Financial Data and Key Metrics Changes - The company reported a record revenue growth of 22% in Q4 2025, with total revenue reaching $153 million, driven by strong performance in debit and credit portfolios and contributions from Arroweye [5][29] - For the full year, revenue increased by 13%, with Adjusted EBITDA growing by 5%, despite facing over $4 million in tariff expenses [6][33] - The fourth quarter Adjusted EBITDA rose by 34% to $29.4 million, with margins increasing by 170 basis points to 19.2% [32] Business Line Data and Key Metrics Changes - The debit and credit segment revenue increased by 40%, with organic growth of 20%, primarily due to strong sales of contactless cards and instant issuance solutions [29] - Prepaid revenue declined by 27% compared to the previous year, reflecting a transition in the prepaid market, although closed-loop prepaid shipments began in Q4 2025 [30][23] - Integrated PayTech segment revenue grew nearly 20%, driven by increased instant issuance penetration and technology integrations [24] Market Data and Key Metrics Changes - The U.S. cards in circulation continue to grow, with a compounded annual growth rate of 7.5% over the past three years [37] - The closed-loop prepaid market is expected to be five times larger than the open-loop market, with increasing regulatory changes driving demand for fraud prevention packaging [47][51] Company Strategy and Development Direction - The company aims to evolve into a payment technology provider, focusing on three growth pillars: a proprietary technology platform, a broad marketable base, and a track record of delivering innovative payment solutions [9][12] - A new organizational structure has been announced to enhance focus on customer needs, operations, and digital capabilities, with a reorganization of reporting segments into Secure Card Solutions, Prepaid Solutions, and Integrated PayTech [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver growth in 2026, projecting high single-digit revenue growth and continued investment in strategic initiatives [39][41] - The company anticipates challenges from tariffs and a slow start in the prepaid market but remains optimistic about long-term growth opportunities [40][43] Other Important Information - The acquisition of Arroweye contributed $43 million in revenue and over $6 million in Adjusted EBITDA in less than eight months [21] - The company invested significantly in capital expenditures, totaling $18 million in 2025, primarily for a new production facility and technology upgrades [35][71] Q&A Session Summary Question: How are sales cycles different in the closed-loop market? - Management noted that the closed-loop market has a slightly accelerated sales cycle due to existing relationships with program managers, allowing for quick entry and contract wins [47][48] Question: How does the TDS deal impact growth guidance for 2026? - Management indicated that the closed-loop opportunity is expected to contribute positively to high single-digit growth guidance for 2026, despite current market choppiness [49][50] Question: Are there plans for further acquisitions in fraud prevention technology? - Management confirmed they currently resell a major AI-based fraud solution and are open to acquiring proven software that can adapt to changing fraud landscapes [56][58] Question: What is the outlook for headcount growth in 2026? - Management stated that headcount growth would likely align with revenue growth, focusing on go-to-market and technology roles, particularly following the Arroweye acquisition [65][66] Question: What is the expected CapEx trend moving forward? - Management indicated that while CapEx was high in 2025 due to physical investments, future spending would shift towards technology investments, maintaining similar levels [70][71]