# EDGAR Filing Document

**Accession Number:** 0001641614
**File Stem:** 0001104659-26-055239
**Filing Date:** 2026-5
**Character Count:** 160205
**Document Hash:** d303686f76f48b8c3be25def2b7b11dd
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-055239.hdr.sgml**: 20260505

**ACCESSION NUMBER**: 0001104659-26-055239

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 62

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260505

**DATE AS OF CHANGE**: 20260505

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CPI Card Group Inc.
- **CENTRAL INDEX KEY:** 0001641614
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL PRINTING [2750]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 260344657
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37584
- **FILM NUMBER:** 26940399

**BUSINESS ADDRESS:**
- **STREET 1:** 10368 WEST CENTENNIAL RD
- **CITY:** LITTLETON
- **STATE:** CO
- **ZIP:** 80127
- **BUSINESS PHONE:** (303) 862-2065

**MAIL ADDRESS:**
- **STREET 1:** 10368 WEST CENTENNIAL RD
- **CITY:** LITTLETON
- **STATE:** CO
- **ZIP:** 80127

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CPI Holdings I, Inc.
- **DATE OF NAME CHANGE:** 20150506

?xml version='1.0' encoding='ASCII'? CPI Card Group Inc._March 31, 2026

[**Table of Contents**](#Toc)

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-Q**

**(Mark One)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☒ **Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934** 

**For the Quarterly Period Ended March 31, 2026**

**or**

☐ **Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**For the Transition Period from to**

**Commission File Number: 001-37584**

**CPI Card Group Inc.**

(Exact name of the registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **26-0344657** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification no.) |
| &nbsp;&nbsp;**10368 W. Centennial Road** |  |
| **Littleton, CO** | **80127** |
| **(**Address of principal executive offices**)** | **(**Zip Code**)** |

---

**(720) 681-6304**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Trading Symbol(s) | &nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;Common Stock, $0.001 par value | &nbsp;&nbsp;PMTS | &nbsp;&nbsp;Nasdaq Global Market |

---

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp; Yes ☒ &nbsp;&nbsp;&nbsp;&nbsp; No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp; Yes ☒&nbsp;&nbsp;&nbsp;&nbsp; No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Large accelerated filer | ☐ | Accelerated filer | ☒ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer | ☐ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐&nbsp;&nbsp;&nbsp;&nbsp; No ☒

Number of shares of Common Stock, $0.001 par value, outstanding as of April 28, 2026: 11,475,608

------

[**Table of Contents**](#Toc)

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| [**Part I — Financial Information**](#Part_1) |  |
| [Item 1 — Condensed Consolidated Financial Statements (Unaudited)](#Item1) | 3 |
| [Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations](#Item2ManagementsDiscussionandAnalysisofF) | 16 |
| [Item 3 — Quantitative and Qualitative Disclosures About Market Risk](#Item3QuantitativeandQualitativeDisclosur) | 23 |
| [Item 4 — Controls and Procedures](#Item4ControlsandProcedures_782207) | 23 |
| [**Part II — Other Information**](#PARTIIOtherInformation_725856) |  |
| [Item 1 — Legal Proceedings](#Item1LegalProceedings) | 24 |
| [Item 1A — Risk Factors](#Item1ARiskFactors_356357) | 24 |
| [Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds](#Item2UnregisteredSalesofEquitySecurities) | 24 |
| [Item 3 — Defaults Upon Senior Securities](#Item3DefaultsUponSeniorSecurities_693397) | 24 |
| [Item 4 — Mine Safety Disclosures](#Item4MineSafetyDisclosures_453740) | 24 |
| [Item 5 — Other Information](#Item5OtherInformation_66387) | 24 |
| [Item 6 — Exhibits](#Item6Exhibits_869668) | 24 |
| [**Signatures**](#SIGNATURES_363417) | 25 |

---

[**Table of Contents**](#Toc)

**PART I - Financial Information**

**Item 1. Financial Statements**

**CPI Card Group Inc. and Subsidiaries** 

**Condensed Consolidated Balance Sheets**

**(in thousands, except share and per share amounts)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $19296 | $21700 |
| &nbsp;&nbsp;Accounts receivable, net | 88681 | 95436 |
| &nbsp;&nbsp;Inventories, net | 65504 | 72243 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | 15407 | 15565 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 188888 | 204944 |
| Plant, equipment, leasehold improvements and operating lease right-of-use assets, net | 106676 | 108433 |
| Intangible assets, net of accumulated amortization of $60,735 and $59,741, respectively | 17550 | 18544 |
| Goodwill | 48764 | 48764 |
| Other assets | 24576 | 22506 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $386454 | $403191 |
| **Liabilities and stockholders' deficit** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;Accounts payable | $22469 | $27802 |
| &nbsp;&nbsp;Accrued expenses | 48260 | 52379 |
| &nbsp;&nbsp;Deferred revenue and customer deposits | 3600 | 3916 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 74329 | 84097 |
| Long-term debt | 276903 | 286668 |
| Deferred income taxes | 2565 | 2251 |
| Other long-term liabilities | 46667 | 47508 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 400464 | 420524 |
| Commitments and contingencies (Note 9) |  |  |
| Stockholders' deficit: |  |  |
| Series A Preferred Stock; $0.001 par value—100,000 shares authorized; 0 shares issued and outstanding at March 31, 2026 and December 31, 2025 |  |  |
| Common stock; $0.001 par value—100,000,000 shares authorized; 11,475,608 and 11,456,061 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 11 | 11 |
| &nbsp;&nbsp;Capital deficit | (100824) | (102091) |
| &nbsp;&nbsp;Accumulated earnings | 86803 | 84747 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' deficit | (14010) | (17333) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' deficit | $386454 | $403191 |

---

*See accompanying notes to condensed consolidated financial statements*

[**Table of Contents**](#Toc)

**CPI Card Group Inc. and Subsidiaries**

**Condensed Consolidated Statements of Operations and Comprehensive Income**

**(in thousands, except share and per share amounts)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026**  | **2025**  |
| Revenue | $147108 | $122761 |
| Cost of goods sold | 102984 | 82065 |
| &nbsp;&nbsp;Gross profit | 44124 | 40696 |
| Selling, general and administrative expenses | 33130 | 26592 |
| &nbsp;&nbsp;Income from operations | 10994 | 14104 |
| Other expense, net: |  |  |
| &nbsp;&nbsp;Interest, net | (7656) | (7685) |
| &nbsp;&nbsp;Other income, net | 32 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (7624) | (7667) |
| Income before income taxes and equity in losses of unconsolidated affiliates | 3370 | 6437 |
| Income tax expense | (1158) | (1663) |
| Equity in losses of unconsolidated affiliates | (156) |  |
| &nbsp;&nbsp;Net income | $2056 | $4774 |
| Basic and diluted earnings per share: |  |  |
| &nbsp;&nbsp;Basic earnings per share | $0.18 | $0.42 |
| &nbsp;&nbsp;Diluted earnings per share | $0.17 | $0.40 |
| Basic weighted-average shares outstanding | 11457573 | 11245844 |
| Diluted weighted-average shares outstanding | 11857270 | 12008523 |
| Comprehensive income: |  |  |
| &nbsp;&nbsp;Net income | $2056 | $4774 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total comprehensive income | $2056 | $4774 |

---

*See accompanying notes to condensed consolidated financial statements*

[**Table of Contents**](#Toc)

**CPI Card Group Inc. and Subsidiaries**

**Condensed Consolidated Statements of Stockholders' Deficit**

**(in thousands, except share amounts)**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | | | |
|  | **Shares** | **Amount** | **Capital**<br>**deficit** | **Accumulated**<br>**earnings** | **Stockholders**<br>**deficit** |
| December 31, 2025 | 11456061 | $11 | $(102091) | $84747 | $(17333) |
| &nbsp;&nbsp;Shares issued under stock-based compensation plans | 19547 |  | (136) |  | (136) |
| &nbsp;&nbsp;Stock-based compensation |  |  | 1403 |  | 1403 |
| &nbsp;&nbsp;Components of comprehensive income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  | 2056 | 2056 |
| March 31, 2026 | 11475608 | $11 | $(100824) | $86803 | $(14010) |
|  | **Common stock** | **Common stock** | **Capital** | **Accumulated** | **Stockholders** |
|  | **Shares** | **Amount** | **deficit** | **earnings** | **deficit** |
| December 31, 2024 | 11240507 | $11 | $(105429) | $69797 | $(35621) |
| &nbsp;&nbsp;Shares issued under stock-based compensation plans | 40982 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | (541) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | (541) |
| &nbsp;&nbsp;Stock-based compensation |  |  | 1671 |  | 1671 |
| &nbsp;&nbsp;Components of comprehensive income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  | 4774 | 4774 |
| March 31, 2025 | 11281489 | $11 | $(104299) | $74571 | $(29717) |

---

*See accompanying notes to condensed consolidated financial statements*

[**Table of Contents**](#Toc)

**CPI Card Group Inc. and Subsidiaries**

**Condensed Consolidated Statements of Cash Flows**

**(in thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
| **Operating activities** |  |  |
| Net income | $2056 | $4774 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;Depreciation expense | 5409 | 3387 |
| &nbsp;&nbsp;Amortization expense | 994 | 860 |
| &nbsp;&nbsp;Stock-based compensation expense | 1403 | 1671 |
| &nbsp;&nbsp;Amortization of debt issuance costs | 328 | 329 |
| &nbsp;&nbsp;Deferred income taxes and other, net | 189 | (314) |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 6755 | 9998 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 7055 | (2460) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (3235) | (1348) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes, net | 1362 | 444 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (3957) | 5120 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | (4395) | (16937) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue and customer deposits | (316) | 69 |
| Cash provided by operating activities | 13648 | 5593 |
| **Investing activities** |  |  |
| Capital expenditures for plant, equipment and leasehold improvements, net | (3513) | (5301) |
| Other |  | 50 |
| &nbsp;&nbsp;Cash used in investing activities | (3513) | (5251) |
| **Financing activities** |  |  |
| Payments on debt | (10000) |  |
| Payments on finance lease obligations | (2403) | (1825) |
| Taxes withheld and paid on stock-based compensation awards | (136) | (541) |
| &nbsp;&nbsp;Cash used in financing activities | (12539) | (2366) |
| &nbsp;&nbsp;Net decrease in cash and cash equivalents | (2404) | (2024) |
| Cash and cash equivalents, beginning of period | 21700 | 33544 |
| Cash and cash equivalents, end of period | $19296 | $31520 |
| **Supplemental disclosures of cash flow information** |  |  |
| Cash paid (refunded) during the period for: |  |  |
| &nbsp;&nbsp;Interest paid | $14332 | $14998 |
| &nbsp;&nbsp;Income taxes paid | $— | $2 |
| &nbsp;&nbsp;Income taxes refunded | $(527) | $— |
| Right-of-use assets obtained in exchange for lease obligations: |  |  |
| &nbsp;&nbsp;Operating leases | $187 | $7382 |
| &nbsp;&nbsp;Financing leases | $2454 | $1888 |
| Accounts payable and accrued expenses for capital expenditures for plant, equipment and leasehold improvements | $616 | $1654 |
| Non-cash equity in losses of unconsolidated affiliates | $(156) | $— |

---

*See accompanying notes to condensed consolidated financial statements*

[**Table of Contents**](#Toc)

**CPI Card Group Inc. and Subsidiaries**

**Notes to Condensed Consolidated Financial Statements**

**(dollars in thousands, except share and per share amounts or as otherwise indicated)**

***(Unaudited)***

1. Business Overview and Summary of Significant Accounting Policies

#### Business Overview
CPI Card Group Inc. (which, together with its subsidiary companies, is referred to herein as "CPI" or the "Company") is a payments technology company providing a comprehensive range of physical and digital payment solutions for U.S. financial institutions, processors, fintechs, prepaid program managers, and more. CPI is a leader in several areas of the U.S. payment card solutions market, including debit and credit card production, personalization, and Software-as-a-Service-based ("SaaS-based") instant issuance solutions. CPI is also a market leader in the production of "Prepaid Debit Cards," defined as debit cards issued on the networks of the "Payment Card Brands" (Visa, Mastercard<sup>®</sup>, American Express<sup>®</sup> and Discover<sup>®</sup>) but not linked to a traditional bank account, and related secure packaging solutions.

