CPI CARD GROUP INC., 10-Q filed on 8/8/2025
Quarterly Report
v3.25.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2025
Jul. 31, 2025
Cover Abstract    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2025  
Document Transition Report false  
Securities Act File Number 001-37584  
Entity Registrant Name CPI Card Group Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 26-0344657  
Entity Address, Address Line One 10368 W. Centennial Road  
Entity Address, City or Town Littleton  
Entity Address, State or Province CO  
Entity Address, Postal Zip Code 80127  
City Area Code 720  
Local Phone Number 681-6304  
Title of 12(b) Security Common Stock, $0.001 par value  
Trading Symbol PMTS  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   11,337,367
Entity Central Index Key 0001641614  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.25.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 17,124 $ 33,544
Accounts receivable, net 87,495 85,491
Inventories, net 83,872 72,660
Prepaid expenses and other current assets 15,850 11,347
Total current assets 204,341 203,042
Plant, equipment, leasehold improvements and operating lease right-of-use assets, net 104,774 68,648
Intangible assets, net of accumulated amortization of $57,340 and $55,393, respectively 20,945 10,492
Goodwill 48,211 47,150
Other assets 21,524 20,325
Total assets 399,795 349,657
Current liabilities:    
Accounts payable 24,564 16,123
Accrued expenses 52,933 57,979
Deferred revenue and customer deposits 1,535 1,485
Total current liabilities 79,032 75,587
Long-term debt 310,911 280,405
Deferred income taxes   3,318
Other long-term liabilities 38,878 25,968
Total liabilities 428,821 385,278
Commitments and contingencies (Note 12)
Stockholders' deficit:    
Series A Preferred Stock; $0.001 par value-100,000 shares authorized; 0 shares issued and outstanding at June 30, 2025 and December 31, 2024
Common stock; $0.001 par value-100,000,000 shares authorized; 11,334,910 and 11,240,507 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 11 11
Capital deficit (104,126) (105,429)
Accumulated earnings 75,089 69,797
Total stockholders' deficit (29,026) (35,621)
Total liabilities and stockholders' deficit $ 399,795 $ 349,657
v3.25.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Condensed Consolidated Balance Sheets    
Intangible assets accumulated amortization $ 57,340 $ 55,393
Preferred shares, par value (in dollars per share) $ 0.001 $ 0.001
Preferred shares, authorized shares (in shares) 100,000 100,000
Preferred shares, issued shares (in shares) 0 0
Preferred shares, outstanding shares (in shares) 0 0
Common shares, par value (in dollars per share) $ 0.001 $ 0.001
Common shares, authorized shares (in shares) 100,000,000 100,000,000
Common shares, issued shares (in shares) 11,334,910 11,240,507
Common shares, outstanding shares (in shares) 11,334,910 11,240,507
v3.25.2
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Net sales:        
Total net sales $ 129,753 $ 118,818 $ 252,514 $ 230,754
Cost of sales:        
Depreciation and amortization 4,109 2,794 7,259 5,481
Total cost of sales 89,633 76,430 171,698 146,848
Gross profit 40,120 42,388 80,816 83,906
Operating expenses:        
Selling, general and administrative (exclusive of depreciation and amortization shown below) 29,291 26,225 54,786 52,268
Depreciation and amortization 1,406 1,254 2,503 2,584
Total operating expenses 30,697 27,479 57,289 54,852
Income from operations 9,423 14,909 23,527 29,054
Other expense, net:        
Interest, net (8,069) (6,530) (15,754) (12,955)
Other (expense) income, net (13) (78) 5 (143)
Total other expense, net (8,082) (6,608) (15,749) (13,098)
Income before income taxes 1,341 8,301 7,778 15,956
Income tax expense (823) (2,300) (2,486) (4,500)
Net income $ 518 $ 6,001 $ 5,292 $ 11,456
Basic earnings per share (in dollars per share) $ 0.05 $ 0.54 $ 0.47 $ 1.03
Diluted earnings per share (in dollars per share) $ 0.04 $ 0.51 $ 0.44 $ 0.97
Basic weighted-average shares outstanding (in shares) 11,297,785 11,049,968 11,271,815 11,158,334
Diluted weighted-average shares outstanding (in shares) 11,927,943 11,776,894 11,969,909 11,817,584
Comprehensive income:        
Net income $ 518 $ 6,001 $ 5,292 $ 11,456
Total comprehensive income 518 6,001 5,292 11,456
Products        
Net sales:        
Total net sales 80,950 63,844 150,125 122,002
Cost of sales:        
Products (exclusive of depreciation and amortization shown below) 54,978 41,893 101,263 79,695
Services        
Net sales:        
Total net sales 48,803 54,974 102,389 108,752
Cost of sales:        
Products (exclusive of depreciation and amortization shown below) $ 30,546 $ 31,743 $ 63,176 $ 61,672
v3.25.2
Condensed Consolidated Statements of Stockholders' Deficit - USD ($)
$ in Thousands
Common Stock
Capital deficit
Accumulated earnings (loss)
Total
Beginning balance at Dec. 31, 2023 $ 11 $ (102,223) $ 50,276 $ (51,936)
Beginning balance (in shares) at Dec. 31, 2023 11,446,155      
Shares issued under stock-based compensation plans   (1,286)   (1,286)
Shares issued under stock-based compensation plans (in shares) 93,191      
Stock-based compensation   5,154   5,154
Repurchase and retirement of common shares   (7,945)   $ (7,945)
Repurchase and retirement of common shares (in shares) (352,750)     (352,750)
Components of comprehensive income:        
Net income     11,456 $ 11,456
Ending balance at Jun. 30, 2024 $ 11 (106,300) 61,732 (44,557)
Ending balance (in shares) at Jun. 30, 2024 11,186,596      
Beginning balance at Mar. 31, 2024 $ 11 (104,193) 55,731 (48,451)
Beginning balance (in shares) at Mar. 31, 2024 11,391,476      
Shares issued under stock-based compensation plans   (1,177)   (1,177)
Shares issued under stock-based compensation plans (in shares) 79,612      
Stock-based compensation   2,094   2,094
Repurchase and retirement of common shares   (3,024)   (3,024)
Repurchase and retirement of common shares (in shares) (284,492)      
Components of comprehensive income:        
Net income     6,001 6,001
Ending balance at Jun. 30, 2024 $ 11 (106,300) 61,732 (44,557)
Ending balance (in shares) at Jun. 30, 2024 11,186,596      
Beginning balance at Dec. 31, 2024 $ 11 (105,429) 69,797 $ (35,621)
Beginning balance (in shares) at Dec. 31, 2024 11,240,507     11,240,507
Shares issued under stock-based compensation plans   (1,077)   $ (1,077)
Shares issued under stock-based compensation plans (in shares) 94,403      
Stock-based compensation   2,380   2,380
Components of comprehensive income:        
Net income     5,292 5,292
Ending balance at Jun. 30, 2025 $ 11 (104,126) 75,089 $ (29,026)
Ending balance (in shares) at Jun. 30, 2025 11,334,910     11,334,910
Beginning balance at Mar. 31, 2025 $ 11 (104,299) 74,571 $ (29,717)
Beginning balance (in shares) at Mar. 31, 2025 11,281,489      
Shares issued under stock-based compensation plans   (536)   (536)
Shares issued under stock-based compensation plans (in shares) 53,421      
Stock-based compensation   709   709
Components of comprehensive income:        
Net income     518 518
Ending balance at Jun. 30, 2025 $ 11 $ (104,126) $ 75,089 $ (29,026)
Ending balance (in shares) at Jun. 30, 2025 11,334,910     11,334,910
v3.25.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Operating activities    
Net income $ 5,292 $ 11,456
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation expense 7,815 6,188
Amortization expense 1,947 1,877
Stock-based compensation expense 3,038 5,154
Amortization of debt issuance costs 658 917
Deferred income taxes and other, net 850 (1,879)
Changes in operating assets and liabilities:    
Accounts receivable, net 7,451 (2,720)
Inventories (7,769) (15,584)
Prepaid expenses and other assets 2,253 (20,316)
Income taxes, net (3,154) 1,598
Accounts payable 4,977 7,079
Accrued expenses and other liabilities (13,471) 9,858
Deferred revenue and customer deposits 50 480
Cash provided by operating activities 9,937 4,108
Investing activities    
Capital expenditures for plant, equipment and leasehold improvements, net (9,112) (2,744)
Cash paid for acquisition, net of cash acquired (42,442)  
Other 50  
Cash used in investing activities (51,504) (2,744)
Financing activities    
Proceeds from borrowings on debt 35,000 4,000
Payments on debt (5,000)  
Payments on finance leases and other obligations (3,776) (2,413)
Common stock repurchased   (6,481)
Debt issuance costs   (118)
Taxes withheld and paid on stock-based compensation awards (1,077) (1,286)
Cash provided by (used in) financing activities 25,147 (6,298)
Net decrease in cash and cash equivalents (16,420) (4,934)
Cash and cash equivalents, beginning of period 33,544 12,413
Cash and cash equivalents, end of period 17,124 7,479
Supplemental disclosures of cash flow information    
Cash paid (refunded) during the period for: Interest 15,453 12,332
Cash paid (refunded) during the period for: Income taxes paid 6,381 6,481
Cash paid (refunded) during the period for: Income taxes refunded (60) (272)
Right-of-use assets obtained in exchange for lease obligations- Operating leases 10,844 1,292
Right-of-use assets obtained in exchange for lease obligations- Financing leases 8,761 983
Accounts payable and accrued expenses for capital expenditures for plant, equipment and leasehold improvements $ 1,815 500
Unsettled share repurchases included in accrued expenses   $ 2,197
v3.25.2
Business Overview and Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2025
Business Overview and Summary of Significant Accounting Policies  
Business Overview and Summary of Significant Accounting Policies

1. Business Overview and Summary of Significant Accounting Policies

Business Overview

CPI Card Group Inc. (which, together with its subsidiary companies, is referred to herein as “CPI” or the “Company”) is a payments technology company providing a comprehensive range of payment cards and related digital solutions. CPI is a leader in several areas of the U.S. payment card solutions market, including debit and credit card production, personalization, and Software-as-a-Service-based (“SaaS-based”) instant issuance services. CPI is also a market leader in the production of “Prepaid Debit Cards,” defined as debit cards issued on the networks of the “Payment Card Brands” (Visa, Mastercard®, American Express® and Discover®) but not linked to a traditional bank account, and related secure packaging solutions.

