CPI Card Group Inc (PMTS) 2025 Q4 法說會逐字稿

Welcome to CPI Card Group's Fourth Quarter 2025 Earnings Call. My name is Kate, and I will be your operator today. (Operator Instructions) Now I would like to turn the call over to Mike Silop.

歡迎參加 CPI Card Group 2025 年第四季財報電話會議。我叫凱特，今天由我來為您接聽電話。（操作員指示）現在我想把電話轉給麥克·西洛普。

Now I would like to turn the call over to Mike Salop.

現在我想把電話交給麥克·薩洛普。

Thanks, operator. Welcome to CPI's Fourth Quarter 2025 Earnings Webcast and Conference Call. Today's date is March 5, 2026, and on the call today from CPI Card Group are John Lowe, President and Chief Executive Officer; and Terra Grantham, Interim Chief Financial Officer.

謝謝接線生。歡迎參加 CPI 2025 年第四季財報網路直播和電話會議。今天是 2026 年 3 月 5 日，CPI Card Group 今天參加電話會議的有總裁兼執行長 John Lowe 和臨時財務長 Terra Grantham。

Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

在開始之前，我想提醒大家，本次電話會議可能包含前瞻性陳述，這些陳述是根據 1995 年《私人證券訴訟改革法案》定義的。這些聲明存在一定的風險和不確定性，可能導致實際結果與前瞻性聲明中表達的結果有重大差異。

For a discussion of such risks and uncertainties, please see CPI Card Group's most recent filings with the SEC. All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call.

有關此類風險和不確定性的討論，請參閱 CPI Card Group 向美國證券交易委員會提交的最新文件。今天所作的所有前瞻性陳述僅反映我們目前的預期，我們不承擔任何義務更新任何陳述以反映本次電話會議之後發生的事件。

Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures, including, but not limited to, EBITDA, adjusted EBITDA, adjusted EBITDA margin, net leverage ratio, free cash flow and net sales growth, excluding the impact of the accounting change implemented in the second quarter.

此外，在今天的電話會議中，公司將討論一項或多項非GAAP財務指標，包括但不限於EBITDA、調整後EBITDA、調整後EBITDA利潤率、淨槓桿率、自由現金流和淨銷售額增長，但不包括第二季度實施的會計變更的影響。

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the press release and slide presentation we issued this morning. Copies of today's press release as well as the presentation that accompanies this conference call are accessible on CPI's Investor Relations website, investor.cpicardgroup.com. In addition, CPI's 2025 Form10-K will be available on CPI's Investor Relations website.

我們今天早上發布的新聞稿和幻燈片簡報中包含了這些非GAAP財務指標與最直接可比較的GAAP指標的調節表。今天的新聞稿以及本次電話會議的簡報均可在CPI的投資者關係網站investor.cpicardgroup.com上查閱。此外，CPI的2025年10-K表格也將在CPI的投資者關係網站上提供。

On today's call, all growth rates refer to comparisons with the prior year period, unless otherwise noted. The agenda for today's call can be found on Slide 3, and we will open the call for questions after our remarks.

除非另有說明，本次電話會議中的所有成長率均指與去年同期相比的成長率。今天的電話會議議程請見投影片 3，我們將在演講結束後開放提問環節。

I'll now turn the call over to John Lowe.

現在我將把電話交給約翰·洛。

Thanks, Mike, and good morning, everyone. We are very pleased to report strong fourth quarter performance and solid results for 2025, a year which featured significant strategic, operational and technological advancements. As we discussed throughout the year, we anticipated our business to accelerate in the fourth quarter, and we successfully executed to deliver that growth with a record quarter, growing revenue 22%.

謝謝你，麥克，大家早安。我們非常高興地宣布，第四季業績強勁，2025 年業績穩健，2025 年在策略、營運和技術方面取得了重大進步。正如我們全年所討論的那樣，我們預計業務將在第四季度加速成長，並且我們成功地實現了這一增長，創下了季度收入增長22%的紀錄。

In addition to the contribution from Arrow eye, this performance exceeded our expectations. We delivered strong growth across our debit and credit portfolio in the fourth quarter, driven by sales of contactless cards, and ongoing double-digit growth from our Software as a Service-based instant issuance solution.

除了 Arrow eye 的貢獻之外，這次演出也超出了我們的預期。第四季度，我們的金融卡和信用卡產品組合實現了強勁增長，這主要得益於非接觸式卡的銷售，以及基於軟體即服務的即時發卡解決方案持續兩位數的增長。

Revenue growth in the resulting operating leverage contributed to a 34% increase in adjusted EBITDA in the quarter and a 170 basis point increase in margins, and we generated exceptional cash flow. For the full year, we delivered 13% revenue growth and 5% adjusted EBITDA growth despite more than $4 million of tariff expenses.

由此帶來的營運槓桿效應促進了收入成長，使得本季調整後 EBITDA 成長了 34%，利潤率提高了 170 個基點，並且我們產生了非凡的現金流。儘管關稅支出超過 400 萬美元，但我們全年仍實現了 13% 的收入成長和 5% 的調整後 EBITDA 成長。

We generated $60 million of cash from operating activities and $41 million of free cash flow, both large increases over 2024, allowing us to maintain net leverage around 3 times at year-end. Overall, I'm proud of our team's execution, which resulted in a solid end of 2025 and significant advances with our strategic initiatives.

我們從經營活動中產生了 6,000 萬美元的現金和 4,100 萬美元的自由現金流，這兩項數據均比 2024 年大幅增長，使我們能夠在年底保持約 3​​ 倍的淨槓桿率。總的來說，我對我們團隊的執行力感到自豪，這使得我們在 2025 年取得了穩健的收尾，並在策略性舉措方面取得了重大進展。

Now before I cover some of our significant accomplishments in 2025, I'd like to take you to Slide 5, covering how CPI is continuing to evolve with the market and the successes we are having executing on that strategic evolution. After being CEO for two years, and after nearly eight years here at CPI, I've recognized we are a company that is constantly adapting with our markets, evolving with technology and finding new solutions for our customers in whatever forms they need.

在介紹我們在 2025 年取得的一些重大成就之前，我想帶大家看第 5 張投影片，其中介紹了 CPI 如何隨著市場不斷發展，以及我們在執行這項策略演變過程中取得的成功。在擔任執行長兩年，以及在 CPI 工作近八年後，我意識到我們是一家不斷適應市場變化、隨著技術發展而不斷進步，並以各種形式為客戶尋找新解決方案的公司。

Historically, the company has been and remains a leading producer of debit and credit cards for the U.S. market and chances are, we're in your wallet. However, while debit and credit card production and personalization are solutions we focus on advancing every day, they do not define CPI for the key roles that we play in the U.S. payments market.

從歷史上看，該公司一直是美國借記卡和信用卡的主要生產商，而且很有可能，你的錢包裡就有我們的卡。然而，儘管金融卡和信用卡的生產和個人化是我們每天都在努力推進的解決方案，但它們並不能定義我們在美國支付市場中扮演的關鍵角色。

We are broader than that with deep value in what we have built over many years and continue to build. We are a connector, an innovator, a company that educates our customers on the next big thing and how their customers can pay, and more importantly, how they can stay top of wallet, both physically and digitally.

我們的視野比這更廣闊，我們多年來所建立的以及我們將繼續建立的一切都具有深厚的價值。我們是連結者、創新者，我們是一家致力於向客戶普及下一個重大趨勢以及他們的客戶如何支付，更重要的是，如何讓他們的錢包（無論是實體錢包還是數位錢包）保持最佳狀態的公司。

At our core, our solutions help our customers win, allowing them to enable their customers to pay, whether in the form of a physical debit, credit or prepaid card, a digital mobile wallet, a digital card, a service that provides cloud-based instant issuance or other revolving digital alternatives.

從本質上講，我們的解決方案幫助客戶取得成功，使他們的客戶能夠進行支付，無論是實體借記卡、信用卡或預付卡，數位行動錢包，數位卡，提供基於雲端的即時發卡服務，還是其他循環數位替代方案。

To summarize, CPI has evolved into a payment technology company that provides a comprehensive range of physical and digital payment solutions for thousands of U.S. financial institutions, processors, fintechs, prepaid program managers and more.

總而言之，CPI 已發展成為一家支付技術公司，為數千家美國金融機構、支付處理商、金融科技公司、預付卡專案管理公司等提供全面的實體和數位支付解決方案。

Our proprietary platform and expertise uniquely position us to deliver today and into the future as the market expands and payment methods evolve. Our strategy is to continue providing payment technology solutions that help our customers win, driven by three primary growth pillars that underpin our value proposition.

我們擁有專有的平台和專業知識，這使我們能夠憑藉自身優勢，在市場擴張和支付方式演變的當下和未來，為客戶提供優質服務。我們的策略是持續提供支付技術解決方案，幫助我們的客戶成功，而支撐我們價值主張的三大主要成長支柱正是這項策略的驅動力。

These include, first, a proprietary technology platform with a vast reach into the U.S. payments ecosystem; second, our marketable base of thousands of deep and broad relationships across the U.S. payments market; and third, our proven track record of delivering evolving payment solutions that reflect changing market needs.