CPI's revenues are primarily generated from the production of and related offerings of secure debit and credit cards that are issued on the networks of the Payment Card Brands, including Prepaid Debit Cards. In connection with the Company's increased strategic focus on expanding and developing additional proprietary integrated technological solutions for its customer base and to reflect the manner in which the Company's Chief Operating Decision Maker ("CODM"), the Chief Executive Officer ("CEO"), manages the Company's business, the Company implemented a revised segment structure to assess performance and allocate resources, beginning in the first quarter of 2026. The changes in the Company's segment structure primarily relate to the separation of the results of the Company's proprietary integrated technological related solutions into a separate segment from the former Debit and Credit segment. As of March 31, 2026, the Company's business consists of the following reportable segments:

● 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 acquired through the purchase of Arroweye Solutions, Inc. ("Arroweye") during the second quarter of 2025;

● 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.

Refer to Note 11, "Segment Reporting," for segment results for the three months ended March 31, 2026 and 2025 under the revised segment structure.

#### Basis of Presentation
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of the results of the interim periods presented. The condensed consolidated balance sheet as of December 31, 2025 is derived from the audited financial statements as of that date. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

[**Table of Contents**](#Toc)

#### Use of Estimates
Management uses estimates and assumptions relating to the reporting of assets and liabilities as of the date of the financial statements, the reported revenues and expenses recognized during the reporting period, and certain financial statement disclosures in the preparation of the condensed consolidated financial statements. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill and intangible assets, leases, valuation allowances for inventories and deferred taxes, revenue recognized for work performed but not completed, recognition of amounts and timing of contract costs, and uncertain tax positions. Actual results could differ from those estimates.

**Revenue Recognition**

During the second quarter of 2025, the Company reassessed certain aspects of its revenue recognition practices under Accounting Standards Codification ("ASC") 606, *Revenue from Contracts with Customers* ("ASC 606"), and the legal enforceability of certain contract terms based on evolving business practices where the Company and a customer deviate from contract terms after an order is placed but before it is shipped. This assessment highlights the Company's approach relating to goods that are in production but have not yet shipped, reflecting its emphasis on maintaining long-term customer relationships.

Such deviations may impact the legal enforceability of payment terms for goods that are in the process of being produced but have not shipped. As a result, the Company concluded that certain contracts no longer meet the criteria for over-time revenue recognition under ASC 606. Effective prospectively beginning in the second quarter of 2025, the Company began recognizing revenue for these contracts at a point in time, typically upon shipment or customer acceptance. Additionally, in connection with the acquisition and integration of Arroweye during the second quarter of 2025, the Company assessed Arroweye's customer contracts and determined that Arroweye revenue should also be recognized at point-in-time.

*Customer Contracts*

The Company often enters into Master Services Agreements ("MSAs") with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASC 606 is the length of time it takes to deliver the goods or services promised under the purchase order or statement of work. As such, the Company's contracts are generally short term in nature.

*Costs to Obtain a Contract with a Customer*

Costs to obtain a contract ("contract costs") include only costs that the Company would not have incurred if the contract had not been obtained. For contracts in which the term is greater than one year, these costs are recorded as an asset and amortized consistent with the timing of the related revenue over the life of the contract. The current portion of the asset is included in "Prepaid expenses and other current assets" and the noncurrent portion is included in "Other assets" on the Company's condensed consolidated balance sheets. Contract costs incurred but unpaid are included in "Accrued expenses" on the Company's condensed consolidated balance sheets. Contract costs are expensed as incurred when the amortization period is one year or less.

**Recent Accounting Pronouncements**

*Recently Issued Accounting Pronouncements*

In December 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*, which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2027, and interim periods within annual reporting periods beginning after December 15, 2028. The Company is evaluating the impact of adoption of this standard and does not anticipate that it will have a material impact on the Company's consolidated financial position, results of operations or cash flows.

[**Table of Contents**](#Toc)

In November 2024, the FASB issued ASU 2024-03, *Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*, which will require disclosure of disaggregated information about certain expense captions presented in the income statement. Adoption of this accounting standard is effective for the Company for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company is evaluating the impact of adoption of this standard and does not anticipate that it will have a material impact on the Company's consolidated financial position, results of operations or cash flows.

**2**. **Inventories**

Inventories consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Raw materials | $52042 | $61564 |
| Work in process | 5286 | 3868 |
| Finished goods | 8176 | 6811 |
| &nbsp;&nbsp;Total inventories, net | $65504 | $72243 |

---

#### 5
**3. Plant, Equipment, Leasehold Improvements and Operating Lease Right-of-Use Assets**

Plant, equipment, leasehold improvements and operating lease right-of-use assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Machinery and equipment | $87239 | $85835 |
| Machinery and equipment under financing leases | 49614 | 48194 |
| Furniture, fixtures and computer equipment | 6631 | 5795 |
| Leasehold improvements | 33101 | 32892 |
| Construction in progress | 5463 | 4746 |
| Operating lease right-of-use assets | 27331 | 27390 |
|  | 209379 | 204852 |
| Less accumulated depreciation and amortization | (102703) | (96419) |
| &nbsp;&nbsp;Total plant, equipment, leasehold improvements and <br>operating lease right-of-use assets, net | $106676 | $108433 |

---

4. Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). In determining fair value, the Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Level 2— Observable inputs other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term for the assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Level 3— Valuations based on unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

[**Table of Contents**](#Toc)

The Company's financial assets and liabilities that are not required to be re-measured at fair value in the condensed consolidated balance sheets were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | **Fair Value Measurement at March 31, 2026** | **Fair Value Measurement at March 31, 2026** | **Fair Value Measurement at March 31, 2026** |
|  | | | **(Using Fair Value Hierarchy)** | **(Using Fair Value Hierarchy)** | **(Using Fair Value Hierarchy)** |
|  | **Carrying**<br>**Value as of** <br>**March 31,** <br>**2026** | **Estimated**<br>**Fair Value as of** <br>**March 31,** <br>**2026** | **Level 1** | **Level 2** | **Level 3** |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Senior Notes | $265000 | $279670 | $— | $279670 | $— |
| &nbsp;&nbsp;ABL Revolver | $15000 | $15000 | $— | $15000 | $— |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** | **Fair Value Measurement at December 31, 2025** |
|  | | | **(Using Fair Value Hierarchy)** | **(Using Fair Value Hierarchy)** | **(Using Fair Value Hierarchy)** |
|  | **Carrying**<br> **Value as of**<br>**December 31,** <br>**2025** | **Estimated**<br>**Fair Value as of**<br>**December 31,** <br>**2025** | **Level 1** | **Level 2** | **Level 3** |
| Liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Senior Notes | $265000 | $281616 | $— | $281616 | $—  |
| &nbsp;&nbsp;ABL Revolver | $25000 | $25000 | $— | $25000 | $—  |

---

The aggregate fair value of the Company's Senior Notes (defined in Note 6, "Long-Term Debt") was based on quoted prices for identical or similar liabilities in markets that are not active and, as a result, they are classified as Level 2 inputs. The fair value measurement associated with the ABL Revolver (defined in Note 6, "Long-Term Debt") approximates its carrying value as of March 31, 2026 and December 31, 2025, given the applicable variable interest rates.

The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable each approximate fair value due to their short-term nature.

**5. Accrued Expenses**

Accrued expenses consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,**<br>**2025** |
| Accrued payroll and related employee expenses | $12020 | $13634 |
| Accrued employee performance-based incentive compensation  | 2424 | 2664 |
| Employer payroll taxes | 2326 | 845 |
| Accrued rebates | 3496 | 2819 |
| Accrued interest | 5871 | 12792 |
| Current operating and financing lease liabilities | 12904 | 12457 |
| Other | 9219 | 7168 |
| &nbsp;&nbsp;Total accrued expenses | $48260 | $52379 |

---

Other accrued expenses as of March 31, 2026, and December 31, 2025, consisted primarily of miscellaneous accruals for invoices not yet received, accrued sales and use tax, and self-insurance claims incurred but not yet reported.

**6. Long-Term Debt**

As of March 31, 2026, and December 31, 2025, long-term debt consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Senior Notes | $265000 | $265000 |
| ABL Revolver  | 15000 | 25000 |
| Unamortized deferred financing costs | (3097) | (3332) |
| &nbsp;&nbsp;Total long-term debt | 276903 | 286668 |
| Less current maturities |  |  |
| &nbsp;&nbsp;Long-term debt, net of current maturities | $276903 | $286668 |

---

[**Table of Contents**](#Toc)

*Senior Notes*

On July 11, 2024 (the "Closing Date"), the Company completed a private offering by its wholly-owned subsidiary, CPI CG Inc., of $285.0 million aggregate principal amount of 10.000% Senior Secured Notes due 2029 (the "Senior Notes") and related guarantees at an issue price of 100%. The Senior Notes mature on July 15, 2029 and interest is payable on January 15 and July 15 of each year.

The Company has obligations to make an offer to repay the Senior Notes requiring prepayment in advance of the maturity date upon the occurrence of certain events, including a change of control and certain asset sales.

*ABL Revolver*

On the Closing Date, the Company and CPI CG Inc. as borrower (the "Borrower"), entered into a credit agreement with JPMorgan Chase Bank, N.A., as lender, administrative agent and collateral agent ("JPMorgan"), providing for an asset-based, senior secured revolving credit facility (the "ABL Revolver") of up to $75.0 million. The ABL Revolver matures on the earliest to occur of July 11, 2029, and the date that is 91 days prior to the maturity of the Senior Notes.

On July 2, 2025, the Company, the Borrower, and JPMorgan entered into Amendment No. 1 to Credit Agreement (the "Amendment"), which amends the ABL Revolver to, among other things, increase the available borrowing capacity from $75.0 million to $100.0 million. The Amendment did not modify the maturity date of the ABL Revolver nor the interest rate.

Borrowings under the ABL Revolver bear interest at a rate per annum that ranges based on the applicable term secured overnight financing rate as administered by the Federal Reserve Bank of New York plus 1.50% to 1.75% (subject, in each case, to a credit spread adjustment of 0.10%), based on the average daily borrowing capacity under the ABL Revolver over the most recently completed month. The unused portion of the ABL Revolver commitment accrues a commitment fee, which ranges from 0.375% to 0.50% per annum, based on the average daily excess availability under the ABL Revolver over the immediately preceding month.

*Deferred Financing Costs*

Certain costs incurred with borrowings are reflected as a reduction to the long-term debt balance. These costs are amortized as an adjustment to interest expense over the life of the borrowing. As of March 31, 2026, the remaining unamortized debt issuance costs recorded on the Senior Notes were $3.1 million and were reported as a reduction to the long-term debt balance.

**7. Income Taxes**

The Company's effective tax rates on pre-tax income were 34.4% and 25.8% for the three months ended March 31, 2026 and 2025, respectively. The increase in the Company's effective tax rate for the three months ended March 31, 2026, compared to the prior year related to decreased deductibility of stock-based compensation realized upon certain stock option exercises and restricted stock unit vesting and an increase in the valuation allowance related to states decoupling from recent favorable tax legislation changes.

[**Table of Contents**](#Toc)

For the three months ended March 31, 2026 and 2025, the effective tax rates differ from the U.S. federal statutory income tax rate as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,**  | **March 31,**  |
|  | **2026** | **2025** |
| Tax at federal statutory rate | 21.0% | 21.0% |
| State taxes, net | 5.6 | 4.9 |
| Valuation allowance | 5.7 |  |
| Permanent items <sup>(1)</sup> | 2.5 | 0.4 |
| Tax credits | (0.4) | (0.5) |
| &nbsp;&nbsp;Effective income tax rate | 34.4% | 25.8% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes the deductibility limitations on excess compensation.

**8. Earnings per Share** 

Basic and diluted earnings per share are computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested. For the three months ended March 31, 2026 and 2025, 51,954 and 18,390 potentially dilutive securities, respectively, were excluded from the calculation of diluted earnings per share. The effect of these shares was anti-dilutive under the treasury stock method, as the assumed proceeds of the options and restricted stock per unit were above our average share price during the periods.