CPI’s revenues are primarily generated from the production of and services related to secure debit and credit cards that are issued on the networks of the Payment Card Brands, including Prepaid Debit Cards. The Company’s business consists of the following reportable segments:

●Debit and Credit: primarily produces secure debit and credit cards and provides card services for U.S. card-issuing financial institutions. Services include personalization; instant issuance, which provides customers the ability to issue an instant personalized debit or credit card on-demand within a customer location; and other payment solutions such as digital push provisioning for mobile wallets;
●Prepaid Debit: primarily provides secure packaging solutions, Prepaid Debit Cards, and other integrated prepaid card services to prepaid program managers in the U.S.; and
●Other: primarily corporate expenses.

Basis of Presentation

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of the results of the interim periods presented. The condensed consolidated balance sheet as of December 31, 2024 is derived from the audited financial statements as of that date. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Use of Estimates

Management uses estimates and assumptions relating to the reporting of assets and liabilities as of the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures in the preparation of the condensed consolidated financial statements. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill and intangible assets, leases, valuation allowances for inventories and deferred taxes, revenue recognized for work performed but not completed, recognition of amounts and timing of contract costs, and uncertain tax positions. Actual results could differ from those estimates.

​

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting, which requires that most assets (both tangible and intangible) and liabilities are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of net assets is recognized as goodwill. Certain adjustments to the assessed fair values of the assets and liabilities made subsequent to the acquisition date, but within the measurement period, which is one year or less, are recorded as adjustments to goodwill. Results of operations of the acquired company are included in the Company’s results from the date of the acquisition. Acquisition-related costs are expensed as incurred and included in “Selling, general, and administrative expenses” in the Company’s condensed consolidated statement of operations and comprehensive income.

Net Sales

Products Net Sales

​

The Company reassessed certain aspects of its revenue recognition practices under ASC 606, Revenue from Contracts with Customers, and the legal enforceability of certain contract terms based on evolving business practices where the Company and a customer deviate from contract terms after an order is placed but before it is shipped. This assessment highlights the Company’s approach relating to goods that are in production but not yet shipped, reflecting its emphasis on maintaining long-term customer relationships.

​

Such deviations may impact the legal enforceability of payment terms for goods that are in the process of being produced but not shipped. As a result, the Company concluded that certain contracts no longer meet the criteria for over-time revenue recognition under ASC 606. Effective prospectively beginning in the second quarter of 2025, the Company now recognizes revenue for these contracts at a point in time, typically upon shipment or customer acceptance. Additionally, in connection with the acquisition and integration of Arroweye Solutions, Inc. ("Arroweye") during the second quarter of 2025, the Company assessed Arroweye’s customer contracts and determined that Arroweye revenue should also be recognized at point-in-time.

​

Services Net Sales

​

Net sales for “Services” are recognized as the services are performed. Items included in “Services” net sales include the personalization and fulfillment of payment cards, including SaaS-based personalization of instant issuance solutions, and the providing of tamper-evident secure packaging and fulfillment services to prepaid program managers. As applicable, for work performed but not billed, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts.

​

Customer Contracts

The Company often enters into Master Services Agreements (“MSAs”) with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASC 606 is the length of time it takes to deliver the goods or services promised under the purchase order or statement of work. As such, the Company's contracts are generally short term in nature.

​

Costs to Obtain a Contract with a Customer

Costs to obtain a contract (“contract costs”) include only costs that the Company would not have incurred if the contract had not been obtained. For contracts in which the term is greater than one year, these costs are recorded as an asset and amortized consistent with the timing of the related revenue over the life of the contract. The current portion of the asset is included in “Prepaid expenses and other current assets” and the noncurrent portion is included in “Other assets” on the Company's condensed consolidated balance sheets. Contract costs incurred but unpaid are included in “Accrued expenses” on the Company's condensed consolidated balance sheets. Contract costs are expensed as incurred when the amortization period is one year or less.

​

​

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements

​

In December 2023, the Financial Accounting Standards Board issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which will require a disaggregated rate reconciliation disclosure as well as additional information regarding taxes paid on an annual basis. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2024. The Company has elected not to early adopt this accounting standard. The adoption of this standard will result in additional income tax disclosures for the year ended December 31, 2025; however, the Company does not anticipate that it will have a material impact on the Company’s consolidated financial position and results of operations.

In November 2024, the Financial Accounting Standards Board issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which will require disclosure of disaggregated information about certain expense captions presented in the income statement. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company is evaluating the impact of adoption of this standard and does not anticipate that it will have a material impact on the Company’s consolidated financial position and results of operations.
v3.25.2
Accounts Receivable
 6 Months Ended
Jun. 30, 2025
Accounts Receivable  
Accounts Receivable

2. Accounts Receivable

Accounts receivable consisted of the following:

​

​

​

​

​

​

​

​

​

June 30, 

​

​

December 31, 

​

​

2025

​

​

2024

Trade accounts receivable

$

87,885

 

$

78,464

Unbilled accounts receivable

​

—

 

​

7,213

​

​

87,885

 

​

85,677

Less allowance for credit losses

​

(390)

​

​

(186)

Total accounts receivable, net

$

87,495

​

$

85,491

​
v3.25.2
Inventories
 6 Months Ended
Jun. 30, 2025
Inventories  
Inventories

3. Inventories

Inventories consisted of the following:

​

​

​

​

​

​

​

​

​

June 30, 

​

​

December 31, 

​

​

2025

​

​

2024

Raw materials

$

72,208

 

$

63,863

Work in process

​

4,850

​

​

955

Finished goods

​

6,814

 

​

7,842

Total inventories, net

$

83,872

 

$

72,660

​
v3.25.2
Acquisition
 6 Months Ended
Jun. 30, 2025
Acquisition  
Acquisition

​

​

4. Acquisition

​

Arroweye Acquisition

​

On May 6, 2025, the Company acquired Arroweye, a leading provider of digitally-driven on-demand payment card solutions for the U.S. market, based in Las Vegas, Nevada, for a purchase price of $45.6 million, subject to customary post-closing working capital adjustments. As of June 30, 2025, the estimated adjusted purchase price was $46.0 million. The acquisition was funded through a combination of cash on hand and the Company’s available capacity under the ABL Revolver (defined in Note 8, “Long-Term Debt”), with $1.5 million of the purchase price held in escrow. The Company incurred $2.3 million of acquisition-related costs during the six months ended June 30, 2025, which are presented in “Selling, general and administrative” expenses in the Company’s condensed consolidated statement of operations and comprehensive income. The final consideration and the final purchase price allocation are subject to an additional working capital adjustment, further analysis of tax balances, final valuation of identifiable intangible assets, and other items.

The Arroweye financial results are included in the Company's Debit and Credit segment from the date of acquisition.

​

All assets and liabilities have been recorded at fair value, excluding deferred tax liabilities. The following table summarizes the preliminary allocations of purchase price:

​

​

​

​

​

​

June 30, 

​

2025

Cash and cash equivalents

$

1,603

Accounts receivable

​

9,427

Inventories

​

4,071

Prepaid expenses and other current assets

​

1,683

Plant, equipment, leasehold improvements and operating lease right-of-use assets

​

18,275

Intangible assets

​

12,400

Goodwill

​

1,061

Deferred income taxes

​

6,256

Other assets

​

298

Total assets

​

55,074

Accounts payable

​

2,837

Accrued expenses

​

3,849

Accrued long-term operating leases

​

2,371

Total purchase price

$

46,017

​

The goodwill recognized for Arroweye is primarily attributable to the assembled workforce and is recorded in the Debit and Credit segment. The amount attributed to goodwill is not tax deductible.

​

The preliminary estimated fair values of the identifiable intangible assets acquired at the date of acquisition are as follows:

​

​

​

​

​

​

​

​

​

Weighted Average

​

June 30, 

​

​

Life (Years)

​

2025

Trademark

​

2.5

​

$

600

Acquired technology

​

7.0

​

​

4,400

Customer relationships

​

15.0

​

​

7,400

Total identifiable intangible assets acquired

​

​

​

$

12,400

​

The fair values of the trademark and customer relationships were determined using, in respective order, the relief from royalty and excess earnings methodologies of the income approach. The fair value of acquired technology was determined using the cost to replace methodology of the cost approach. The valuations of the intangible assets were derived using Level 3 inputs and require significant judgment and estimates, including the amount and timing of future cash flows and the determination of royalty and discount rates.
v3.25.2
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets
 6 Months Ended
Jun. 30, 2025
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets  
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets

5

5. Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets

​

Plant, equipment, leasehold improvements and operating lease right-of-use assets consisted of the following:

​

​

​

​

​

​

​

​

​

June 30, 

​

​

December 31, 

​

​

2025

​

​

2024

Machinery and equipment

$

82,362

 

$

71,781

Machinery and equipment under financing leases

​

41,030

​

​

32,272

Furniture, fixtures and computer equipment

​

4,451

 

​

1,123

Leasehold improvements

​

23,549

 

​

18,875

Construction in progress

​

10,618

 

​

5,141

Operating lease right-of-use assets

​

27,459

​

​

15,090

​

​

189,469

​

​

144,282

Less accumulated depreciation and amortization

​

(84,695)

 

​

(75,634)

Total plant, equipment, leasehold improvements and
operating lease right-of-use assets, net

$

104,774

 

$

68,648

​
v3.25.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value of Financial Instruments  
Fair Value of Financial Instruments

6. Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In determining fair value, the Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

●    Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

​

●    Level 2— Observable inputs other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term for the assets or liabilities.

​

●    Level 3— Valuations based on unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

​

The Company’s financial assets and liabilities that are not required to be re-measured at fair value in the condensed consolidated balance sheets were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Carrying

​

Estimated

​

​

​

​

​

​

​

​

​

​

Value as of 

​

Fair Value as of 

​

Fair Value Measurement at June 30, 2025

​

June 30, 

​

June 30, 

​

 (Using Fair Value Hierarchy)

​

2025

​

2025

​

Level 1

​

Level 2

​

Level 3

Liabilities:

​

​

    

​

​

    

​

​

    

​

​

    

​

​

Senior Notes

$

285,000

​

$

302,456

​

$

—

​

$

302,456

​

$

—

ABL Revolver

$

30,000

​

$

30,000

​

$

—

​

$

30,000

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Carrying

​

Estimated

​

​

​

​

​

​

​

​

​

​

 Value as of

​

Fair Value as of

​

Fair Value Measurement at December 31, 2024

​

December 31, 

​

December 31, 

​

 (Using Fair Value Hierarchy)

​

2024

​

2024

​

Level 1

​

Level 2

​

Level 3

Liabilities:

​

​

    

​

​

    

​

​

    

​

​

    

​

​

Senior Notes

$

285,000

 

$

304,571

​

$

—

 

$

304,571

​

$

—

​

The aggregate fair value of the Company’s Senior Notes (defined in Note 8, “Long-Term Debt”) was based on quoted prices for identical or similar liabilities in markets that are not active and, as a result, they are classified as Level 2 inputs. The fair value measurement associated with the ABL Revolver approximates its carrying value as of June 30, 2025, given the applicable variable interest rates.

