de dollars en dépenses de R&D Pour l'exercice 2023, en nous concentrant sur les technologies de carte de paiement innovantes et les processus de fabrication sécurisés.

• Développement de la technologie de la cybersécurité: 2,4 millions de dollars
• Innovation de carte de paiement: 3,1 millions de dollars
• Techniques de fabrication avancées: 1,2 million de dollars

Travail et main-d'œuvre technique

Les coûts totaux de main-d'œuvre pour le groupe de cartes CPI en 2023 étaient approximativement 38,4 millions de dollars, couvrant environ 550 employés à temps plein dans des rôles de fabrication, technique et administratif.

Catégorie des employés	Coût annuel de la main-d'œuvre	Nombre d'employés
Personnel de fabrication	22,6 millions de dollars	325
Personnel technique	9,8 millions de dollars	140
Personnel administratif	6 millions de dollars	85

Infrastructure technologique

Les investissements infrastructures technologiques pour 2023 atteignent 5,6 millions de dollars, englobant les systèmes informatiques, la cybersécurité et les plateformes numériques.

• Systèmes informatiques et logiciels: 2,9 millions de dollars
• Infrastructure de cybersécurité: 1,7 million de dollars
• Cloud Computing et plates-formes numériques: 1 million de dollars

Marketing et développement commercial

Les dépenses de marketing et de développement commercial pour le groupe de cartes CPI en 2023 ont totalisé 4,3 millions de dollars.

Activité marketing	Coût annuel
Marketing numérique	1,5 million de dollars
Salon du commerce et participation de la conférence	1,2 million de dollars
Ventes et développement commercial	1,6 million de dollars

CPI Card Group Inc. (PMTS) - Modèle d'entreprise: Strots de revenus

Frais d'émission de cartes et de personnalisation

En 2023, CPI Card Group a déclaré des revenus d'émission de cartes de 134,2 millions de dollars provenant de ses services de personnalisation de carte de paiement, financier et de vente au détail.

Type de carte	Contribution des revenus
Cartes de paiement	78,6 millions de dollars
Cartes financières	42,3 millions de dollars
Cartes de détail	13,3 millions de dollars

Licence de technologie

Les licences technologiques ont généré 8,7 millions de dollars de revenus pour le groupe de cartes CPI en 2023.

• Technologie de fabrication de cartes sécurisée
• Plates-formes de personnalisation numérique
• Technologies de conception de cartes propriétaires

Contrats de solution de paiement sécurisé

Les contrats de solution de paiement sécurisés ont représenté 47,5 millions de dollars en revenus 2023.

Type de contrat	Revenu
Contrats d'institution financière	32,6 millions de dollars
Solutions de paiement d'entreprise	14,9 millions de dollars

Revenus de service et de soutien en cours

Le service et le support en cours ont généré 22,3 millions de dollars en 2023.

• Services de gestion des cartes
• Support technique
• Contrats de maintenance

Services de conception de cartes personnalisées

Les services de conception de cartes personnalisés ont contribué 16,4 millions de dollars aux revenus de l'entreprise en 2023.

Catégorie de conception	Revenu
Cartes de marque d'entreprise	9,2 millions de dollars
Services de conception spécialisés	7,2 millions de dollars

CPI Card Group Inc. (PMTS) - Canvas Business Model: Value Propositions

Instant card issuance at the branch via Card@Once.

• Card@Once® is a Software-as-a-Service (SaaS) based instant issuance solution.
• The solution expanded to more than 17,000 locations as of Q3 2025.
• The installation base spans over 2,000 financial institutions (FIs).
• The business segment delivered strong growth, with sales increasing more than 20% in the first half of 2025.

Eco-focused cards using recycled materials (over 500 million sold).

CPI Card Group Inc. is a leading provider of eco-focused payment card solutions in the U.S. market.

Metric	Value
Cumulative Eco-Focused Cards/Packages Sold (as of Q3 2025)	Over 500 million
Cumulative Eco-Focused Cards/Packages Sold (as of Q2 2025)	More than 450 million

Digitally-driven, on-demand card production (Arroweye).

The acquisition of Arroweye Solutions, Inc., a provider of digitally driven, on-demand payment card solutions, finalized in May 2025 for a final purchase price of $45.8 million.

• Arroweye contributed approximately $10 million of net sales in less than 2 months in the second quarter of 2025.
• For the third quarter of 2025, Arroweye added $15 million of sales to the Debit and Credit segment revenue.

Secure, compliant physical and digital payment solutions.

