PMTS Q2 2026 - Preliminary Earnings Alert

Event: Quartr Q2 2026 event Retrieved: 2026-08-06T11:45:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available | financials=earnings release only | transcript=not yet available (call 2026-08-06 13:00Z)

Consensus scorecard

• Consensus scorecard, bulleted equivalent:
  • Revenue / total revenue: Quartr actual $149.181m against API Ninjas consensus $143.883m - Beat +$5.299m, +3.7%.
  • EPS / GAAP diluted: Quartr actual $0.17 against API Ninjas consensus $0.46 - Miss −$0.29, −63.0%.

Reported results and guidance

• Q2 income statement, bulleted equivalent (Q2 2026 vs Q2 2025): revenue $149,181k vs $129,753k (+15.0%); cost of goods sold $100,695k vs $89,633k (+12.3%); gross profit $48,486k vs $40,120k (+20.9%) at a 32.5% margin versus 30.9%; SG&A $36,622k vs $30,697k (+19.3%); income from operations $11,864k vs $9,423k (+25.9%) at an 8.0% margin versus 7.3%; interest, net $(7,405)k vs $(8,069)k; other expense, net $(35)k vs $(13)k; income before income taxes and equity in losses $4,424k vs $1,341k; income tax expense $(2,137)k vs $(823)k; equity in losses of unconsolidated affiliates $(247)k versus none; net income $2,040k vs $518k (+293.8%); basic EPS $0.18 vs $0.05 and diluted EPS $0.17 vs $0.04; EBITDA $17,925k vs $14,925k (+20.1%); adjusted EBITDA $24,052k vs $22,487k (+7.0%) at a 16.1% margin versus 17.3%; free cash flow $25,916k vs $533k.

• Six-month results, bulleted equivalent (6M 2026 vs 6M 2025): revenue $296,289k vs $252,514k (+17.3%); cost of goods sold $203,679k vs $171,698k; gross profit $92,610k vs $80,816k (+14.6%) at a 31.3% margin versus 32.0%; SG&A $69,752k vs $57,289k (+21.8%); income from operations $22,858k vs $23,527k (−2.8%); interest, net $(15,061)k vs $(15,754)k; income before income taxes and equity in losses $7,794k vs $7,778k; income tax expense $(3,295)k vs $(2,486)k; equity in losses $(403)k versus none; net income $4,096k vs $5,292k (−22.6%); basic EPS $0.36 vs $0.47 and diluted EPS $0.34 vs $0.44; EBITDA $35,198k vs $33,294k; adjusted EBITDA $47,209k vs $43,649k (+8.2%) at a 15.9% margin versus 17.3%; operating cash flow $42,149k vs $9,937k; free cash flow $36,051k vs $825k.

• Q2 revenue by segment, bulleted equivalent: Secure Card Solutions $110,867k vs $94,673k (+$16,194k, +17.1%); Prepaid Solutions $22,645k vs $19,222k (+$3,423k, +17.8%); Integrated Paytech $20,141k vs $19,326k (+$815k, +4.2%); intersegment eliminations $(4,472)k vs $(3,468)k; total $149,181k vs $129,753k (+$19,428k, +15.0%).

• Six-month revenue by segment, bulleted equivalent: Secure Card Solutions $220,718k vs $176,315k (+25.2%); Prepaid Solutions $44,694k vs $45,935k (−2.7%); Integrated Paytech $39,523k vs $38,579k (+2.4%); eliminations $(8,646)k vs $(8,315)k; total $296,289k vs $252,514k (+17.3%).

• Q2 gross profit by segment, bulleted equivalent: Secure Card Solutions $30,869k at a 27.8% margin versus $23,918k at 25.3% (+29.1%); Prepaid Solutions $6,419k at 28.3% versus $5,471k at 28.5% (+17.3%); Integrated Paytech $11,198k at 55.6% versus $10,731k at 55.5% (+4.4%); total $48,486k at 32.5% versus $40,120k at 30.9% (+20.9%).