The following table sets forth the computation of basic and diluted earnings per share:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
| Numerator: |  |  |
| &nbsp;&nbsp;Net income  | $2056 | $4774 |
| Denominator:  |  |  |
| &nbsp;&nbsp;Basic weighted-average common shares outstanding | 11457573 | 11245844 |
| &nbsp;&nbsp;Dilutive shares | 399697 | 762679 |
| &nbsp;&nbsp;Diluted weighted-average common shares outstanding | 11857270 | 12008523 |
| Basic earnings per share  | $0.18 | $0.42 |
| Diluted earnings per share | $0.17 | $0.40 |

---

#### 9 . Commitments and Contingencies
*Contingencies*

In accordance with applicable accounting guidance, the Company establishes an accrued expense when loss contingencies are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. As a matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. Once the loss contingency is deemed to be both probable and estimable, the Company will establish an accrued expense and record a corresponding amount of expense. The Company expenses professional fees associated with litigation claims and assessments as incurred. The Company is subject to routine legal proceedings in the ordinary course of business. The Company believes that the ultimate resolution of any such matters will not have a material adverse effect on its business, financial condition or results of operations.

[**Table of Contents**](#Toc)

10. Stock-Based Compensation

In October 2015, the Company adopted the CPI Card Group Inc. Omnibus Incentive Plan (as amended and supplemented, the "Omnibus Plan") pursuant to which cash and equity-based incentives may be granted to participating employees, advisors, and directors. Effective January 30, 2024, the Company's stockholders approved an amendment to the Omnibus Plan to increase the total number of shares of the Company's common stock reserved and available for issuance thereunder by 1,000,000 shares, resulting in a total of 3,200,000 shares issuable under the Omnibus Plan. As of March 31, 2026, there were 701,979 shares of common stock available for grant under the Omnibus Plan.

In March 2026, the Company granted certain executives two performance cash awards (PCAs) with a total grant date fair value of $3.4 million using a Monte Carlo simulation model. These PCAs will vest on December 31, 2026 and December 31, 2028 and are expected to settle in the first quarters of 2027 and 2029, respectively, subject to continuous employment and the achievement of certain Company performance goals including the Company's relative total shareholder return of stock against the Russell 2000 index. As the award is liability-classified, the award is remeasured at fair value at each reporting date and at settlement, with changes recognized as stock-based compensation expense.

During the three months ended March 31, 2026, the Company granted 81,858 restricted stock units at a weighted average grant date fair value of $14.51. As of March 31, 2026, there were 570,690 outstanding restricted stock units at a weighted average grant date fair value of $19.57.

As of March 31, 2026, there were 597,934 options outstanding at a weighted average exercise price of $14.98. No options were granted during the three months ended March 31, 2026. Options have seven-year terms and are issued with exercise prices equal to the fair market value of the Company's common stock on the grant date.

All equity awards are contingent and issued only upon approval by the compensation committee of the Company's board of directors, or as otherwise permitted under the Omnibus Plan. The Company accounts for stock-based compensation pursuant to ASC 718, *Share-Based Payments.* All stock-based compensation is required to be measured at fair value and expensed over the requisite service period, generally defined as the applicable vesting period. The Company accounts for forfeitures as they occur and reverses previously recognized expenses for the unvested portion of the forfeited shares. Upon the exercise of stock options, shares of common stock are issued from authorized common shares.

11. Segment Reporting

The Company's CODM 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 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.

Effective for the quarter ending March 31, 2026, the Company implemented a change in the structure of its reportable segments to align with its internal management reporting and operating structure and consistent with the Company's increased strategic focus on expanding and developing additional proprietary integrated technological solutions for its customer base. This change was made to reflect the revised manner in which the Company's CODM manages the Company's business, including for performance assessment and resource allocation. Operating results for prior periods have been recast to conform to the current period presentation. The updated information reflects only reclassification of prior period segment data and does not represent a restatement of previously issued financial statements.

[**Table of Contents**](#Toc)

As of March 31, 2026, the Company's reportable segments were as 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 acquired through the purchase of Arroweye during the second quarter of 2025;

● 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.

*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 three months ended March 31, 2026 and 2025, were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
|  | **Secure Card Solutions** | **Prepaid Solutions** | **Integrated Paytech** | **Total Reportable Segments** | **Intersegment Eliminations** | **Corporate** | **Consolidated** |
| Revenue | $109851 | $22049 | $19382 | $151282 | $(4174) | $— | $147108 |
| Cost of goods sold | 82149 | 16383 | 8626 | 107158 | (4174) |  | 102984 |
| &nbsp;&nbsp;Gross profit | 27702 | 5666 | 10756 | 44124 |  |  | 44124 |
| Selling, general and administrative expenses | 10434 | 1573 | 3891 | 15898 |  | 17232 | 33130 |
| &nbsp;&nbsp;Income (loss) from operations | $17268 | $4093 | $6865 | $28226 | $— | $(17232) | $10994 |
| EBITDA by segment: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Income (loss) from operations | $17268 | $4093 | $6865 | $28226 | $— | $(17232) | $10994 |
| &nbsp;&nbsp;Depreciation and amortization | 4346 | 1274 | 90 | 5710 |  | 693 | 6403 |
| &nbsp;&nbsp;Other income (expense), net | 34 | (156) |  | (122) |  | (2) | (124) |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $21648 | $5211 | $6955 | $33814 | $— | $(16541) | $17273 |
| &nbsp;&nbsp;Gross profit margin | 25.2% | 25.7% | 55.5% | 29.2% | \*% | \*% | 30.0% |
| &nbsp;&nbsp;EBITDA margin | 19.7% | 23.6% | 35.9% | 22.4% | \*% | \*% | 11.7% |

---

[**Table of Contents**](#Toc)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **Secure Card Solutions** | **Prepaid Solutions** | **Integrated Paytech** | **Total Reportable Segments** | **Intersegment Eliminations** | **Corporate** | **Consolidated** |
| Revenue | $81642 | $26713 | $19253 | $127608 | $(4847) | $— | $122761 |
| Cost of goods sold | 60823 | 17271 | 8818 | 86912 | (4847) |  | 82065 |
| &nbsp;&nbsp;Gross profit | 20819 | 9442 | 10435 | 40696 |  |  | 40696 |
| Selling, general and administrative expenses | 6509 | 1443 | 3042 | 10994 |  | 15598 | 26592 |
| &nbsp;&nbsp;Income (loss) from operations | $14310 | $7999 | $7393 | $29702 | $— | $(15598) | $14104 |
| EBITDA by segment: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Income (loss) from operations | $14310 | $7999 | $7393 | $29702 | $— | $(15598) | $14104 |
| &nbsp;&nbsp;Depreciation and amortization | 2240 | 1116 | 31 | 3387 |  | 860 | 4247 |
| &nbsp;&nbsp;Other (expense) income, net | (7) | 6 |  | (1) |  | 19 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $16543 | $9121 | $7424 | $33088 | $— | $(14719) | $18369 |
| &nbsp;&nbsp;Gross profit margin | 25.5% | 35.3% | 54.2% | 31.9% | \*% | \*% | 33.2% |
| &nbsp;&nbsp;EBITDA margin | 20.3% | 34.1% | 38.6% | 25.9% | \*% | \*% | 15.0% |

---

\* Calculation not meaningful.

*Reconciliation of Net Income to EBITDA*

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** |
| Net income | $2056 | $4774 |
| Interest, net  | 7656 | 7685 |
| Income tax expense | 1158 | 1663 |
| Depreciation and amortization  | 6403 | 4247 |
| &nbsp;&nbsp;EBITDA | $17273 | $18369 |

---

*Goodwill by Reportable Segment*

Under the Company's reportable segment structure as of December 31, 2025, the Company reported all of its goodwill in the former Debit and Credit segment. In connection with the implementation of the Company's revised segment structure in the first quarter of 2026, a portion of the Company's goodwill in the former Debit and Credit segment as of December 31, 2025 is now included in the Integrated Paytech segment. As a result, total goodwill of the Company's reportable segments as of March 31, 2026, and December 31, 2025, were as follows under the revised segment structure:

---

| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
| Secure Card Solutions | $33636 | $33636 |
| Integrated Paytech | 15128 | 15128 |
| &nbsp;&nbsp;Total goodwill | $48764 | $48764 |

---

*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.

[**Table of Contents**](#Toc)

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

References to the "Company," "our," "us" or "we" refer to CPI Card Group Inc. and its subsidiaries. For an understanding of the significant factors that influenced our results, the following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Management's Discussion and Analysis should also be read in conjunction with the management's discussion and analysis and consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC").

**Cautionary Statement Regarding Forward-Looking Information**

Certain statements and information in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (as well as information included in other written or oral statements we make from time to time) may contain or constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The words "believe," "estimate," "project," "expect," "anticipate," "affirm," "plan," "intend," "foresee," "should," "would," "could," "continue," "committed," "attempt," "aim," "target," "objective," "guides," "seek," "focus," "provides guidance," "provides outlook" or other similar expressions are intended to identify forward-looking statements, which are not historical in nature. These forward-looking statements, including statements about our strategic initiatives and market opportunities, are based on our current expectations and beliefs concerning future developments and their potential effect on us and other information currently available. Such forward-looking statements, because they relate to future events, are by their very nature subject to many important risks and uncertainties that could cause actual results or other events to differ materially from those contemplated.

These risks and uncertainties include, but are not limited to: (i) risks relating to our business and industry, such as a deterioration in general economic conditions, including due to inflationary conditions, resulting in reduced consumer confidence and business spending, and a decline in consumer credit worthiness impacting demand for our products; the unpredictability of our operating results, including an inability to anticipate changes in customer inventory management practices and its impact on our business; our failure to retain our existing key customers or identify and attract new customers; the highly competitive, saturated and consolidated nature of our marketplace; our inability to develop, introduce and commercialize new products and related services, including due to our inability to undertake research and development activities; new and developing technologies that make our existing technology solutions and products obsolete or less relevant or our failure to introduce new products and related services in a timely manner or at all; system security risks, data protection breaches and cyber-attacks; the usage, or lack thereof, of artificial intelligence technologies; disruptions, delays or other failures in our supply chain, including as a result of inflationary pressures, single-source suppliers, failure or inability of suppliers to comply with our code of conduct or contractual requirements, trade restrictions, tariffs, foreign conflicts or political unrest in countries in which our suppliers operate, and our inability to pass related costs on to our customers or difficulty meeting customers' delivery expectations due to extended lead times; changes in U.S. and global trade policy and the impact of tariffs on our business and results of operations; interruptions in our operations, including our information technology systems, or in the operations of the third parties that operate computing infrastructure on which we rely; defects in our software and computing systems; disruptions in production at one or more of our facilities due to weather conditions, climate change, political instability, or social unrest; problems in production quality, materials and process and costs relating to product defects and any related product liability and/or warranty claims and damage to our reputation; our inability to recruit, retain and develop qualified personnel, including key personnel, and implement effective succession processes; our substantial indebtedness, including the restrictive terms of our indebtedness and covenants of future agreements governing indebtedness and the resulting restraints on our ability to pursue our business strategies; our inability to make debt service payments or refinance such indebtedness; our inability to successfully execute on, integrate, or achieve the anticipated benefits of acquisitions, including the acquisition of Arroweye Solutions, Inc. ("Arroweye"), or execute on divestitures, strategic relationships, or investments; our status as an accelerated filer and complying with the Sarbanes-Oxley Act of 2002 and the costs associated with such compliance and implementation of procedures thereunder; our failure to maintain effective internal control over financial reporting and risks relating to investor confidence in our financial reporting; environmental, social and governance ("ESG") preferences and demands of various stakeholders and the related impact on our ability to access capital, produce our products in conformity with stakeholder preferences, comply with stakeholder demands and comply with any related legal or regulatory requirements or restrictions; negative perceptions of our products due to the impact of our products and production processes on the environment and other ESG-related risks; damage to our reputation or brand image; our inability to adequately protect our trade secrets and

[**Table of Contents**](#Toc)

intellectual property rights from misappropriation, infringement claims brought against us and risks related to open source software; our inability to renew licenses with key technology licensors; our limited ability to raise capital, which may lead to delays in innovation or the abandonment of our strategic initiatives; costs and impacts related to additional tax collection efforts by states, unclaimed property laws, or future increases in U.S. federal or state income taxes, resulting in additional expenses which we may be unable to pass along to our customers; our inability to realize the full value of our long-lived assets; costs and potential liabilities associated with compliance or failure to comply with laws and regulations, customer contractual requirements and evolving industry standards regarding consumer privacy and data use and security; our failure to operate our business in accordance with the Payment Card Industry Security Standards Council security standards or other industry standards; the effects of ongoing foreign conflicts on the global economy; adverse conditions in the banking system and financial markets, including the failure of banks and financial institutions; our failure to comply with environmental, health and safety laws and regulations that apply to our products and the raw materials we use in our production processes; (ii) risks relating to ownership of our common stock, such as those associated with concentrated ownership of our stock by our significant stockholders and potential conflicts of interests with other stockholders; the impact of concentrated ownership of our common stock and the sale or perceived sale of a substantial amount of common stock on the trading volume and market price of our common stock; potential conflicts of interest that may arise due to our Board of Directors being comprised in part of directors who are principals of or were nominated by our significant stockholders; the influence of securities analysts over the trading market for and price of our common stock, particularly due to the lack of substantial research coverage of our common stock; the impact of stockholder activism or actual or threatened securities litigation on the trading price and volatility of our common stock; certain provisions of our organizational documents and other contractual provisions that may delay or prevent a change in control and make it difficult for stockholders other than our significant stockholders to change the composition of our Board of Directors; and (iii) general risks, such as relating to our ability to comply with a wide variety of complex evolving laws and regulations and the exposure to liability for any failure to comply; the effect of legal and regulatory proceedings and the adequacy of our insurance policies; and other risks that are described in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 5, 2026, and our other reports filed from time to time with the SEC.