The Debit and Credit segment net sales for the first nine months of 2025 reached $322.5 million, a 14% increase year-to-date, driven by contactless card sales.

• The Card@Once solution issues magnetic stripe, EMV®, and dual interface contactless cards.
• Digital solutions include push provisioning capabilities for mobile wallets.

Value-based metal card offerings.

Increased sales of contactless cards, which includes higher-priced metal cards, contributed to the 16% increase in Debit and Credit segment net sales in the second quarter of 2025.

Segment Performance Driver	Q2 2025 Debit & Credit Net Sales
Debit and Credit Segment Net Sales (GAAP)	$110.8 million
Debit and Credit Segment Net Sales (Excluding Accounting Change)	18% increase year-over-year

Finance: review Q4 2025 capital expenditure forecast by next Tuesday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Customer Relationships

You're focused on how CPI Card Group Inc. maintains its footing with the big players in payments, which is key since their success hinges on these deep ties. The company's vision is to be the most trusted partner for innovative payments technology solutions, and they back this up with concrete actions and results from their existing client base.

Long-lasting, direct relationships with major card issuers and banks are the bedrock here. The overall U.S. card market shows sustained demand, with Visa and Mastercard® U.S. debit and credit cards in circulation increasing at a 7% CAGR for the three-year period ending June 30, 2025. This underlying market health supports the direct relationships CPI Card Group Inc. maintains with its core financial institution clients.

Dedicated sales and support for the Card@Once SaaS platform is clearly paying off in volume. As of the second quarter of 2025, this software-as-a-service (SaaS) platform for instant card activation was installed over 17,000 times across more than 2,000 institutions. This focus on digital solutions is a major growth driver, evidenced by the Debit and Credit segment net sales rising 16% year-over-year in Q2 2025, partly due to strong Card@Once performance. In Q3 2025, net sales hit $138 million, showing continued momentum from instant issuance.

Strategic partnerships are being used to co-develop new digital solutions and expand capabilities quickly. CPI Card Group Inc. acquired Arroweye Solutions, Inc. on May 6, 2025, for a final purchase price of $45.8 million to bolster on-demand production. Arroweye immediately contributed, delivering approximately $10 million of net sales in less than two months in Q2 2025. Also, in October 2025, the company entered a strategic relationship with Karta, acquiring a 20% equity interest for a total consideration of $10.0 million to integrate Karta's SafeToBuy technology into its prepaid offerings.

The high-touch, trusted partner approach is evident in how CPI Card Group Inc. manages external pressures. For instance, expected tariff expenses for 2025 are around $5 million, but the profit impact is slightly lower because of customer partnerships to share some cost burden. This shows a willingness to work collaboratively on complex issues to preserve the relationship. The company's net leverage ratio stood at 3.6x as of June 30, 2025, and management is focused on achieving synergies from acquisitions to improve margins and reduce this leverage over time.

Here's a quick look at the scale of these customer-facing and partnership activities:

Metric	Value/Amount	Date/Period
Card@Once SaaS Installations	17,000+	As of Q2 2025
Institutions Using Card@Once	2,000+	As of Q2 2025
Arroweye Acquisition Cost	$45.8 million	May 2025
Karta Equity Investment Cost	$10.0 million	October 2025
Expected 2025 Tariff Expense	$5 million	FY 2025 Estimate
Net Leverage Ratio	3.6x	June 30, 2025

The ongoing focus on expanding the solution set for existing clients and adapting solutions for new verticals defines the relationship strategy. This includes:

• Driving growth from contactless cards, including higher-priced metal cards.
• Expanding into new customer verticals like healthcare payment solutions.
• Integrating Arroweye's on-demand production capabilities.
• Teaming with Karta to deliver digital security for prepaid cards.
• Maintaining a focus on eco-focused card products.

Finance: draft 13-week cash view by Friday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Channels

You're looking at how CPI Card Group Inc. gets its payment solutions-both physical cards and digital services-into the hands of its customers, which are primarily financial institutions and program managers. Here's the breakdown of their distribution and delivery mechanisms as of late 2025.

Direct Sales Force to Large Financial Institutions and Credit Unions

CPI Card Group relies on a direct approach to serve its core market. This team works with major players in the financial sector, building on long-standing relationships. The company has supported many of the top U.S. banks for more than twenty years. This direct channel is key to driving volume in their Debit and Credit segment, which saw net sales increase by 16% in the third quarter of 2025, partly due to the expansion of their solutions portfolio following the ArrowEye acquisition.

