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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of CPI Card Group Inc. - PMTS

1. CPI Card Group is under investigation for potential securities fraud. 2. Q2 2025 results missed estimates significantly, with earnings down $0.46. 3. Stock price dropped 28.83% following disappointing financial results. 4. Updated growth outlook suggests lower sales growth expectations. 5. Acquisition of Arroweye Solutions impacts forward revenue recognition.

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FAQ

Why Very Bearish?

CPI's substantial earnings miss and securities fraud investigation can erode investor confidence. Historical instances, such as with Enron, show significant price drops following fraud allegations.

How important is it?

The investigation and financial miss present serious concerns, likely impacting PMTS investor perception. Legal cases often affect stock price stability and future earnings.

Why Short Term?

Immediate effects observed post-announcement with a 28.83% stock drop. Such market reactions typically precede further scrutiny in the near future.

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CPIVMAFIS
NEW YORK, Aug. 25, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of CPI Card Group Inc. (“CPI” or the “Company”) (NASDAQ: PMTS). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether CPI and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On August 8, 2025, CPI announced second quarter 2025 financial results that missed top-line and bottom-line estimates. Among other items, CPI reported a GAAP earnings-per-share figure of $0.04 per share, missing estimates by $0.46, and revenue of $129.75M, missing estimates by $3.21M. In addition, the Company updated its outlook for 2025, stating that it expects net sales in low double-digit to mid-teens growth, compared to the prior outlook of mid-to-high single-digit growth. CPI stated that the change from the prior outlook reflects the addition of Arroweye Solutions, Inc.—an on-demand payment card solutions provider acquired by CPI in May 2025—partially offset by the negative impact of the accounting change for revenue recognition timing of work-in-process orders. On this news, CPI’s stock price fell $5.37 per share, or 28.83%, to close at $13.25 per share on August 8, 2025. Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com. Attorney advertising. Prior results do not guarantee similar outcomes. CONTACT:Danielle PeytonPomerantz LLPdpeyton@pomlaw.com646-581-9980 ext. 7980

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