The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable each approximate fair value due to their short-term nature.
v3.25.2
Accrued Expenses
 6 Months Ended
Jun. 30, 2025
Accrued Expenses.  
Accrued Expenses

7. Accrued Expenses

​

Accrued expenses consisted of the following:

​

​

​

​

​

​

​

​

June 30, 

​

December 31,

​

2025

​

2024

Accrued payroll and related employee expenses

$

10,304

 

$

9,493

Accrued employee performance-based incentive compensation

​

2,220

 

​

4,664

Employer payroll taxes

​

400

 

​

868

Accrued rebates

​

3,520

​

​

3,956

Capitalized contract costs payable

​

—

​

​

8,000

Accrued interest

​

13,446

​

​

13,506

Current operating and financing lease liabilities

​

11,630

​

​

9,065

Income taxes payable

​

309

​

​

881

Other

​

11,104

​

​

7,546

Total accrued expenses

$

52,933

​

$

57,979

​

Other accrued expenses as of June 30, 2025, and December 31, 2024, consisted primarily of miscellaneous accruals for invoices not yet received, self-insurance claims incurred but yet to be reported, and accrued restructuring and severance.
v3.25.2
Long-Term Debt
 6 Months Ended
Jun. 30, 2025
Long-Term Debt.  
Long-Term Debt

8. Long-Term Debt

​

As of June 30, 2025, and December 31, 2024, long-term debt consisted of the following:

​

​

​

​

​

​

​

​

​

​

June 30, 

    

December 31, 

​

​

2025

​

2024

Senior Notes

​

$

285,000

​

$

285,000

ABL Revolver

​

​

30,000

​

​

—

Unamortized deferred financing costs

​

 

(4,089)

​

 

(4,595)

Total long-term debt

​

​

310,911

​

​

280,405

Less current maturities

​

​

—

​

​

—

Long-term debt, net of current maturities

​

$

310,911

​

$

280,405

​

Senior Notes

​

On July 11, 2024 (the “Closing Date”), the Company completed a private offering by its wholly-owned subsidiary, CPI CG Inc., of $285.0 million aggregate principal amount of 10.000% Senior Secured Notes due 2029 (the “Senior Notes”) and related guarantees at an issue price of 100%. The Senior Notes mature on July 15, 2029 and interest is payable on January 15 and July 15 of each year.

The Company has obligations to make an offer to repay the Senior Notes requiring prepayment in advance of the maturity date upon the occurrence of certain events, including a change of control and certain asset sales.

ABL Revolver

On the Closing Date, the Company and CPI CG Inc. as borrower (the “Borrower”), entered into a credit agreement with JPMorgan Chase Bank, N.A., as lender, administrative agent and collateral agent, providing for an asset-based, senior secured revolving credit facility (the “ABL Revolver”) of up to $75.0 million. The ABL Revolver matures on the earliest to occur of July 11, 2029, and the date that is 91 days prior to the maturity of the Senior Notes.

​

Borrowings under the ABL Revolver bear interest at a rate per annum that ranges based on the applicable term secured overnight financing rate as administered by the Federal Reserve Bank of New York plus 1.50% to 1.75% (subject, in each case, to a credit spread adjustment of 0.10%), based on the average daily borrowing capacity under the ABL Revolver over the most recently completed month. The unused portion of the ABL Revolver commitment accrues a commitment fee, which ranges from 0.375% to 0.50% per annum, based on the average daily excess availability under the ABL Revolver over the immediately preceding month.

As of June 30, 2025, the Company had $30.0 million of outstanding borrowings on the ABL Revolver.

Deferred Financing Costs

Certain costs incurred with borrowings are reflected as a reduction to the long-term debt balance. These costs are amortized as an adjustment to interest expense over the life of the borrowing. As of June 30, 2025, the remaining unamortized debt issuance costs recorded on the Senior Notes were $4.1 million and were reported as a reduction to the long-term debt balance. The remaining unamortized debt issuance costs on the ABL Revolver were $1.4 million and were recorded as other assets on the condensed consolidated balance sheet as of June 30, 2025.
v3.25.2
Income Taxes
 6 Months Ended
Jun. 30, 2025
Income Taxes  
Income Taxes

9. Income Taxes

The Company’s effective tax rates on pre-tax income were 61.4% and 27.7% for the three months ended June 30, 2025 and 2024, respectively, and 32.0% and 28.2% for the six months ended June 30, 2025 and 2024, respectively. The increase in the Company’s effective tax rate for the three months and six months ended June 30, 2025, compared to the prior year related to limitations on deductibility of executive compensation and non-deductible acquisition-related costs and increased state tax expenses related to the acquisition of Arroweye.

​

For the six months ended June 30, 2025 and 2024, the effective tax rates differ from the U.S. federal statutory income tax rate as follows:

​

​

​

​

​

​

​

June 30, 

​

​

2025

    

​

2024

​

Tax at federal statutory rate

21.0

%

​

21.0

%

State taxes, net

9.0

​

​

6.2

​

Permanent items (1)

3.6

​

​

1.9

​

Tax credits

(1.6)

​

​

(0.9)

​

Effective income tax rate

32.0

%

​

28.2

%

(1)Includes the deductibility limitations on excess compensation.

As part of the acquisition of Arroweye completed on May 6, 2025, the Company acquired operating loss (NOL) carryforwards of over $85.8 million. The utilization of these NOLs will be subject to applicable limitations and include both NOLs with a 20-year carryover period ($72.1 million), as well as NOLs with no expiration period ($13.7 million). Due to the likelihood of expiration, a gross valuation allowance was calculated of $46.5 million and a net deferred tax asset (DTA) value of $8.6 million was recorded, specifically related to the NOLs.

During the three and six months ended June 30, 2025, the Company utilized $2.2 million of these NOL carryforwards to offset a portion of its taxable income for the period. This resulted in the utilization of approximately $0.5 million of the DTA and a corresponding reduction of the current income tax liability.

The remaining unutilized DTA, net of valuation allowance, specifically related to acquired NOLs is $8.1 million, which the Company expects to use in future periods, subject to applicable limitations.
v3.25.2
Stockholders' Deficit
 6 Months Ended
Jun. 30, 2025
Stockholders' Deficit  
Stockholders' Deficit

10. Stockholders’ Deficit

​

Share Repurchases

​

On November 2, 2023, the Company's board of directors approved a share repurchase plan authorizing the Company to repurchase up to $20.0 million of the Company's common stock, par value $0.001 per share. This authorization expired on December 31, 2024 with a remaining unused authorized amount of $11.2 million.

​

During the six months ended June 30, 2024, the Company repurchased 352,750 shares of its common stock at an average price of $18.14 per share, excluding commissions, or $6.4 million in aggregate, on a trade date basis. As a result of certain of these share repurchases, the Company was obligated to purchase 120,534 shares from one of the Company’s significant stockholders at an average price of $18.23 per share in the subsequent quarter, in accordance with the stock repurchase agreements entered into with Tricor Pacific Capital Partners (Fund IV) US, LP.
v3.25.2
Earnings per Share
 6 Months Ended
Jun. 30, 2025
Earnings per Share  
Earnings per Share

11. Earnings per Share

Basic and diluted earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested. For the three months ended June 30, 2025 and 2024, 9,363 and 15,185 potentially dilutive securities, respectively, and for the six months ended June 30, 2025 and 2024, 10,693 and 24,298, respectively, were excluded from the calculation of diluted earnings per share. The effect of these shares was anti-dilutive under the treasury stock method, as the assumed proceeds of the options and restricted stock per unit were above our average share price during the periods.

​

The following table sets forth the computation of basic and diluted earnings per share:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

Six Months Ended June 30, 

​

2025

    

2024

    

2025

​

2024

Numerator:

​

​

​

​

​

​

​

    

    

​

    

Net income

$

518

​

$

6,001

​

$

5,292

​

$

11,456

​

​

​

​

​

​

​

​

​

​

​

​

Denominator:

​

​

​

​

​

​

​

​

​

​

​

Basic weighted-average common shares outstanding

 

11,297,785

​

 

11,049,968

​

 

11,271,815

​

 

11,158,334

Dilutive shares

​

630,158

​

​

726,926

​

​

698,094

​

​

659,250

Diluted weighted-average common shares outstanding

​

11,927,943

​

​

11,776,894

​

​

11,969,909

​

​

11,817,584

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per share

$

0.05

​

$

0.54

​

$

0.47

​

$

1.03

​

​

​

​

​

​

​

​

​

​

​

​

Diluted earnings per share

$

0.04

​

$

0.51

​

$

0.44

​

$

0.97

​
v3.25.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2025
Commitments and Contingencies.  
Commitments and Contingencies

12. Commitments and Contingencies

Contingencies

In accordance with applicable accounting guidance, the Company establishes an accrued expense when loss contingencies are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. As a matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. Once the loss contingency is deemed to be both probable and estimable, the Company will establish an accrued expense and record a corresponding amount of expense. The Company expenses professional fees associated with litigation claims and assessments as incurred. The Company is subject to routine legal proceedings in the ordinary course of business. The Company believes that the ultimate resolution of any such matters will not have a material adverse effect on its business, financial condition or results of operations.