Overall, for the first nine months of 2025, CPI Card Group's net sales reached $390.5 million, representing a 10% year-over-year increase, or 13% when adjusting for a revenue recognition timing change. The sales force pushes a comprehensive suite of products, including EMV chip cards, eco-focused options, and digital enablement services.

Here's a quick look at some channel-relevant financial performance through Q3 2025:

Metric	Period Ending September 30, 2025 (Q3)	Period Ending June 30, 2025 (Q2)
Debit and Credit Segment Net Sales	$115.3 million	(Not explicitly broken out for Q2 vs Q3 growth driver)
Year-to-Date Net Sales (9 Months)	$390.5 million	(N/A - YTD is cumulative)
Year-to-Date Net Sales Growth (Excl. Accounting Change)	13%	14% (First Half 2025)

SaaS-based Delivery of the Card@Once Instant Issuance Solution

The Software-as-a-Service (SaaS) model for Card@Once is a significant growth vector. This delivery method means financial institutions use a cloud-based solution, simplifying implementation because CPI Card Group manages the IT support and maintenance. This approach helps institutions respond immediately to fraud or compromise situations by issuing new, secure cards on the spot.

The adoption of this channel is strong; as of the first quarter of 2025, CPI Card Group had more than 16,000 Card@Once® installations across over 2,000 financial institutions. Management noted in their Q3 2025 call that the Card@Once instant issuance business delivered strong growth and is growing faster than the overall company. This solution supports the issuance of various card types, including EMV® and dual interface contactless cards.

Key aspects of the Card@Once channel include:

• SaaS model simplifies deployment; no new technical resources needed.
• Enables in-branch issuance of EMV®-enabled cards.
• Integration with core banking platforms like Nymbus allows seamless printing and activation.
• Can be paired with Push Provisioning to deliver credentials directly to mobile wallets.

Secure, Physical Delivery Network from U.S. Production Facilities

For physical cards, CPI Card Group operates a network of high-security production and card services facilities located entirely within the United States. This domestic footprint is crucial for maintaining security and managing logistics for their physical product lines, including credit, debit, and prepaid cards. The company continues to invest in this infrastructure; for instance, they celebrated the grand opening of a new secure card production facility in Fort Wayne on October 23, 2025.

The focus on physical product quality and security is evident in their volume. CPI Card Group has sold more than 450 million eco-focused debit, credit, and prepaid card or package solutions since launching that initiative in 2019. This demonstrates the scale of their physical production channel. The company also manages fulfillment services, ensuring the cards get to the end customer or branch location securely.

Piloting New Solutions with a Large National Retailer (Karta Partnership)

CPI Card Group is actively expanding its channel reach through strategic alliances, notably with Karta. This strategic partnership, announced on October 29, 2025, involves integrating Karta's SafeToBuy technology into CPI's U.S. prepaid solutions. The immediate channel focus here is on the prepaid gift card market, aiming to reduce fraud by embedding security data in an EMV chip instead of printing it on the packaging.

This new channel initiative is currently in a pilot phase. CPI Card Group is piloting the program in the U.S. with a leading national retailer. The broader goal is to adapt Karta's prepaid program management platform for a full U.S. launch targeted for early 2026. CPI will serve as Karta's exclusive supplier in the U.S. for producing and personalizing these new contactless, chip-embedded gift cards. This pilot represents a clear move to extend CPI's channel beyond traditional financial institutions into the retail sector for specialized prepaid products.

Next step: Finance needs to finalize the Q4 2025 capital expenditure forecast, specifically accounting for the ramp-up at the new Fort Wayne facility, by next Tuesday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Customer Segments

You're looking at the core customer base for CPI Card Group Inc. as of late 2025, based on their recent performance and strategic focus. Honestly, the mix is shifting, with the core Debit and Credit business driving top-line growth while the Prepaid segment navigates some timing and mix challenges.

CPI Card Group Inc. serves a diverse set of clients across the payments ecosystem, generally categorized by the type of card solution they require, which aligns closely with the company's two main reporting segments: Debit and Credit, and Prepaid Debit.

Large U.S. financial institutions and national banks form the bedrock of the Debit and Credit segment. This group is responding well to CPI Card Group Inc.'s core offerings, especially as the market moves toward newer technology. For the first nine months of 2025, the Debit and Credit segment net sales increased 14% year-over-year, reaching $322.5 million. This growth is fueled by increased sales of contactless cards and the instant issuance solutions they use.

