PMTSHIGH SIGNALFINANCIAL10-K

PMTS delivered explosive 278% revenue growth but with deteriorating profitability margins and a concerning negative equity position.

The massive revenue increase suggests successful market expansion or potential acquisition activity, but the 23% decline in net income despite nearly quadrupled revenues indicates significant margin compression or integration costs. The company's negative stockholders' equity of $17.3M, while improved from prior year, remains a structural concern that investors should monitor closely.

Comparing 2026-03-05 vs 2025-03-04View on EDGAR →
FINANCIAL ANALYSIS

PMTS experienced transformational growth with revenue surging 278% to $312.2M and operating cash flow increasing 37% to $59.5M, demonstrating strong underlying cash generation. However, profitability deteriorated significantly with net income falling 23% and operating income declining 13% despite the revenue explosion, indicating margin compression from the growth strategy. The company maintains a negative equity position and reduced cash reserves, though doubled capital expenditures and increased share buybacks suggest management confidence in the growth trajectory.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+3371.2%
$250K$8.7M

Share repurchases increased 3371.2% — management returning capital, signals confidence in intrinsic value.

Revenue
P&L
+277.5%
$82.7M$312.2M

Strong top-line growth of 277.5% — accelerating demand or successful expansion into new markets.

Capital Expenditure
Cash Flow
+96.3%
$9.3M$18.2M

Capital expenditure jumped 96.3% — major investment cycle underway; assess returns on deployment.

Stockholders Equity
Balance Sheet
+51.3%
-$35.6M-$17.3M

Equity base grew 51.3% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Operating Cash Flow
Cash Flow
+37.4%
$43.3M$59.5M

Operating cash flow surged 37.4% — exceptional cash generation, highest quality earnings signal.

Cash & Equivalents
Balance Sheet
-35.3%
$33.5M$21.7M

Cash declined 35.3% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Net Income
P&L
-23.4%
$19.5M$14.9M

Net income declined 23.4% — review whether driven by operations, interest costs, or non-recurring items.

SG&A Expense
P&L
+17.2%
$88.3M$103.4M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Total Assets
Balance Sheet
+15.3%
$349.7M$403.2M

Asset base grew 15.3% — expansion through organic growth, acquisitions, or capital deployment.

Operating Income
P&L
-12.7%
$62.8M$54.8M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

LANGUAGE CHANGES
NEW — 2026-03-05
PRIOR — 2025-03-04
ADDED
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 aim to expand our addressable market over the long term through diversification by adding adjacent product and related service offerings, including additional digital solutions, for our extensive customer base, and by leveraging our existing solutions for new customer verticals.
We have initiated the expansion of our offerings to customers in non-traditional industry verticals, such as healthcare, which has already expanded our addressable markets.
payments ecosystem that support our digital SaaS-based instant card issuance solution could be utilized by our financial services customers for other digital solutions, as well as by certain businesses outside of the financial services industry.
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REMOVED
The aggregate market value of the registrant s common stock held by non-affiliates was $ 129.2 million on June 30, 2024 computed based on the closing price of the registrant s common stock of $27.25 as reported on the Nasdaq Global Market on that date.
Overview CPI is a payments technology company providing a comprehensive range of payment cards and related digital solutions.
Our Strategy Our vision is to be the most trusted partner for innovative payments technology solutions.
We have initiated the expansion of our offerings to customers in non-traditional industry verticals, such as the sale of our card solutions to the healthcare and gig economy verticals, which has already expanded our addressable markets.
We also believe our digital SaaS-based instant card issuance solution could be utilized by certain businesses outside of the financial services industry.
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