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CoreCard Corporation Reports First Quarter 2025 Results

1. CoreCard's revenue reached $16.7 million, a 28% increase year-over-year. 2. Net income rose to $1.9 million, significantly up from $0.4 million in 2024. 3. Adjusted earnings per diluted share improved to $0.28, from $0.07 one year prior. 4. Continued investment in technologies driving customer growth and enhanced services. 5. CEO indicated optimism for sustained growth and new customer onboarding.

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Why Very Bullish?

The financial results show significant revenue and profit growth, exceeding expectations. Historically, strong earnings reports often lead to stock price increases, especially with continued customer acquisition.

How important is it?

The report indicates compelling growth metrics that will attract investor interest, making this highly relevant to future stock performance.

Why Short Term?

The positive results are likely to influence immediate investor sentiment and stock performance. Changes in revenue and earnings often have rapid effects on stock prices.

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NORCROSS, Ga., May 08, 2025 (GLOBE NEWSWIRE) -- CoreCard Corporation (NYSE: CCRD) (“CoreCard” or the “Company”), the leading provider of innovative credit technology solutions and processing services to the financial technology and services market, announced today its financial results for the quarter ended March 31, 2025. "Overall revenue of $16.7 million in the first quarter exceeded our expectations, reflecting year-over-year total revenue growth of 28%, primarily driven by higher professional services rates from our largest customer and continued growth from our other customers,” said Leland Strange, CEO of CoreCard. "We continue to see encouraging results from the ongoing investment in our platform and processing capabilities, and we continue to onboard new customers that value the features and functionality offered by the CoreCard platform.” Financial Highlights for the three months ended March 31, 2025 Total revenues in the three-month period ended March 31, 2025, was $16.7 million compared to $13.1 million in the comparable period in 2024. In the following table, revenue is disaggregated by type of revenue for the three months ended March 31, 2025, and 2024:  Three Months Ended March 31,(in thousands)2025  2024 License$--  $-- Professional services 8,702   5,826 Processing and maintenance 6,343   6,152 Third party 1,643   1,098 Total$16,688  $13,076  Income from operations was $2.8 million for the first quarter compared to income from operations of $0.5 million in the comparable prior year quarter. Net income was $1.9 million for the first quarter compared to net income of $0.4 million in the comparable prior year quarter. Earnings per diluted share was $0.24 for the first quarter compared to $0.05 in the comparable prior year quarter. Adjusted earnings per diluted share was $0.28 for the first quarter compared to $0.07 in the comparable prior year quarter. Adjusted EBITDA was $4.0 million for the first quarter compared to $1.7 million in the comparable prior year quarter. Use of Non-GAAP Financial Measures Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures". Investor Conference Call The company is holding an investor conference call today, May 8, 2025, at 11 A.M. Eastern Time. Interested investors are invited to attend the conference call by accessing the webcast at https://www.webcast-eqs.com/register/corecardq12025/en or by dialing 1-877-407-0890. As part of the conference call CoreCard will be conducting a question-and-answer session where participants are invited to email their questions to questions@corecard.com prior to the call. A transcript of the call will be posted on the company’s website at investors.corecard.com as soon as available after the call. The company will file its Form 10-Q for the period ended March 31, 2025, with the Securities and Exchange Commission today. For additional information about reported results, investors will be able to access the Form 10-Q on the company’s website at investors.corecard.com or on the SEC website, www.sec.gov. About CoreCard CoreCard Corporation (NYSE: CCRD) provides the gold standard card issuing platform built for the future of global transactions in an embedded digital world. Dedicated to continual technological innovation in the ever-evolving payments industry backed by decades of deep expertise in credit card offerings, CoreCard helps customers conceptualize, implement, and manage all aspects of their issuing card programs. Keenly focused on steady, sustainable growth, CoreCard has earned the trust of some of the largest companies and financial institutions in the world, providing truly real-time transactions via their proven, reliable platform operating on private on-premise and leading cloud technology infrastructure. Forward-Looking Statements The forward-looking statements in