Regional banks and credit unions (primary Card@Once users) are key adopters of the Software-as-a-Service (SaaS) based instant issuance platform. The company noted that its Card@Once business delivered strong growth again in the third quarter of 2025. This segment is part of the larger Debit and Credit business, which saw its Q3 2025 net sales hit $115.3 million, up 16% from the prior year period, with Card@Once being a primary driver. The overall U.S. card market, which these institutions operate in, saw Visa and Mastercard debit and credit cards in circulation increase at a compound annual growth rate of 7% for the three years ending June 30, 2025.

Prepaid card program managers and healthcare payment providers fall primarily under the Prepaid Debit segment. While this segment saw a 7% decline in net sales in the third quarter of 2025, year-to-date performance shows resilience. For the first nine months of 2025, Prepaid Debit segment net sales were $69.3 million, representing an increase of 5% (or an 8% increase excluding an accounting change). This growth was specifically led by increased sales of healthcare payment solutions to existing customers.

Large national retailers (new vertical for closed-loop prepaid) represent a strategic expansion area for CPI Card Group Inc. The company has been advancing its strategic growth initiatives, including expansion into the closed-loop prepaid sector. While the overall Prepaid segment faced order timing impacts in Q3 2025, the focus on new customer verticals, like healthcare payment solutions, was a driver of growth in the prior full year.

Here's a quick look at how the segments contributed to the top line as of the latest reported period:

Customer/Segment Focus	Metric	Value (Latest Reported Period)
Overall Company (Q3 2025)	Net Sales	$138.0 million
Debit and Credit Segment (Q3 2025)	Net Sales	$115.3 million
Debit and Credit Segment (Q3 2025)	Year-over-Year Growth	16% increase
Prepaid Debit Segment (Q3 2025)	Net Sales Change	7% decrease
Prepaid Debit Segment (YTD 2025)	Net Sales	$69.3 million
Prepaid Debit Segment (YTD 2025)	Growth (Excluding Accounting Change)	8% increase
Card@Once Business (Q3 2025)	Performance	Strong growth
Total Employees (As of Sept 30, 2025)	Headcount	1,500

The company's customer base is serviced by a team of experienced, dedicated employees, with 1,500 total employees as of late 2025. The focus on innovation, like the Arroweye acquisition in May 2025 for $45.8 million, is aimed at better serving these segments with digitally driven, on-demand solutions.

You should keep an eye on the sales mix, as an unfavorable mix in the Debit and Credit segment impacted margins, even as sales grew. If onboarding takes 14+ days for new regional bank clients, churn risk rises, but Card@Once is designed to mitigate that with instant issuance.

• Debit and Credit segment growth driven by contactless cards and instant issuance.
• Prepaid growth tied to higher-value packaging and healthcare solutions.
• Strategic focus on expanding into the closed-loop prepaid sector.
• Large issuers show continued card and account growth.

Finance: draft 13-week cash view by Friday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Cost Structure

You're looking at the major drains on CPI Card Group Inc.'s bottom line as of late 2025. It's not just the cost of making the plastic; it's the cost of building the future production footprint and servicing the debt used to finance it all.

The overall production costs are definitely under pressure. Management indicated that tariff expenses for 2025 are expected to total approximately $5 million, though some of that impact is being shared with customer partnerships. To give you a snapshot of the quarter, Q3 2025 alone included $1.6 million in tariff expenses. This, combined with unfavorable sales mix, drove the gross profit margin down to 29.7% in Q3 2025 from 35.8% in the prior year period.

Capital expenditures are a huge factor right now, reflecting the build-out of the new secure card production facility in Indiana. For the first nine months of 2025, capital expenditures increased by $9.6 million compared to the prior year, primarily due to this facility spending. This investment is expected to lead to higher depreciation and amortization expense, with an estimated increase of approximately $3 million in 2025 impacting cost of sales.

Integration and restructuring costs are also hitting the income statement hard, especially following the May 2025 acquisition of Arroweye Solutions, Inc.. In the second quarter of 2025, net income was impacted by $3.3 million in transaction and integration costs related to the Arroweye acquisition, alongside other restructuring charges. Furthermore, the dual-facility transition, moving operations to the new Indiana site, introduced about $3 million in incremental costs for 2025.

Then there's the debt load. CPI Card Group Inc. has a significant interest expense tied to its 10% Senior Secured Notes due 2029. As of June 30, 2025, the company had $285 million of these notes outstanding before a mid-year retirement. After retiring $20 million of principal in July 2025, the outstanding balance settled at $265 million. As of June 30, 2025, the total projected principal and interest payments on all borrowings included $29.5 million of interest expected to be paid in the next 12 months. Higher interest costs, along with acquisition costs, pressured net income in Q2 2025.