• Six-month gross profit by segment, bulleted equivalent: Secure Card Solutions $58,571k at 26.5% versus $44,737k at 25.4% (+30.9%); Prepaid Solutions $12,085k at 27.0% versus $14,913k at 32.5% (−19.0%); Integrated Paytech $21,954k at 55.5% versus $21,166k at 54.9% (+3.7%); total $92,610k at 31.3% versus $80,816k at 32.0% (+14.6%).

• Q2 segment operating income, bulleted equivalent: Secure Card Solutions $21,020k at a 19.0% margin versus $15,636k at 16.5% (+34.4%); Prepaid Solutions $4,982k at 22.0% versus $4,171k at 21.7% (+19.4%); Integrated Paytech $6,576k at 32.6% versus $7,417k at 38.4% (−11.3%); Corporate $(20,714)k versus $(17,801)k, a 16.4% larger drag; total $11,864k at 8.0% versus $9,423k at 7.3% (+25.9%).

• Six-month segment operating income, bulleted equivalent: Secure Card Solutions $38,288k at 17.3% versus $29,946k at 17.0% (+27.9%); Prepaid Solutions $9,075k at 20.3% versus $12,170k at 26.5% (−25.4%); Integrated Paytech $13,441k at 34.0% versus $14,810k at 38.4% (−9.2%); Corporate $(37,946)k versus $(33,399)k; total $22,858k at 7.7% versus $23,527k at 9.3% (−2.8%).

• Q2 segment EBITDA, bulleted equivalent: Secure Card Solutions $25,247k at 22.8% versus $19,100k at 20.2% (+32.2%); Prepaid Solutions $5,975k at 26.4% versus $5,297k at 27.6% (+12.8%); Integrated Paytech $6,754k at 33.5% versus $7,448k at 38.5% (−9.3%); Corporate $(20,051)k versus $(16,920)k; total $17,925k at 12.0% versus $14,925k at 11.5% (+20.1%).

• Six-month segment EBITDA, bulleted equivalent: Secure Card Solutions $46,895k at 21.2% versus $35,643k at 20.2% (+31.6%); Prepaid Solutions $11,186k at 25.0% versus $14,418k at 31.4% (−22.4%); Integrated Paytech $13,709k at 34.7% versus $14,872k at 38.5% (−7.8%); Corporate $(36,592)k versus $(31,639)k; total $35,198k at 11.9% versus $33,294k at 13.2% (+5.7%).

• Adjusted EBITDA reconciliation, bulleted equivalent: from net income of $2,040k in Q2 2026, add interest, net $7,405k, income tax expense $2,137k and D&A $6,343k to reach EBITDA of $17,925k; then add back share-based compensation of $1,314k, acquisition and integration costs $2,760k, restructuring and other charges $1,806k and equity in losses of unconsolidated affiliates $247k, a $6,127k subtotal, to reach adjusted EBITDA of $24,052k. The same bridge produces $22,487k in Q2 2025, $47,209k for six months 2026 and $43,649k for six months 2025. Acquisition and integration costs relate primarily to the Arroweye acquisition completed 6 May 2025; restructuring includes executive retention and severance; the change in revenue recognition relates to the ASC 606 reassessment implemented in Q2 2025; and the equity in losses relates to the 20% interest in Karta acquired 7 October 2025.

• Free Cash Flow reconciliation, bulleted equivalent: operating cash flow $28,501k (Q2 2026), $4,344k (Q2 2025), $42,149k (6M 2026), $9,937k (6M 2025); less net capital expenditure of $2,585k, $3,811k, $6,098k and $9,112k; equals free cash flow of $25,916k, $533k, $36,051k and $825k.

• Revenue excluding the accounting change, bulleted equivalent (Q2): consolidated revenue growth of 15.0% as reported becomes 8.5% once the prior-year period is adjusted for the Q2 2025 ASC 606 change, which added $7,723k to reported Q2 2025 revenue; Secure Card Solutions growth of 17.1% becomes 13.9%; Prepaid Solutions growth of 17.8% becomes a 6.7% decline; Integrated Paytech is unaffected at 4.2%. On a six-month basis, consolidated growth of 17.3% becomes 14.0%, Secure Card Solutions growth of 25.2% becomes 23.7%, and the Prepaid Solutions decline of 2.7% becomes a 12.9% decline.

