CPI Card Group Inc._March 31, 2026

Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended March 31, 2026

☐

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition Period from to

Commission File Number: 001-37584

CPI Card Group Inc.

(Exact name of the registrant as specified in its charter)



Delaware		26-0344657
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer identification no.)

10368 W. Centennial Road
Littleton, CO		80127
(Address of principal executive offices)		(Zip Code)

(720) 681-6304

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	PMTS	Nasdaq Global Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☒

		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Number of shares of Common Stock, $0.001 par value, outstanding as of April 28, 2026: 11,475,608

Table of Contents

Table of Contents


		Page
Part I — Financial Information

Item 1 — Condensed Consolidated Financial Statements (Unaudited)		3

Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations		16

Item 3 — Quantitative and Qualitative Disclosures About Market Risk		23

Item 4 — Controls and Procedures		23

Part II — Other Information

Item 1 — Legal Proceedings		24

Item 1A — Risk Factors		24

Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds		24

Item 3 — Defaults Upon Senior Securities		24

Item 4 — Mine Safety Disclosures		24

Item 5 — Other Information		24

Item 6 — Exhibits		24

Signatures		25

Table of Contents

PART I - Financial Information

Item 1. Financial Statements

CPI Card Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

(Unaudited)


	March 31,		December 31,
	2026		2025
Assets
Current assets:
Cash and cash equivalents	$	19,296	$	21,700
Accounts receivable, net		88,681		95,436
Inventories, net		65,504		72,243
Prepaid expenses and other current assets		15,407		15,565
Total current assets		188,888		204,944
Plant, equipment, leasehold improvements and operating lease right-of-use assets, net		106,676		108,433
Intangible assets, net of accumulated amortization of $60,735 and $59,741, respectively		17,550		18,544
Goodwill		48,764		48,764
Other assets		24,576		22,506
Total assets	$	386,454	$	403,191
Liabilities and stockholders’ deficit
Current liabilities:
Accounts payable	$	22,469	$	27,802
Accrued expenses		48,260		52,379
Deferred revenue and customer deposits		3,600		3,916
Total current liabilities		74,329		84,097
Long-term debt		276,903		286,668
Deferred income taxes		2,565		2,251
Other long-term liabilities		46,667		47,508
Total liabilities		400,464		420,524

Commitments and contingencies (Note 9)

Stockholders’ deficit:
Series A Preferred Stock; $0.001 par value—100,000 shares authorized; 0 shares issued and outstanding at March 31, 2026 and December 31, 2025		—		—
Common stock; $0.001 par value—100,000,000 shares authorized; 11,475,608 and 11,456,061 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively		11		11
Capital deficit		(100,824)		(102,091)
Accumulated earnings		86,803		84,747
Total stockholders’ deficit		(14,010)		(17,333)
Total liabilities and stockholders’ deficit	$	386,454	$	403,191

See accompanying notes to condensed consolidated financial statements

Table of Contents

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 March 31,
	2026		2025
Revenue	$	147,108	$	122,761
Cost of goods sold		102,984		82,065
Gross profit		44,124		40,696
Selling, general and administrative expenses		33,130		26,592
Income from operations		10,994		14,104
Other expense, net:
Interest, net		(7,656)		(7,685)
Other income, net		32		18
Total other expense, net		(7,624)		(7,667)
Income before income taxes and equity in losses of unconsolidated affiliates		3,370		6,437
Income tax expense		(1,158)		(1,663)
Equity in losses of unconsolidated affiliates		(156)		—
Net income	$	2,056	$	4,774

Basic and diluted earnings per share:
Basic earnings per share	$	0.18	$	0.42
Diluted earnings per share	$	0.17	$	0.40

Basic weighted-average shares outstanding		11,457,573		11,245,844
Diluted weighted-average shares outstanding		11,857,270		12,008,523

Comprehensive income:
Net income	$	2,056	$	4,774
Total comprehensive income	$	2,056	$	4,774

See accompanying notes to condensed consolidated financial statements

Table of Contents

CPI Card Group Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Deficit

(in thousands, except share amounts)

(Unaudited)


	Common stock			Capital		Accumulated		Stockholders
	Shares	Amount		deficit		earnings		deficit
December 31, 2025	11,456,061	$	11	$	(102,091)	$	84,747	$	(17,333)
Shares issued under stock-based compensation plans	19,547		—		(136)		—		(136)
Stock-based compensation	—		—		1,403		—		1,403
Components of comprehensive income:
Net income	—		—		—		2,056		2,056
March 31, 2026	11,475,608	$	11	$	(100,824)	$	86,803	$	(14,010)

SEC Form 10-Q filed by CPI Card Group Inc.