M&A
confidence high
sentiment positive
materiality 0.75
CPI Card Group acquires Arroweye for $45.55M; Q1 net sales up 10% to $122.8M, net income down 12%
CPI Card Group Inc.
- Acquired Arroweye Solutions for $45.55M cash; Arroweye expected to generate mid-$50M annual revenue in 2025.
- Q1 net sales $122.8M (+10% YoY); net income $4.8M (-12%); diluted EPS $0.40.
- Adjusted EBITDA fell 8% to $21.2M; gross margin contracted to 33.2% from 37.1%.
- 2025 organic growth outlook reaffirmed: mid-to-high single-digit net sales and Adjusted EBITDA growth, excluding Arroweye.
- Debit & Credit segment net sales up 10% to $96.5M; Prepaid Debit up 10% to $26.7M.