• Balance sheet, bulleted equivalent (30 Jun 2026 vs 31 Dec 2025): cash $21,368k vs $21,700k; accounts receivable $88,363k vs $95,436k (−7.4%); inventories $62,900k vs $72,243k (−12.9%); prepaid and other current assets $15,520k vs $15,565k; total current assets $188,151k vs $204,944k; plant, equipment, leasehold improvements and operating lease right-of-use assets $105,189k vs $108,433k; intangibles $19,690k vs $18,544k; goodwill $52,740k vs $48,764k; other assets $24,638k vs $22,506k; total assets $390,408k vs $403,191k; accounts payable $30,581k vs $27,802k; accrued expenses $56,613k vs $52,379k; deferred revenue and customer deposits $2,946k vs $3,916k; total current liabilities $90,140k vs $84,097k; long-term debt $262,139k vs $286,668k (−8.6%); deferred income taxes $3,840k vs $2,251k; other long-term liabilities $45,763k vs $47,508k; total liabilities $401,882k vs $420,524k; capital deficit $(100,329)k vs $(102,091)k; accumulated earnings $88,843k vs $84,747k; total stockholders' deficit $(11,474)k vs $(17,333)k; shares issued and outstanding 11,520,159 vs 11,456,061.

• Cash flow, bulleted equivalent: net income $4,096k versus $5,292k; add depreciation $10,792k versus $7,815k, amortization $1,954k versus $1,947k, stock-based compensation $2,717k versus $3,038k, debt issuance cost amortization $656k versus $658k and deferred taxes and other $1,889k versus $850k; working capital contributed accounts receivable $7,048k versus $7,451k, inventories $9,678k versus $(7,769)k, prepaid and other assets $(2,356)k versus $2,253k, income taxes $57k versus $(3,154)k, accounts payable $2,972k versus $4,977k, accrued expenses and other liabilities $3,734k versus $(13,471)k and deferred revenue $(1,088)k versus $50k; operating cash flow $42,149k versus $9,937k; investing used $12,107k versus $51,504k, comprising net capital expenditure of $6,098k versus $9,112k, acquisition payments of $6,300k versus $42,442k and other of $291k versus $50k; financing used $30,374k versus providing $25,147k, comprising debt borrowings of nil versus $35,000k, debt payments of $25,000k versus $5,000k, financing lease payments of $4,805k versus $3,776k and stock-compensation withholding taxes of $569k versus $1,077k; cash fell $332k versus $16,420k to $21,368k versus $17,124k.

• Net Leverage Ratio, bulleted equivalent: Senior Notes $265,000k in both periods; ABL Revolver nil versus $25,000k; financing lease obligations $30,581k versus $31,058k; total debt $295,581k versus $321,058k; less cash of $21,368k versus $21,700k; total net debt $274,213k versus $299,358k; LTM adjusted EBITDA $100,076k versus $96,516k; net leverage 2.7x versus 3.1x. The company also states leverage was 3.6x in the second quarter of last year.

• LTM adjusted EBITDA reconciliation, bulleted equivalent: net income $13,754k versus $14,950k; plus interest, net $31,773k versus $32,466k, income tax expense $7,465k versus $6,656k and D&A $25,445k versus $22,461k, giving EBITDA of $78,437k versus $76,533k; plus stock-based compensation $6,642k versus $6,963k, acquisition and integration costs $9,606k versus $5,954k, restructuring and other charges $4,567k versus $3,716k, loss on debt extinguishment $287k in both, change in revenue recognition nil versus $2,929k and equity in losses $537k versus $134k, a $21,639k versus $19,983k subtotal; giving LTM adjusted EBITDA of $100,076k versus $96,516k.

Guidance (full year 2026):

• Guidance, bulleted equivalent: full-year revenue growth raised to high-single to low-double-digit from high-single-digit; adjusted EBITDA growth reaffirmed at low- to mid-single-digit; free cash flow raised to $45-50m from a conversion rate in line with 2025's $41m; year-end net leverage reaffirmed at 2.5-3.0x; and Integrated Paytech segment revenue growth raised to approximately 20% from 15% plus, attributed to the TRISM acquisition. The company states the adjusted EBITDA outlook is unchanged because stronger Secure Card Solutions performance and tariff refunds are expected to be largely offset by continued Integrated Paytech investment and ongoing uneven demand in the higher-margin Prepaid Solutions segment.