這包括：第一，我們擁有覆蓋美國支付生態系統的專有技術平台；第二，我們在美國支付市場擁有數千個深入廣泛的合作關係，具備強大的市場基礎；第三，我們擁有提供與時俱進的支付解決方案的良好記錄，能夠反映不斷變化的市場需求。

Let me spend a few minutes discussing each of these pillars, starting with our proprietary technology platform and vast reach into the U.S. payments ecosystem. Our capabilities make it simple for any customer to offer flexible payment solutions to their customers. Over more than 15 years, CPI has built a vast network of technology integrations and connections.

讓我花幾分鐘時間討論這些支柱，首先是我們專有的技術平台以及我們在美國支付生態系統中的廣泛影響力。我們的能力使任何客戶都能輕鬆地向其客戶提供靈活的支付解決方案。15 多年來，CPI 已建立了一個龐大的技術整合和連接網路。

In simple terms, we call these connections into the payments ecosystem pipes. So when issuers payment programs can be agnostic to any service provider, maintaining their sticky, long-term relationship with CPI, while offering their customers, U.S. consumers and businesses, the payment options they want.

簡單來說，我們將這些連接稱為支付生態系統管道。因此，發卡機構的支付計劃可以不依賴任何服務提供者，從而維持與 CPI 的長期合作關係，同時為其客戶（美國消費者和企業）提供他們想要的支付選擇。

Our connections are broad and include thousands of financial institutions, fintechs, credit union service organizations, program managers, processors, core banking systems, payment brands, mobile providers and mobile app development companies, among others.

我們的聯繫範圍很廣，包括數千家金融機構、金融科技公司、信用社服務機構、專案經理、處理商、核心銀行系統、支付品牌、行動供應商和行動應用開發公司等等。

We proved this every day when we see our customers change their processor or banking core where we simply move the pipes to maintain our relationships. CPI enables payments that informs the market wants. Today, it's debit, credit and prepaid accounts accessed via cards, mobile wallets and apps.

我們每天都能證明這一點，當客戶更換處理器或銀行核心系統時，我們只需簡單地遷移管道即可維持合作關係。CPI 能夠實現反映市場需求的支付。如今，借記卡、信用卡和預付帳戶可以透過銀行卡、行動錢包和應用程式存取。

And while probably many years away, we may see other forms for consumers to pay again broader market acceptance such as crypto, biometrics and more. CPI's platform expands with our customers' growth and their ambitions to meet market needs.

雖然可能還需要很多年，但我們或許會看到其他形式的支付方式，例如加密貨幣、生物辨識技術等，並得到更廣泛的市場接受。隨著客戶的成長和他們滿足市場需求的雄心壯志，CPI 的平台也不斷擴展。

Our second pillar is our marketable base. As CPI has evolved, our long-standing, deep and broad relationships continue to grow. Through a robust network of thousands of customers, partners and service providers, CPI solutions reach deep into the U.S. consumer base. As the market shifts to add new payment methods, the fundamental need to securely deliver payment credentials does not change.

我們的第二個支柱是我們的市場基礎。隨著 CPI 的發展，我們長期以來建立的深厚而廣泛的關係也不斷發展壯大。透過由數千名客戶、合作夥伴和服務提供者組成的強大網絡，CPI 解決方案深入美國消費者群體。隨著市場向新的支付方式轉變，安全傳遞支付憑證的基本需求並沒有改變。

That's where CPI shines with our reach. As consumer needs evolve beyond the physical and complementary digital issuance and usage grows, issuers count on CPI to enable innovative solutions to meet those needs, and we've kept their trust by always delivering. That trust, built over decades, is why our customers count on CPI for their ongoing payments innovation. They know we'll execute.

這就是CPI憑藉其覆蓋範圍脫穎而出的地方。隨著消費者需求不斷變化，實體發行和使用量也隨之增長，發卡機構依靠 CPI 提供創新解決方案來滿足這些需求，而我們始終如一地履行承諾，贏得了他們的信任。正是這份歷經數十年建立起來的信任，讓我們的客戶信賴 CPI，並持續推動支付創新。他們知道我們會執行命令。

And if you're developing an innovative service that adds value for issuers, CPI can connect you to our broad marketable base, further solidifying our value. Our final pillar is our evolving payment solutions by leveraging our proprietary technology platform and our marketable base. CPI has a proven track record of delivering evolving payment solutions that reflect changing market needs.

如果您正在開發一項能夠為發卡機構增加價值的創新服務，CPI 可以將您與我們廣泛的市場基礎連結起來，進一步鞏固我們的價值。我們最後一個支柱是利用我們專有的技術平台和市場基礎，不斷發展的支付解決方案。CPI 在提供能夠反映不斷變化的市場需求的、不斷發展的支付解決方案方面擁有良好的業績記錄。

Through significant investments in digital solutions, we're increasing CPI's value to customers, driving new and incremental recurring revenue streams and expanding access to CPI's platform to enable future digital capabilities. So why are we doing this?

透過對數位化解決方案的大量投資，我們正在提高 CPI 對客戶的價值，推動新的、增量的經常性收入來源，並擴大對 CPI 平台的訪問，以實現未來的數位化能力。那我們為什麼要這樣做呢？

According to a prominent study, digital issuance was the number one new capability debit issuers planned to introduce in 2024 and remain the most cited priority for 2025, and we hear the same directly for many of our customers. Additionally, we expect digital issuance to not only be incremental, but to out number of physical cards as penetration grows.

根據一項著名研究，數位發行是藉記卡發行機構計劃在 2024 年推出的首要新功能，並且仍然是 2025 年最受關注的優先事項，我們也直接從許多客戶那裡聽到了同樣的說法。此外，我們預計數位卡發行量不僅會逐步增加，而且隨著滲透率的提高，數位卡發行量將超過實體卡發行量。

That will be positive for CPI as we would expect digital to have greater economics in physical. Let me give you one example to demonstrate what all this means, and that's our Software as a Service based into the issuance business.

這對消費者物價指數（CPI）來說是利好消息，因為我們預期數位化產品比實體產品更具經濟效益。讓我舉一個例子來說明這一切意味著什麼，那就是我們基於軟體即服務 (SaaS) 的發卡業務。

The value of instant issuance is not rooted in delivering a payment card. It is about enabling issuers to instantly provide account access to their customers through a cloud-based service that is plug and play for a financial institution. We spent over a decade building the pipes to deliver this service to virtually any financial institution in the U.S.

即時發卡的價值並不在於交付支付卡。它旨在使發卡機構能夠透過基於雲端的服務，即插即用地向其客戶提供帳戶存取權限，從而方便金融機構使用。我們花了十多年時間搭建管道，以便向美國幾乎所有金融機構提供這項服務。

We integrated with and connected to all the major players in the financial ecosystem, resulting in CPI being able to offer the service to nearly any issuer regardless of the processor, banking core system or other relationships they operate through.

我們與金融生態系統中的所有主要參與者進行了整合和連接，使得 CPI 能夠向幾乎任何發卡機構提供服務，無論其使用何種處理機構、銀行核心系統或其他關係。

With instant issuance, we leveraged our proprietary technology platform, provided a service to our marketable base and evolved our solutions to provide a plug-and-play cloud-based service, meeting the needs of the market.

透過即時發行，我們利用了我們專有的技術平台，為我們的目標客戶群提供服務，並不斷發展我們的解決方案，以提供即插即用的雲端服務，滿足市場需求。

In this case, the solutions enable account access leveraging a payment card, but we have been evolving to use these pillars to provide access to mobile wallets and other forms as well, which indicates where we see our solutions going in the future.

在這種情況下，這些解決方案可以透過支付卡實現帳戶訪問，但我們一直在不斷發展，利用這些支柱來提供對行動錢包和其他形式的訪問，這表明了我們對未來解決方案發展方向的看法。

To summarize our evolving strategy, our decades long in the making connections, people and solutions enable payments both physically and digitally for a broad and expanding customer base, and these customers count on us to deliver what's next.

總而言之，我們不斷發展的策略是，我們數十年來致力於建立聯繫、人員和解決方案，為廣泛且不斷增長的客戶群提供實體和數位支付，而這些客戶也指望我們帶來未來。

CPI will continue to evolve with the market, delivering market evolution to our customers while creating more value for our shareholders along the way. Let me take you to Slide 6 for how we will execute and share our progress. To advance our strategy and drive long-term growth, we recently announced a new organizational structure, promoting several leaders to new roles, tightening the focus on our customers, our operations and our digital capabilities.

CPI將繼續與市場共同發展，為我們的客戶帶來市場發展帶來的變革，同時為我們的股東創造更多價值。接下來我將帶您查看第 6 張投影片，了解我們將如何執行以及分享我們的進度。為了推進我們的策略並推動長期成長，我們最近宣布了一項新的組織結構，將幾位領導者提拔到新的職位，更加專注於我們的客戶、我們的營運和我們的數位化能力。

Along with the structure change, we are also reorganizing our reporting segments, driven by the success of our Software-as-a-Service base instant issuance and other digital solutions and to better reflect how we manage CPI today. This change will provide more visibility on our technology-driven solutions as well as highlight the growth and diversification of our business.