We caution and advise readers not to place undue reliance on forward-looking statements, which speak only as of the date hereof. These statements are based on assumptions that may not be realized and involve risks and uncertainties that could cause actual results or other events to differ materially from the expectations and beliefs contained herein. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

**Company Overview**

CPI is a payments technology company providing a comprehensive range of physical and digital payment solutions for U.S. financial institutions, processors, fintechs, prepaid program managers, and more. We are a leader in several areas of the U.S. payment card solutions market, including debit and credit card production, personalization, and Software-as-a-Service-based ("SaaS-based") instant issuance solutions. We are also a market leader in the production of "Prepaid Debit Cards," defined as debit cards issued on the networks of the "Payment Card Brands" (Visa, Mastercard<sup>®</sup>, American Express<sup>®</sup> and Discover<sup>®</sup>) but not linked to a traditional bank account, and related secure packaging solutions. We serve thousands of customers through direct and indirect sales channels and have maintained long-standing relationships with our top customers.

Our revenues are primarily generated from the production of and services related to secure debit and credit cards that are issued on the networks of the Payment Card Brands, including Prepaid Debit Cards.

[**Table of Contents**](#Toc)

**Segment Overview**

In connection with our increased strategic focus on expanding and developing additional proprietary integrated technological solutions for its customer base and to reflect the manner in which the Company's Chief Operating Decision Maker ("CODM"), the Chief Executive Officer ("CEO") manages our business, we implemented a revised 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 the results of our proprietary integrated technological related operations into a separate segment from the former Debit and Credit segment. Our business consists of the following reportable segments:

● 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 acquired through the purchase of Arroweye in the second quarter of 2025;

● 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.

Operating results for prior periods have been recast to conform to the current period presentation. The updated

information reflects only reclassification of prior period segment data and does not represent a restatement of previously

issued financial statements.

**Results of Operations**

The following table presents the components of our condensed consolidated statements of operations and comprehensive income for each of the periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** | **$ Change** | **% Change** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Revenue <sup>(1)</sup> | $147108 | $122761 | $24347 | 19.8% |
| Cost of goods sold <sup>(1)</sup> | 102984 | 82065 | 20919 | 25.5% |
| &nbsp;&nbsp;Gross profit | 44124 | 40696 | 3428 | 8.4% |
| Selling, general and administrative expenses | 33130 | 26592 | 6538 | 24.6% |
| &nbsp;&nbsp;Income from operations | 10994 | 14104 | (3110) | (22.1)% |
| Other expense, net: |  |  |  |  |
| &nbsp;&nbsp;Interest, net | (7656) | (7685) | 29 | (0.4)% |
| &nbsp;&nbsp;Other income, net | 32 | 18 | 14 | 77.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before taxes and equity in losses of unconsolidated affiliates | 3370 | 6437 | (3067) | (47.6)% |
| Income tax expense | (1158) | (1663) | 505 | (30.4)% |
| Equity in losses of unconsolidated affiliates | (156) |  | (156) | \*% |
| &nbsp;&nbsp;Net income | $2056 | $4774 | $(2718) | (56.9)% |
| Gross profit margin | 30.0% | 33.2% |  |  |

---

\* Calculation not meaningful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)For the three months ended March 31, 2026 and 2025, revenue and cost of goods sold each include $4.2 million and $4.8 million of intersegment eliminations, respectively.

The following discussion of our condensed consolidated results of operations and segment results refers to the three months ended March 31, 2026, compared to the corresponding prior year period. The results of operations should be read in conjunction with the discussion of our segment results of operations, which provide more detailed discussions concerning certain components of the condensed consolidated statements of operations and comprehensive income.

[**Table of Contents**](#Toc)

*Revenue:*

Revenue increased for the three months ended March 31, 2026, primarily due to increased revenue in our Secure Card Solutions segment, driven by contributions of $16.1 million from the acquisition of Arroweye, increased volumes of contactless cards, including metal cards, and higher personalization services; partially offset by lower revenue in our Prepaid Solutions segment.

*Gross Profit and Gross Profit Margin:*

Gross profit increased for the three months ended March 31, 2026, primarily due to increased revenue, partially offset by negative sales mix and increased production costs, including increased depreciation expenses and tariffs totaling $3.0 million. Additional changes in tariff rates could further impact our results of operations during 2026.

Gross profit margin decreased for the three months ended March 31, 2026, primarily due to negative sales mix and increased production costs, including increased depreciation expenses and tariffs, partially offset by operating leverage from increased revenue.

*Selling, General and Administrative Expenses:* 

Selling, general and administrative expenses increased for the three months ended March 31, 2026, primarily due to increased costs of $2.4 million associated with the integration of Arroweye and increased compensation-related expenses resulting from increased headcount, including increased executive severance and employee performance-based incentive compensation.

*Interest, net*:

Interest expense was relatively consistent for the three months ended March 31, 2026.

*Other Income, net:*

Other income, net, was relatively consistent for the three months ended March 31, 2026.

*Income Tax Expense:*

Our effective tax rates on pre-tax income were 34.4% and 25.8% for the three months ended March 31, 2026 and 2025, respectively. The increase in the Company's effective tax rate for the three months ended March 31, 2026, compared to the prior year related to deductibility of stock-based compensation realized upon certain stock option exercises and restricted stock unit vesting and an increase in the valuation allowance related to states decoupling from recent favorable tax legislation changes.

**Segment Discussion**

*Secure Card Solutions:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** | **$ Change** | **% Change** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Revenue | $109851 | $81642 | $28209 | 34.6% |
| Gross profit | $27702 | $20819 | $6883 | 33.1% |
| Income from operations | $17268 | $14310 | $2958 | 20.7% |
| Gross profit margin | 25.2% | 25.5% |  |  |

---

*Revenue:* 

Revenue for Secure Card Solutions increased for the three months ended March 31, 2026, primarily due to contributions from the acquisition of Arroweye, increased volumes of contactless cards, including metal cards, and higher personalization services.

[**Table of Contents**](#Toc)

*Gross Profit and Gross Profit Margin:*

Gross profit for Secure Card Solutions increased for the three months ended March 31, 2026, primarily due to increased revenue, partially offset by increased production costs, including increased depreciation expenses and tariffs.

Gross profit margin was relatively consistent for Secure Card Solutions for the three months ended March 31, 2026.

*Income from Operations:*

Income from operations for Secure Card Solutions increased for the three months ended March 31, 2026, primarily due to increased gross profit, partially offset by increased selling, general and administrative expenses driven by increased compensation-related expenses resulting from increased headcount and other costs due to the Arroweye acquisition.

*Prepaid Solutions:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** | **$ Change** | **% Change** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Revenue | $22049 | $26713 | $(4664) | (17.5)% |
| Gross profit | $5666 | $9442 | $(3776) | (40.0)% |
| Income from operations | $4093 | $7999 | $(3906) | (48.8)% |
| Gross profit margin | 25.7% | 35.3% |  |  |

---

*Revenue:*

Revenue for Prepaid Solutions decreased for the three months ended March 31, 2026, primarily due to comparisons with strong sales of higher-value packaging solutions in the prior year period, partially offset by sales of closed loop payment cards.

*Gross Profit and Gross Profit Margin:*

Gross profit and gross profit margin for Prepaid Solutions decreased for the three months ended March 31, 2026, primarily due to lower operating leverage from decreased revenue and unfavorable sales mix.

*Income from Operations:*

Income from operations for Prepaid Solutions decreased for the three months ended March 31, 2026, primarily due to the factors discussed in "Gross Profit and Gross Profit Margin" above.

*Integrated Paytech:*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  | **Three Months Ended March 31,**  |
|  | **2026** | **2025** | **$ Change** | **% Change** |
|  | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Revenue | $19382 | $19253 | $129 | 0.7% |
| Gross profit | $10756 | $10435 | $321 | 3.1% |
| Income from operations | $6865 | $7393 | $(528) | (7.1)% |
| Gross profit margin | 55.5% | 54.2% |  |  |

---

*Revenue:*

Revenue for Integrated Paytech was relatively consistent for the three months ended March 31, 2026.

[**Table of Contents**](#Toc)

*Gross Profit and Gross Profit Margin:*

Gross profit and gross profit margin for Integrated Paytech were relatively consistent for the three months ended March 31, 2026.

*Income from Operations:*

Income from operations for Integrated Paytech decreased for the three months ended March 31, 2026, primarily due to increased selling, general and administrative expenses driven by increased compensation-related expenses resulting from increased headcount.

**Liquidity and Capital Resources**

At March 31, 2026, we had $19.3 million of cash and cash equivalents. Our primary source of liquidity has been cash generated from our operating activities, which has been driven by net income and fluctuations in working capital. Our working capital fluctuates primarily due to timing and size of tax payments, collections from customers, inventory purchases, payments of employee incentive programs, and interest payments on our outstanding Senior Notes, with the interest payments being due in the first and third quarters of the year.

Our ability to make investments in and grow our business, service our debt, and improve our debt leverage ratios, while maintaining strong liquidity, depends on our ability to generate excess operating cash flows. Although we can provide no assurances, we believe that our cash flows from operations, combined with our current cash levels and our senior secured revolving credit facility (the "ABL Revolver") with available borrowing capacity of $81.8 million as of March 31, 2026, will be adequate to fund debt service requirements and provide cash, as required, to support our ongoing operations, capital expenditures, lease obligations and working capital needs. Our future cash flows could be impacted by a variety of factors, some of which are beyond our control. Factors include, but are not limited to, demand from some of our customers for certain products and related services; changes in economic conditions, especially those impacting our customers; the pricing, terms and availability of goods and services that we purchase; and financings that we enter into.

***Cash Flows from Operating Activities***

Cash provided by operating activities for the three months ended March 31, 2026, increased to $13.6 million from $5.6 million for the three months ended March 31, 2025, primarily due to reduced working capital usage. Working capital benefited from decreased incentive payments related to a customer contract originally entered into in the first quarter of 2024, decreased employee performance-based incentive compensation and severance payments in 2026, and lower inventory purchases. These benefits were partially offset by timing of collections in accounts receivable and payments on accounts payable and prepaid expense balances.

***Cash Flows from Investing Activities***

*Capital Expenditures*

During the three months ended March 31, 2026, capital expenditures, including investments to support the business, such as machinery and information technology equipment, totaled $3.5 million.

***Cash Flows from Financing Activities***

As of March 31, 2026, and December 31, 2025, we had the following outstanding borrowings:

---

| | | |
|:---|:---|:---|
|  | **March 31,** <br>**2026** | **December 31,** <br>**2025** |
|  | **(dollars in thousands)** | **(dollars in thousands)** |
| Senior Notes | $265000 | $265000 |
| ABL Revolver | 15000 | 25000 |
| Unamortized deferred financing costs | (3097) | (3332) |
| &nbsp;&nbsp;Total long-term debt | $276903 | $286668 |

---

[**Table of Contents**](#Toc)

*Senior Notes*

On July 11, 2024 (the "Closing Date"), we completed a private offering by our wholly-owned subsidiary, CPI CG Inc. (the "Borrower"), of $285.0 million aggregate principal amount of 10.000% Senior Secured Notes due 2029 (the "Senior Notes") and related guarantees at an issue price of 100%. The Senior Notes mature on July 15, 2029 and interest is payable on January 15 and July 15 of each year.