• Scorecard recap: revenue of $149.181m beat consensus by 3.7% while GAAP diluted EPS of $0.17 missed the $0.46 estimate by 63.0%.

• The quarter benefited from more than $3 million of tariff refunds, which the company names as a driver of both net income and adjusted EBITDA alongside Secure Card Solutions overperformance.

• Net income was impacted by $2.8 million of integration costs primarily related to Arroweye in the quarter and $5.9 million in the first half.

• CPI acquired TRISM, which it says doubles its addressable market in U.S. instant issuance by serving mid- to large-sized financial institutions that prefer on-premise solutions, complementing the cloud-based Card@Once offering for SME institutions; instant-issuance coverage rises to more than 3,000 U.S. financial institutions from approximately 2,500.

• On 15 July the company redeemed $26.5 million, or 10%, of its Senior Notes.

• CEO John Lowe said the company generated "double-digit revenue growth, strong Adjusted EBITDA growth and record Free Cash Flow, while continuing to gain share," and called TRISM "an excellent example of how we continue to execute on our strategy."

• CFO Terra Grantham cited the record $36 million of first-half free cash flow, the reduction in net leverage to 2.7x and the July Senior Note redemption as "further strengthening our balance sheet."

• Arroweye is described as performing ahead of the original investment case and delivering meaningful revenue and cost synergies; the Karta SafeToBuy integration includes the expansion of a pilot with one of the U.S. national retailers.

Key bullish aspects

• Revenue rose 15.0% to $149.2m and beat consensus by 3.7%, with first-half revenue at a company record $296.3m.
• Gross margin expanded 160 basis points to 32.5% and gross profit rose 20.9% to $48.5m.
• Secure Card Solutions, the largest segment at 74% of gross segment revenue, grew 17.1% with gross margin up 250 basis points and segment operating income up 34.4%.
• Free cash flow was $25.9m in the quarter against $0.5m a year earlier, and a record $36.1m in the first half against $0.8m.
• Operating cash flow of $42.1m in the first half compares with $9.9m a year earlier, driven by working capital - inventories released $9.7m against a $7.8m build a year earlier.
• Net leverage fell to 2.7x from 3.1x at year end and 3.6x a year earlier, and total debt fell $25.5m over six months to $295.6m.
• The company redeemed $26.5m, or 10%, of its Senior Notes on 15 July, after the balance sheet date, which will reduce future interest expense on 10% paper.
• Interest, net fell 8.2% to $7.4m in the quarter.
• Full-year revenue growth guidance was raised to high-single to low-double-digit from high-single-digit, and free cash flow guidance was raised to $45-50m from roughly $41m.
• Integrated Paytech revenue growth guidance was raised to approximately 20% from 15% plus on the TRISM acquisition, and the company says instant-issuance coverage rises to more than 3,000 U.S. financial institutions from about 2,500.
• Net income rose 293.8% to $2.0m and diluted EPS rose to $0.17 from $0.04.
• Inventories fell 12.9% over six months to $62.9m and accounts receivable fell 7.4% to $88.4m, so the working capital release is visible on the balance sheet as well as in the cash flow.
• Total stockholders' deficit narrowed to $(11.5)m from $(17.3)m.
• Arroweye is stated to be performing ahead of the original investment case with revenue and cost synergies.

