CPI Card Group reported record quarterly revenue of $158 million for the third quarter, up 15% year-over-year, with double-digit growth in all three business segments. Gross profit rose 23% and adjusted EBITDA grew 17%. Year-to-date free cash flow hit a record $46 million, up from $6 million a year earlier. Net leverage fell to 2.6 times from 3.6 times. The company raised its full-year guidance for revenue growth and free cash flow for the second consecutive quarter. It won Navy Federal Credit Union as a customer through its AROI solution, which has brought more than 30 new customers since the May 2025 acquisition. Selling, general and administrative expenses rose to $34 million from $28 million. Prepaid revenue is expected to fall to about $20 million in the fourth quarter on seasonal moderation.

CPI renews longstanding relationship with Vericast as 3 in 4 consumers say instant issuance matters. 3 hours ago * Renewed agreement builds on nearly a quarter-century of collaboration * CPI and Vericast help financial institutions drive immediate card activation and use * Banks and credit unions get the flexibility and scale of instant issuance plus centralized personalization and fulfilment of physical credit, debit, and gift solutions DENVER - Sept. 29, 2026 - CPI(TM)(Nasdaq: PMTS), a payments technology leader providing a comprehensive range of physical and digital payment solutions, today announced it has renewed a multi-year service agreement with Vericast, the FI performance partner that works with a majority of U.S. banks and credit unions. The agreement extends a strategic relationship now entering its 24th year, with CPI continuing as Vericast's preferred supplier for payment solutions including physical cards and integrated payment technology like Card@Once(R) instant issuance. The renewed agreement comes as financial institutions look to meet consumer demand for convenience, security, and instant access to accounts. Nearly three-fourths of survey respondents (74%) say it's important to receive their credit or debit card instantly at their financial institution, according to a 2025 Vericast survey. Among younger respondents, the demand is even higher, with 86% of Millennials and 85% of Gen Z respondents prioritizing instant issuance. Vericast was among CPI's first resellers to offer Card@Once instant issuance when it launched in 2011 as the market's first SaaS-based instant issuance solution, and they have been instrumental in expanding instant issuance to financial institutions of all sizes. "Consumer expectations continue to evolve, and financial institutions need solutions that can evolve with them," said Nicole Machado, Vice President of Product Management, Card Solutions at Vericast. "For nearly a quarter of a century, Vericast and CPI have combined our complementary strengths to help our clients deliver better cardholder experiences. Together, we provide the scale, expertise, and innovation needed to help drive-long term engagement for banks and credit unions." "Consumer expectations move fast, and issuers need partners who move faster," said Peggy O'Leary, Chief Commercial Officer at CPI. "With Vericast, we're combining Card@Once instant issuance with end-to-end manufacturing, personalization, and fulfillment, including our Las Vegas-based print-on-demand solution, so financial institutions can drive activation from day one and build relationships that last." About CPI Card Group Inc. CPI Card Group (Nasdaq: PMTS) is a payments technology company that is integral to the payments ecosystem. CPI's connections, people, and solutions enable payments for a broad and expanding customer base including thousands of U.S. financial institutions, processors, fintechs, prepaid program managers and more, and these customers count on Finopotamus LLC to deliver what's next. Finopotamus LLC continue to transform alongside the market, and for decades have invested in building deep connections and flexible solutions for its customers. Its proprietary platform and expertise uniquely position CPI to deliver today, tomorrow, and into the future as the market expands and payment methods evolve. Learn more at www.cpicardgroup.com. About Vericast Vericast is the FI performance partner. Finopotamus LLC help banks and credit unions drive growth, improve efficiency, increase engagement and navigate change through the power of data, technology and people. Its advanced analytics, data-driven insights and integrated solution set enable better delivery with agility, precision and scale. That's why thousands of financial institutions look to Vericast and its 150 years of financial services expertise to help them achieve more.