CoreCard Corporation reported Q1 2025 revenue of $16.7 million, a 28% increase from 2024, with net income rising to $1.9 million.
Quiver AI Summary
CoreCard Corporation reported a strong performance for the first quarter ended March 31, 2025, with total revenues reaching $16.7 million, up 28% from $13.1 million in the same period last year. The growth was largely driven by increased professional services rates from its largest customer, alongside gains from other clients. The company’s income from operations rose to $2.8 million, compared to $0.5 million a year prior, while net income was $1.9 million, up from $0.4 million. Earnings per diluted share also saw a significant increase, rising to $0.24 from $0.05. CoreCard credited its ongoing investments in platform innovation and customer acquisition for these positive outcomes. The company plans to discuss its financial results further in an investor conference call scheduled on May 8, 2025.
Potential Positives
- CoreCard reported a significant year-over-year revenue growth of 28%, reaching $16.7 million in the first quarter of 2025, which exceeded expectations.
- Net income for the first quarter was $1.9 million, a substantial increase from $0.4 million in the same period of 2024, indicating strong financial performance.
- Earnings per diluted share rose to $0.24, compared to $0.05 in the prior year, reflecting improved profitability.
- Adjusted EBITDA increased to $4.0 million, up from $1.7 million a year ago, showcasing enhanced operational efficiency and profitability in the company's performance.
Potential Negatives
- CoreCard reported an investment loss of $435,000 compared to a lower investment loss of $204,000 in the same quarter the previous year, indicating potential issues with investment performance.
- The company reported a significant increase in expenses, particularly in development costs, which rose from $1.5 million to $2.6 million year-over-year, raising concerns about cost management.
- Despite overall revenue growth, the absence of license revenue suggests a lack of diversity in revenue streams, which may pose risks if the company faces challenges with its primary customers.
FAQ
What were CoreCard's Q1 2025 revenues?
CoreCard reported revenues of $16.7 million for the first quarter of 2025, a 28% increase year-over-year.
How did CoreCard's net income change in Q1 2025?
Net income for Q1 2025 was $1.9 million, compared to $0.4 million in Q1 2024.
What are CoreCard's earnings per diluted share for Q1 2025?
Earnings per diluted share for Q1 2025 were $0.24, up from $0.05 in the same quarter last year.
What financial metrics does CoreCard use for performance evaluation?
CoreCard uses non-GAAP measures such as Adjusted EBITDA and Adjusted earnings per diluted share for performance evaluation.
When is CoreCard's investor conference call scheduled?
The investor conference call is scheduled for May 8, 2025, at 11 A.M. Eastern Time.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CCRD Hedge Fund Activity
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- ARROWSTREET CAPITAL, LIMITED PARTNERSHIP added 60,927 shares (+160.7%) to their portfolio in Q4 2024, for an estimated $1,383,042
- CITADEL ADVISORS LLC added 47,523 shares (+349.4%) to their portfolio in Q4 2024, for an estimated $1,078,772
- ACADIAN ASSET MANAGEMENT LLC added 45,895 shares (+32.1%) to their portfolio in Q4 2024, for an estimated $1,041,816
- VANGUARD GROUP INC removed 42,678 shares (-10.4%) from their portfolio in Q4 2024, for an estimated $968,790
- GOLDMAN SACHS GROUP INC added 28,355 shares (+inf%) to their portfolio in Q4 2024, for an estimated $643,658
- SUSQUEHANNA INTERNATIONAL GROUP, LLP added 26,084 shares (+100.3%) to their portfolio in Q4 2024, for an estimated $592,106
- NAVELLIER & ASSOCIATES INC added 25,349 shares (+inf%) to their portfolio in Q1 2025, for an estimated $474,279
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Full Release
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
[email protected]
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 Corporation
CONSOLIDATED 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 Corporation
CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) |
|||||||
As of | March 31, 2025 | December 31, 2024 | |||||
ASSETS | (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, call
Matt White, 770-564-5504 or
email to
[email protected]
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 | 2024 | |||||
GAAP 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 | 2024 | |||||
GAAP 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 | % |