CPI Card Group reported first-quarter 2026 revenue of $147.1 million, up 20%, on May 5. Prepaid Solutions revenue fell 17% to $22.0 million against a strong prior-year packaging comparison, with closed-loop card sales providing a partial offset. [S01]

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Table 1

Measure

Q1 2026

Year-on-year change

Consolidated revenue

$147.1 million

Up 20%

Prepaid Solutions revenue

$22.0 million

Down 17%

Net income

$2.1 million

Down 57%

Adjusted EBITDA, non-GAAP

$23.2 million

Up 9%

CPI linked the profit decline mainly to Arroweye integration costs. Adjusted EBITDA is a non-GAAP measure and should be read alongside reported net income. [S01]

A prepaid-security pilot, rather than a completed rollout

The company also said it was integrating Karta’s SafeToBuy technology with its US prepaid offering in an extensive pilot involving an unnamed national retailer. It disclosed no pilot fraud-reduction results or general rollout date. [S01]

Reading the prepaid result in context

The distinction between group growth and segment performance matters for gift-card operators. A growing payments supplier can still experience a decline in one product line. Packaging comparisons, product mix and the timing of customer orders make a single quarter an incomplete guide to underlying demand.

A pilot is similarly a stage of implementation, not proof of an achieved security outcome. Retailers assessing a new control need evidence about its effect on fraud and about the customer’s experience when buying and redeeming a card. Those are separate questions from whether the technology has entered a trial.

The figures above describe the quarter ended March 31, 2026. They should not be read as a current-quarter trading update or as measures of the total US gift-card market.