The Company has obligations to make an offer to repay the Senior Notes, requiring prepayment in advance of the maturity date, upon the occurrence of certain events including a change of control and certain asset sales.

*ABL Revolver*

On the Closing Date, the Company and the Borrower entered into a credit agreement with JPMorgan, (the "ABL Revolver") providing for up to $75.0 million. The ABL Revolver matures on the earliest to occur of July 11, 2029, and the date that is 91 days prior to the maturity of the Senior Notes. We primarily utilize our ABL Revolver to provide general liquidity and to support shorter term financing requirements.

On July 2, 2025, the Company, the Borrower, and JPMorgan entered into the Amendment, which amends the ABL Revolver to, among other things, increase the available borrowing capacity from $75.0 million to $100.0 million. The Amendment did not modify the maturity date of the ABL Revolver nor the interest rate.

Borrowings under the ABL Revolver bear interest at a rate per annum that ranges based on the applicable term secured overnight financing rate as administered by the Federal Reserve Bank of New York plus 1.50% to 1.75% (subject, in each case, to a credit spread adjustment of 0.10%), based on the average daily borrowing capacity under the ABL Revolver over the most recently completed month. The unused portion of the ABL Revolver commitment accrues a commitment fee, which ranges from 0.375% to 0.50% per annum, based on the average daily excess availability under the ABL Revolver over the immediately preceding month.

Amounts borrowed and outstanding under the ABL Revolver and Senior Notes are required to be repaid in full, together with any accrued and unpaid interest, no later than July 15, 2029 and may be subject to earlier mandatory prepayment upon certain events.

**Material Cash Requirements**

Our material cash requirements include interest payments on our long-term debt, operating and finance lease payments, and purchase obligations to support our operations.

*Debt Service Requirements*

As of March 31, 2026, the total projected principal and interest payments on our borrowings are $368.4 million, primarily related to the Senior Notes, of which $26.8 million of interest is expected to be paid in the next 12 months.

The remaining interest payments are expected to be paid over the remaining term of the Senior Notes, which mature in 2029, and the principal is due upon maturity. We have estimated our future interest payments assuming no additional borrowings under the ABL Revolver, no early redemptions of principal on the Senior Notes, and no debt issuances or renewals upon the maturity dates of our notes. However, we may borrow additional amounts under the ABL Revolver, redeem principal on the Senior Notes early, or refinance all or a portion of our borrowings in future periods.

*Leases*

We lease equipment and real property for production and services. Refer to Part II, Item 8, *Financial Statements and Supplementary Data*, Note 9, "Financing and Operating Leases," in our Annual Report on Form 10-K for the year ended December 31, 2025, for details on our leasing arrangements, including future maturities of our operating lease liabilities.

[**Table of Contents**](#Toc)

In February 2024, we entered into a build-to-suit lease agreement to relocate and modernize our operations at our Fort Wayne, Indiana production facility, which commenced in the first quarter of 2025, and payments beginning in 2026. Under this lease agreement, we will pay an annual base rent of $0.9 million, subject to an annual rent increase of 2.0%. The lease is for 10 years and includes two consecutive options to extend the term of the lease by five years for each such option.

*Purchase Obligations*

A purchase obligation is an agreement to purchase goods or services that is enforceable, legally binding, and specifies all significant terms. As of March 31, 2026, there have not been any material changes to the purchase obligations disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

**Critical Accounting Policies and Estimates** 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements and accompanying notes. Actual results could differ from those estimates. Our Critical Accounting Policies and Estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, for which there were no material changes as of March 31, 2026, included:

● Revenue recognition, including estimates of work performed but not completed ,

● Income taxes, including estimates regarding future compensation for covered individuals, valuation allowances and uncertain tax positions,

● Business combinations.

**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

Not required due to smaller reporting company status.

**Item 4. Controls and Procedures**

***Evaluation of Disclosure Controls and Procedures***

Our management, under the supervision and with the participation of the Chief Executive Officer and Interim Chief Financial Officer, has evaluated the effectiveness of our controls and procedures related to our reporting and disclosure obligations (as defined by Rules 13a-15(e) and 15d-15(e) within the Exchange Act of 1934) as of March 31, 2026, which is the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the Chief Executive Officer and Interim Chief Financial Officer have concluded that, as of March 31, 2026, the disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act, is recorded, processed, summarized and reported, as applicable, within the time periods specified in the rules and forms of the SEC, and are designed to ensure that information required to be disclosed by us in the reports that we file or submit is accumulated and communicated to our management, including our Chief Executive Officer and Interim Chief Financial Officer, to allow timely decisions regarding required disclosure.

***Changes in Internal Control over Financial Reporting***

On May 6, 2025, the Company acquired Arroweye. We are currently in the process of integrating Arroweye's controls and processes into our control environment and will incorporate Arroweye in our assessment of the effectiveness of our internal control over financial reporting as of the end of 2026. Other than the change related to the integration of Arroweye, there were no changes that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

[**Table of Contents**](#Toc)

**PART II – Other Information**

**Item 1. Legal Proceedings**

Refer to Note 9, "Commitments and Contingencies" of the condensed consolidated financial statements in this report for information regarding legal proceedings.

**Item 1A. Risk Factors**

The risk factors disclosed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 set forth information relating to various risks and uncertainties that could materially adversely affect our business, financial condition and operating results. Such risk factors continue to be relevant to an understanding of our business, financial condition and operating results. As of the date of this Quarterly Report on Form 10-Q, there have been no material changes with respect to such risk factors.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

None.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

During the three months ended March 31, 2026, no directors or officers of the Company adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (each as defined in Item 408(a) of Regulation S-K).

**Item 6. Exhibits** 

---

| | |
|:---|:---|
| Exhibit<br>Number | Exhibit Description |
| 10.1 | [Form of 2026 Executive Short-Term Incentive Plan.](pmts-20260331xex10d1.htm) |
| 10.2 | [Form of Performance-Based Cash Unit Award Agreement under the CPI Card Group Inc. Omnibus Incentive Plan.](pmts-20260331xex10d2.htm) |
| 31.1 | [Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](pmts-20260331xex31d1.htm) |
| 31.2 | [Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](pmts-20260331xex31d2.htm) |
| 32.1 | [Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](pmts-20260331xex32d1.htm) |
| 32.2 | [Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](pmts-20260331xex32d2.htm) |
| 101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

[**Table of Contents**](#Toc)

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
|  | CPI CARD GROUP INC.<br>|
| May 5, 2026 | /s/ John Lowe |
|  | John Lowe |
|  | *President and Chief Executive Officer* |
|  | (Principal Executive Officer) |
| May 5, 2026 | /s/ Terra Grantham |
|  | Terra Grantham  |
|  | *Interim Chief Financial Officer* |
|  | (Principal Financial Officer) |
| May 5, 2026 | /s/ Donna Abbey Carmignani |
|  | Donna Abbey Carmignani |
|  | *Chief Accounting Officer* |
|  | (Principal Accounting Officer) |

---

## Exhibit 10.1

**Exhibit 10.1**

#### CPI CARD GROUP INC.

#### 2026 EXECUTIVE SHORT-TERM INCENTIVE PLAN
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Purpose</u>. This CPI Card Group Inc. (the "***Company***") Executive Short-Term Incentive Plan (the "***Plan***") is designed to align the interests of the Company and eligible key employees of the Company Group, as defined herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Adoption of the Plan</u>. The Company, intending to be legally bound, hereby adopts the Plan effective as of January 1, 2026 (the "***Effective Date***"). The Plan shall be in effect from the Effective Date and shall continue through December 31, 2026, unless earlier terminated or amended by the Company in accordance with Section 8(e) (the "***Term***"). The expiration or termination of the Term shall not in any event reduce or adversely affect any amounts due to any Participant hereunder for any Performance Period ending on or before such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>General</u>. Unless explicitly provided for in a written agreement between the Company and a Participant, the compensation provided under the Plan is intended to be in addition to all other compensation payable to Participants under any employment agreement or incentive plan or program in effect with the Company or its direct or indirect subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Definitions</u>. For purposes of this Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"***Adjusted EBITDA***" means EBITDA as may be adjusted for (i) stock compensation expense, (ii) foreign currency changes, (iii) legal costs incurred with certain patent, shareholder and other litigation, (iv) impairments, (v) restructuring charges, (vi) operations discontinued, divested or restructured, including severance costs, (vii) charges directly related to acquisitions and divestitures, (viii) executive officer severance payments, and (ix) other significant, unusual and non-recurring charges as determined by the Committee in its sole discretion, For the avoidance of doubt, the Committee may resolve to modify the foregoing adjustments during the Term without amending the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***Annual Performance Incentive***" means the amount designated as the Annual Performance Incentive in a Participant's Participation Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"***Board***" means the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"***Cause***" means, unless otherwise specified in a Participant's employment or other written agreement between the Participant and the Company in effect as of the date of the Participant's termination of employment, the Participant's (i) material breach of Participant's duties and responsibilities, which is not remedied within thirty (30) days after the Company gives the Participant written notice specifying such breach, (ii) commission of a felony, (iii) commission of or engaging in any act of fraud, embezzlement, theft, a material breach of trust or any material act of dishonesty involving the Company or its subsidiaries, which, in each case, proximately causes substantial and material economic injury to the Company and its subsidiaries, taken as a whole, (iv) significant violation of the code of conduct of the Company or its subsidiaries or of any statutory or common law duty of loyalty to the Company or its subsidiaries, or (v) the Participant's material breach of any written covenant or agreement with the Company or its subsidiaries not to disclose any confidential information related to the Company or its subsidiaries,