隨著結構調整，我們也在重新調整報告部門，這得益於我們基於軟體即服務的即時發行和其他數位解決方案的成功，也為了更好地反映我們今天如何管理 CPI。這項變更將使我們的技術驅動型解決方案更加引人注目，同時也將凸顯我們業務的成長和多元化。

Our new reporting structure includes three segments: Secure Card Solutions, Prepaid Solutions and Integrated PayTech. Secure Card Solutions represents our business as a leading debit and credit payment card and personalization provider in the U.S. market.

我們新的報告結構包括三個部分：安全卡解決方案、預付卡解決方案和整合支付技術。Secure Card Solutions 代表我們作為美國市場領先的金融卡和信用卡支付及個人化服務提供者的業務。

And we estimate we produce about one out of every four cards in the U.S. We believe we have gained significant market share over the years, and we will continue to push to gain more share in growing markets through innovation, quality and customer service. Prepaid Solutions consists of our market-leading open loop prepaid card and secure packaging solutions as well as our growing prepaid health care payment solutions.

據估計，美國每四張卡片中就有一張是我們生產的。我們相信，多年來我們已經獲得了相當大的市場份額，我們將繼續透過創新、品質和客戶服務，努力在不斷增長的市場中獲得更多份額。預付解決方案包括我們市場領先的開放式預付卡和安全包裝解決方案，以及我們不斷發展的預付醫療保健支付解決方案。

We intend to grow our value in the prepaid market by creating innovative packaging for our open-loop market, expanding into the larger closed-loop market and providing fraud preventing chip-based solutions to the broader prepaid market, which we believe should further expand its value.

我們計劃透過為我們的開放式市場創造創新的包裝，拓展到更大的封閉式市場，並為更廣泛的預付卡市場提供防詐騙晶片解決方案，來提升我們在預付卡市場的價值，我們相信這將進一步提升其價值。

Integrated PayTech, our newest segment, which was formerly a part of our Debit and Credit segment, has reached the success level where it now represents more than 20% of CPI's profitability. We named it Integrated PayTech to reflect its value proposition of integration CPI has built over the last decade into the U.S. payments ecosystem, enabling it to provide ever-evolving payment technology to our customers.

整合支付技術是我們最新的業務板塊，它以前是我們借記卡和信用卡業務板塊的一部分，現在已經取得了巨大的成功，佔 CPI 盈利的 20% 以上。我們將其命名為 Integrated PayTech，以體現其價值主張，即 CPI 在過去十年中融入美國支付生態系統，從而能夠為我們的客戶提供不斷發展的支付技術。

This segment represents an incremental addressable market opportunity, additive to physical payment cards. When we help our customers stay top of wallet digitally, we're not only creating greater value for our customers, we're adding incremental growth per customer for CPI.

這個細分市場代表著一個可擴展的市場機會，是對實體支付卡的補充。當我們幫助客戶在數位化方面保持領先地位時，我們不僅為客戶創造了更大的價值，而且還為每位客戶的 CPI 帶來了增量成長。

And we expect those who adopt digital usage to do so in greater numbers than they do with physical cards, using that same credential across multiple mediums such as a mobile phone, watch, tablet or laptop. As we continue to grow our pipes into the U.S. payment ecosystem, our addressable market for these solutions continues to grow.

我們預計，採用數位支付方式的使用者數量將超過使用實體卡的使用者數量，他們會在手機、手錶、平板電腦或筆記型電腦等多種媒介上使用相同憑證。隨著我們不斷拓展在美國支付生態系統中的管道，這些解決方案的潛在市場也不斷成長。

For a bit more context on Integrated PayCheck's profile, it has roughly 55% gross margins, approximately 40% EBITDA margins, a 95%-plus customer retention rate and an expected growth rate of over 15% in the coming years as we intend to invest to accelerate our digital solutions growth faster than we did with our instant issuance solutions.

為了更詳細地了解 Integrated PayCheck 的概況，它的毛利率約為 55%，EBITDA 利潤率約為 40%，客戶留存率超過 95%，預計未來幾年的成長率將超過 15%，因為我們打算投資以加快數位解決方案的成長速度，使其超過即時發行解決方案的成長速度。

Now let's turn back to the 2025 results, and I would like to highlight some key accomplishments on Slide 7. In Secure Card Solutions, we acquired Arroweye and made significant integration progress, paving the way for future revenue and cost synergies while driving strong results during the process.

現在讓我們回到 2025 年的成果，我想在第 7 張投影片上重點介紹一些主要成就。在安全卡解決方案方面，我們收購了 Arroweye，並取得了重大的整合進展，為未來的收入和成本協同效應鋪平了道路，同時在此過程中取得了強勁的業績。

Arroweye contributed $43 million of revenue and more than $6 million of adjusted EBITDA in less than eight months in 2025, implying approximately $9 million of adjusted EBITDA on an annualized basis even before most of our expected synergies have been realized.

Arroweye 在 2025 年不到八個月的時間內貢獻了 4,300 萬美元的收入和超過 600 萬美元的調整後 EBITDA，這意味著即使在我們大多數預期協同效應實現之前，其年度調整後 EBITDA 也將達到約 900 萬美元。

Post acquisition, Arroweye has signed more than a dozen new customers, showing the value proposition they have in the market when combined with CPI's packing. We also completed the build-out and transition to our new state-of-the-art secure card production facility in Indiana, which will provide operational efficiencies, increase capacity and additional capabilities.

收購完成後，Arroweye 已簽約十幾位新客戶，這表明，當與 CPI 的包裝相結合時，他們在市場上具有價值主張。我們還完成了位於印第安納州的新型最先進的安全卡生產設施的建設和過渡，這將提高營運效率，增加產能和額外功能。

And we invested in automation in our Colorado facility, which we believe will drive even more efficiencies. We believe these investments have already helped us gain share in 2025, including being a key driver to winning another four years with Valero. Valero is one of our larger, long-standing secure payment card customers and the premier payments credit union service organization in the U.S. servicing 4,000 financial institutions.

我們在科羅拉多州的工廠投資了自動化設備，我們相信這將進一步提高效率。我們相信這些投資已經幫助我們在 2025 年獲得市場份額，包括成為我們贏得與 Valero 再續四年合作關係的關鍵驅動因素。Valero 是我們規模較大、合作時間最長的安全支付卡客戶之一，也是美國首屈一指的支付信用合作社服務機構，為 4,000 家金融機構提供服務。

We made significant improvements to our personalization operations, which allow us to continue to increase capacity and maintain high quality, all while driving greater efficiency as we grow. We believe these advancements were a key contributor to winning one of the largest credit unions in Texas in 2025.

我們對個人化客製化業務進行了重大改進，這使我們能夠在保持高品質的同時，不斷提高產能並隨著業務成長而提高效率。我們相信，這些進步是我們在 2025 年贏得德州最大信用社之一的關鍵因素。

And we expanded our metal card offerings, providing market competitive options to our marketable base. This expansion, while still small relative to the overall market position, contributed to our strong contactless card growth during the year with nearly $15 million in metal sales in 2025.

我們擴大了金屬卡產品線，為我們的目標客戶群提供了具有市場競爭力的選擇。雖然相對於整體市場地位而言，此次擴張規模仍然較小，但它促進了我們本年度非接觸式卡的強勁增長，預計到 2025 年金屬銷售額將接近 1500 萬美元。

In prepaid solutions, we developed production and operational capabilities to enter the closed-loop prepaid market, which we believe has volumes greater than 5 times the open-loop market and will increase in value as fraud prevention features are further adapted.

在預付費解決方案方面，我們開發了生產和營運能力，以進入閉環預付費市場。我們相信，閉環預付費市場的規模是開環市場的 5 倍以上，隨著防詐騙功能的進一步完善，其價值將會增加。

We had a successful start in the fourth quarter and have already signed multiple deals since launch, including with the leading provider, TDS Gift Cards, who services many blue-chip customers in the U.S. such as Uber, DoorDash and others. Our reputation for quality, innovation and execution in the open-loop market is proven, and we are leveraging these attributes to drive our closed-loop expansion.

我們在第四季度取得了成功開局，自推出以來已經簽署了多項協議，其中包括與領先的供應商 TDS Gift Cards 的合作，該公司為美國許多藍籌客戶提供服務，例如 Uber、DoorDash 等。我們在開環市場的品質、創新和執行力方面享有盛譽，我們正在利用這些優勢來推動閉環市場的擴張。

While our prepaid business was down in 2025, we see strong signs of the transition starting to occur in the prepaid market. Fraud continues to drive either higher-value packaging or greater use of chip embedded gift cards, both of which would result in a unique market position for CPI as we are the only U.S. company that is a leader in both categories.

雖然我們的預付費業務在 2025 年有所下滑，但我們看到預付費市場開始出現明顯的轉型跡象。詐欺行為持續推動著更高價值的包裝或更多地使用晶片嵌入式禮品卡，這兩方面都將使 CPI 獲得獨特的市場地位，因為我們是美國唯一一家在這兩個類別中都處於領先地位的公司。

And in our new Integrated PayTech segment, we grew revenue nearly 20% as we continue to increase our instant issuance penetration and further built out integrations and customer pipelines for our evolving proprietary technology platform, including to expand the addressable market for push provisioning for mobile wallets.