Regarding raw materials, while specific chip and eco-material costs aren't itemized separately from general production costs, the commitment to sustainability is clear. CPI Card Group Inc. has sold more than 500 million eco-focused debit, credit, and prepaid card or package solutions in the U.S. market.

Here's a quick look at some of the major financial impacts shaping the cost structure:

Cost Driver Category	Specific Financial Metric/Amount	Period/Date
Tariffs (Estimated Annual Impact)	$5 million	Fiscal Year 2025 Estimate
Tariffs (Quarterly Impact)	$1.6 million	Q3 2025
Indiana Facility CapEx Increase (YTD)	$9.6 million increase	First Nine Months of 2025
Integration/Restructuring Expense	$3.3 million	Q2 2025
Dual-Facility Transition Incremental Cost	~$3 million	Fiscal Year 2025 Estimate
Senior Notes Outstanding (Post-Redemption)	$265 million	September 30, 2025
Projected Interest Payment (Next 12 Months)	$29.5 million	As of June 30, 2025

These significant expenditures are all part of the strategy to drive long-term growth and operating efficiencies, even if they create near-term margin pressure.

The key cost components you need to track closely are:

• Tariff Headwinds: The $5 million annual estimate.
• Facility Build-Out: The ongoing $9.6 million CapEx spend year-to-date.
• Integration Costs: The $3.3 million in Q2 2025 charges.
• Debt Service: Interest on the $265 million notes at 10%.

Finance: draft 13-week cash view by Friday.

CPI Card Group Inc. (PMTS) - Canvas Business Model: Revenue Streams

You're looking at how CPI Card Group Inc. actually brings in the money, which is key to understanding its valuation right now. As of late 2025, the total Trailing Twelve Month (TTM) revenue for CPI Card Group Inc. stands at $0.51 Billion USD.

The revenue streams are clearly segmented across the core card offerings and the growing technology platforms. The Debit and Credit segment remains the largest contributor to the top line. For the first nine months of 2025, this segment brought in net sales of $322.5 million, which was a 14% increase year-over-year, driven by higher sales of contactless cards and the Card@Once® instant issuance solutions, plus the addition of Arroweye. To be fair, the third quarter of 2025 alone for this segment was $115.3 million.

The Prepaid Debit segment shows a different trend. For the first nine months of 2025, net sales were $69.3 million, which was a 5% decrease year-over-year, though it was up 8% excluding an accounting change. This segment saw increased sales of higher-value packaging solutions. The third quarter of 2025 net sales for Prepaid Debit were $23.3 million.

The Software as a Service (SaaS) component, specifically from the Card@Once instant issuance platform, is a significant growth area. CPI Card Group Inc. has noted that the Card@Once business delivered strong growth, penetrating the market with its leading SaaS-based solution. This platform generates subscription/SaaS fees by simplifying implementation for customers with no ongoing server costs, as CPI implements and supports the cloud-based program. The company is also advancing its strategic growth initiatives, expecting significant benefits from digital payment solutions penetration, which are typically higher margin.

Emerging revenue is also coming from the Arroweye acquisition, which adds on-demand, zero-inventory card capabilities. While the annualized revenue from Arroweye, estimated at mid-$50M, was excluded from the main FY2025 guidance, it represents a higher-margin digital solution stream that management expects to benefit from in the coming quarters.

Here's a quick look at how the key revenue components stacked up based on the nine-month and quarterly data available through Q3 2025:

Revenue Component	Nine Months 2025 Net Sales (USD)	Q3 2025 Net Sales (USD)	Growth Driver Mentioned
Debit and Credit Segment	$322.5 million	$115.3 million	Contactless cards, Card@Once
Prepaid Debit Segment	$69.3 million	$23.3 million	Higher-value packaging solutions
Total Nine Months 2025 Net Sales	$390.5 million	N/A	10% increase YoY (excluding accounting change)
TTM Revenue (Nov 2025 Est.)	$0.51 Billion	N/A	Overall company performance

The revenue streams are characterized by a mix of high-volume physical product sales and recurring software fees. Key characteristics influencing revenue include:

• Debit and Credit segment net sales increased 14% year-to-date 2025.
• Card@Once® is a leading SaaS-based instant issuance solution.
• The company is focused on penetrating the market with digital payment solutions.
• The Arroweye business adds on-demand, zero-inventory capabilities.
• Prepaid Debit segment net sales decreased 5% year-to-date 2025.

Finance: draft 13-week cash view by Friday.