Key bearish aspects

• Adjusted EBITDA grew only 7.0% to $24.1m against 15.0% revenue growth, and adjusted EBITDA margin fell 120 basis points to 16.1%; on a six-month basis the margin fell 140 basis points to 15.9%.
• The company explicitly attributes the quarter's earnings partly to more than $3 million of tariff refunds - a non-operating benefit roughly 13% of adjusted EBITDA - and does not indicate whether further refunds are expected.
• Stripping out the Q2 2025 ASC 606 accounting change, consolidated revenue growth was 8.5% rather than 15.0%, and Prepaid Solutions revenue fell 6.7% rather than rising 17.8%.
• Six-month income from operations fell 2.8% to $22.9m and six-month net income fell 22.6% to $4.1m despite 17.3% revenue growth.
• Six-month gross margin fell 70 basis points to 31.3%, which the company attributes to negative segment sales mix and increased depreciation.
• Prepaid Solutions - described by the company as the higher-margin segment - had six-month gross profit down 19.0% to $12.1m, gross margin down 550 basis points to 27.0%, operating income down 25.4% and EBITDA down 22.4%; the company cites "ongoing uneven demand."
• Integrated Paytech, the highest-margin segment, grew only 4.2% in the quarter and 2.4% over six months, with segment operating income down 11.3% in the quarter and margin down 580 basis points to 32.6%.
• Corporate costs rose 16.4% in the quarter to $(20.7)m and 13.6% over six months to $(37.9)m, absorbing most of the segment operating income gains.
• SG&A rose 19.3% in the quarter and 21.8% over six months, both faster than revenue.
• Acquisition and integration costs rose to $2.8m in the quarter and $5.9m in the first half from $1.6m and $2.3m, and the LTM figure is $9.6m against $6.0m at year end.
• The adjusted EBITDA growth guidance of low- to mid-single-digit was reaffirmed rather than raised alongside revenue, and the company says the Secure Card and tariff benefits will be "largely offset" by IPT investment and Prepaid demand.
• The company still carries a total stockholders' deficit of $(11.5)m and $265m of 10% Senior Secured Notes due 2029; LTM interest, net of $31.8m is roughly 32% of LTM adjusted EBITDA.
• D&A rose 30.6% over six months to $12.7m, and depreciation alone rose 38.1% to $10.8m.
• Equity in losses of unconsolidated affiliates from the 20% Karta stake reduced net income by $0.2m in the quarter and $0.4m in the first half, with an LTM figure of $0.5m.
• Deferred revenue and customer deposits fell 24.8% over six months to $2.9m.

Key uncertainties

• The tariff refunds are quantified only as "more than $3 million"; the exact amount, which segment and line item they land in, whether they are recurring, and whether an offsetting tariff cost remains, are all undisclosed.
• The TRISM acquisition is not sized: no purchase price, revenue contribution, margin profile, or closing date is given. The cash flow statement shows $6.3m of cash paid for acquisitions in the first half, but the release does not confirm that this is TRISM.
• The claim that TRISM "doubles" the addressable market in U.S. instant issuance is not accompanied by a market size figure in dollars.
• The raised revenue guidance of "high-single to low-double-digit" growth is qualitative, with no dollar range; against 2025 revenue that is not restated in this release, the implied 2026 revenue cannot be calculated from this document alone.
• Adjusted EBITDA growth guidance of "low- to mid-single-digit" against $47.2m delivered in the first half implies limited second-half growth, but the company gives no full-year dollar figure and no phasing.
• Free cash flow guidance of $45-50m against $36.1m already delivered in the first half implies only $8.9-13.9m in the second half; the release does not explain the implied slowdown, and does not indicate how much of the first-half figure was one-off working capital release.
• The inventory release of $9.7m in the first half is described as "inventory optimization initiatives" accelerated by higher volumes; how much further release is available, and whether inventory must rebuild to support second-half volume, are not addressed.
• Prepaid Solutions demand is described as "uneven" in both the quarter and the outlook without any leading indicator, order book, or customer-concentration detail.
• The Integrated Paytech segment is said to accelerate in the second half on Card@Once momentum, digital solutions and TRISM, but the split between organic and acquired growth in the approximately 20% guidance is not given.
• Restructuring and other charges of $1.8m in the quarter cover executive retention and severance without naming a programme, scope, headcount or completion date.
• The change in revenue recognition adjustment of $2.9m appears in both Q2 2025 and the LTM period to 31 December 2025 but not in 2026; the release does not state whether any further ASC 606 effects remain.
• Corporate costs rose 16.4% year over year without explanation.
• The Karta investment is a 20% equity interest generating losses; no funding commitment, pilot economics, or path to profitability is disclosed, and the "U.S. national retailer" in the expanded pilot is not named.
• The July redemption of $26.5m of Senior Notes occurred after the balance sheet date; no redemption premium, resulting loss on extinguishment, or pro forma leverage figure is provided.
• The release does not disclose customer concentration, backlog, or card volume units.
• The 9:00 a.m. Eastern call on 6 August 2026 has not occurred and no Quartr transcript exists, so management's account of the tariff refunds, the Prepaid demand environment, TRISM economics and the second-half free cash flow step-down is not assessed at this stage.