在我們新成立的整合支付技術部門，隨著我們不斷提高即時發卡滲透率，並進一步建立我們不斷發展的專有技術平台的整合和客戶管道，包括擴大行動錢包推送配置的潛在市場，我們的收入增長了近 20%。

We expect to continue to see great things out of this segment, including strong growth and high margins, leveraging our market-leading value proposition. One driver of our expected growth is our recently signed deal with a large U.S. processor and global leader in payments and financial technology where we have gained preferential access to more than 450 financial institutions and 3,500 banking locations, representing an opportunity to grow our Software-as-a-Service-based instant issuance solution footprint by 25% over the coming years.

我們預計該業務板塊將繼續取得良好發展，包括強勁成長和高利潤率，這得益於我們市場領先的價值主張。我們預期成長的一個驅動因素是我們最近與一家大型美國支付處理商和全球支付及金融科技領導者簽署的協議，根據該協議，我們獲得了優先進入 450 多家金融機構和 3500 個銀行網點的機會，這代表著在未來幾年內將我們基於軟體即服務的即時發卡解決方案的覆蓋範圍擴大 25% 的機會。

We also invested in an Australian fintech and program manager, (inaudible), to introduce into the U.S. chip embedded prepaid cards, which enhanced security and provide user-friendly physical to digital experience. Our ownership in Carta after our investment is 20%, with the option to purchase an additional 31%.

我們還投資了一家澳洲金融科技公司和專案經理（聽不清楚），將晶片嵌入式預付卡引入美國，從而增強了安全性，並提供了用戶友好的從實體到數位的體驗。我們投資後持有 Carta 20% 的股份，並可選擇再購買 31% 的股份。

As we have worked with the Carta team, we continue to be impressed by their growth as a program manager in Australia, a large opportunity to grow their digital card validation solution branded as safe to buy in the U.S. prepaid market and their potential value as a program manager in the U.S.

在與 Carta 團隊合作的過程中，我們不斷對他們在澳洲作為專案經理的成長印象深刻，他們在美國預付卡市場推廣其安全可靠的數位卡驗證解決方案，並展現出巨大的發展機遇，以及他們在美國作為專案經理的潛在價值。

Our agreement with Carta also makes us their exclusive U.S. supplier of their safe to buy solution, providing contactless prepaid cards with chip technology embedding Carta's Safe to Buy access. Carta solution eliminates the need for data to be printed on cards, significantly reducing the risk of prepaid fraud. And as a reminder, prepaid gift cards in the U.S. rarely are embedded with chip technology.

我們與 Carta 達成的協議也使我們成為其在美國的獨家供應商，提供其安全購買解決方案，提供嵌入 Carta 安全購買功能的晶片技術的非接觸式預付卡。Carta解決方案無需將資料列印在卡片上，從而顯著降低了預付詐欺的風險。另外提醒一下，美國的預付禮品卡很少內建晶片技術。

So between Carta's technology to reduce fraud and CPI's prepaid and chip solutions, we were a perfect fit to drive meaningful and positive change in the prepaid market. We are currently in the second stage of a pilot for this solution with a large national retailer across hundreds of locations in the U.S., and we are seeing encouraging results.

因此，憑藉 Carta 的防詐騙技術與 CPI 的預付卡和晶片解決方案，我們完美契合，能夠推動預付卡市場發生有意義的積極變化。我們目前正在與一家大型全國性零售商在美國數百家門市開展該解決方案的試點項目，目前已進入第二階段，並且我們看到了令人鼓舞的結果。

Overall, we are proud of what our teams delivered in 2025, and we look forward to continuing to advance these initiatives and their benefits over the next several years. In 2026, we expect to deliver good growth again, and Terra Grantham, our new interim CFO, will give you more color on our outlook in a few minutes.

總的來說，我們對團隊在 2025 年的成就感到自豪，並期待在未來幾年繼續推動這些舉措及其帶來的好處。預計 2026 年我們將再次實現良好成長，我們的新任臨時財務長 Terra Grantham 將在幾分鐘後為您詳細介紹我們的展望。

Terra brings a wealth for CPI and industry knowledge and experience to this role, including most recently leading CPI's enterprise growth and strategy area and previous leadership of our Financial Planning and Analysis and Treasury teams, among others.

Terra 為此職位帶來了豐富的 CPI 和行業知識與經驗，包括最近領導 CPI 的企業成長和策略領域，以及先前領導我們的財務規劃和分析和財務團隊等。

She has been with the company for nearly 10 years and I want to congratulate Terra for being promoted into this new role, and I'm happy to have her join us for the call today. Terra will now take us through the fourth quarter results and 2026 outlook in more detail. Terra?

她在公司工作近 10 年，我謹祝賀 Terra 晉升到這個新職位，也很高興她今天能和我們一起參加電話會議。接下來，Terra 將更詳細地介紹第四季業績和 2026 年展望。泰拉？

Thanks, John. I'm pleased to be here and look forward to meeting many of you in the coming months. I'll begin the detailed review on Slide 9 with the fourth quarter results. Fourth quarter revenue increased 22% to a record $153 million, which reflects a strong $18 million contribution from Arroweye as well as double-digit organic growth from our debit and credit portfolio.

謝謝你，約翰。很高興來到這裡，期待在接下來的幾個月與大家見面。我將從第 9 張投影片開始詳細回顧第四季業績。第四季營收成長 22%，達到創紀錄的 1.53 億美元，這反映了 Arroweye 貢獻了 1800 萬美元，以及借記卡和信用卡組合實現了兩位數的內生成長。

Debit and credit segment revenue increased 40%, including the impact of Arroweye. Organic growth for this segment was 20%, driven by strong sales of contactless cards and continued excellent performance from our instant issuance solution.

金融卡和信用卡業務收入成長了 40%，其中包括 Arroweye 的影響。該業務板塊的有機增長率為 20%，這主要得益於非接觸式卡的強勁銷售以及即時發卡解決方案的持續出色表現。

Our personalization services also delivered a solid sales increase in the quarter. Prepaid revenue declined 27% compared to the exceptionally high prior year fourth quarter, and sales increased 59% to $33 million, but revenue increased 4% compared to the third quarter.

本季度，我們的個人化服務也實現了穩健的銷售成長。預付收入與去年同期異常高的第四季相比下降了 27%，銷售額成長了 59% 至 3,300 萬美元，但與第三季相比，營收成長了 4%。

As we said at the beginning of the year, we expected prepaid growth to be constrained due to comparisons with the very strong year in 2024, and we ended the year down 3% when adjusting for the impact of the revenue recognition accounting change in the second quarter.

正如我們在年初所說，由於與 2024 年的強勁增長相比，我們預計預付費增長將受到限制，並且在調整了第二季度收入確認會計變更的影響後，我們最終全年下降了 3%。

And as John said, the prepaid market is transitioning, but we expect that to be a positive for CPI. We began closed-loop prepaid shipments in the fourth quarter of 2025, and we expect this business to ramp significantly in 2026. Turning to profitability. Fourth quarter gross profit margin declined from 34.1% to 31.5%, although it increased from 29.7% in the third quarter.

正如約翰所說，預付費市場正在轉型，但我們預計這對 CPI 來說將是一個好消息。我們將於 2025 年第四季開始閉環預付費出貨，預計這項業務將在 2026 年大幅成長。轉向盈利。第四季毛利率從 34.1% 下降至 31.5%，儘管較第三季的 29.7% 有所增長。

Compared to prior year, the margin decline was driven by increased production costs, including increased depreciation and tariffs and unfavorable sales mix, partially offset by benefits from operating leverage on sales growth.

與前一年相比，利潤率下降是由於生產成本增加（包括折舊和關稅增加）以及銷售組合不利所致，但部分被銷售成長帶來的經營槓桿效益所抵消。

Mix trends stabilized, though, and were comparable to the third quarter. Production costs in the quarter compared to prior year included $2 million of increased depreciation, primarily related to Arroweye and a new secure card production facility and $1.6 million of tariff expenses.

不過，產品組合趨勢趨於穩定，與第三季的情況類似。與去年同期相比，本季生產成本包括 200 萬美元的折舊增加，主要與 Arroweye 和新的安全卡生產設施有關，以及 160 萬美元的關稅支出。

Fourth quarter SG&A expenses increased $3.3 million from the prior year, primarily due to Arroweye integration costs of $1.8 million and the inclusion of Arroweye operating expenses, partially offset by reduced medical benefit expenses compared to a high level in prior year.

第四季銷售、一般及行政費用比上年同期增加 330 萬美元，主要原因是 Arroweye 的整合成本為 180 萬美元，以及 Arroweye 的營運費用，但部分被醫療福利支出較上年同期的高水平有所減少所抵消。

Our tax rate for the quarter was 27%, which brought our full year rate to 31% higher than anticipated coming into the year due primarily to nondeductible expenses related to the Arroweye acquisition. Net income increased 9% in the quarter to $7.4 million as the benefit of sales growth were offset by integration costs related to Arroweye and a higher tax rate.

本季我們的稅率為 27%，這使得我們全年的稅率比年初預期高出 31%，這主要是由於與收購 Arroweye 相關的不可抵扣費用造成的。本季淨收入成長 9% 至 740 萬美元，銷售成長帶來的收益被與 Arroweye 相關的整合成本和更高的稅率所抵銷。

Fourth quarter adjusted EBITDA increased 34% to $29.4 million, and margins increased by 170 basis points from 17.5% to 19.2% and driven by sales growth and the resulting operating leverage. Full year results and various explanations can be found on Slide 10. Highlights for the year include revenue increasing 13%, led by double-digit growth from contactless cards and instant issuance solutions and a $43 million contribution from Arroweye following the May 6 acquisition.

