CoreCard Corp SEC 10-Q Report

CoreCard Corp, a leading provider of card management systems and transaction processing services, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial growth and operational expansion, driven by increased revenue from professional services and transaction processing. The company continues to strengthen its market position with strategic investments and a robust customer base.

Financial Highlights

• Total Net Revenue: $34.282 million, increased by 28% compared to the same period in 2024, driven by higher professional services revenue and increased transaction processing services.
• Operating Income: $5.470 million, reflecting a significant increase from $1.676 million in the same period in 2024, due to higher revenue and improved cost management.
• Net Income: $3.890 million, up from $1.326 million in the same period in 2024, attributed to increased revenue and operational efficiencies.
• Basic Earnings Per Share: $0.50, compared to $0.16 in the same period in 2024, reflecting improved profitability.
• Diluted Earnings Per Share: $0.48, compared to $0.16 in the same period in 2024, indicating enhanced earnings performance.

Business Highlights

• Revenue Segments: CoreCard's revenue is primarily derived from services, with professional services contributing $18,083,000 and processing and maintenance services contributing $12,906,000 for the six months ended June 30, 2025. The company has seen a significant increase in professional services revenue, particularly from its largest customer, Goldman Sachs Group, Inc., which accounted for 63% of consolidated revenues.
• Geographical Performance: The majority of CoreCard's revenue comes from the United States, which contributed $32,743,000 for the six months ended June 30, 2025. The Middle East and European Union also contributed to the revenue, with $1,482,000 and $57,000, respectively.
• Customer Concentration: Goldman Sachs Group, Inc. remains a key customer, representing 63% of CoreCard's consolidated revenues for the first half of 2025. The company has multi-year contracts with recurring revenue and professional services fees that vary by period.
• Operational Expansion: CoreCard continues to expand its processing services business, adding new customers at a faster pace than new license customers. This growth is supported by investments in infrastructure, resources, and software features.
• Future Outlook: CoreCard anticipates continued growth in processing services as the customer base increases. However, the company notes potential risks related to its largest customer, Goldman Sachs, which may exit the credit card business or be replaced by Apple Inc. with a new partner.
• Employee and Infrastructure Growth: The company has approximately 1,000 employees across India, Romania, the United Arab Emirates, and Colombia, supporting its global operations. New offices in Dubai and Bogotá have been established to support expansion into new markets.
• Retention Program: A retention program was approved for employees with over five years of service, including key executives, to ensure continuity and stability in the workforce through December 31, 2028.
• Merger Agreement: CoreCard has entered into a merger agreement with Euronet Worldwide, Inc., which, if completed, will result in CoreCard becoming a wholly owned subsidiary of Euronet. The merger is expected to close in the fourth quarter of 2025, subject to regulatory approvals and shareholder consent.

SEC Filing: CoreCard Corp [ CCRD ] - 10-Q - Aug. 14, 2025