​

Voluntary Disclosure Program

The Company is subject to unclaimed or abandoned property (escheat) laws which require it to turn over to state governmental authorities the property of others held by the Company that has been unclaimed for specified periods of time. Property subject to escheat laws generally relates to uncashed checks, trade accounts receivable credits and unpaid payable balances. During the second quarter of 2022, the Company received a letter from the Delaware Secretary of State inviting the Company to participate in the Delaware Secretary of State’s Abandoned or Unclaimed Property Voluntary Disclosure Agreement Program to avoid being sent an audit notice by the Delaware Department of Finance. On August 31, 2022, the Company entered into Delaware’s Voluntary Disclosure Agreement Program in order to voluntarily comply with Delaware’s abandoned property law in exchange for certain protections and benefits. The Company continues to work in good faith to complete a review of its books and records related to unclaimed or abandoned property during the periods required under the program. Any potential loss, or range of loss, that may result from this matter is not currently reasonably estimable.
v3.25.2
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2025
Stock-Based Compensation  
Stock-Based Compensation

13. Stock-Based Compensation

In October 2015, the Company adopted the CPI Card Group Inc. Omnibus Incentive Plan (as amended and supplemented, the “Omnibus Plan”) pursuant to which cash and equity-based incentives may be granted to participating employees, advisors, and directors. Effective January 30, 2024, the Company’s stockholders approved an amendment to the Omnibus Plan to increase the total number of shares of the Company’s common stock reserved and available for issuance thereunder by 1,000,000 shares, resulting in a total of 3,200,000 shares issuable under the Omnibus Plan. As of June 30, 2025, there were 780,053 shares of common stock available for grant under the Omnibus Plan.

In January 2024, the Company granted 60,000 performance stock units (PSU) in connection with the appointment of its Chief Executive Officer (“CEO”), with a grant date fair value of $0.9 million using a Monte Carlo simulation model. The PSU award will vest, subject to continuous employment, in equal one-third increments upon the attainment of the rolling weighted average closing price of the Company’s common stock equaling or exceeding each of $35.00, $50.00, and $65.00, in each case, for at least 90 consecutive trading days during the five-year performance period commencing on the grant date.

In February 2025, the Company granted executives a performance cash award (PCA) with a grant date fair value of $2.0 million using a Monte Carlo simulation model. The PCA will vest on December 31, 2025, subject to continuous employment and the achievement of certain Company performance goals including the Company’s relative total shareholder return of stock against the Russell 2000 index. Because the award is liability-classified, the award is remeasured at fair value at each reporting date and at settlement, which changes recognized as stock-based compensation expense.

During the six months ended June 30, 2025, the Company granted 112,828 restricted stock units at a weighted average grant date fair value of $24.95, and as of June 30, 2025, there were 545,360 outstanding restricted stock units at a weighted average grant date fair value of $22.23.

As of June 30, 2025, there were 747,937 options outstanding at a weighted average exercise price of $21.46. No options were granted during the six months ended June 30, 2025. Options have seven-year terms and are issued with exercise prices equal to the fair market value of the Company’s common stock on the grant date.

All equity awards are contingent and issued only upon approval by the compensation committee of the Company’s board of directors, or as otherwise permitted under the Omnibus Plan. The Company accounts for stock-based compensation pursuant to ASC 718, Share-Based Payments. All stock-based compensation is required to be measured at fair value and expensed over the requisite service period, generally defined as the applicable vesting period. The Company accounts for forfeitures as they occur and reverses previously recognized expenses for the unvested portion of the forfeited shares. Upon the exercise of stock options, shares of common stock are issued from authorized common shares.
v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting  
Segment Reporting

​

​

14. Segment Reporting

The Company’s chief operating decision maker is its CEO, who is charged with the management of the Company and is responsible for the evaluation of operating performance and decision-making about the allocation of resources to operating segments based on the measures of net sales and EBITDA.

As the Company uses the term, “EBITDA” is defined as income before interest expense, income taxes, depreciation and amortization. The Company’s chief operating decision maker believes EBITDA is a meaningful measure and is useful as a supplement to GAAP measures as it represents a transparent view of the Company’s operating performance that is unaffected by fluctuations in property, equipment and leasehold improvement additions. The Company’s chief operating decision maker uses EBITDA to perform periodic reviews and comparison of operating trends and to identify strategies to improve the allocation of resources amongst segments.

As of June 30, 2025, the Company’s reportable segments were as follows:

●Debit and Credit;
●Prepaid Debit; and
●Other.

​

Debit and Credit Segment

The Debit and Credit segment primarily produces secure debit and credit cards and provides card services, including digital services, for U.S. card-issuing financial institutions. Products produced by this segment primarily include payment cards, including contact, contactless, eco-focused, and magnetic stripe cards. This segment also provides personalization services; instant issuance solutions, which provide customers the ability to issue an instant personalized debit or credit card on-demand within a customer location; and other payment solutions such as digital push provisioning for mobile wallets.

Prepaid Debit Segment

The Prepaid Debit segment primarily provides integrated prepaid card services to prepaid program managers primarily in the U.S., including payment cards issued on the networks of the Payment Card Brands and related tamper-evident secure packaging.

Other

The Other segment includes corporate expenses.

​

Performance Measures of Reportable Segments

​

Net sales and EBITDA of the Company’s reportable segments, as well as a reconciliation of total segment EBITDA to income from operations and net income for the three and six months ended June 30, 2025 and 2024, were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2025

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products

$

81,176

​

$

—

​

$

—

​

$

(226)

​

$

80,950

Services

​

29,581

​

​

19,222

​

​

—

​

​

—

​

​

48,803

Total net sales

​

110,757

​

​

19,222

​

​

—

​

​

(226)

​

​

129,753

Cost of sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products (1)

​

55,204

​

​

—

​

​

—

​

​

(226)

​

​

54,978

Services (1)

​

17,860

​

​

12,686

​

​

—

​

​

—

​

​

30,546

Depreciation and amortization

​

3,044

​

​

1,065

​

​

—

​

​

—

​

​

4,109

Total cost of sales

​

76,108

​

​

13,751

​

​

—

​

​

(226)

​

​

89,633

Gross profit

​

34,649

​

​

5,471

​

​

—

​

​

—

​

​

40,120

Operating expenses

​

11,596

​

​

1,300

​

​

17,801

​

​

—

​

​

30,697

Income (loss) from operations

$

23,053

​

$

4,171

​

$

(17,801)

​

$

—

​

$

9,423

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

23,053

​

$

4,171

​

$

(17,801)

​

$

—

​

$

9,423

Depreciation and amortization

​

3,528

​

​

1,126

​

​

861

​

​

—

​

​

5,515

Other income (expense)

​

(33)

​

​

—

​

​

20

​

​

—

​

​

(13)

EBITDA

$

26,548

​

$

5,297

​

$

(16,920)

​

$

—

​

$

14,925

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross profit margin

​

31.3%

​

​

28.5%

​

​

*

​

​

*

​

​

30.9%

EBITDA margin

​

24.0%

​

​

27.6%

​

​

*

​

​

*

​

​

11.5%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2025

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products

$

150,801

​

$

—

​

$

—

​

$

(676)

​

$

150,125

Services

​

56,476

​

​

45,935

​

​

—

​

​

(22)

​

​

102,389

Total net sales

​

207,277

​

​

45,935

​

​

—

​

​

(698)

​

​

252,514

Cost of sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products (1)

​

101,939

​

​

—

​

​

—

​

​

(676)

​

​

101,263

Services (1)

​

34,293

​

​

28,905

​

​

—

​

​

(22)

​

​

63,176

Depreciation and amortization

​

5,142

​

​

2,117

​

​

—

​

​

—

​

​

7,259

Total cost of sales

​

141,374

​

​

31,022

​

​

—

​

​

(698)

​

​

171,698

Gross profit

​

65,903

​

​

14,913

​

​

—

​

​

—

​

​

80,816

Operating expenses

​

21,147

​

​

2,743

​

​

33,399

​

​

—

​

​

57,289

Income (loss) from operations

$

44,756

​

$

12,170

​

$

(33,399)

​

$

—

​

$

23,527

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

44,756

​

$

12,170

​

$

(33,399)

​

$

—

​

$

23,527

Depreciation and amortization

​

5,799

​

​

2,242

​

​

1,721

​

​

—

​

​

9,762

Other income (expense)

​

(40)

​

​

6

​

​

39

​

​

—

​

​

5

EBITDA

$

50,515

​

$

14,418

​

$

(31,639)

​

$

—

​

$

33,294

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross profit margin

​

31.8%

​

​

32.5%

​

​

*

​

​

*

​

​

32.0%

EBITDA margin

​

24.4%

​

​

31.4%

​

​

*

​

​

*

​

​

13.2%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2024

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products

$

64,461

​

$

—

​

$

—

​

$

(617)

​

$

63,844

Services

​

31,159

​

​

23,815

​

​

—

​

​

—

​

​

54,974

Total net sales

​

95,620

​

​

23,815

​

​

—

​

​

(617)

​

​

118,818

Cost of sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products (1)

​

42,510

​

​

—

​

​

—

​

​

(617)

​

​

41,893

Services (1)

​

16,988

​

​

14,755

​

​

—

​

​

—

​

​

31,743

Depreciation and amortization

​

1,958

​

​

836

​

​

—

​

​

—

​

​

2,794

Total cost of sales

​

61,456

​

​

15,591

​

​

—

​

​

(617)

​

​

76,430

Gross profit

​

34,164

​

​

8,224

​

​

—

​

​

—

​

​

42,388

Operating expenses

​

8,775

​

​

1,315

​

​

17,389

​

​

—

​

​

27,479

Income (loss) from operations

$

25,389

​

$

6,909

​

$

(17,389)

​

$

—

​

$

14,909

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

25,389

​

$

6,909

​

$

(17,389)

​

$

—

​

$

14,909

Depreciation and amortization

​

2,237

​

​

895

​

​

916

​

​

—

​

​

4,048

Other income (expense)

​

(1)

​

​

(1)

​

​

(76)

​

​

—

​

​

(78)

EBITDA

$

27,625

​

$

7,803

​

$

(16,549)

​

$

—

​

$

18,879

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross profit margin

​

35.7%

​

​

34.5%

​

​

*

​

​

*

​

​

35.7%

EBITDA margin

​

28.9%

​

​

32.8%

​

​

*

​

​

*

​

​

15.9%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2024

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products

$

122,832

​

$

—

​

$

—

​

$

(830)

​

$

122,002

Services

​

60,761

​

​

48,013

​

​

—

​

​

(22)

​

​

108,752

Total net sales

​

183,593

​

​

48,013

​

​

—

​

​

(852)

​

​

230,754

Cost of sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products (1)

​

80,525

​

​

—

​

​

—

​

​

(830)

​

​

79,695

Services (1)

​

33,580

​

​

28,114

​

​

—

​

​

(22)

​

​

61,672

Depreciation and amortization

​

3,829

​

​

1,652

​

​

—

​

​

—

​

​

5,481

Total cost of sales

​

117,934

​

​

29,766

​

​

—

​

​

(852)

​

​

146,848

Gross profit

​

65,659

​

​

18,247

​

​

—

​

​

—

​

​

83,906

Operating expenses

​

17,516

​

​

2,593

​

​

34,743

​

​

—

​

​

54,852

Income (loss) from operations

$

48,143

​

$

15,654

​

$

(34,743)

​

$

—

​

$

29,054

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

48,143

​

$

15,654

​

$

(34,743)

​

$

—

​

$

29,054

Depreciation and amortization

​

4,387

​

​

1,766

​

​

1,912

​

​

—

​

​

8,065

Other income (expense)

​

(63)

​

​

(2)

​

​

(78)

​

​

—

​

​

(143)

EBITDA

$

52,467

​

$

17,418

​

$

(32,909)

​

$

—

​

$

36,976

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross profit margin

​

35.8%

​

​

38.0%

​

​

*

​

​

*

​

​

36.4%

EBITDA margin

​

28.6%

​

​

36.3%

​

​

*

​

​

*

​

​

16.0%

*

Calculation not meaningful.