第四季調整後 EBITDA 成長 34% 至 2,940 萬美元，利潤率成長 170 個基點，從 17.5% 增至 19.2%，這主要得益於銷售成長和由此產生的經營槓桿效應。全年業績及各種說明請參閱第 10 頁投影片。今年的亮點包括營收成長 13%，這主要得益於非接觸式卡片和即時發卡解決方案的兩位數成長，以及 5 月 6 日收購 Arroweye 後獲得的 4,300 萬美元貢獻。

We believe Arroweye is already benefiting from being part of CPI, driving strong execution and increasing its ability to sell into the market. Net income decreased 23% to $15 million, reflecting $6 million of acquisition and integration costs and a higher tax rate, partially offset by lower debt retirement costs compared to prior year.

我們相信 Arroweye 已經從加入 CPI 中受益，推動了強有力的執行，並提高了其在市場上的銷售能力。淨收入下降 23% 至 1,500 萬美元，主要原因是收購和整合成本 600 萬美元以及稅率較高，但部分被債務償還成本較前一年降低所抵銷。

Adjusted EBITDA increased 5% to $96.5 million as profitability from increased revenue was partially offset by the impact of unfavorable sales mix and $4.4 million of tariff expenses. Turning to Slide 11. We had very strong cash flow generation in the fourth quarter and for the full year.

經調整的 EBITDA 成長 5% 至 9,650 萬美元，營收成長帶來的獲利能力部分被不利的銷售組合和 440 萬美元的關稅支出所抵銷。翻到第11張幻燈片。我們在第四季度和全年都實現了非常強勁的現金流。

Our cash flow generated from operating activities for the year increased from $43.3 million last year to $59.5 million in 2025, with $40 million generated in the fourth quarter. The increase in operating cash flow was driven by lower working capital usage, including better receivables and inventory management and cash tax benefits from the U.S. budget reconciliation bill.

本年度經營活動產生的現金流從去年的 4,330 萬美元增加到 2025 年的 5,950 萬美元，其中第四季產生了 4,000 萬美元。經營現金流的增加得益於營運資本使用量的降低，包括應收帳款和庫存管理的改善以及美國預算協調法案帶來的現金稅收優惠。

Full year free cash flow increased from $34 million in prior year to $41 million in 2025, driven by lower working capital usage, partially offset by increased capital spending. We spent $18 million on CapEx in 2025, double the prior year level as we invested heavily in our new Indiana production facility and other advanced machinery to support operating efficiency, capacity expansion and new capabilities such as closed-loop prepaid.

2025 年全年自由現金流從前一年的 3,400 萬美元增加到 4,100 萬美元，主要原因是營運資本使用量減少，但部分被資本支出增加所抵銷。2025 年，我們在資本支出方面投入了 1800 萬美元，是前一年的兩倍，因為我們對位於印第安納州的新生產設施和其他先進設備進行了大量投資，以支持營運效率、產能擴張和閉環預付費等新功能。

On the balance sheet, at quarter end, we had $22 million of cash, $25 million of borrowings on our ABL revolver and $265 million of senior notes outstanding. Our net leverage ratio at year-end was 3.1 times as cash flow generation mostly offset the funding of the Arroweye acquisition in May.

截至季末，資產負債表顯示，我們有 2,200 萬美元現金，2,500 萬美元 ABL 循環貸款，以及 2.65 億美元未償還優先票據。由於現金流的產生基本上抵消了 5 月收購 Arroweye 的資金，我們年底的淨槓桿率為 3.1 倍。

During the course of 2025, significant capital allocation included the acquisition of Arroweye for $46 million, an investment in Australian prepaid fintech, Carta, and completion of the new production facility in Indiana as well as retirement of $20 million principal of our 10% senior notes in July.

2025 年期間，重要的資本配置包括以 4,600 萬美元收購 Arroweye，投資澳洲預付金融科技公司 Carta，完成印第安納州的新生產設施，以及在 7 月償還 2,000 萬美元的 10% 高級票據本金。

Before turning to our 2026 outlook, I would like to share the new business segment reporting John mentioned we are implementing this year on Slide 12. Beginning with the first quarter reporting, our business segments will include Secure Card Solutions, Prepaid Solutions, and Integrated PayTech.

在展望 2026 年之前，我想分享 John 在第 12 頁幻燈片中提到的我們今年正在實施的新業務部門報告。從第一季報告開始，我們的業務部門將包括安全卡解決方案、預付卡解決方案和整合支付技術。

Secure Card Solutions includes our debit and credit card production and personalization businesses, including our Arroweye on-demand solutions. This business should provide steady growth over time, driven by ongoing cards in circulation growth and share gains from our leading innovation, quality and service.

安全卡解決方案包括我們的金融卡和信用卡生產及個人化業務，包括我們的 Arroweye 按需解決方案。隨著時間的推移，這項業務應該會穩步增長，這得益於流通卡片數量的持續增長以及我們領先的創新、品質和服務所帶來的市場份額提升。

As noted in our appendix slide, cards in circulation in the U.S. continued to increase with the latest U.S. cards in circulation trends from Visa and MasterCard showing a 7.5% compounded annual growth rate for the three years ended September 30. Prepaid solutions, which has now changed from our prior prepaid segment includes our open loop gift cards and secure packaging, health care payment solutions and closed loop.

正如我們在附錄幻燈片中指出的那樣，美國流通的信用卡數量持續增長，Visa 和 MasterCard 最新發布的美國信用卡流通趨勢數據顯示，截至 9 月 30 日的三年內，複合年增長率為 7.5%。預付解決方案（現已從我們先前的預付業務板塊演變而來）包括我們的開放式禮品卡和安全包裝、醫療保健支付解決方案和封閉式解決方案。

We expect open loop growth to be driven by continued innovation in fraud prevention packaging and the introduction of chip cards into the prepaid market, and overall segment growth to benefit from expansion of health care and development of our closed loop solutions.

我們預計，開環業務的成長將受到防詐騙包裝的持續創新以及晶片卡引入預付市場的推動，而整個細分市場的成長將受益於醫療保健的擴張和我們閉環解決方案的發展。

Our third business unit is Integrated PayTech. As John said, as our success has grown, we are now breaking this out as our fastest growing, highest margin unit consisting of strong recurring revenue businesses that rely on our vast and expanding technology connections into the U.S. payment ecosystem to provide various payment solutions to our customers.

我們的第三個業務部門是整合支付技術部門。正如約翰所說，隨著我們業務的成功不斷增長，我們現在將其拆分為增長最快、利潤最高的部門，該部門由強大的經常性收入業務組成，這些業務依靠我們在美國支付生態系統中廣泛且不斷擴展的技術聯繫，為我們的客戶提供各種支付解決方案。

The majority of our revenue in this segment today is driven by our Software-as-a-Service-based instant issuance solution, but we expect to ramp digital push provisioning for mobile wallets and other digital solutions in the coming years. On a pro forma basis, this segment would have represented 14% of our 2025 revenue and more than 20% of our EBITDA at an 18% growth rate with EBITDA margins of approximately 40%.

目前，我們在該領域的收入主要來自基於軟體即服務的即時發卡解決方案，但我們預計在未來幾年內，將增加對行動錢包和其他數位解決方案的數位推送供應。以備考基準計算，該業務板塊將占我們 2025 年營收的 14%，EBITDA 的 20% 以上，成長率為 18%，EBITDA 利潤率約為 40%。

Over the next few years, we expect more than 15% annual top line growth from the Integrated PayTech business segment, while the EBITDA growth will be impacted by investments to accelerate our top line growth. Turning to our 2026 financial outlook on Slide 13. We expect another good growth year while continuing to invest heavily to support our strategic initiatives.

未來幾年，我們預計綜合支付技術業務部門的年營收成長率將超過 15%，而 EBITDA 的成長將受到加速營收成長的投資的影響。接下來請看第 13 頁投影片，了解我們對 2026 年的財務展望。我們預計今年將迎來另一個良好的成長年，同時將繼續加強投資力度，以支持我們的策略性舉措。

We are currently projecting high single-digit revenue growth with growth across our portfolio, led by expected double-digit growth from our Integrated PayTech segment. Our adjusted EBITDA outlook for the year is low to mid-single-digit growth, which reflects benefits from sales growth and cost savings activities, partially offset primarily by approximately $4 million in incremental spending to drive Integrated PayTech growth and penetration and other technology investments.

我們目前預計所有業務板塊的收入將實現高個位數成長，其中綜合支付技術板塊預計將實現兩位數成長。我們對本年度的調整後 EBITDA 預期為個位數低至中等增長，這反映了銷售增長和成本節約活動帶來的收益，但部分被約 400 萬美元的增量支出所抵消，這些支出用於推動集成支付技術的增長和滲透以及其他技術投資。

Our outlook reflects $6 million of tariff expenses. Similar to our instant issuance trajectory, which took years of investment before scaling and turning into a high-margin recurring revenue business, we are still in the investment phase with many of our digital solutions, which is impacting our overall near-term profitability.