Market context

• API Ninjas snapshot: PMTS $22.73 on NASDAQ, volume 47,420, quote timestamped 2026-08-06T11:13:26Z, retrieved 2026-08-06T11:45:00Z. The release was published pre-market on 2026-08-06; this is a single thin pre-market quote of unstated session basis, not a measured reaction to the release.

Source limitations

• Every actual above comes from the Quartr Q2 2026 earnings release document (3674667) attached to Quartr event 660683. Quartr standardized financials for this event are not yet populated, and the quarterly report (3674668) and slide deck (3976178) attached to this event were not read for this preliminary.
• API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter and is dated 2026-08-06, matching the Quartr event date exactly, so the exact ticker-and-date match is the path used.
• The company publishes no adjusted or non-GAAP per-share measure, so GAAP diluted EPS is the only per-share basis available and is the figure used in the scorecard. The API Ninjas EPS estimate of $0.46 does not appear to be on that basis: the provider's own historical actual EPS series records $0.38 for the quarter ended March 2026 and $0.77 for the quarter ended December 2025, against company-reported GAAP diluted EPS that implies roughly $0.17 for the March 2026 quarter. The −63.0% EPS variance should therefore be read as a comparison against an estimate whose basis cannot be confirmed. Maximal mode publishes the labeled result rather than leaving the row blank.
• EBITDA, adjusted EBITDA, adjusted EBITDA margin, Free Cash Flow, Free Cash Flow conversion, LTM Adjusted EBITDA, Net Leverage Ratio and Revenue excluding the Impact of an Accounting Change are non-GAAP measures as defined by the company. The company has not reconciled its 2026 adjusted EBITDA outlook to GAAP.
• Gross margin, operating margin, net income margin and the percentage changes above are calculated from the release's own figures; where the release prints a percentage, margin or dollar change, the calculated value agrees.
• The condensed consolidated statements in this release are unaudited.
• Balance sheet comparatives are to 31 December 2025, the fiscal year end, not to the prior-year quarter; cash flow comparatives are six-month periods.
• Consolidated revenue includes intersegment eliminations of $4,472k (Q2 2026), $3,468k (Q2 2025), $8,646k (6M 2026) and $8,315k (6M 2025); segment gross profit, operating income and EBITDA are presented by the company without an eliminations line.
• Segment margin percentages are stated by the company against segment revenue before eliminations.
• The supplemental cash flow disclosures - interest paid, income taxes paid and refunded, right-of-use assets obtained, and accounts payable for capital expenditures - could not be placed against their labels with confidence from this document's text extraction and are omitted rather than estimated.
• Every other figure above was verified by footing: revenue less cost of goods sold equals gross profit and less SG&A equals income from operations in all four periods; income before taxes less tax and equity losses equals net income in all four periods; every per-share figure equals net income divided by the stated share count; segment revenue, gross profit, operating income and EBITDA each sum to their stated totals in all four periods; the adjusted EBITDA, LTM adjusted EBITDA, free cash flow and net leverage reconciliations each foot in every period; the balance sheet current-asset, current-liability, total-asset, total-liability and equity subtotals foot in both periods; and the cash flow statement's operating, investing and financing sections each sum to their stated totals, which in turn reconcile the stated beginning and ending cash balances.
• The prior free cash flow guidance is described by the company as "a conversion rate in-line with 2025 results of $41 million" rather than as a stated range, and is reproduced as written.

Source links

• Quartr Q2 2026 earnings release
• Quartr release highlights page
• Quartr release strategic highlights and guidance page
• Quartr release second quarter financial highlights page
• Quartr release balance sheet, liquidity and cash flow page
• Quartr release 2026 outlook page
• Quartr release statements of operations page
• Quartr release balance sheet and cash flow page
• Quartr release segment summary page
• Quartr release non-GAAP reconciliation page
• Quartr release free cash flow and LTM reconciliation page
• Quartr release net leverage and revenue-excluding-accounting-change page