(1)

Exclusive of depreciation and amortization.

​

​

​

Reconciliation of Net Income to EBITDA

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

Six Months Ended June 30, 

​

2025

    

2024

    

2025

    

2024

Net income

$

518

​

$

6,001

​

$

5,292

​

$

11,456

Interest, net

​

8,069

​

​

6,530

​

​

15,754

​

​

12,955

Income tax expense

 

823

​

 

2,300

​

 

2,486

​

 

4,500

Depreciation and amortization

 

5,515

​

 

4,048

​

 

9,762

​

 

8,065

EBITDA

$

14,925

​

$

18,879

​

$

33,294

​

$

36,976

​

Balance Sheet Data of Reportable Segments

​

Total assets of the Company’s reportable segments as of June 30, 2025, and December 31, 2024, were as follows:

​

​

​

​

​

​

​

​

​

​

June 30, 

​

December 31, 

​

    

2025

​

2024

Debit and Credit

 

$

330,132

​

$

248,970

Prepaid Debit

​

​

48,323

​

 

60,621

Other

​

​

21,340

​

 

40,066

Total assets

​

$

399,795

 

$

349,657

​

Capital Expenditures of Reportable Segments

​

Total capital expenditures of the Company’s reportable segments as of June 30, 2025 and 2024, were as follows:

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 

​

    

2025

    

2024

Debit and Credit

 

$

7,516

 

$

1,371

Prepaid Debit

​

​

1,341

​

 

1,373

Other

​

​

255

​

​

—

Total capital expenditures

​

$

9,112

 

$

2,744

​
v3.25.2
Subsequent Events
 6 Months Ended
Jun. 30, 2025
Subsequent Events  
Subsequent Events

​

15. Subsequent Events

On July 2, 2025, the Company and the Borrower entered into Amendment No. 1 to Credit Agreement (the “Amendment”), which amends the ABL Revolver to, among other things, increase the available borrowing capacity to $100.0 million from $75.0 million. The amendment did not modify the maturity date of the agreement nor the interest rate.

On July 15, 2025, the Company redeemed $20.0 million of its outstanding $285.0 million aggregate principal amount Senior Notes. The redemption was made pursuant to the terms of the indenture governing the terms of the Senior Notes, at a redemption price of 103.000% of par plus accrued and unpaid interest to the date of redemption.

​
v3.25.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Pay vs Performance Disclosure        
Net Income (Loss) $ 518 $ 6,001 $ 5,292 $ 11,456
v3.25.2
Insider Trading Arrangements
 3 Months Ended
Jun. 30, 2025
Mar. 31, 2025
Trading Arrangements, by Individual    
Rule 10b5-1 Arrangement Adopted false false
Non-Rule 10b5-1 Arrangement Adopted false false
Rule 10b5-1 Arrangement Terminated false false
Non-Rule 10b5-1 Arrangement Terminated false false
v3.25.2
Business Overview and Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2025
Business Overview and Summary of Significant Accounting Policies  
Basis of Presentation

Basis of Presentation

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of the results of the interim periods presented. The condensed consolidated balance sheet as of December 31, 2024 is derived from the audited financial statements as of that date. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Use of Estimates

Use of Estimates

Management uses estimates and assumptions relating to the reporting of assets and liabilities as of the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures in the preparation of the condensed consolidated financial statements. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill and intangible assets, leases, valuation allowances for inventories and deferred taxes, revenue recognized for work performed but not completed, recognition of amounts and timing of contract costs, and uncertain tax positions. Actual results could differ from those estimates.
Business Combinations

​

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting, which requires that most assets (both tangible and intangible) and liabilities are recognized at fair value at the date of acquisition. The excess of the purchase price over the fair value of net assets is recognized as goodwill. Certain adjustments to the assessed fair values of the assets and liabilities made subsequent to the acquisition date, but within the measurement period, which is one year or less, are recorded as adjustments to goodwill. Results of operations of the acquired company are included in the Company’s results from the date of the acquisition. Acquisition-related costs are expensed as incurred and included in “Selling, general, and administrative expenses” in the Company’s condensed consolidated statement of operations and comprehensive income.
Net Sales

Net Sales

Products Net Sales

​

The Company reassessed certain aspects of its revenue recognition practices under ASC 606, Revenue from Contracts with Customers, and the legal enforceability of certain contract terms based on evolving business practices where the Company and a customer deviate from contract terms after an order is placed but before it is shipped. This assessment highlights the Company’s approach relating to goods that are in production but not yet shipped, reflecting its emphasis on maintaining long-term customer relationships.

​

Such deviations may impact the legal enforceability of payment terms for goods that are in the process of being produced but not shipped. As a result, the Company concluded that certain contracts no longer meet the criteria for over-time revenue recognition under ASC 606. Effective prospectively beginning in the second quarter of 2025, the Company now recognizes revenue for these contracts at a point in time, typically upon shipment or customer acceptance. Additionally, in connection with the acquisition and integration of Arroweye Solutions, Inc. ("Arroweye") during the second quarter of 2025, the Company assessed Arroweye’s customer contracts and determined that Arroweye revenue should also be recognized at point-in-time.

​

Services Net Sales

​

Net sales for “Services” are recognized as the services are performed. Items included in “Services” net sales include the personalization and fulfillment of payment cards, including SaaS-based personalization of instant issuance solutions, and the providing of tamper-evident secure packaging and fulfillment services to prepaid program managers. As applicable, for work performed but not billed, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts.

​

Customer Contracts

The Company often enters into Master Services Agreements (“MSAs”) with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASC 606 is the length of time it takes to deliver the goods or services promised under the purchase order or statement of work. As such, the Company's contracts are generally short term in nature.

​

Costs to Obtain a Contract with a Customer

Costs to obtain a contract (“contract costs”) include only costs that the Company would not have incurred if the contract had not been obtained. For contracts in which the term is greater than one year, these costs are recorded as an asset and amortized consistent with the timing of the related revenue over the life of the contract. The current portion of the asset is included in “Prepaid expenses and other current assets” and the noncurrent portion is included in “Other assets” on the Company's condensed consolidated balance sheets. Contract costs incurred but unpaid are included in “Accrued expenses” on the Company's condensed consolidated balance sheets. Contract costs are expensed as incurred when the amortization period is one year or less.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements

​

In December 2023, the Financial Accounting Standards Board issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which will require a disaggregated rate reconciliation disclosure as well as additional information regarding taxes paid on an annual basis. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2024. The Company has elected not to early adopt this accounting standard. The adoption of this standard will result in additional income tax disclosures for the year ended December 31, 2025; however, the Company does not anticipate that it will have a material impact on the Company’s consolidated financial position and results of operations.

In November 2024, the Financial Accounting Standards Board issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which will require disclosure of disaggregated information about certain expense captions presented in the income statement. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company is evaluating the impact of adoption of this standard and does not anticipate that it will have a material impact on the Company’s consolidated financial position and results of operations.
v3.25.2
Accounts Receivable (Tables)
 6 Months Ended
Jun. 30, 2025
Accounts Receivable  
Schedule of accounts receivable

​

​

​

​

​

​

​

​

​

June 30, 

​

​

December 31, 

​

​

2025

​

​

2024

Trade accounts receivable

$

87,885

 

$

78,464

Unbilled accounts receivable

​

—

 

​

7,213

​

​

87,885

 

​

85,677

Less allowance for credit losses

​

(390)

​

​

(186)

Total accounts receivable, net

$

87,495

​

$

85,491

​
v3.25.2
Inventories (Tables)
 6 Months Ended
Jun. 30, 2025
Inventories  
Schedule of inventories

​

​

​

​

​

​

​

​

​

June 30, 

​

​

December 31, 

​

​

2025

​

​

2024

Raw materials

$

72,208

 

$

63,863

Work in process

​

4,850

​

​

955

Finished goods

​

6,814

 

​

7,842

Total inventories, net

$

83,872

 

$

72,660

​
v3.25.2
Acquisition (Tables)
 6 Months Ended
Jun. 30, 2025
Acquisition  
Schedule of purchase price of assets acquired and liabilities assumed

​

​

​

​

​

June 30, 

​

2025

Cash and cash equivalents

$

1,603

Accounts receivable

​

9,427

Inventories

​

4,071

Prepaid expenses and other current assets

​

1,683

Plant, equipment, leasehold improvements and operating lease right-of-use assets

​

18,275

Intangible assets

​

12,400

Goodwill

​

1,061

Deferred income taxes

​

6,256

Other assets

​

298

Total assets

​

55,074

Accounts payable

​

2,837

Accrued expenses

​

3,849

Accrued long-term operating leases

​

2,371

Total purchase price

$

46,017
Schedule of preliminary estimated fair values of the identifiable intangible assets acquired

​

​

​

​

​

​

​

​

​

Weighted Average

​

June 30, 

​

​

Life (Years)

​

2025

Trademark

​

2.5

​

$

600

Acquired technology

​

7.0

​

​

4,400

Customer relationships

​

15.0

​

​

7,400

Total identifiable intangible assets acquired

​

​

​

$

12,400
v3.25.2
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets (Tables)
 6 Months Ended
Jun. 30, 2025
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets  
Schedule of plant, equipment, leasehold improvements and operating lease right-to-use assets