------

or not to compete or interfere with the Company or its subsidiaries, which, in each case that, if susceptible to remedy, is not remedied within thirty (30) days after the Company gives the Participant written notice specifying such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)"***Committee***" means the Compensation Committee of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)"***Company Group***" means the Company and its direct and indirect subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***Disability***" means, unless otherwise specified in a Participant's employment or other written agreement between the Participant and the Company in effect as of the date of the Participant's termination of employment, a Participant's inability, due to physical or mental incapacity, to perform the essential functions of the Participant's job, for one hundred eighty (180) consecutive days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)"***EBITDA***" means the Company's earnings from continuing operations, before interest, taxes, depreciation, and amortization as determined in accordance with past practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***Good Leaver***" means a Participant whose employment or service with the Company Group is terminated by the Company for a reason other than Cause, is terminated by the Participant for Good Reason or is terminated due to the Participant's death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)"***Good Reason***" means, unless otherwise specified in a Participant's employment or other written agreement between the Participant and the Company in effect as of the date of the Participant's termination of employment, any of the following, in each case, without the Participant's written consent: (i) a change in the Participant's title or any material diminution of Participant's responsibilities or authority or the assignment of any duties inconsistent with the Participant's position, in each case, compared to what was in effect as of the Effective Date; (ii) a reduction of the Participant's annual base salary; or (iii) a relocation of the Participant's principal office location more than fifty (50) miles from the Company's offices at which the Participant is based as of the Effective Date (except for required travel on the Company's business to an extent substantially consistent with the Participant's business travel obligations as of the Effective Date or remote work arrangements). Notwithstanding the foregoing, the occurrence of an event that would otherwise constitute Good Reason will cease to be an event constituting Good Reason upon any of the following: (x) the Participant's failure to provide written notice to the Company within thirty (30) days of the first occurrence of such event; (y) substantial correction of such occurrence by the Company within thirty (30) days following receipt of the Participant's written notice described in (x); or (z) the Participant's failure to actually terminate employment within the thirty (30)-day period following the expiration of the Company's thirty (30)-day cure period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)"***Mid-Year Performance Incentive***" means the amount designated in the Participant's Participation Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)"***Participant***" shall have the meaning ascribed thereto in Section 5 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)"***Participation Statement***" means the statement provided to a Participant describing the Participant's opportunity to earn a Performance Incentive under this Plan.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)"***Performance Goals***" means the Performance Metrics established by the Committee for the Board and set forth in <u>Exhibit A</u> hereto, that will consist of (i) Mid-Year Threshold Performance Goals, (ii) Mid-Year Target Performance Goals, (iii) Annual Threshold Performance Goals, (iv) Annual Target Performance Goals, and (v) Annual Maximum Performance Goals (collectively, the "***Annual Performance Goals***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)"***Performance Incentive***" means the Mid-Year Performance Incentive and the Annual Performance Incentive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)"***Performance Metric***" means the specific performance criteria used in determining Performance Goals for the Performance Period; provided that each Performance Metric shall be adjusted on a pro forma basis to take into account any acquisitions or dispositions consummated during the Performance Period. To the extent relevant, the Committee shall have the discretion to adjust the Performance Metrics to exclude costs and benefits associated with the Company's restructuring and other unusual and/or non-recurring items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)"***Performance Period***" means with respect to the calendar year indicated in a Participant's Participation Statement, (i) for a Participant's Mid-Year Performance Incentive, Period One is January through March and Period 2 is January through June (each, a "***Mid-Year Performance Period***"), and (ii) for a Participant's Annual Performance Incentive, such calendar year (an "***Annual Performance Period***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)"***Section 409A***" means Section 409A of the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Eligible Participants</u>. Each person designated by the Committee from time to time shall be a Participant under the Plan and eligible to receive a Mid-Year Performance Incentive and an Annual Performance Incentive with respect to each applicable Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Term of Participation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Mid-Year Performance Incentive</u>. Mid-Year Performance Incentives will be earned in accordance with this <u>Section 6(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Single Period Measurement</u>. Subject to the provisions of this Plan and any Participation Statement, each Participant shall earn a Mid-Year Performance Incentive as of the end of each Performance Period, which is assessed based on the full-year forecast. As a result, the period's performance—whether above or below target—does not on its own determine the incentive outcome. Achievement generally reflects overall progress toward full-year expectations. Payment of any Mid-Year Performance Incentive to a Participant shall not exceed 100% of the target opportunity for such Mid-Year Performance Incentive (set forth in the Participant's Participation Statement) regardless of the extent to which the Company may exceed the Performance Goals for such Performance Period (the "***Mid-Year Payment Cap***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Annual Performance Incentive</u>. Annual Performance Incentives will be earned in accordance with this <u>Section 6(b)</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Annual Measurement</u>. Subject to the provisions of this Plan and any Participation Statement, each Participant shall earn an Annual Performance Incentive as of the end of the applicable Annual Performance Period, depending upon the extent to which the applicable Performance Goals have been achieved for such Annual Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Annual True-Up</u>. For each Participant, the Company shall perform a year-end "true-up" calculation to determine if each such Participant is owed an additional payment ("***True-Up Payment***") up to the Incentive Cap as a result of the applicability of the Mid-Year Payment Cap to the payment of any Mid-Year Performance Incentives. Subject to the Incentive Cap, the Company shall pay an annual True-Up Payment at the end of the applicable Annual Performance Period equal to the excess of (i) the aggregate Mid-Year Performance Incentives that would have been payable to the Participant if the Mid-Year Payment Cap were not applied over (ii) the aggregate amount of Mid-Year Performance Incentives previously paid to the Participant pursuant to <u>Section 6(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Annual Measurement and the Annual True-Up will be subject to adjustment should the aggregate amount of the total Performance Incentives previously paid to the Participant be in excess of the annual aggregate year end performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Performance Goals</u>. <u>Exhibit A</u> sets forth the (i) relevant Performance Goals for each Performance Period and (ii) the percentage of each Participant's Mid-Year Performance Incentive amount and Annual Incentive Performance amount payable upon the achievement of the applicable Performance Goals. The payout schedule for a Performance Incentive for a Participant shall be based on the (a) Participant's individual target payment amount that has been approved by the Committee and included in the Participant's Participation Statement and (b) the level of achievement of the applicable Performance Metrics for a particular Performance Period. Except as otherwise may be provided by the Committee, in its sole discretion, no Performance Incentive shall be payable for a Performance Metric unless the applicable Threshold Performance Goals for such Performance Metric (set forth in <u>Exhibit A</u>) are achieved. Notwithstanding anything to the contrary herein, the Committee shall have the right, in its sole discretion, to modify (including any increase or reduction) or eliminate all or any portion of any Performance Incentive payable to a Participant based on individual performance or any other factors that the Committee, in its discretion, shall deem appropriate. For avoidance of doubt, in no circumstance shall any increase modification of the Performance Incentive be more than the Incentive Cap.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Incentive Cap</u>. The cumulative payment to any Participant of any amounts hereunder, including the Mid-Year Performance Incentives, the Annual Performance Incentive and the True-Up Payment, shall not exceed the applicable maximum Performance Metrics established by the Committee (the "***Incentive Cap***") relating to such Participant's target opportunity for Mid-Year Performance Incentives and Annual Performance Incentive (set forth in the Participant's Participation Statement) regardless of the extent to which the Company may exceed the Performance Goals for any Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Continued Employment</u>. Except as set forth below, to earn a Performance Incentive for any Performance Period, a Participant must remain employed by the Company Group through the date on which the Performance Incentive for the applicable Performance Period is

------

paid. Except as set forth in this <u>Section 6(e)</u>, a Participant whose employment with the Company terminates for any reason prior to the date on which the Performance Incentive for the applicable Performance Period is paid shall forfeit the right to any Performance Incentive for that Performance Period. Notwithstanding the foregoing, a Participant who becomes a Good Leaver shall be entitled to a pro rata portion (based on the percentage of the applicable Mid-Year Performance Period the Participant was employed by the Company Group at the time the Participant became a Good Leaver) of the associated Mid-Year Performance Incentive that would otherwise have been earned for such Mid-Year Performance Period determined based on actual achievement of the relevant Performance Goals. For the avoidance of doubt, a Participant who becomes a Good Leaver shall not be entitled to a pro rata portion of the Annual Performance Incentive that would have been earned for such Annual Performance Period unless otherwise (and only to the extent) determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Performance Certification</u>. Promptly after the end of each Performance Period and as soon as quarterly or annual financials, as applicable, are estimable, the Committee shall certify the degree to which the applicable Performance Goals have been achieved and the amount of the applicable Performance Incentive payable to each Participant hereunder. Any Performance Incentive required to be made under this Plan shall be paid on a fully-vested basis by the Company as soon as practicable after the end of the applicable Performance Period, but in any event not less than (i) forty five (45) days after the end of the Performance Period with respect to the Mid-Year Performance Incentive for the first, second and third Mid-Year Performance Periods, and (ii) two and a half (2½) months after the end of the Annual Performance Period with respect to the fourth quarter Mid-Year Performance Incentive and the Annual Performance Incentive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Plan Administration</u>. This Plan shall be administered by the Committee. The Committee is given full authority and discretion within the limits of this Plan to establish such administrative measures as may be necessary to administer and attain the objectives of this Plan and may delegate the authority to administer the Plan to an officer of the Company. The Committee (or its delegate, as applicable) shall have full power and authority to construe and interpret this Plan and any interpretation by the Committee shall be binding on all Participants and shall be accorded the maximum deference permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All rights and interests of Participants under this Plan shall be non-assignable and nontransferable, and otherwise not subject to pledge or encumbrance, whether voluntary or involuntary, other than by will or by the laws of descent and distribution. In the event of any sale, transfer or other disposition of all or substantially all of the Company's assets or business, whether by merger, stock sale, consolidation or otherwise, the Company may assign this Plan to the acquirer in such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any payment to a Participant in accordance with the provisions of this Plan shall, to the extent thereof, be in full satisfaction of all claims against the Company Group related to this Plan, and the Company may require Participant, as a condition precedent to such payment, to execute a receipt and release to such effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Payment of amounts due under the Plan shall be provided to a Participant in the same manner as Participant receives his or her regular paycheck or by mail at the last known address of Participant in the possession of the Company, at the discretion of Committee. The

------

Company may deduct all applicable taxes and any other withholdings required to be withheld with respect to the payment of any award pursuant to this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to ensure the payment of any award provided for hereunder. Performance Incentive payments shall not be considered to be extraordinary, special incentive compensation, and such payments will not be included as "earnings," "wages," "salary," or "compensation" in any welfare, life insurance or other arrangement of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Company shall have the right, in its sole discretion, to modify, supplement, suspend or terminate this Plan at any time; <u>provided</u> that, except as required by law, in no event shall any amendment or termination adversely affect the rights of Participants regarding any Performance Incentive for a Performance Period that has commenced as of the date of such action without the prior written consent of the affected Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Nothing contained in this Plan shall in any way affect the right and power of the Company to discharge any Participant or otherwise terminate his or her employment at any time or for any reason or to change the terms of his or her employment in any manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Except as otherwise provided under this Plan, any expense incurred in administering this Plan shall be borne by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Captions preceding the sections hereof are inserted solely as a matter of convenience and in no way define or limit the scope or intent of any provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The administration of the Plan shall be governed by the laws of Colorado, without regard to the conflict of law principles of any state. Any persons or corporations who now are or shall subsequently become parties to the Plan shall be deemed to consent to this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)The Plan is intended to be exempt from the requirements of Section 409A and each payment hereunder shall be considered a separate payment. To the extent that the Plan is not exempt from the requirements of Section 409A, the Plan is intended to comply with the requirements of Section 409A and shall be limited, construed and interpreted in accordance with such intent. In the event that amounts payable hereunder are considered "deferred compensation" subject to Section 409A and the Participant is a "specified employee" for purposes of Section 409A, then no payment of any amount that is due under this Plan because of a "separation from service" (as defined in Section 409A without regard to alternative definitions thereunder) will be paid before the date that is six months following the date of such Participant's "separation from service" (as defined in Section 409A without regard to alternative definitions thereunder) or, if earlier, the date of the Participant's death, unless such payment can be made in a manner that complies with Section 409A, and any amounts so deferred will be paid in a lump sum on the day after such six month period elapses. Notwithstanding the foregoing, in no event whatsoever shall the Company be liable for any additional tax, interest, income inclusion or other penalty that may be imposed on a Participant by Section 409A or for damages for failing to comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Nothing contained in this Plan is intended to limit the Participant's ability to (i) report possible violations of law or regulation to, or file a charge or complaint with, the

------

Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state or local governmental agency or commission ("Government Agencies"), (ii) communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company or (iii) under applicable United States federal law to (A) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (B) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)The awards granted under this Plan and any payment under this Plan are subject to forfeiture, recovery by the Company or other action pursuant to the applicable Participation Statement or any Company clawback or recoupment policy of the Company, including without limitation any such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

\* \* \* \* \* \* \* \*

IN WITNESS WHEREOF, the Company has caused the Plan to be signed by its duly authorized officer as of the date first set forth above.

**CPI CARD GROUP INC.**

By: <u>/s/ Sonya Vollmer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> <br>Name: Sonya Vollmer<br>Its: Chief Human Resources Officer

------

## Exhibit 10.2

**Exhibit 10.2**

#### CPI CARD GROUP INC.<br>amended and restated Omnibus Incentive Plan

#### PERFORMANCE-Based Cash unit AWARD GRANT NOTICE
CPI Card Group Inc. (the "**Company**") hereby awards to the Participant set forth below the Performance-Based Cash Unit Award set forth below (the "**Award**"). The Award is subject to all of the terms and conditions as set forth in this Performance-Based Cash Unit Award Grant Notice (the "**Notice**"), the attached Performance-Based Cash Unit Award Agreement (the "**Agreement**") and the CPI Card Group Inc. Amended and Restated Omnibus Incentive Plan (the "**Plan**"). The Plan is available through Participant's AST/EQ account and is incorporated herein in its entirety. Capitalized terms not explicitly defined herein but defined in the Plan or the Agreement will have the same definitions as in the Plan or the Agreement. In the event of any conflict between the terms of the Award and the Plan, the terms of the Plan will control.

---

| | |
|:---|:---|
| Participant: | [____] |
| Grant Date: | [____], 2026 |
| Performance Period: | January 1, 2026 – December 31, 2028 |
| Target Number of Performance-Based Cash Units: | [____] |

---

#### By Participant's acceptance of this Award, Participant agrees that this Award is granted under and governed by the terms and conditions of the CPI Card Group Inc. Amended and Restated Omnibus Incentive Plan and by the terms and conditions of the Performance-Based Award Agreement, each of which is attached to this Notice.

