Here are 1-2 brief analogies to describe CPI Card Group (PMTS):

• Foxconn for payment cards: Just as Foxconn manufactures electronics for tech companies like Apple, CPI Card Group manufactures and personalizes payment cards (credit, debit, prepaid) for financial institutions.
• Xerox for secure payment cards: Similar to how Xerox provides printing and document solutions, CPI Card Group specializes in the secure manufacturing and personalization of payment cards for banks.

• Payment Card Manufacturing: Produ ction of physical credit, debit, prepaid, and private label cards for financial institutions and other clients.
• Card Personalization & Fulfillment Services: Customization of manufactured cards with individual account data, secure packaging, and efficient distribution to cardholders.
• Digital and Instant Issuance Solutions: Technologies and services that enable immediate, in-branch card printing and activation, along with digital payment solutions for mobile and online use.

CPI Card Group (PMTS) primarily operates as a business-to-business (B2B) company, providing a comprehensive suite of payment card solutions and related services.

Due to the competitive nature of the payment card industry and the typically diversified client base within the financial sector, CPI Card Group does not publicly disclose the names of individual major customers (e.g., specific banks or credit unions that account for a significant portion of their revenue) in its public filings. However, its customer base consists predominantly of financial institutions and related entities, which can be categorized as follows:

• Banks: CPI Card Group serves a broad spectrum of banks, ranging from large national institutions to regional and community banks across the United States. These banks utilize CPI for manufacturing credit, debit, and prepaid cards, as well as for personalization and digital payment solutions.
• Credit Unions: A significant portion of CPI's customer base comprises credit unions, for which the company provides similar card issuance and processing services to meet the needs of their members.
• Fintech Companies and Prepaid Program Managers: CPI also partners with various financial technology (fintech) companies and organizations that manage prepaid card programs. These customers leverage CPI's expertise to develop and deliver innovative payment solutions to their end-users.

• NXP Semiconductors N.V. (NXPI)

John K. Lowe President and Chief Executive Officer

John K. Lowe has over two decades of senior executive and financial leadership experience. He joined CPI Card Group in 2018 as Chief Financial Officer and also held roles as Senior Vice President & General Manager of Secure Card and Executive Vice President, End-to-End Payment Solutions, before becoming President and CEO in January 2024. Prior to CPI Card Group, Mr. Lowe spent eight years at SquareTwo Financial Corp., most recently as its Chief Financial Officer. His early career was within the Capital Markets and Audit practices at Deloitte. He holds a Bachelor of Science in both Accounting and Finance from Virginia Polytechnic Institute and State University.

Jeffrey Hochstadt Chief Financial Officer

Jeffrey Hochstadt was appointed Chief Financial Officer of CPI Card Group in May 2023. He brings over 25 years of experience in accounting, finance, and strategy. Before joining CPI Card Group, Mr. Hochstadt founded Jazmin LLC, where he provided strategic and financial consulting services to both public and private companies, and served as a Senior Advisor to Simon-Kucher and Partners. From 2006 to 2021, he held various positions at Western Union, including Chief Strategy Officer and Senior Vice President, Head of Global Financial Planning and Analysis.

Donna Abbey Controller and Chief Accounting Officer

Donna Abbey has served as CPI Card Group's Controller and Chief Accounting Officer since March 2022. Prior to joining the Company, Ms. Abbey provided financial and accounting consulting services to clients in various industries from January 2020 to March 2022. From October 2010 to September 2018, she held roles of increasing responsibility at Western Union, a multinational financial services company, including Vice President of Financial Reporting, Governance & Consolidations, and Chief of Staff to the Chief Executive Officer.

Ernesto Boada Chief Information Officer

Ernesto Boada holds the position of Chief Information Officer at CPI Card Group. He has held several technology leadership roles, including Senior Vice President of Business Technology and Interim Chief Information Officer at Workday, and Chief Technology Officer at Western Union. His experience also includes leadership responsibilities at Intuit, Visa, and Accenture. Mr. Boada has served on the board of directors for Coink, Sunny Day Fund, and the Western Union Foundation. He earned a degree in Civil Engineering from the Universidad de los Andes Bogotá, Colombia, and a Master of Business Administration from George Washington University, DC.

Sonya Vollmer Chief Human Resources Officer

Sonya Vollmer has served as CPI Card Group's Chief Human Resources Officer since December 2021. She joined the company in February 2021 as Director of Total Rewards and assumed the role of interim CHRO in August 2021. Prior to her tenure at CPI Card Group, Ms. Vollmer held human resources leadership roles across a variety of manufacturing industries, including healthcare/life sciences, industrial automation, and metals. She also served in consulting roles with Hewitt Associates (now Aon) and her own consulting firm.