​

​

​

​

​

​

​

​

​

June 30, 

​

​

December 31, 

​

​

2025

​

​

2024

Machinery and equipment

$

82,362

 

$

71,781

Machinery and equipment under financing leases

​

41,030

​

​

32,272

Furniture, fixtures and computer equipment

​

4,451

 

​

1,123

Leasehold improvements

​

23,549

 

​

18,875

Construction in progress

​

10,618

 

​

5,141

Operating lease right-of-use assets

​

27,459

​

​

15,090

​

​

189,469

​

​

144,282

Less accumulated depreciation and amortization

​

(84,695)

 

​

(75,634)

Total plant, equipment, leasehold improvements and
operating lease right-of-use assets, net

$

104,774

 

$

68,648

​
v3.25.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value of Financial Instruments  
Schedule of financial assets and liabilities subject to fair value measurements

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Carrying

​

Estimated

​

​

​

​

​

​

​

​

​

​

Value as of 

​

Fair Value as of 

​

Fair Value Measurement at June 30, 2025

​

June 30, 

​

June 30, 

​

 (Using Fair Value Hierarchy)

​

2025

​

2025

​

Level 1

​

Level 2

​

Level 3

Liabilities:

​

​

    

​

​

    

​

​

    

​

​

    

​

​

Senior Notes

$

285,000

​

$

302,456

​

$

—

​

$

302,456

​

$

—

ABL Revolver

$

30,000

​

$

30,000

​

$

—

​

$

30,000

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Carrying

​

Estimated

​

​

​

​

​

​

​

​

​

​

 Value as of

​

Fair Value as of

​

Fair Value Measurement at December 31, 2024

​

December 31, 

​

December 31, 

​

 (Using Fair Value Hierarchy)

​

2024

​

2024

​

Level 1

​

Level 2

​

Level 3

Liabilities:

​

​

    

​

​

    

​

​

    

​

​

    

​

​

Senior Notes

$

285,000

 

$

304,571

​

$

—

 

$

304,571

​

$

—

v3.25.2
Accrued Expenses (Tables)
 6 Months Ended
Jun. 30, 2025
Accrued Expenses.  
Schedule of accrued expenses

​

​

​

​

​

​

​

​

June 30, 

​

December 31,

​

2025

​

2024

Accrued payroll and related employee expenses

$

10,304

 

$

9,493

Accrued employee performance-based incentive compensation

​

2,220

 

​

4,664

Employer payroll taxes

​

400

 

​

868

Accrued rebates

​

3,520

​

​

3,956

Capitalized contract costs payable

​

—

​

​

8,000

Accrued interest

​

13,446

​

​

13,506

Current operating and financing lease liabilities

​

11,630

​

​

9,065

Income taxes payable

​

309

​

​

881

Other

​

11,104

​

​

7,546

Total accrued expenses

$

52,933

​

$

57,979
v3.25.2
Long-Term Debt (Tables)
 6 Months Ended
Jun. 30, 2025
Long-Term Debt.  
Schedule of long-term debt

​

​

​

​

​

​

​

​

​

​

June 30, 

    

December 31, 

​

​

2025

​

2024

Senior Notes

​

$

285,000

​

$

285,000

ABL Revolver

​

​

30,000

​

​

—

Unamortized deferred financing costs

​

 

(4,089)

​

 

(4,595)

Total long-term debt

​

​

310,911

​

​

280,405

Less current maturities

​

​

—

​

​

—

Long-term debt, net of current maturities

​

$

310,911

​

$

280,405
v3.25.2
Income Taxes (Tables)
 6 Months Ended
Jun. 30, 2025
Income Taxes  
Schedule of effective income tax rate reconciliation

For the six months ended June 30, 2025 and 2024, the effective tax rates differ from the U.S. federal statutory income tax rate as follows:

​

​

​

​

​

​

​

June 30, 

​

​

2025

    

​

2024

​

Tax at federal statutory rate

21.0

%

​

21.0

%

State taxes, net

9.0

​

​

6.2

​

Permanent items (1)

3.6

​

​

1.9

​

Tax credits

(1.6)

​

​

(0.9)

​

Effective income tax rate

32.0

%

​

28.2

%

(1)Includes the deductibility limitations on excess compensation.
v3.25.2
Earnings per Share (Tables)
 6 Months Ended
Jun. 30, 2025
Earnings per Share  
Computation of basic and diluted earnings per share

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

Six Months Ended June 30, 

​

2025

    

2024

    

2025

​

2024

Numerator:

​

​

​

​

​

​

​

    

    

​

    

Net income

$

518

​

$

6,001

​

$

5,292

​

$

11,456

​

​

​

​

​

​

​

​

​

​

​

​

Denominator:

​

​

​

​

​

​

​

​

​

​

​

Basic weighted-average common shares outstanding

 

11,297,785

​

 

11,049,968

​

 

11,271,815

​

 

11,158,334

Dilutive shares

​

630,158

​

​

726,926

​

​

698,094

​

​

659,250

Diluted weighted-average common shares outstanding

​

11,927,943

​

​

11,776,894

​

​

11,969,909

​

​

11,817,584

​

​

​

​

​

​

​

​

​

​

​

​

Basic earnings per share

$

0.05

​

$

0.54

​

$

0.47

​

$

1.03

​

​

​

​

​

​

​

​

​

​

​

​

Diluted earnings per share

$

0.04

​

$

0.51

​

$

0.44

​

$

0.97

​
v3.25.2
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2025
Segment Reporting  
Schedule of revenue and EBITDA of the company's reportable segments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2025

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products

$

81,176

​

$

—

​

$

—

​

$

(226)

​

$

80,950

Services

​

29,581

​

​

19,222

​

​

—

​

​

—

​

​

48,803

Total net sales

​

110,757

​

​

19,222

​

​

—

​

​

(226)

​

​

129,753

Cost of sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products (1)

​

55,204

​

​

—

​

​

—

​

​

(226)

​

​

54,978

Services (1)

​

17,860

​

​

12,686

​

​

—

​

​

—

​

​

30,546

Depreciation and amortization

​

3,044

​

​

1,065

​

​

—

​

​

—

​

​

4,109

Total cost of sales

​

76,108

​

​

13,751

​

​

—

​

​

(226)

​

​

89,633

Gross profit

​

34,649

​

​

5,471

​

​

—

​

​

—

​

​

40,120

Operating expenses

​

11,596

​

​

1,300

​

​

17,801

​

​

—

​

​

30,697

Income (loss) from operations

$

23,053

​

$

4,171

​

$

(17,801)

​

$

—

​

$

9,423

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

23,053

​

$

4,171

​

$

(17,801)

​

$

—

​

$

9,423

Depreciation and amortization

​

3,528

​

​

1,126

​

​

861

​

​

—

​

​

5,515

Other income (expense)

​

(33)

​

​

—

​

​

20

​

​

—

​

​

(13)

EBITDA

$

26,548

​

$

5,297

​

$

(16,920)

​

$

—

​

$

14,925

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross profit margin

​

31.3%

​

​

28.5%

​

​

*

​

​

*

​

​

30.9%

EBITDA margin

​

24.0%

​

​

27.6%

​

​

*

​

​

*

​

​

11.5%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2025

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products

$

150,801

​

$

—

​

$

—

​

$

(676)

​

$

150,125

Services

​

56,476

​

​

45,935

​

​

—

​

​

(22)

​

​

102,389

Total net sales

​

207,277

​

​

45,935

​

​

—

​

​

(698)

​

​

252,514

Cost of sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products (1)

​

101,939

​

​

—

​

​

—

​

​

(676)

​

​

101,263

Services (1)

​

34,293

​

​

28,905

​

​

—

​

​

(22)

​

​

63,176

Depreciation and amortization

​

5,142

​

​

2,117

​

​

—

​

​

—

​

​

7,259

Total cost of sales

​

141,374

​

​

31,022

​

​

—

​

​

(698)

​

​

171,698

Gross profit

​

65,903

​

​

14,913

​

​

—

​

​

—

​

​

80,816

Operating expenses

​

21,147

​

​

2,743

​

​

33,399

​

​

—

​

​

57,289

Income (loss) from operations

$

44,756

​

$

12,170

​

$

(33,399)

​

$

—

​

$

23,527

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

44,756

​

$

12,170

​

$

(33,399)

​

$

—

​

$

23,527

Depreciation and amortization

​

5,799

​

​

2,242

​

​

1,721

​

​

—

​

​

9,762

Other income (expense)

​

(40)

​

​

6

​

​

39

​

​

—

​

​

5

EBITDA

$

50,515

​

$

14,418

​

$

(31,639)

​

$

—

​

$

33,294

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross profit margin

​

31.8%

​

​

32.5%

​

​

*

​

​

*

​

​

32.0%

EBITDA margin

​

24.4%

​

​

31.4%

​

​

*

​

​

*

​

​

13.2%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 2024

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products

$

64,461

​

$

—

​

$

—

​

$

(617)

​

$

63,844

Services

​

31,159

​

​

23,815

​

​

—

​

​

—

​

​

54,974

Total net sales

​

95,620

​

​

23,815

​

​

—

​

​

(617)

​

​

118,818

Cost of sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products (1)

​

42,510

​

​

—

​

​

—

​

​

(617)

​

​

41,893

Services (1)

​

16,988

​

​

14,755

​

​

—

​

​

—

​

​

31,743

Depreciation and amortization

​

1,958

​

​

836

​

​

—

​

​

—

​

​

2,794

Total cost of sales

​

61,456

​

​

15,591

​

​

—

​

​

(617)

​

​

76,430

Gross profit

​

34,164

​

​

8,224

​

​

—

​

​

—

​

​

42,388

Operating expenses

​

8,775

​

​

1,315

​

​

17,389

​

​

—

​

​

27,479

Income (loss) from operations

$

25,389

​

$

6,909

​

$

(17,389)

​

$

—

​

$

14,909

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

25,389

​

$

6,909

​

$

(17,389)

​

$

—

​

$

14,909

Depreciation and amortization

​

2,237

​

​

895

​

​

916

​

​

—

​

​

4,048

Other income (expense)

​

(1)

​

​

(1)

​

​

(76)

​

​

—

​

​

(78)

EBITDA

$

27,625

​

$

7,803

​

$

(16,549)

