CPI Card Group Inc. Segments Disclosure
17. 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 revenue 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 (“CODM”) 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 CODM 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 December 31, 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
Revenue 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 years ended December 31, 2025 and 2024, were as follows:
Year Ended December 31, 2025 | |||||||||||||||||
Debit and Credit | Prepaid Debit | Other | Total Reportable Segments | Intersegment Eliminations | Total | ||||||||||||
Revenue | $ | 451,475 | $ | 93,625 | $ | — | $ | 545,100 | $ | (1,566) | $ | 543,534 | |||||
Cost of goods sold | 313,321 | 61,683 | — | 375,004 | (1,566) | 373,438 | |||||||||||
Gross profit | 138,154 | 31,942 | — | 170,096 | — | 170,096 | |||||||||||
Selling, general and administrative expenses | 46,724 | 5,243 | 63,288 | 115,255 | — | 115,255 | |||||||||||
Income (loss) from operations | $ | 91,430 | $ | 26,699 | $ | (63,288) | $ | 54,841 | $ | — | $ | 54,841 | |||||
EBITDA by segment: | |||||||||||||||||
Income (loss) from operations | $ | 91,430 | $ | 26,699 | $ | (63,288) | $ | 54,841 | $ | — | $ | 54,841 | |||||
Depreciation and amortization | 14,308 | 4,692 | 3,461 | 22,461 | — | 22,461 | |||||||||||
Other expense | (387) | (128) | (254) | (769) | — | (769) | |||||||||||
EBITDA | $ | 105,351 | $ | 31,263 | $ | (60,081) | $ | 76,533 | $ | — | $ | 76,533 | |||||
Gross profit margin | 30.6% | 34.1% | * | 31.2% | * | 31.3% | |||||||||||
EBITDA margin | 23.3% | 33.4% | * | 14.0% | * | 14.1% | |||||||||||
Year Ended December 31, 2024 | |||||||||||||||||
Debit and Credit | Prepaid Debit | Other | Total Reportable Segments | Intersegment Eliminations | Total | ||||||||||||
Revenue | $ | 375,261 | $ | 106,541 | $ | — | $ | 481,802 | $ | (1,201) | $ | 480,601 | |||||
Cost of goods sold | 247,166 | 63,417 | — | 310,583 | (1,201) | 309,382 | |||||||||||
Gross profit | 128,095 | 43,124 | — | 171,219 | — | 171,219 | |||||||||||
Selling, general and administrative expenses | 35,239 | 5,923 | 67,265 | 108,427 | — | 108,427 | |||||||||||
Income (loss) from operations | $ | 92,856 | $ | 37,201 | $ | (67,265) | $ | 62,792 | $ | — | $ | 62,792 | |||||
EBITDA by segment: | |||||||||||||||||
Income (loss) from operations | $ | 92,856 | $ | 37,201 | $ | (67,265) | $ | 62,792 | $ | — | $ | 62,792 | |||||
Depreciation and amortization | 8,854 | 3,896 | 3,670 | 16,420 | — | 16,420 | |||||||||||
Other expense | (82) | (10) | (3,586) | (3,678) | — | (3,678) | |||||||||||
EBITDA | $ | 101,628 | $ | 41,087 | $ | (67,181) | $ | 75,534 | $ | — | $ | 75,534 | |||||
Gross profit margin | 34.1% | 40.5% | * | 35.5% | * | 35.6% | |||||||||||
EBITDA margin | 27.1% | 38.6% | * | 15.7% | * | 15.7% | |||||||||||
* Calculation not meaningful.
Reconciliation of Net Income to EBITDA
December 31, | ||||||
| 2025 | | 2024 | |||
Net income |
| $ | 14,950 |
| $ | 19,521 |
Interest, net |
| 32,466 |
| 34,087 | ||
Income tax expense | 6,656 | 5,506 | ||||
Depreciation and amortization |
| 22,461 |
| 16,420 | ||
EBITDA |
| $ | 76,533 |
| $ | 75,534 |
Balance Sheet Data and Capital Expenditures of Reportable Segments
The Company does not report assets or capital expenditures by segment as the Company’s CODM does not use this information to evaluate reportable segments. Accordingly, the Company does not regularly provide such information by segment to the CODM.
2026 Changes in Reportable Segments
In connection with the Company’s increased strategic focus on expanding and developing additional proprietary integrated technological solutions for its customer base, the Company will implement a new segment structure to assess performance and allocate resources, beginning in the first quarter of 2026. The changes in our segment structure primarily relate to the separation of our proprietary integrated technological related operations into a separate segment from the Debit and Credit segment. A summary of how the segments will be structured follows:
| ● | Secure Card Solutions: primarily produces secure debit and credit cards and provides card personalization services for U.S. card-issuing financial institutions, including highly customizable, on-demand payment card solutions; |
| ● | Prepaid Solutions: primarily provides prepaid debit cards and secure packaging solutions and other integrated prepaid card services to prepaid program managers in the U.S.; and |
| ● | Integrated Paytech: primarily provides a SaaS-based instant issuance solution, which gives customers the ability to issue an instant personalized debit or credit card within a customer location; and other digital payment solutions such as push provisioning for mobile wallets. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.