我們的預測反映了600萬美元的關稅支出。與我們的即時發行軌跡類似，在規模化並轉變為高利潤的經常性收入業務之前，我們投入了多年的投資，目前我們的許多數位解決方案仍處於投資階段，這影響了我們近期的整體盈利能力。

While some level of PayTech investments will continue into future years, we expect our digital solutions profitability to expand greatly once revenue begins to ramp and scale in the next two to three years. Regarding tariffs, there is still uncertainty on how the newly announced tariffs will be applied and what permanent tariffs may be enacted later in the year.

雖然未來幾年我們仍將持續對支付技術進行一定程度的投資，但我們預計，一旦未來兩到三年內收入開始成長和擴大規模，我們的數位解決方案獲利能力將大幅提升。關於關稅，目前仍存在不確定性，新宣布的關稅將如何實施，以及今年稍後可能實施哪些永久性關稅。

At this point, our outlook reflects estimates based on a full year of the tariffs we paid in 2025. We are working hard and pursuing various avenues to seek refunds for tariffs paid in 2025 based on the recent Supreme Court ruling.

目前，我們的展望反映了基於​​ 2025 年我們支付的一整年關稅的估計。我們正在努力，並尋求各種途徑，根據最高法院最近的裁決，為2025年繳納的關稅申請退款。

We expect a tax rate between 30% and 35% in 2026, and strong cash flow conversion, with capital spending likely similar to 2025 levels as reductions in spending on physical capital is replaced by increased technology capital spending. We would also expect free cash flow conversion at similar levels to 2025 and continued improvement in our net leverage ratio ending the year between 2.5 and 3 times.

我們預計 2026 年的稅率將在 30% 到 35% 之間，現金流轉換率將很高，資本支出可能與 2025 年的水平相似，因為減少對實物資本的支出將被增加對技術資本的支出所取代。我們也預期自由現金流轉換率將與 2025 年的水準相當，淨槓桿率將持續改善，年底將達到 2.5 至 3 倍。

As we complete integration of Arroweye in the first half of 2026, we are projecting approximately $5 million to $7 million of final integration costs. Similar to 2025, we expect revenue and EBITDA levels to ramp during the year with the fourth quarter again being the largest, although revenue growth rates will benefit early in the year from the addition of Arroweye.

隨著我們在 2026 年上半年完成對 Arroweye 的整合，我們預計最終整合成本約為 500 萬至 700 萬美元。與 2025 年類似，我們預計年內營收和 EBITDA 水準將逐步提高，第四季仍將是成長最快的季度，儘管年初營收成長率將受益於 Arroweye 的加入。

However, we expect adjusted EBITDA in the first half of the year to be flat to down slightly with prior year due to digital and technology investments and a slow start of the year in prepaid. Overall, we believe the environment is healthy and our momentum is strong, and we look forward to delivering a good year in 2026 while continuing to invest and advance various key strategic initiatives for long-term growth.

然而，由於數位化和技術投資以及預付費業務年初開局緩慢，我們預計今年上半年的調整後 EBITDA 將與去年持平或略有下降。整體而言，我們認為環境健康，發展勢頭強勁，我們期待在 2026 年取得豐碩成果，同時繼續投資並推進各項關鍵戰略舉措，以實現長期增長。

I'll now turn the call back to John for some closing remarks.

現在我將把電話轉回給約翰，請他做些總結發言。

Thanks, Terra. Turning to Slide 14 to summarize before we open the call for Q&A. We had an exceptional fourth quarter, with revenue growth acceleration, strong adjusted EBITDA growth in margins and excellent cash flow generation. For the full year, we achieved solid revenue and adjusted EBITDA growth and generated over $40 million of free cash flow.

謝謝你，Terra。接下來請看第 14 張投影片進行總結，之後我們將開放問答環節。我們第四季業績非常出色，營收成長加速，調整後 EBITDA 利潤率強勁成長，現金流表現優異。全年來看，我們實現了穩健的收入和調整後 EBITDA 成長，並產生了超過 4,000 萬美元的自由現金流。

We accomplished many strategic and operational objectives, including the Arroweye acquisition and investment in Carta, the completion of our new secured card production facility, entry into the closed loop prepaid market and the ongoing build-out for our other digital solutions.

我們實現了許多策略和營運目標，包括收購 Arroweye 並投資 Carta，完成我們新的安全卡生產設施，進入封閉式預付卡市場，以及持續建造我們的其他數位解決方案。

We are excited about our new organizational structure to drive our strategy and the long-term opportunities to enhance incremental growth. We intend to continue leveraging our expanding proprietary technology platform, our extensive marketable base and our evolving portfolio of payment solutions to meet the market needs, drive growth and enable our customers to win.

我們對新的組織架構感到興奮，它將推動我們的策略發展，並帶來促進長期成長的機會。我們將繼續利用我們不斷擴展的專有技術平台、廣泛的市場基礎和不斷發展的支付解決方案組合，以滿足市場需求、推動成長並幫助我們的客戶取得成功。

We are confident in our strategies and teams, and we expect to deliver another good year in 2026. Operator, we will now open the call up for any questions.

我們對我們的策略和團隊充滿信心，並期待在 2026 年再創佳績。接線生，現在我們將開放通話，接受大家的提問。

(Operator Instructions)

（操作說明）

Jacob Stefan, Lake Street Capital Markets.

Jacob Stefan，Lake Street Capital Markets。

Hey guys. Good morning. Congrats on the results. Welcome, Terra. Maybe just to touch on something you kind of talked on the closed-loop market being 5times larger. So pretty significant opportunity for you guys. How are these sales cycles any different from potentially other prepaid deals?

嘿，大家好。早安.恭喜取得好成績。歡迎你，泰拉。也許可以稍微談談你剛才提到的閉環市場規模是原來的 5 倍這一點。所以這對你們來說是個相當重要的機會。這些銷售週期與其他潛在的預付費交易有何不同？

And do you have to change anything internally for -- to kind of capture this market?

為了拿下這個市場，你們公司內部需要做哪些改變？

Yeah, Jacob. Good morning. So it's interesting. The closed loop market, you're right, 5 times larger in volume, probably slightly higher than that. The value of closed loop, we expect to continue to grow and become even greater as we expect packaging to become more pervasive, if you will, across the United States, mainly due to regulatory changes in fraud.

是的，雅各。早安.所以這很有意思。你說得對，閉環市場的規模是原來的 5 倍，可能還要更高。我們預計，隨著包裝在美國各地變得更加普遍（主要是由於反詐欺監管的變化），閉環的價值將繼續增長並變得更加巨大。

But from a sales cycle perspective, we actually have a slightly accelerated sales cycle versus our normal -- just our broader portfolio in general. And that's because in the open loop side, we've been working for most all the program managers that are out there with the addition of Arroweye now we work for all of the major program managers. So we have relationships with, I'd say, more than half the market that is already selling into the closed loop space.

但從銷售週期的角度來看，我們的銷售週期實際上比正常情況略微加快——這主要是因為我們整體的產品組合。這是因為在開環方面，我們幾乎與所有專案經理合作，而隨著 Arroweye 的加入，現在我們與所有主要專案經理合作。因此，我認為我們已經與超過一半的閉環市場供應商建立了合作關係。

So as we build out our capabilities, we have the proven ability to execute and deliver. And so that's given us the right, if you will, to move into the closed-loop market fairly quickly, winning some deals, locking down contracts and really building out the whole operation in late last year. And ultimately, we believe we're going to have a decent growth out of that in 2026.

因此，隨著我們能力的不斷提升，我們擁有了執行和交付的成熟能力。因此，這給了我們進入閉環市場並迅速達成交易、鎖定合約、並在去年底真正建立起整個營運體系的權利。最終，我們相信到 2026 年我們將實現可觀的成長。

Okay. Got it. Helpful. Maybe just to kind of put a cap on that. So can you kind of help us think through the recent announcement with TDS, and how the closed-loop opportunity kind of plays into the high single-digit growth guidance for 2026?

好的。知道了。很有幫助。或許只是想給這件事畫上句點。那麼，您能否幫我們分析一下TDS最近發布的公告，以及閉環機會如何與2026年高個位數成長預期相契合？

I know you guys kind of talked about that being an important driver this year.

我知道你們之前討論過，這將是今年的重要驅動因素。

Yes, and Jacob, good question. There's a lot of moving parts in our business. We've diversified quite a bit over the years. The prepaid market in general is, it's kind of odd because it's actually a little bit choppy right now, but that is positive for us. And the reason I say that is because, if you look at the broader prepaid market, fraud has been prevalent for a number of years. It's been a bit of a cat and mouse game.

是的，雅各布，問得好。我們的業務涉及很多環節。這些年來，我們的業務已經實現了相當大的多元化。總體而言，預付費市場有點奇怪，因為它現在實際上有點波動，但這對我們來說是件好事。我之所以這麼說，是因為如果你縱觀整個預付卡市場，你會發現詐騙行為已經普遍存在多年。這有點像貓捉老鼠的遊戲。

That has caused -- on the open loop side, where we are the market leader by far, that has caused significant kind of improvement in fraud preventive packaging, if you will, that we're constantly trying to innovate with our customers to stay ahead of the -- I would say, the criminal activity from a fraud perspective.