• Widespread adoption of digital wallets and mobile payment solutions (e.g., Apple Pay, Google Pay, Samsung Pay) that reduce the reliance on physical payment cards for point-of-sale transactions. While the underlying card account still exists, the diminishing need for the physical card itself at checkout could impact demand for physical card production and related services over time.
• The increasing prominence and adoption of account-to-account (A2A) and real-time payment (RTP) systems (e.g., FedNow in the U.S., Faster Payments in the U.K., SEPA Instant in Europe). These systems facilitate direct transfers between bank accounts, bypassing traditional card networks entirely for certain types of transactions, thus potentially reducing the overall volume and necessity of card-based payments.

CPI Card Group (PMTS) offers a range of financial payment card solutions and services, including debit and credit card solutions, prepaid card solutions, card personalization and fulfillment services, and digital payment solutions.

Addressable Markets:

Debit and Credit Card Solutions:

• The global card market, which includes credit, debit, prepaid, and gift cards, was valued at approximately USD 12.37 billion in 2023 and is projected to reach USD 22.80 billion by 2031, growing at a CAGR of 8.05%.

• The U.S. cards and payments market, encompassing credit, debit, and prepaid cards, was valued at USD 9.28 trillion in 2024, is estimated to reach USD 10.13 trillion in 2025, and is projected to reach USD 20.49 trillion by 2033, growing at a CAGR of 9.20% from 2025 to 2033.

Prepaid Card Solutions:

• The global prepaid card market was valued at USD 2.8 trillion in 2023 and is projected to reach USD 5.8 trillion by 2033, with a CAGR of 7.3%. Another estimate places the global prepaid card market at USD 3.60 trillion in 2024, with a projection to reach USD 21.46 trillion by 2034.

• The U.S. prepaid card market was valued at USD 542.26 billion in 2023 and is projected to reach USD 903.93 billion by 2028, with a CAGR of 10.5%. Another report indicated the U.S. prepaid card market size was USD 1.76 trillion in 2024 and is projected to be around USD 10.62 trillion by 2034.

Digital Payment Solutions:

• The global digital payment platform market is projected to reach USD 361.3 billion by 2027.

• The global contactless payment market, relevant to CPI Card Group's dual-interface cards and tap-to-pay functionality, was valued at USD 15.3 trillion in 2022 and is projected to reach USD 32.8 trillion by 2030.

CPI Card Group (PMTS) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:

1. Growth in Instant Issuance and Digital Solutions: The company anticipates continued expansion in its Software-as-a-Service (SaaS) instant issuance business, particularly with its Card@Once solutions. This area has consistently shown strong growth and is a focus for increasing market share.
2. Contributions from the Arroweye Acquisition: The acquisition of Arroweye has already contributed significantly to CPI Card Group's net sales, as evidenced in Q3 2025 results, and is expected to continue generating new revenue streams.
3. Expansion into Chip-Enabled Prepaid Cards via the Karta Partnership: CPI Card Group has entered the closed-loop prepaid market through a strategic relationship with Karta. This partnership focuses on innovating chip-enabled prepaid cards, including a digital card validation solution, with a pilot program already launched with a major national retailer in the U.S. This initiative diversifies product offerings and aims to enhance secure payment solutions.
4. Increasing Adoption of Contactless Cards and Market Share Gains in Debit and Credit: The Debit and Credit segment, a primary revenue driver, has seen strong growth, with CPI Card Group believing it has gained market share due to increasing contactless card volumes. The broader trend from cash to card-based transactions also supports recurring revenue from card issuance.
5. Operational Efficiencies and Increased Capacity from the New Indiana Production Facility: The full operationalization of the new Indiana production facility is expected to enhance production efficiencies and expand manufacturing capacity. While primarily focused on cost management, this increased capacity will be crucial for supporting higher sales volumes and future revenue growth.

Share Repurchases

• CPI Card Group has an existing authorization to repurchase up to $20 million of its common stock through open market or privately negotiated transactions, expiring on December 31, 2024.
• In March 2024, CPI Card Group announced an agreement to repurchase shares from its majority stockholder, Parallel49, at a 3-to-1 ratio to open market acquisitions, with a cap of 325,000 shares for the April-June 2024 period. This followed an initial agreement covering December 2023 through March 2024.
• Stock repurchases were among the key capital actions completed by the company in 2024.

Share Issuance

• CPI Card Group completed a secondary offering in 2024.

Outbound Investments

• In October 2025, CPI Card Group acquired a 20% equity interest in Karta (Gift Card Co Pty Ltd), an Australia-based payments technology firm, for $10.0 million. An upfront cash payment of $2.5 million was made, with the remainder to be settled through commercial arrangements.

Capital Expenditures

• Year-to-date capital spending for the first nine months of 2025 was approximately $10 million, representing an increase of nearly $10 million compared to the prior year.
• For the first nine months of 2024, capital expenditures were $4.2 million, and for the first nine months of 2023, they were $6.1 million.
• Capital expenditures in 2025 are primarily focused on establishing a new Indiana production facility and acquiring advanced machinery to support operating efficiency, capacity expansion, and new capabilities such as closed-loop prepaid.