Canonical URL: https://giftcard.news/payments-technology/cpi-reports-lower-prepaid-revenue-as-total-first-quarter-sales-rise-0c430f2afec4/ --- description: The May 2026 results also described progress on a US prepaid-security pilot with Karta and an unnamed national retailer. title: CPI reports lower prepaid revenue as total first-quarter sales rise image: https://giftcard.news/images/social/v1/cpi-reports-lower-prepaid-revenue-total-first-quarter-sales-rise-7ad376f2d179afc9a5e8b7bafe9e243f.jpg --- 1. [Home](https://giftcard.news/) 2. [Payments & Technology](https://giftcard.news/payments-technology/) # CPI reports lower prepaid revenue as total first-quarter sales rise The May 2026 results also described progress on a US prepaid-security pilot with Karta and an unnamed national retailer. By [Suzie Elis](https://giftcard.news/author/suzie-elis/) May 5, 2026 2 min read Share [ ](https://x.com/intent/post?url=https%3A%2F%2Fgiftcard.news%2Fpayments-technology%2Fcpi-reports-lower-prepaid-revenue-as-total-first-quarter-sales-rise-0c430f2afec4%2F%3Futm%5Fsource%3Dx%26utm%5Fmedium%3Dsocial&text=CPI%20reports%20lower%20prepaid%20revenue%20as%20total%20first-quarter%20sales%20rise "X") [ ](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fgiftcard.news%2Fpayments-technology%2Fcpi-reports-lower-prepaid-revenue-as-total-first-quarter-sales-rise-0c430f2afec4%2F%3Futm%5Fsource%3Dlinkedin%26utm%5Fmedium%3Dsocial "LinkedIn") [ ](https://wa.me/?text=CPI%20reports%20lower%20prepaid%20revenue%20as%20total%20first-quarter%20sales%20rise%20https%3A%2F%2Fgiftcard.news%2Fpayments-technology%2Fcpi-reports-lower-prepaid-revenue-as-total-first-quarter-sales-rise-0c430f2afec4%2F%3Futm%5Fsource%3Dwhatsapp%26utm%5Fmedium%3Dsocial "WhatsApp") ![Examples of CPI Card Group’s retail prepaid-card packaging](https://giftcard.news/images/variants/v1/cpi-reports-lower-prepaid-revenue-total-first-quarter-sales-rise-examples-card-w1024.webp) Official CPI prepaid-packaging image, used illustratively. It does not show the retailer or products involved in the SafeToBuy pilot. Photo: CPI Card Group [CPI Card Group](https://giftcard.news/company/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. [\[S01\]](#article-source-1) Scroll left or right to see all columns __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](https://giftcard.news/company/arroweye/) integration costs. Adjusted EBITDA is a non-GAAP measure and should be read alongside reported net income. [\[S01\]](#article-source-1) ## A prepaid-security pilot, rather than a completed rollout The company also said it was integrating [Karta](https://giftcard.news/company/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. [\[S01\]](#article-source-1) ## 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. ## Sources and documents ExpandCollapse * [\[S01\] CPI first-quarter results, May 5, 2026](https://www.sec.gov/Archives/edgar/data/1641614/000110465926055234/pmts-20260505xex99d1.htm?utm%5Fsource=giftcard.news) — CPI Card Group, filed with the SEC ## In this article ### Companies * [Arroweye](https://giftcard.news/company/arroweye/) * [CPI Card Group](https://giftcard.news/company/cpi-card-group/) * [Karta](https://giftcard.news/company/karta/) Share [ ](https://x.com/intent/post?url=https%3A%2F%2Fgiftcard.news%2Fpayments-technology%2Fcpi-reports-lower-prepaid-revenue-as-total-first-quarter-sales-rise-0c430f2afec4%2F%3Futm%5Fsource%3Dx%26utm%5Fmedium%3Dsocial&text=CPI%20reports%20lower%20prepaid%20revenue%20as%20total%20first-quarter%20sales%20rise "X") [ ](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fgiftcard.news%2Fpayments-technology%2Fcpi-reports-lower-prepaid-revenue-as-total-first-quarter-sales-rise-0c430f2afec4%2F%3Futm%5Fsource%3Dlinkedin%26utm%5Fmedium%3Dsocial "LinkedIn") [ ](https://wa.me/?text=CPI%20reports%20lower%20prepaid%20revenue%20as%20total%20first-quarter%20sales%20rise%20https%3A%2F%2Fgiftcard.news%2Fpayments-technology%2Fcpi-reports-lower-prepaid-revenue-as-total-first-quarter-sales-rise-0c430f2afec4%2F%3Futm%5Fsource%3Dwhatsapp%26utm%5Fmedium%3Dsocial "WhatsApp") ![Portrait of Suzie Elis](https://giftcard.news/images/variants/v1/suzie-elis-editorial-portrait-w320.webp) About the author ## [Suzie Elis](https://giftcard.news/author/suzie-elis/) Journalist — Gift Cards & Digital Gifting Suzie Elis covers gift card products, digital gifting and distribution for Gift Card News. From reading to building ## Your next move in gift cards. Tell us what you’re building. We’ll help you explore suitable providers. 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