this press release are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including those listed in Item 1A of the Company’s Annual Report on Form 10-K and in the Company’s other filings and reports with the Securities and Exchange Commission. All of the risks and uncertainties are beyond the ability of the Company to control, and in many cases, the Company cannot predict the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this press release, the words “believes,” “plans,” “expects,” “will,” “intends,” “continue,” “outlook,” “progressing,” and “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. CoreCard CorporationCONSOLIDATED STATEMENTS OF OPERATIONS(unaudited, in thousands, except share and per share amounts)  Three Months Ended March 31,  2025   2024 Revenue  Services$16,688  $13,076 Products --   -- Total net revenue 16,688   13,076 Cost of revenue  Services 9,380   9,500 Products --   -- Total cost of revenue 9,380   9,500 Expenses  Marketing 136   114 General and administrative 1,794   1,427 Development 2,571   1,508 Income from operations 2,807   527 Investment loss (435)  (204)Other income, net 137   256 Income before income taxes 2,509   579 Income taxes 603   149 Net income$1,906  $430 Earnings per share:  Basic$0.24  $0.05 Diluted$0.24  $0.05 Basic weighted average common shares outstanding 7,786,679   8,236,135 Diluted weighted average common shares outstanding 8,086,423   8,247,788  CoreCard CorporationCONSOLIDATED BALANCE SHEETS(in thousands, except share and per share amounts) As ofMarch 31, 2025 December 31, 2024ASSETS(unaudited) (audited)Current assets:     Cash$22,068  $19,481 Marketable securities 5,575   5,410 Accounts receivable, net 8,527   10,235 Other current assets 5,145   5,048 Total current assets 41,315   40,174 Investments 3,344   3,776 Property and equipment, at cost less accumulated depreciation 13,605   12,282 Other long-term assets 6,130   6,106 Total assets$64,394  $62,338 LIABILITIES AND STOCKHOLDERS’ EQUITY  Current liabilities:  Accounts payable$1,514  $823 Deferred revenue, current portion 1,927   2,033 Accrued payroll 2,341   2,856 Accrued expenses 821   723 Other current liabilities 1,731   2,017 Total current liabilities 8,334   8,452 Noncurrent liabilities:  Deferred revenue, net of current portion 82   118 Long-term lease obligation 1,599   1,816 Other long-term liabilities 321   255 Total noncurrent liabilities 2,002   2,189 Stockholders’ equity:  Common stock, $0.01 par value: Authorized shares - 20,000,000;  Issued shares – 9,026,940 at March 31, 2025 and December 31, 2024  Outstanding shares – 7,786,679 at March 31, 2025 and December 31, 2024 92   91 Additional paid-in capital 18,400   17,928 Treasury stock, 1,240,261 shares at March 31, 2025 and December 31, 2024, at cost (27,997)  (27,997)Accumulated other comprehensive loss (111)  (93)Accumulated income 63,674   61,768 Total stockholders’ equity 54,058   51,697 Total liabilities and stockholders’ equity$64,394  $62,338  For further information, callMatt White, 770-564-5504 or email to matt@corecard.com Reconciliation of GAAP to NON-GAAP Measures Information Regarding Non-GAAP Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release contains certain non-GAAP financial measures. CoreCard considers Adjusted EBITDA and Adjusted earnings per diluted share (“Adjusted EPS”) as supplemental measures of the company’s performance that is not required by, nor presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based compensation expense; income tax expense (benefit); investment income (loss); and other income (expense), net. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period. We define Adjusted EPS as diluted earnings per share adjusted to exclude the impact of share-based compensation expense. We believe that Adjusted EPS is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results from period to period. Adjusted EPS and Adjusted EBITDA should not be considered in isolation, or construed as an alternative to net income, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company's liquidity. In addition, other companies may calculate Adjusted EPS and Adjusted EBITDA differently than CoreCard, which limits its usefulness in comparing CoreCard’s financial results with those of other companies. The following table shows CoreCard’s GAAP results reconciled to non-GAAP results included in this release:  Three Months Ended March 31,(in thousands) 2025  2024GAAP net income$1,906  $430 Share-based compensation 473   160 Income tax benefit (118)  (40)Adjusted net income$2,261  $550 Adjusted EPS$0.28  $0.07 Weighted-average shares 8,086   8,248   Three Months Ended March 31,(in thousands) 2025  2024GAAP net income$1,906  $430 Depreciation and amortization 745   1,025 Share-based compensation 473   160 Investment loss 435   204 Other income, net (137)  (256)Income tax expense 603   149 Adjusted EBITDA$4,025  $1,712 Total Revenue$16,688  $13,076 Adjusted EBITDA Margin 24.1%  13.1%

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