CPI Card Group raises 2026 cash-flow target to $50-55 million after a record $158 million quarter

CPI Card Group (Nasdaq: PMTS) reported a record third quarter on November 4 and raised its 2026 revenue-growth and free-cash-flow guidance for the second quarter running, according to its 8-K and Exhibit 99.1 on SEC EDGAR. The company makes the physical debit, credit and prepaid cards that banks and fintechs hand to customers.

The numbers

By segment, Secure Card Solutions (the core card business) grew 13% to $111.9 million on contactless cards. Prepaid Solutions rose 15% to $26.9 million. Integrated Paytech, which includes instant issuance and the TRISM business bought in June 2026, rose 20% to $23.5 million at gross margins above 55%.

What the guidance says, and what it leaves out

CPI now expects low-double-digit revenue growth, up from high-single-digit to low-double-digit, and free cash flow of $50 million to $55 million, up from $45 million to $50 million. Adjusted EBITDA growth is still guided at only low-to-mid single digits, even though the first nine months are up 11% to $74.7 million. That is the gap worth watching: the company says it is spending on growth and diversification, so more revenue is not yet turning into proportionally more profit.

The nine-month figures also carry about $4.0 million of tariff refunds in Secure Card Solutions, partly offset by roughly $1.0 million of tariff expense elsewhere. Gross margin for the period was 31.4%, versus 31.2% a year earlier, so without the refund the year-to-date improvement would be smaller.

Cash and balance sheet

Cash from operations hit a record $57.3 million for the first nine months, against $19.9 million a year earlier, and free cash flow was $46.1 million against $6.1 million. The company credited better operating performance and working-capital improvements. Net leverage ended the quarter at 2.6x, and CPI expects to finish the year toward the low end of a 2.5x to 3.0x range. Parallel49, its largest holder for nearly 20 years, sold its remaining shares in a secondary offering, which widens the public float.

Who this touches

CPI sells to banks, credit unions, processors and fintechs, so its volumes are a read on how many new and replacement cards U.S. issuers are ordering, with contactless the driver this quarter. For a small community bank or credit union, the practical point is supplier capacity and instant-issuance options, not the share price. CPI attributed the Prepaid gain to closed-loop prepaid products and higher-value open-loop packages.

Sources: CPI Card Group press release (Exhibit 99.1 to Form 8-K, November 4, 2026) via SEC EDGAR; price data via Yahoo Finance. This is market information, not investment advice.