這導致——在開環包裝方面，我們遙遙領先於市場，這導致了防詐欺包裝方面的顯著改進，我們一直在努力與客戶一起創新，以保持領先——我想說，從欺詐的角度來看，領先於犯罪活動。

But because of that, you're also starting to see, on the closed loop side, the same thing happened, right? You're starting to see states lead regulations that say, the closed loop gift card has to be a package or has to have a chip in it.

但也因為如此，你也開始看到，在閉環系統中，同樣的事情也發生了，對吧？你開始看到一些州率先出台法規，規定封閉式禮品卡必須是包裝好的，或者必須內建晶片。

And you're starting to see, as an example, on the open loop side, just like our investment in Carta where we own 20%, have a call option to grow to 51%. We're using their unique technology with one of our larger customers on the prepaid side and ultimately one of the larger national retailers in the United States to go through a second stage of pilot where we're putting chips in prepaid cards to reduce fraud.

例如，在開放式投資方面，就像我們對 Carta 的投資一樣，我們擁有 20% 的股份，並擁有增持至 51% 的選擇權。我們正在與一家較大的預付卡客戶以及一家美國較大的全國性零售商合作，利用他們獨特的技術開展第二階段的試點項目，在預付卡中植入晶片以減少詐欺。

And that -- those results have been very strong. That said, it creates kind of this environment in the prepaid market where the program managers, the distributors, others, the merchandisers are trying to understand, okay, do we move towards greater packaging, do we move towards putting chips and prepaid cards more broadly, which is more expensive.

而且，這些結果非常顯著。也就是說，這在預付卡市場造成了一種局面，專案經理、分銷商、其他商家都在試圖理解，好吧，我們是否應該轉向更完善的包裝，是否應該更廣泛地推廣晶片和預付卡，但這成本更高。

But ultimately, if you think about CPI and what we do, right, we are by far the leader in open loop packaging. We have the scale that no one else in the market has. We are also one of the leaders in the United States from a chip embedding perspective in the debit and credit market. So we are the only player in the U.S. market that has strong capabilities in both sides.

但歸根結底，如果你想想 CPI 和我們所做的事情，對吧，我們在開環包裝領域絕對是領導者。我們擁有市場上其他任何公司都無法比擬的規模。從晶片嵌入的角度來看，我們在藉記卡和信用卡市場也是美國的領導企業之一。因此，我們是美國市場上唯一一家在供需兩端都擁有強大能力的公司。

And so while the prepaid market is choppy this year, and actually, they're starting the year slow, and we would expect that to ramp up over the course of the year, but still have a fairly flat year to slow growth year, ultimately, over the long term, it's going to be really positive for us given how we're positioned in the market. So I know a lot to take in there, but hopefully, that helps.

因此，雖然今年的預付費市場波動較大，而且實際上，年初的成長速度較慢，我們預計這種情況會在今年逐漸好轉，但整體而言仍將保持平穩甚至放緩的成長，但從長遠來看，考慮到我們在市場中的定位，這對我們來說將是非常積極的。我知道那裡有很多東西要學習，但希望這能有所幫助。

Yeah. And you kind of touched on my last question. Obviously, fraud has been a pretty important theme over the last year, one and a half years. As we kind of look out to 2026 and maybe even beyond, is there potentially another sort of like recurring revenue type business that you would be interested in potentially acquiring with AI kind of boosting fraud rates?

是的。你剛才其實也提到了我最後一個問題。顯然，在過去一年半的時間裡，詐欺一直是一個非常重要的主題。展望 2026 年甚至更遠，您是否有興趣收購其他類似經常性收入類型的業務，並利用人工智慧來提高詐欺率？

And I'm wondering if there's any sort of additional software solution that can help on the fraud prevention side that you guys might be interested in?

我想知道你們是否對任何有助於防範詐騙的軟體解決方案感興趣？

Well, we do already resell one major fraud solution that uses AI in their modeling, if you will, in their machine learning to prevent fraud on the debiting credit side. That's something that -- they're a fairly large player in the debit and credit market connected into a lot of the processors to kind of builds off our proprietary technology platform and our ability to provide those types of services to our financial institution base broadly.

嗯，我們已經轉售一款主要的詐欺解決方案，該方案在其建模中運用了人工智慧（或機器學習），以防止借記卡和信用卡方面的詐欺行為。這是因為他們——他們在藉記卡和信用卡市場中佔據相當大的份額，與許多支付處理商建立了聯繫，從而能夠依託我們專有的技術平台，並向我們廣泛的金融機構客戶群提供此類服務。

But fraud is a market that is constantly changing. And so from an acquisition perspective, it would have to be a software that's proven and has an ability to constantly pivot on the fly. So right now, our strategy on fraud is really to help from kind of the production perspective as well as producing technology from what Carta produces to be able to prevent fraud on the prepaid side, where we believe there's probably a lot more value.

但詐欺市場瞬息萬變。因此，從收購的角度來看，它必須是經過驗證且能夠隨時靈活調整的軟體。所以目前，我們應對詐欺的策略實際上是從生產的角度提供幫助，並利用 Carta 的技術來防止預付費方面的詐欺行為，我們認為這方面可能更有價值。

And ultimately, in the debit and credit side, provide solutions from a more commercial perspective. But if you think about on the prepaid side of our business, what Carta does, they're taking data off the prepaid card and ultimately using their solution to not only reduce fraud just by the fact that you can't steal the data off the card, but their solution also loads the prepaid gift card onto your mobile wallet and is a digital issuance platform as well.

最終，在藉貸方面，從更商業化的角度提供解決方案。但如果你從我們業務的預付卡方面來看，Carta 所做的，就是從預付卡中提取數據，最終利用他們的解決方案，不僅因為無法從卡上竊取數據而減少欺詐，而且他們的解決方案還會將預付禮品卡加載到你的移動錢包中，並且也是一個數字發行平台。

So there's kind of multiple value propositions on the Carta side. But from the fraud side, it's constantly changing. So it has to be someone who has really unique technology to look at them from an M&A perspective.

所以Carta方面有多種價值主張。但從詐欺的角度來看，情況卻在不斷變化。所以，從併購的角度來看，必須是擁有真正獨特技術的人才會考慮收購他們。

Okay. Got it. I appreciate it guys. Thanks.

好的。知道了。謝謝大家。謝謝。

Craig Irwin, Ross Capital Partners

克雷格歐文，羅斯資本合夥公司

Hi. Good morning and thanks for taking my questions. So John, when I look at my wallet, I'm seeing new cards from Chase, Wells Fargo and Fidelity provided by CPI. These are large issuers. I'm not asking you to comment about any of these specific large issuers, but I'm sure there's probably others.

你好。早上好，感謝您回答我的問題。約翰，當我查看我的錢包時，我看到了由 CPI 提供的 Chase、Wells Fargo 和 Fidelity 的新卡。這些都是大型發行機構。我不是叫你對任何特定的發行機構發表評論，但我相信肯定還有其他的。

Can you maybe just give us a high-level commentary on these customers that I don't think you did a lot of business with over the last several years? Are you seeing an increased capture rate with large issuers? What was the contribution, if you could give us color on the 40% growth there in debit and credit from large issuers?

能否請您簡單介紹一下這些客戶？我想您在過去幾年與他們的生意往來並不多。您是否注意到大型發行機構的獲客率有所提升？如果您能詳細介紹一下大型發卡機構金融卡和信用卡 40% 的成長情況，您認為這其中的貢獻是什麼？

Yeah. Greg. Thanks for the call out. We'll happy to have you on our marketing team any time you want to join. And in all seriousness, we -- the large issuer base, I mean, we said this over time, we work with about half of them. You mentioned a couple of different names there. One of those we're actually doing metal with was part of our metal growth. I won't name names.

是的。格雷格。謝謝你的提醒。我們非常歡迎您隨時加入我們的行銷團隊。說真的，我們——我們龐大的發行機構群體，我的意思是，我們一直以來都這麼說，我們與其中大約一半的發行機構有合作關係。你剛才提到了幾個不同的名字。我們正在進行金屬加工的其中一個項目是我們金屬加工業務的一部分。我不會指名道姓。

But -- so very positive in terms of our relationships we have with large issuers. We have been growing share over the last, I'd say, five years with the larger issuers. But I wouldn't comment specifically on their growth rates in Q4 or 2025. What I would say is just broadly the larger players in general.

但是——就我們與大型發行機構的關係而言，情況非常積極。在過去的五年裡，我們與大型發行商的合作份額一直在增長。但我不會具體評論他們第四季或 2025 年的成長率。我指的是整體而言，規模較大的玩家。

So go beyond the large issuers that are the names you're thinking of. Think of the credit union service organizations. We mentioned Valero this morning that we signed another four year deal with. I think of the large processors out there. There's a number of partners that we have that are fairly large that we also have been growing share with.

所以，不要只盯著你想到的那些大型發行商。想想信用合作社服務機構。今天早上我們提到過，我們與瓦萊羅公司續簽了一份為期四年的合約。我想到了市面上那些大型處理器。我們有一些規模相當大的合作夥伴，我們也一直在與他們共同擴大市場份額。

And so we're excited about our position in the debit and credit market, our secured card solution side between our card production, our personalization business, the acquisition of Arrow eye really gives us a unique value proposition and allows us to continue to execute on our strategy and win share, not only in the large issuer market, but in the broader FI, fintech and other markets.