​

$

—

​

$

18,879

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross profit margin

​

35.7%

​

​

34.5%

​

​

*

​

​

*

​

​

35.7%

EBITDA margin

​

28.9%

​

​

32.8%

​

​

*

​

​

*

​

​

15.9%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 2024

​

Debit and Credit

​

Prepaid Debit

​

Other

​

Intersegment Eliminations

​

Total

Net sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products

$

122,832

​

$

—

​

$

—

​

$

(830)

​

$

122,002

Services

​

60,761

​

​

48,013

​

​

—

​

​

(22)

​

​

108,752

Total net sales

​

183,593

​

​

48,013

​

​

—

​

​

(852)

​

​

230,754

Cost of sales

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Products (1)

​

80,525

​

​

—

​

​

—

​

​

(830)

​

​

79,695

Services (1)

​

33,580

​

​

28,114

​

​

—

​

​

(22)

​

​

61,672

Depreciation and amortization

​

3,829

​

​

1,652

​

​

—

​

​

—

​

​

5,481

Total cost of sales

​

117,934

​

​

29,766

​

​

—

​

​

(852)

​

​

146,848

Gross profit

​

65,659

​

​

18,247

​

​

—

​

​

—

​

​

83,906

Operating expenses

​

17,516

​

​

2,593

​

​

34,743

​

​

—

​

​

54,852

Income (loss) from operations

$

48,143

​

$

15,654

​

$

(34,743)

​

$

—

​

$

29,054

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

EBITDA by segment:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income (loss) from operations

$

48,143

​

$

15,654

​

$

(34,743)

​

$

—

​

$

29,054

Depreciation and amortization

​

4,387

​

​

1,766

​

​

1,912

​

​

—

​

​

8,065

Other income (expense)

​

(63)

​

​

(2)

​

​

(78)

​

​

—

​

​

(143)

EBITDA

$

52,467

​

$

17,418

​

$

(32,909)

​

$

—

​

$

36,976

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross profit margin

​

35.8%

​

​

38.0%

​

​

*

​

​

*

​

​

36.4%

EBITDA margin

​

28.6%

​

​

36.3%

​

​

*

​

​

*

​

​

16.0%

*

Calculation not meaningful.

(1)

Exclusive of depreciation and amortization.
Schedule of reconciliation of total segment EBITDA to income before taxes

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

Six Months Ended June 30, 

​

2025

    

2024

    

2025

    

2024

Net income

$

518

​

$

6,001

​

$

5,292

​

$

11,456

Interest, net

​

8,069

​

​

6,530

​

​

15,754

​

​

12,955

Income tax expense

 

823

​

 

2,300

​

 

2,486

​

 

4,500

Depreciation and amortization

 

5,515

​

 

4,048

​

 

9,762

​

 

8,065

EBITDA

$

14,925

​

$

18,879

​

$

33,294

​

$

36,976
Schedule of total assets of the company's reportable segments

​

​

​

​

​

​

​

​

​

​

June 30, 

​

December 31, 

​

    

2025

​

2024

Debit and Credit

 

$

330,132

​

$

248,970

Prepaid Debit

​

​

48,323

​

 

60,621

Other

​

​

21,340

​

 

40,066

Total assets

​

$

399,795

 

$

349,657
Total capital expenditures of the Company's reportable segments

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 

​

    

2025

    

2024

Debit and Credit

 

$

7,516

 

$

1,371

Prepaid Debit

​

​

1,341

​

 

1,373

Other

​

​

255

​

​

—

Total capital expenditures

​

$

9,112

 