------

#### cash-settled PERFORMANCE-BASED Cash UNIT AGREEMENT
This CASH-SETTLED PERFORMANCE-BASED CASH UNIT AGREEMENT (this "**Agreement**") is made effective as of the Grant/Award Date set forth on the Notice hereto (the "**Grant Date**") by and between CPI Card Group Inc., a Delaware corporation (the "**Company**"), and the participant set forth on the Notice hereto (the "**Participant**"), pursuant to the CPI Card Group Inc. Amended and Restated Omnibus Incentive Plan (the "**Plan**"). Capitalized terms that are not defined herein shall have the meanings given to such terms in the Plan.

WHEREAS, the Company desires from time to time to grant Performance-Based Awards to certain key Employees, Directors and Consultants of the Company and its Subsidiaries or Affiliates;

WHEREAS, the Company has adopted the Plan in order to effect such Awards; and

WHEREAS, the Participant is an Eligible Recipient as contemplated by the Plan, and the Committee has determined that it is in the interest of the Company to grant this Award to the Participant.

NOW, THEREFORE, in consideration of the premises and subject to the terms and conditions set forth herein and in the Plan, the parties hereto agree as follows:

**1.** **Grant and Vesting of Performance-Based Cash Units.** The Company hereby grants to Participant the Performance-Based Cash Units set forth on the Notice (the "**Performance Cash Units**"), subject to adjustment, forfeiture and the other terms and conditions set forth below and in the Plan. This Award represents Participant's right to receive a cash payment with respect to the number of Performance Cash Units set forth on the <u>Notice</u>, subject to Participant's fulfillment of the conditions set forth in this Agreement including, without limitation, the achievement of the performance criteria as approved by the Committee and reflected in <u>Exhibit</u><u> </u><u>A</u> (the "**Performance Goals**") during the performance period reflected in the <u>Notice</u> (the "**Performance Period**"). Except as otherwise provided for in this Agreement, the Award shall be settled in the form of a cash payment following the conclusion of the Performance Period to the extent the underlying Performance Goals and other vesting conditions are achieved, but in any event no later than March 15th following the conclusion of the Performance Period, as specified in <u>Exhibit A</u>.

**2.** **Termination of Service.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Continuous Service Required</u>. Except as may otherwise be provided in the Participant's employment or other services agreement with the Company or any of its Affiliates and which is in effect on the Grant Date, the Participant shall forfeit the unvested Performance Cash Units upon a termination of Service occurring for any reason prior to the vesting of the Performance Cash Units as described in <u>Exhibit A</u> (including for or without Cause or due to the Participant's voluntary resignation), other than due to the Participant's (i) termination due to death or Disability, (ii) Retirement or (iii) Qualifying Termination (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Termination due to Death or Disability</u>. Notwithstanding the foregoing, in the event that the Participant's Service terminates by reason of the Participant's death or termination by the Company due to Disability prior to the vesting of the Performance Cash Units as described in

------

<u>Exhibit A</u>, the unvested Performance Cash Units shall vest at the target achievement level as of the date of such termination of Service and shall be paid to the Participant as soon as practicable thereafter, but in any case no later than March 15<sup>th</sup> of the year following the year in which such termination of Service occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Termination due to Retirement</u>. Notwithstanding the foregoing, in the event that the Participant's Service terminates by reason of the Participant's Retirement, then the Performance Cash Units shall remain outstanding and shall be eligible to vest based on actual achievement of the Performance Goals during the Performance Period and shall be paid to the Participant following the conclusion of the Performance Period, but in any case no later than March 15th of the year following the year in which the Performance Period concludes; provided, however, if a Change in Control occurs following the Participant's Retirement, then the Performance Cash Units shall be settled within 60 days following such Change in Control based on the target level of performance; provided, further, in the event of a Retirement following a Change in Control, the Performance Cash Units shall be settled based on the target level of performance and shall be settled within 60 days following such Retirement, in each case, subject to Section 12(e) of this Agreement.

**3. Qualifying Terminations Following a Change in Control.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Qualifying Termination</u>. Notwithstanding any language in the Plan or the Participant's employment or other services agreement with the Company or any Affiliate to the contrary and except as otherwise provided for in Section 2(c), the Performance Cash Units will not vest solely upon a Change in Control unless the Performance Cash Units are not assumed by the Company's successor or converted to an equivalent value award upon substantially the same terms effective immediately following the Change in Control, in which case the unvested Performance Cash Units shall vest upon such Change in Control, at the greater of (i) the target level of performance and (ii) the estimated payout level per the Payout Grid in <u>Exhibit A</u> (determined at the time of the Change in Control by the Committee as constituted prior to the Change in Control consistent with the Company's past practice and methodology and projections utilized by the Company prior to the consummation of the Change in Control); provided that if any of the Performance Cash Units constitute nonqualified deferred compensation within the meaning of Section 409A of the Code and the settlement of such Performance Cash Units would not be permitted under Section 409A of the Code without subjecting such Performance Cash Units to additional taxes under Section 409A of the Code, then such Performance Cash Units shall vest upon such Change in Control but shall be settled in accordance with <u>Exhibit A</u>. In the event the Performance Cash Units are effectively assumed in a Change in Control, if the Participant experiences a Qualifying Termination, the unvested Performance Cash Units will immediately vest upon such Qualifying Termination, at the greater of (i) the target level of performance and (ii) the estimated payout level per the Payout Grid in <u>Exhibit A</u> (determined at the time of the Change in Control by the Committee as constituted prior to the Change in Control consistent with the Company's past practice and methodology and projections utilized by the Company prior to the consummation of the Change in Control). A "**Qualifying Termination**" occurs if on or prior to the two-year anniversary of a Change in Control or during any additional protection period applicable to any outstanding equity or non-equity award specified in the Participant's employment or other services agreement with the Company or any of its Affiliates which is in effect on the Grant Date, the Participant's Service is terminated (i) by the Company without Cause

------

or (ii) by the Participant for Good Reason; provided, however, if the protection period includes any period in advance of a Change in Control (the "**Pre-Change in Control Protection Period**") and the Participant's Service is terminated during the Pre-Change in Control Protection Period, then the Award shall remain outstanding during such Pre-Change in Control Protection Period and shall vest and be settled in accordance with this Section 3(a) only to the extent that a Change in Control occurs on or prior to the expiration of such Pre-Change in Control Protection Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Good Reason</u>. For purposes of this Agreement, "**Good Reason**" shall have the same meaning set forth in the Participant's employment or other services agreement with the Company or any of its Affiliates and which is in effect on the Grant Date. If the Participant is not party to such an agreement that defines such term, "**Good Reason**" shall mean the occurrence of any of the following circumstances or events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)a material reduction by the Company or its Affiliates of the Participant's base compensation (other than pursuant to an across-the-board reduction in base compensation applicable to similarly situated service providers of the Company or its Affiliates);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the transfer of the Participant's principal place of Service to a location fifty (50) or more miles from its location immediately preceding the transfer, provided that any requirement for the Participant to perform his/her work for the Company remotely shall not constitute Good Reason hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)the material diminution by the Company or its Affiliates of the Participant's duties or responsibilities with respect to his or her Service.

The Participant will provide the Company with written notice describing which of the circumstances above is cause for the Good Reason termination within thirty (30) calendar days after the occurrence of the event giving rise to the notice. The Company will have thirty (30) calendar days from the receipt of such notice to cure the event prior to the Participant exercising his or her right to terminate for Good Reason and, if not cured, the Participant's termination will be effective upon the expiration of such cure period.

**4. Tax Withholding.** The Company shall have the right to withhold from any payment hereunder all applicable federal, state, local and other taxes as required by law. No cash payment pursuant to the Performance Cash Units shall be made to the Participant until the applicable withholding taxes have been satisfied in full.

**5.** **Restrictive Covenants.** <u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)In exchange for good and valuable consideration, including the Performance Cash Units granted herein, the sufficiency of which is acknowledged, the Participant agrees as follows (the "**Restrictive Covenants**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Duties of Confidentiality*. In recognition of the Confidential Information as outlined below, the Participant agrees that until the earlier of the date that the Confidential Information becomes publicly available (other than through a breach by the Participant or by anyone else who has a legal obligation to maintain confidentiality) or five years from

------

the date hereof, the Participant shall: (i) hold and safeguard all Confidential Information in trust for the Company and its successors and assigns; (ii) not appropriate or disclose or make available to anyone for use outside of the Company's organization at any time, either during the Participant's Service with the Company or subsequent to the Participant's termination of Service with the Company for any reason, any Confidential Information, whether or not developed by the Participant, except as required in the performance of the Participant's duties to the Company; (iii) keep in strictest confidence any Confidential Information; and (iv) not disclose or divulge, or allow to be disclosed or divulged by any person within the Participant's control, to any person, firm, or corporation, or use directly or indirectly, for the Participant's own benefit or the benefit of others, any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)*Non-Disclosure*. At all times during the Participant's Service and thereafter, the Participant shall not, without the Company's prior written consent: (i) use or exploit for any purpose not related to the Participant's duties as an employee of the Company, or (ii) disclose to any person or entity, other than an officer, director, or employee of the Company to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Participant of his or her duties for the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) which is under a duty of confidentiality to the Company to maintain the confidentiality of the Company's information or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) to which the Company was instructed by a third party to disclose such third party's Confidential information,

any Confidential Information belonging to the Company or its clients or business partners or marketing partners; provided, however, that Confidential Information shall not include any information known or readily available to the public (other than as a result of an unauthorized disclosure by the Participant).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)*Inventions and Intellectual Property*. The Participant hereby assigns to Company, the Participant's entire right, title, and interest in any Intellectual Property Developments. The Participant will promptly disclose Intellectual Property Developments to Company's management as appropriate and will, on the Company's request, promptly execute a specific assignment of title to the Company, and do anything else reasonably necessary to enable the Company to secure a patent, copyright or other form of protection therefor in the United States and in other countries. The Company is not required to designate the Participant as author of any design, computer program or related documentation, or other work of authorship assigned by the Participant to the company when distributed publicly or otherwise, nor to make any distribution. The Participant waives and releases, to the extent permitted by law, all of the Participant's rights to the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)*Trade Secrets; Whistleblower Protection*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)18 U.S.C. § 1833(b) provides: "An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the

------

disclosure of a trade secret that—(A) is made—(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal." Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Accordingly, the parties to this Agreement have the right to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. The parties also have the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)Notwithstanding anything to the contrary contained herein, no provision of this Agreement shall be interpreted so as to impede the Participant (or any other individual) from reporting possible violations of federal law or regulation to any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures under the whistleblower provisions of federal law or regulation. The Participant does not need the prior authorization of the Company to make any such reports or disclosures and the Participant shall not be required to notify the Company that such reports or disclosures have been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)*Non-Competition and Non-Solicitation*. During the period of the Participant's Service and for one (1) year following the termination thereof (the "**Restricted Period**"), the Participant shall not and shall cause each of his or her Affiliates not to, directly or indirectly, without the Company's prior written consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)Provide Competitive Products or Services to any other person or entity who competes with, or within the Restricted Period commences to compete with, the Company in the Business within the Restricted Area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)Call on or solicit, or assist any other person or entity in calling on or soliciting, for Competitive Products or Services, any Restricted Customers/Business Partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)Provide Competitive Products or Services to any Restricted Customers/Business Partners; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)Solicit, recruit, hire, or encourage, or attempt to or assist others to solicit, recruit, hire, or encourage, any person employed by the Company to provide services to any other person or entity who competes with, or within the Restricted Period commences to compete with, the Company in the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)*Participant's Duties on Termination*. In the event of termination of Service with the Company, regardless of the circumstances of the termination, the Participant