因此，我們對自己在藉記卡和信用卡市場的地位感到興奮，我們的安全卡解決方案業務涵蓋了卡片生產、個人化業務以及對 Arrow eye 的收購，這確實為我們帶來了獨特的價值主張，使我們能夠繼續執行我們的策略並贏得市場份額，不僅在大發卡機構市場，而且在更廣泛的金融機構、金融科技和其他市場。

Thank you for that. So my second question is about headcount, right? When I looked at your K, I saw you now have about 1,700 employees beginning 2026, it's up about 13% or a little over 13%, consistent with your revenue growth last year. Now that doesn't kind of point to leverage in the model.

謝謝。所以我的第二個問題是關於員工人數的，對嗎？我查看了您的K表，發現您從2026年開始將擁有約1700名員工，增長約13%或略高於13%，與您去年的收入增長一致。這似乎並沒有表明該模型中存在槓桿作用。

And I know there are a bunch of initiatives you were staffing up particularly on the technology side and some of these things with incredible long-term potential. Can you maybe flesh out for us where you would likely be hiring in 2026? And would you expect mid- to high single-digit growth consistent with revenue? Or do we potentially see a more tempered rate of hiring?

我知道你們正在籌備很多項目，尤其是在技術方面，其中一些項目具有巨大的長期潛力。您能否詳細說明您在 2026 年可能會在哪些地區招募？您預計營收將實現中高個位數成長嗎？或者我們可能會看到招募速度放緩？

Yeah. So a lot of our hiring last year when you just look at a headcount perspective, was through the acquisition of Arroweye, right? I mean they have, I don't know the exact number. I think it's 250 people roughly in Las Vegas. So a fairly decent sized business there. So you have to kind of take that into account, Craig.

是的。所以，從員工人數的角度來看，我們去年的大部分招募都是透過收購 Arroweye 來實現的，對吧？我的意思是，他們肯定有，但我不知道確切的數字。我認為在拉斯維加斯大約有250人。所以那裡的企業規模相當可觀。所以你必須把這一點考慮進去，克雷格。

But if you went out and looked at who we're hiring and who we have hired over time, it has been predominantly in the go-to-market side to try to push our solutions further into the market, expand our go-to-market efforts as well as on the technology side within our Integrated PayTech segment.

但如果你看看我們過去招聘和正在招聘的人員，就會發現我們主要在市場推廣方面招聘人員，以進一步推動我們的解決方案進入市場，擴大我們的市場推廣工作，以及在我們集成支付技術領域的技術方面招聘人員。

So, those are probably the two areas where we'll continue to invest in, and we continue to invest broadly in the business as we grow. But I think if you stripped out Arroweye, you'd realize we're definitely growing in the number of people that we have.

所以，這很可能是我們會繼續投資的兩個領域，而且隨著業務的成長，我們也會繼續在各個方面進行廣泛投資。但我覺得，如果把 Arroweye 排除在外，你就會意識到我們的人數肯定在增加。

But I wouldn't say we're not getting leverage out of the model. And you saw that in Q4 from our growth in Q4 and what we push to the bottom line.

但我不會說我們沒有從這種模式中獲得優勢。您在第四季度已經看到了這一點，這體現在我們第四季度的成長以及我們對最終利潤的貢獻。

No, that was an excellent quarter of the fourth quarter. Congratulations. Thanks for taking my questions. I'll hop back in the queue.

不，那是第四季非常出色的一個季度。恭喜。謝謝您回答我的問題。我重新排隊。

Hal Goetsch, B Rilley Securities.

Hal Goetsch，B Rilley Securities。

Hey. Questions on CapEx. CapEx was up from $8 million in the high teens, and you said it's going to be similar to that in 2026. Is this a number we should expect going forward? Or is this a number that might come back down after a two-year investment period?

嘿。關於資本支出的問題。資本支出從 800 萬美元增加到十幾萬美元，你說過 2026 年的情況也會類似。這個數字未來會維持不變嗎？或者，這個數字在兩年的投資期後可能會回落嗎？

Yeah. That's a good question, Hal. I'd say it probably will come down in the outer years. It has grown quite a bit in '25 as we built out closed loop, we built out Indiana. But I'd say it's more on the physical side in '25 than more on the digital side in '26 and what we might expect in coming years. But Terra, do you want to add to that?

是的。問得好，哈爾。我認為它可能會在未來幾年內下降。2025 年，隨著我們建成閉環系統，我們在印第安納州建成系統，它發展得相當迅速。但我認為，2025 年實體產業的發展趨勢會比 2026 年數位產業的發展趨勢更明顯，這也是我們未來幾年可能看到的趨勢。但是泰拉，你想補充什麼嗎？

Just to add to that, we did spend about $5 million in CapEx in 2025 on our factory -- new factory in Indiana. So that is going away, but we are replacing that with higher investments in our technology spend. So that is on the CapEx side to support the growth of our Integrated PayTech business and also to upgrade some of our other technology as well.

補充一點，我們在 2025 年為位於印第安納州的新工廠投入了約 500 萬美元的資本支出。所以這種情況會改變，但我們會加大對科技領域的投入來彌補。所以，這筆資金來自資本支出方面，用於支持我們整合支付技術業務的成長，以及升級我們的一些其他技術。

I will say that even with that CapEx spend, we are expecting similar cash flow conversion in 2026 as we had in 2025. So we're happy to be investing in the business and continuing to convert on the cash flow side as well.

我想說的是，即使有這樣的資本支出，我們預計 2026 年的現金流轉換率將與 2025 年的現金流轉換率相似。所以我們很高興能夠投資這項業務，並繼續改善現金流。

Yeah. The goal is to drive leverage down even while investing.

是的。目標是在投資的同時降低槓桿。

Could you show me on the tax side, it seems like your tax rate is higher than most of the companies that follow out that are mostly domestic. And I think you said over 30%, is that correct? And what was the cash flow impact -- free cash flow impact this year from the Big Beautiful Bill or tax change that might have lifted free cash flow this year?

能否請您介紹一下稅務方面的情況？貴公司的稅率似乎比大多數同類型的國內公司都要高。我想你剛才說超過30%，對嗎？那麼，今年的現金流受到怎樣的影響——是《大法案》還是稅收變化導致今年的自由現金流增加？

And maybe what will be the impact next year from tax law changes to your free cash flow?

那麼，明年稅法的變動可能會對你的自由現金流產生什麼影響呢？

Yeah. Hal, we did get a slight benefit. I don't think it's a huge number. I think it's in the few million range. Just on the tax rate in general, I think the big impact this year was due to the Arroweye acquisition and integration costs that are not necessarily tax deductible.

是的。哈爾，我們確實獲得了一點好處。我覺得這個數字不算很大。我認為應該在幾百萬左右。就整體稅率而言，我認為今年最大的影響是由於 Arroweye 的收購和整合成本，而這些成本不一定可以抵稅。

But Terra, I don't know if you have any comments?

泰拉，我不知道你有沒有什麼意見？

Yeah. So we are expecting a benefit from between $25 million and $26 million from the U.S. budget bill of $3 million to $5 million from across '25 and '26. Just a reminder, though that, that is a cash impact, and it doesn't impact our ETR.

是的。因此，我們預計從美國2025年和2026年的預算案中獲得2,500萬美元至2,600萬美元的收益，以及300萬美元至500萬美元的收益。不過要提醒的是，這只是現金方面的影響，不會影響我們的有效稅率。

Yeah. And a follow-up, last question for me on kind of modeling. Are you going to provide pro forma for the new three segments going back maybe at least quarters for 2025 that we can project trends and margins off of?

是的。最後一個後續問題，關於建模方面。你們是否會提供至少追溯到 2025 年的三個新業務板塊的季度預測數據，以便我們能夠據此預測趨勢和利潤率？

Yeah. Hal, I think we did. I think there's a filing this morning, if I'm not mistaken, it has 2025 quarters as well as the full year.

是的。哈爾，我想我們做到了。如果我沒記錯的話，今天早上應該有一份文件，裡麵包含了 2025 年各季度以及全年的業績。

Okay. Terrific. Thanks.

好的。了不起。謝謝。

As there are no further questions in the queue, I would now like to turn the call back over to John Lowe for closing remarks.

由於隊列中沒有其他問題，我現在想把電話轉回給約翰·洛，請他做總結發言。

Thanks, operator. Well, first, I'd like to thank all of our CPI employees for what they accomplished in 2025 and their ongoing commitment to serving the company, our customers and executing on our strategy to win in the market. I hope everyone enjoys learning more about CPI's evolution this morning.

謝謝接線生。首先，我要感謝我們所有 CPI 員工在 2025 年所取得的成就，以及他們一直以來對公司、客戶和執行我們贏得市場策略的持續奉獻。希望大家今天早上都能愉快地了解CPI的發展歷程。

We're proud of our 2025 and year-end performance, and we look forward to sharing more on the progress in future calls. And thank you all for joining, and we hope you have a great day.

我們為 2025 年及年終業績感到自豪，並期待在未來的電話會議中分享更多進展。感謝各位的參與，祝您有美好的一天。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may not disconnect.

女士們、先生們，今天的電話會議到此結束。感謝各位的參與。您不得斷開連線。