$

2,744

​
v3.25.2
Accounts Receivable (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Accounts Receivable    
Trade accounts receivable $ 87,885 $ 78,464
Unbilled accounts receivable   7,213
Accounts receivable, gross 87,885 85,677
Less allowance for credit losses (390) (186)
Total accounts receivable, net $ 87,495 $ 85,491
v3.25.2
Inventories (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Inventories    
Raw materials $ 72,208 $ 63,863
Work-in-process 4,850 955
Inventory, Work in Process, Gross 4,850 955
Finished goods 6,814 7,842
Total inventories, net $ 83,872 $ 72,660
v3.25.2
Acquisition - General (Details) - Arroweye - USD ($)
$ in Millions
 6 Months Ended
May 06, 2025
Jun. 30, 2025
Acquisition    
Purchase consideration $ 45.6 $ 46.0
Purchase price held in escrow $ 1.5  
Acquisition costs   $ 2.3
v3.25.2
Acquisition - Estimated fair values of the assets acquired and liabilities assumed (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Estimated fair values of the assets acquired and liabilities assumed    
Goodwill $ 48,211 $ 47,150
Arroweye    
Estimated fair values of the assets acquired and liabilities assumed    
Cash and cash equivalents 1,603  
Accounts receivable 9,427  
Inventories 4,071  
Prepaid expenses and other current assets 1,683  
Plant, equipment, leasehold improvements and operating lease right-of-use assets 18,275  
Intangible assets 12,400  
Goodwill 1,061  
Deferred income taxes 6,256  
Other assets 298  
Total assets 55,074  
Accounts payable 2,837  
Accrued expenses 3,849  
Accrued long-term operating leases 2,371  
Total purchase price $ 46,017  
v3.25.2
Acquisition - Estimated fair values of the identifiable intangible assets acquired (Details) - Arroweye
$ in Thousands
 6 Months Ended
Jun. 30, 2025
USD ($)
Acquisition  
Total identifiable intangible assets acquired $ 12,400
Trademarks  
Acquisition  
Weighted Average Life 2 years 6 months
Total identifiable intangible assets acquired $ 600
Technology  
Acquisition  
Weighted Average Life 7 years
Total identifiable intangible assets acquired $ 4,400
Customer relationships  
Acquisition  
Weighted Average Life 15 years
Total identifiable intangible assets acquired $ 7,400
v3.25.2
Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross $ 189,469 $ 144,282
Less accumulated depreciation and amortization (84,695) (75,634)
Total plant, equipment, leasehold improvements and operating lease right-of-use assets, net 104,774 68,648
Machinery and equipment    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross 82,362 71,781
Machinery and equipment under financing leases    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross 41,030 32,272
Furniture, fixtures and computer equipment    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross 4,451 1,123
Leasehold improvements    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross 23,549 18,875
Construction in progress    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross 10,618 5,141
Operating lease right-of-use assets    
Plant, Equipment and Leasehold Improvements    
Plant, equipment and leasehold improvements, gross $ 27,459 $ 15,090
v3.25.2
Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Senior Notes    
Liabilities:    
Carrying amount $ 285,000 $ 285,000
Senior Notes | Level 2    
Liabilities:    
Long-term debt 302,456 304,571
2029 ABL Revolver    
Liabilities:    
Carrying amount 30,000  
2029 ABL Revolver | Level 2    
Liabilities:    
Long-term debt 30,000  
Estimate of Fair Value | Senior Notes    
Liabilities:    
Long-term debt 302,456 $ 304,571
Estimate of Fair Value | 2029 ABL Revolver    
Liabilities:    
Long-term debt $ 30,000  
v3.25.2
Accrued Expenses (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Accrued Expenses.    
Accrued payroll and related employee expenses $ 10,304 $ 9,493
Accrued employee performance-based incentive compensation 2,220 4,664
Employer payroll taxes 400 868
Accrued rebates 3,520 3,956
Capitalized contract costs payable   8,000
Accrued interest 13,446 13,506
Current operating and financing lease liabilities 11,630 9,065
Income taxes payable 309 881
Other 11,104 7,546
Total accrued expenses $ 52,933 $ 57,979
v3.25.2
Long-Term Debt - Long-Term Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Long-term Debt    
Unamortized deferred financing costs $ (4,089) $ (4,595)
Total long-term debt 310,911 280,405
Long-term debt, net of current maturities 310,911 280,405
Senior Notes    
Long-term Debt    
Long-term debt 285,000 $ 285,000
2029 ABL Revolver    
Long-term Debt    
Long-term debt $ 30,000  
v3.25.2
Long-Term Debt - First Lien Credit Facility (Details)
$ in Thousands
 6 Months Ended
Jul. 11, 2024
USD ($)
Jun. 30, 2025
USD ($)
D
Dec. 31, 2024
USD ($)
Long-term Debt      
Amount repaid   $ 5,000  
Senior Notes      
Long-term Debt      
Interest rate (as a percent) 10.00%    
Issue Price Percentage (in %) 100.00%    
Long-term debt   285,000 $ 285,000
Aggregate principal amount $ 285,000    
Debi issuance cost   4,100  
2029 ABL Revolver      
Long-term Debt      
Maximum borrowing capacity   75,000  
Long-term debt   30,000  
Adjustment for credit spread 0.10%    
Amount outstanding   $ 30,000  
Number of days prior to maturity of senior notes that facility matures | D   91  
Debi issuance cost   $ 1,400  
2029 ABL Revolver | Minimum      
Long-term Debt      
Applicable margin over reference rate (as a percent) 1.50%    
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]   us-gaap:SecuredOvernightFinancingRateSofrMember  
Unused commitment fee (as a percent) 0.375%    
2029 ABL Revolver | Maximum      
Long-term Debt      
Applicable margin over reference rate (as a percent) 1.75%    
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]   us-gaap:SecuredOvernightFinancingRateSofrMember  
Unused commitment fee (as a percent) 0.50%    
v3.25.2
Income Taxes - Other (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
May 06, 2025
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Effective income tax rate   61.40% 27.70% 32.00% 28.20%
Arroweye          
Operating loss (NOL) carryforwards $ 85.8        
Carryover period 20 years        
Operating loss carryforwards, subject to applicable limitations $ 72.1        
Operating loss carryforwards, no expiration period 13.7        
Gross valuation allowance 46.5        
Net deferred tax asset $ 8.6 $ 8.1   $ 8.1  
NOL carryforwards utilized   2.2   2.2  
DTA utilized   $ 0.5   $ 0.5  
v3.25.2
Income Taxes - Effective Income Tax Rate Reconciliation (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Effective Income Tax Rate Reconciliation        
Tax at federal statutory rate (as a percent)     21.00% 21.00%
State taxes, net (as a percent)     9.00% 6.20%
Permanent items (as a percent)     3.60% 1.90%
Tax credits (as a percent)     (1.60%) (0.90%)
Effective income tax rate (as a percent) 61.40% 27.70% 32.00% 28.20%
v3.25.2
Stockholders' Deficit (Details) - USD ($)
$ / shares in Units, $ in Thousands
 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Dec. 31, 2024
Nov. 02, 2023
Repurchase Program        
Maximum value of shares authorized for repurchase under repurchase plan       $ 20,000
Common shares, par value (in dollars per share) $ 0.001   $ 0.001 $ 0.001
Shares repurchased and retired (in shares)   352,750    
Average cost of shares repurchased (in dollars per share)   $ 18.14    
Value of shares repurchased and retired   $ 6,400    
Value of remaining shares available under repurchase authorization     $ 11,200  
Payments on debt $ 5,000      
Tricor Pacific Capital Partners (Fund IV) US, LP        
Repurchase Program        
Shares repurchased and retired (in shares)   120,534    
Average cost of shares repurchased (in dollars per share)   $ 18.23    
v3.25.2
Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Numerator:        
Net income $ 518 $ 6,001 $ 5,292 $ 11,456
Denominator:        
Basic weighted-average common shares outstanding (in shares) 11,297,785 11,049,968 11,271,815 11,158,334
Dilutive shares (in shares) 630,158 726,926 698,094 659,250
Diluted weighted-average common shares outstanding (in shares) 11,927,943 11,776,894 11,969,909 11,817,584
Basic earnings per share (in dollars per share) $ 0.05 $ 0.54 $ 0.47 $ 1.03
Diluted earnings per share (in dollars per share) $ 0.04 $ 0.51 $ 0.44 $ 0.97
Outstanding stock based awards        
Potential antidilutive effect of share-based compensation excluded (in shares) 9,363 15,185 10,693 24,298
v3.25.2
Stock-Based Compensation - Omnibus Incentive Plan (Details) - Omnibus Plan - $ / shares
 6 Months Ended
Jan. 30, 2024
Jun. 30, 2025
Stock based compensation    
Number of shares authorized 3,200,000  
Number of additional shares authorized 1,000,000  
Number of shares available for grant   780,053
Stock Options    
Stock based compensation    
Stock options granted (in shares)   0
Outstanding (in shares)   747,937
Exercise price (in dollars per share)   $ 21.46
Stock option life (in years)   7 years
Number of shares    
Granted (in shares)   0
Balance at end of year (in shares)   747,937
Weighted-Average Exercise Price    
Balance at end of year (in dollars per share)   $ 21.46
Number of unvested options scheduled to vest    
Granted (in shares)   0
v3.25.2
Stock-Based Compensation - Restricted Stock Units (Details) - Omnibus Plan - Restricted stock units
 6 Months Ended
Jun. 30, 2025
$ / shares
shares
Stock based compensation  
Granted (in units) | shares 112,828
Granted (in dollars per unit) | $ / shares $ 24.95
Outstanding (in units) | shares 545,360
Outstanding (in dollars per unit) | $ / shares $ 22.23
v3.25.2
Stock-Based Compensation - Additional information (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 6 Months Ended
Feb. 28, 2025
Jan. 31, 2024
Jun. 30, 2025
Performance cash award      
Stock based compensation      
Fair value $ 2.0    
Chief Executive Officer | Performance Stock Units      
Stock based compensation      
Vesting period   5 years  
Granted (in units)   60,000  
Fair value   $ 0.9  
Number of consecutive trading days with minimum share price   90 days  
Stock options vesting percent   33.30%  
Chief Executive Officer | Performance Stock Units | Minimum | Awards vesting category one      
Stock based compensation      
Share price (in dollar per share)   $ 35  
Chief Executive Officer | Performance Stock Units | Minimum | Awards vesting category two      
Stock based compensation      
Share price (in dollar per share)   50  
Chief Executive Officer | Performance Stock Units | Minimum | Awards vesting category three      
Stock based compensation      
Share price (in dollar per share)   $ 65  
Omnibus Plan | Restricted stock units      
Stock based compensation      
Granted (in units)     112,828
v3.25.2
Segment Reporting - Revenue and EBITDA from Continuing Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
Segment Reporting        
Total net sales $ 129,753 $ 118,818 $ 252,514 $ 230,754
Depreciation and amortization 4,109 2,794 7,259 5,481
Total cost of sales 89,633 76,430 171,698 146,848
Gross profit 40,120 42,388 80,816 83,906
Operating expenses 30,697 27,479 57,289 54,852
Income from operations 9,423 14,909 23,527 29,054
EBITDA by segment:        
Income (loss) from operations 9,423 14,909 23,527 29,054
Depreciation and amortization 5,515 4,048 9,762 8,065
Other income (expense) (13) (78) 5 (143)
EBITDA $ 14,925 $ 18,879 $ 33,294 $ 36,976
Gross profit margin (as a percent) 30.90% 35.70% 32.00% 36.40%
EBITDA margin (as a percent) 11.50% 15.90% 13.20% 16.00%
Products        
Segment Reporting        
Total net sales $ 80,950 $ 63,844 $ 150,125 $ 122,002
Products (exclusive of depreciation and amortization shown below) 54,978 41,893 101,263 79,695
Services        
Segment Reporting        
Total net sales 48,803 54,974 102,389 108,752
Products (exclusive of depreciation and amortization shown below) 30,546 31,743 63,176 61,672
Operating Segments | Debit and Credit        
Segment Reporting        
Total net sales 110,757 95,620 207,277 183,593
Depreciation and amortization 3,044 1,958 5,142 3,829
Total cost of sales 76,108 61,456 141,374 117,934
Gross profit 34,649 34,164 65,903 65,659
Operating expenses 11,596 8,775 21,147 17,516
Income from operations 23,053 25,389 44,756 48,143
EBITDA by segment:        
Income (loss) from operations 23,053 25,389 44,756 48,143
Depreciation and amortization 3,528 2,237 5,799 4,387
Other income (expense) (33) (1) (40) (63)
EBITDA $ 26,548 $ 27,625 $ 50,515 $ 52,467
Gross profit margin (as a percent) 31.30% 35.70% 31.80% 35.80%
EBITDA margin (as a percent) 24.00% 28.90% 24.40% 28.60%
Operating Segments | Prepaid Debit        
Segment Reporting        
Total net sales $ 19,222 $ 23,815 $ 45,935 $ 48,013
Depreciation and amortization 1,065 836 2,117 1,652
Total cost of sales 13,751 15,591 31,022 29,766
Gross profit 5,471 8,224 14,913 18,247
Operating expenses 1,300 1,315 2,743 2,593
Income from operations 4,171 6,909 12,170 15,654
EBITDA by segment:        
Income (loss) from operations 4,171 6,909 12,170 15,654
Depreciation and amortization 1,126 895 2,242 1,766
Other income (expense)   (1) 6 (2)
EBITDA $ 5,297 $ 7,803 $ 14,418 $ 17,418
Gross profit margin (as a percent) 28.50% 34.50% 32.50% 38.00%
EBITDA margin (as a percent) 27.60% 32.80% 31.40% 36.30%
Operating Segments | Other        
Segment Reporting        
Operating expenses $ 17,801 $ 17,389 $ 33,399 $ 34,743
Income from operations (17,801) (17,389) (33,399) (34,743)
EBITDA by segment:        
Income (loss) from operations (17,801) (17,389) (33,399) (34,743)
Depreciation and amortization 861 916 1,721 1,912
Other income (expense) 20 (76) 39 (78)
EBITDA (16,920) (16,549) (31,639) (32,909)
Operating Segments | Products | Debit and Credit        
Segment Reporting        
Total net sales 81,176 64,461 150,801 122,832
Products (exclusive of depreciation and amortization shown below) 55,204 42,510 101,939 80,525
Operating Segments | Services | Debit and Credit        
Segment Reporting        
Total net sales 29,581 31,159 56,476 60,761
Products (exclusive of depreciation and amortization shown below) 17,860 16,988 34,293 33,580
Operating Segments | Services | Prepaid Debit        
Segment Reporting        
Total net sales 19,222 23,815 45,935 48,013
Products (exclusive of depreciation and amortization shown below) 12,686 14,755 28,905 28,114
Intersegment eliminations        
Segment Reporting        
Total net sales (226) (617) (698) (852)
Total cost of sales (226) (617) (698) (852)
Intersegment eliminations | Products        
Segment Reporting        
Total net sales (226) (617) (676) (830)
Products (exclusive of depreciation and amortization shown below) $ (226) $ (617) (676) (830)
Intersegment eliminations | Services        
Segment Reporting        
Total net sales     (22) (22)
Products (exclusive of depreciation and amortization shown below)     $ (22) $ (22)
v3.25.2
Segment Reporting - Reconciliation of EBITDA to net income (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2025
Jun. 30, 2024
Jun. 30, 2025
Jun. 30, 2024
EBITDA by segment:        
Net income $ 518 $ 6,001 $ 5,292 $ 11,456
Interest, net 8,069 6,530 15,754 12,955
Income tax expense 823 2,300 2,486 4,500
Depreciation and amortization 5,515 4,048 9,762 8,065
EBITDA $ 14,925 $ 18,879 $ 33,294 $ 36,976
v3.25.2
Segment Reporting - Balance Sheet Data (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Dec. 31, 2024
Segment Reporting    
Total assets $ 399,795 $ 349,657
Debit and Credit    
Segment Reporting    
Total assets 330,132 248,970
Prepaid Debit    
Segment Reporting    
Total assets 48,323 60,621
Other    
Segment Reporting    
Total assets $ 21,340 $ 40,066
v3.25.2
Segment Reporting - Capital Expenditure (Details) - USD ($)
$ in Thousands
Jun. 30, 2025
Jun. 30, 2024
Segment Reporting    
Capital expenditures $ 9,112 $ 2,744
Debit and Credit    
Segment Reporting    
Capital expenditures 7,516 1,371
Prepaid Debit    
Segment Reporting    
Capital expenditures 1,341 $ 1,373
Other    
Segment Reporting    
Capital expenditures $ 255  
v3.25.2
Subsequent Events (Details) - USD ($)
$ in Millions
Jul. 15, 2025
Jul. 02, 2025
Jun. 30, 2025
Jul. 11, 2024
2029 ABL Revolver        
Subsequent Events        
Maximum borrowing capacity     $ 75.0  
Senior Notes        
Subsequent Events        
Aggregate principal amount       $ 285.0
Subsequent Events | 2029 ABL Revolver Amendment No 1        
Subsequent Events        
Maximum borrowing capacity   $ 100.0    
Subsequent Events | Senior Notes        
Subsequent Events        
Principal amount of debt redeemed $ 20.0      
Aggregate principal amount $ 285.0      
Redemption percentage 103.00%