------

agrees to deliver promptly to the Company all of its property and all Confidential Information, in whatsoever form, including, but not limited to equipment, software, data files, databases, notebooks, documents, memoranda, reports, files, samples, books, correspondence, lists, or other written or graphics records relating to the Company which are or have been in his/her possession or under his/her control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)*Other Covenants*. For the avoidance of doubt, the Restrictive Covenants are in addition to, and not in lieu of, any restrictive covenants to which the Participant may otherwise be subject, whether under the terms of his or her employment or services agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)*Acknowledgement*. The Participant acknowledges that these Restrictive Covenants are reasonably necessary to protect the Company's and its clients' and business partners' legitimate business interests. The Participant also acknowledges that by serving in his or her current position, he/she is in an executive/management level position and has been entrusted with access to trade secrets and confidential information that, if made available to non-Company employees, would cause the Company to suffer damages which will be difficult if not impossible to calculate because of the significant time, effort and expense the Company expended in developing such trade secrets and confidential information. The Participant shall confirm, in writing, that he/she is complying with the terms of this provision in response to any inquiry by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)"**Business**" means the business of providing payment technology, including, without limitation, a comprehensive range of credit, debit, and prepaid card solutions, complementary digital solutions, personalization, and Software-as-a-Service (SaaS) instant issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)"**Competitive Products or Services**" means products or services of the type in which the Participant was involved on behalf of the Company at any time during the two (2) year period preceding the termination of the Participant's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)"**Confidential Information**" means all proprietary and confidential information belonging to the Company and its clients, business partners, and manufacturing partners, including, but not limited to, trade secrets, as well as: (A) the Company's products, technology or processes, whether now existing or hereafter developed by the Company; (B) the names, addresses, telephone numbers of customers, their buying habits, terms of sale extended to customers, including credit terms, if any, or other practices of any Company customers; (C) the Company's prospective customer lists; (D) any and all information related to the pricing of the Company's products; (E) any and all information regarding the Company's marketing or branding strategies and/or campaigns and the costs thereof; (F) information related to the Company's design, manufacture, and distribution of its products; (G) information pertaining to the identity of and contact information for the Company's business partners and manufacturing partners; (H) information (such as designs and marketing plans) belonging to the Company's

------

customers and business partners that is not yet made available to the public; (I) identity of employees, consultants, and agents of the Company and their respective terms of employment or engagement; (J) information concerning customers or customer accounts of the Company's clients and other customer information, including "Personally Identifiable Financial Information" as defined under Regulation P, 12 C.F.R. 216, or under the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801, *et seq*.; and (K) information that if disclosed would give the Company's competitors in the financial cards business an unfair competitive advantage over the Company in the marketplace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)"**Intellectual Property Developments**" means any idea, invention, design of a useful article (whether the design is ornamental or otherwise), computer program and related documentation, and other work of authorship hereafter made or conceived solely or jointly by the Participant, or created wholly or in part by the Participant (whether or not such Intellectual Property Developments are patentable, copyrightable or susceptible to other forms of protection) if such Intellectual Property Developments relate to the actual or anticipated business or research or development of the Company, or are suggested by or result from any task assigned to the Participant or work performed by the Participant for or on behalf of the Company. Excluded from the definition of "Intellectual Property Developments" are any matters: (A) that the Participant cannot assign to the Company, because of prior agreement with a third party; or (B) which were previously made or conceived solely or jointly by the Participant; or (C) which were written wholly or in part by the Participant, but neither published nor filed in any patent office. <u>The Participant has identified all such matters on the Conflict of Interest Disclosure Statement attached hereto</u>, if any, specifying for each the nature and date of conception and any document evidencing such matter (by date, title and witness on document).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)"**Restricted Customers/Business Partners**" means the Company's customers and/or business partners with whom the Participant had any business-related contact or about whom the Participant had access to any Confidential Information within the two (2) years preceding the Participant's termination of employment with the Company for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "**Restricted Area**" means the United States and Canada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Reasonableness of Restrictions</u>. The Participant agrees that the scope and duration of the Restrictive Covenants are reasonable and necessary to protect the legitimate business interests of the Company. The Participant also agrees that these Restrictive Covenants will not preclude the Participant from obtaining other gainful employment in his or her profession.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Remedies for Breach</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Forfeiture of Award*. In the event of the Participant's breach of any of the Restrictive Covenants during the Performance Period, the Performance Cash Units (whether vested or unvested) shall immediately be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)*Recoupment*. In the event of the Participant's breach of any of the Restrictive Covenants, the Company shall be entitled to recover any amounts paid to the Participant upon the vesting of the Performance Cash Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)*Other Relief*. In the event of the Participant's actual or threatened breach of this Agreement, the Participant agrees that the Company will be entitled to provisional and injunctive relief in addition to any other available remedies at law or equity.

**6. Nontransferability of Performance Cash Units.** 

The Performance Cash Units granted hereunder may not be sold, transferred, pledged, assigned, encumbered or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or, on such terms and conditions as the Committee shall establish, to a permitted transferee.

**7.** **Beneficiary Designation.** 

The Participant may from time to time name any beneficiary or beneficiaries (who may be named contingently or successively) by whom any right under the Plan and this Agreement is to be exercised in case of his or her death. Each designation will revoke all prior designations by the Participant, shall be in a form reasonably prescribed by the Committee, and will be effective only when filed by the Participant in writing with the Committee during his or her lifetime.

**8. Transfer of Data.**

The Participant consents to the Company or any Affiliate thereof processing data relating to the Participant for legal, personnel, administrative and management purposes and in particular to the processing of any sensitive personal data relating to the Participant. The Company may make such information available to any Affiliate thereof, those who provide products or services to the Company or any Affiliate thereof (such as advisers and payroll administrators), regulatory authorities, potential purchasers of the Company or the business in which the Participant works, and as may be required by law.

**9. No Guarantee of Continued Service.** 

Nothing in the Plan or in this Agreement shall interfere with or limit in any way the right of the Company or an Affiliate thereof to terminate the Participant's Service at any time or confer upon the Participant any right to continued Service.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**10. Interpretation; Construction.** 

Any determination or interpretation by the Committee under or pursuant to this Agreement shall be final and conclusive on all persons affected hereby. Except as otherwise expressly provided in the Plan, in the event of a conflict between any term of this Agreement and the terms of the Plan, the terms of the Plan shall control.

**11. Amendments.** 

The Committee may, in its sole discretion, at any time and from time to time, alter or amend this Agreement and the terms and conditions of the Performance Cash Units in whole or in part, including without limitation, amending the criteria for vesting set forth in <u>Exhibit A</u> hereof and substituting alternative vesting criteria; provided that such alteration, amendment, suspension or termination shall not materially impair the rights of the Participant under the Performance Cash Units without the Participant's consent. The Company shall give written notice to the Participant of any such alteration or amendment of this Agreement as promptly as practicable after the adoption thereof. This Agreement may also be amended by a writing signed by both the Company and the Participant.

**12. Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Notices</u>. All notices, requests, demands, letters, waivers and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (A) delivered personally, (B) mailed, certified or registered mail with postage prepaid, or (C) sent by next-day or overnight mail or delivery, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If to the Company:

CPI Card Group Inc.<br>10368 West Centennial Road<br>Littleton, CO 80127<br>Attention: Chief Human Resources Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If to the Participant, to the Participant's last known home address,

or to such other person or address as any party shall specify by notice in writing to the Company. All such notices, requests, demands, letters, waivers and other communications shall be deemed to have been received (x) if by personal delivery on the day after such delivery, (y) if by certified or registered mail, on the fifth business day after the mailing thereof, or (z) if by next-day or overnight mail or delivery, on the day delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Binding Effect; Benefits</u>. This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns. Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement or their respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>No Guarantee of Future Awards</u>. This Agreement does not guarantee the Participant the right to or expectation of future Awards under the Plan or any future plan adopted by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Waiver</u>. Subject to Section 409A of the Code, either party hereto may by written notice to the other (i) extend the time for the performance of any of the obligations or other actions of the other under this Agreement, (ii) waive compliance with any of the conditions or covenants of the other contained in this Agreement and (iii) waive or modify performance of any of the obligations of the other under this Agreement. Except as provided in the preceding sentence, no action taken pursuant to this Agreement, including, without limitation, any investigation by or on behalf of either party, shall be deemed to constitute a waiver by the party taking such action of compliance with any representations, warranties, covenants or agreements contained herein. The waiver by either party hereto of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by either party to exercise any right or privilege hereunder shall be deemed a waiver of such party's rights or privileges hereunder or shall be deemed a waiver of such party's rights to exercise the same at any subsequent time or times hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Code Section 409A Compliance</u>. The Performance Cash Units are intended to be exempt from or comply with the requirements of Code Section 409A and this Agreement shall be interpreted accordingly, and each payment hereunder shall be considered a separate payment. Notwithstanding any provision of this Agreement, to the extent that the Committee determines that any portion of the Performance Cash Units is subject to Code Section 409A and fails to comply with the requirements of Code Section 409A, notwithstanding anything to the contrary contained in the Plan or in this Agreement, the Committee reserves the right to amend, restructure, terminate or replace such portion of the Performance Cash Units in order to cause such portion of the Performance Cash Units to either not be subject to Code Section 409A or to comply with the applicable provisions of such section. To the extent any portion of the Performance Cash Units is subject to Code Section 409A and provides for such portion of the Performance Cash Units to become vested and be settled upon the Participant's termination of employment, the payment shall be made to the Participant or his or her beneficiary upon the Participant's "separation from service," within the meaning of Section 409A of the Code; provided that if the Participant is a "specified employee" within the meaning of Section 409A of the Code, such payment shall be made to the Participant or his or her beneficiary upon the earlier to occur of (a) the six-month anniversary of such separation from service and (b) the date of the Participant's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Applicable Law</u>. This Agreement shall be governed by and construed in accordance with the law of the State of Delaware, regardless of the law that might be applied under principles of conflict of laws. The Company and the Participant agree that the jurisdiction and venue for any disputes arising under, or any action brought to enforce (or otherwise relating to), this Agreement shall be exclusively in the courts in the State of Colorado, County of Arapahoe or Denver, including the Federal Courts located therein (should Federal jurisdiction exist), and the Company and the Participant hereby submit and consent to said jurisdiction and venue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Section and Other Headings</u>. The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Erroneously Awarded Compensation</u>. Notwithstanding any provision in the Plan or in this Agreement to the contrary, this Award shall be subject to any compensation recovery and/or recoupment policy adopted and amended from time to time by the Company to comply with applicable law, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or to comport with good corporate governance practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Award Subject to the Plan</u>. By electronically accepting this Agreement in accordance with the administrative procedures established by the Company, the Participant acknowledges that the Plan has been made available to the Participant and the Participant has had the opportunity to review such Plan.

— *Signature page follows* —

------

***Notwithstanding anything in this Agreement or in the Plan to the contrary, the Committee hereby reserves the right, in its sole discretion, to terminate and cancel this Award if the Participant fails to accept this Agreement on or prior to six weeks from the Grant Date.***

IN WITNESS WHEREOF, the Company and the Participant have duly executed this Agreement as of the date first above written.

---

| |
|:---|
| CPI CARD GROUP INC. |
| By: |
| Name: |
| Title: |
| PARTICIPANT |
| Name: |
| Signature: |

---

**Note to Participant:** Any conflicts of interest or other disclosures to be made by Participant at the time of signing this Agreement shall be set forth on a Conflicts of Interest Disclosure Statement attached to this Agreement. Participant has not made any disclosures if there is no such statement attached.

There is ☐ is not ☐ a Conflicts of Interest Disclosure Statement attached to this Agreement.

Participant's Initials: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

------

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO SECTION 302**

 **OF THE SARBANES-OXLEY ACT OF 2002**

I, John Lowe, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of CPI Card Group Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2026

---

| |
|:---|
| /s/ John Lowe<br>|
| John Lowe<br>|
| *President and Chief Executive Officer*<br>|
| (Principal Executive Officer)<br>|

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO SECTION 302**

 **OF THE SARBANES-OXLEY ACT OF 2002**

I, Terra Grantham, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of CPI Card Group Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2026

---

| |
|:---|
| /s/ Terra Grantham<br>|
| Terra Grantham<br>|
| *Interim Chief Financial Officer*<br>|
| (Principal Financial Officer)<br>|

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of CPI Card Group Inc. (the "Company") for the period ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, John Lowe, President and Chief Executive Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
|  | /s/ John Lowe<br>|
|  | John Lowe<br>|
|  | *President and Chief Executive Officer*<br>|
|  | (Principal Executive Officer)<br>|
| Date: May 5, 2026<br>|  |

---

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of CPI Card Group Inc. (the "Company") for the period ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Terra Grantham, Interim Chief Financial Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ Terra Grantham<br>|
| Terra Grantham<br>|
| *Interim Chief Financial Officer*<br>|
| (Principal Financial Officer) <br>|

---

Date: May 5, 2026

------