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1. Company Snapshot

1.a. Company Description

CoreCard Corporation, together with its subsidiaries, offers technology solutions and processing services to the financial technology and services market in the United States, European Union, and the Middle East.It designs, develops, and markets a suite of software solutions to program managers, accounts receivable businesses, financial institutions, retailers, and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, buy now pay later programs, loyalty programs, and accounts receivable and loan transactions.The company's software solutions allow companies to offer various types of transacting account or card issuing program, as well as installment and revolving loans; set up and maintain account data; record advances and payments; assess fees, interests, and other charges; resolve disputes and chargebacks; manage collections of accounts receivable; generate reports; and settle transactions with financial institutions and network associations.


The company was formerly known as Intelligent Systems Corporation and changed its name to CoreCard Corporation in December 2021.CoreCard Corporation was founded in 1973 and is headquartered in Norcross, Georgia.

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1.b. Last Insights on CCRD

CoreCard Corporation's recent performance was negatively impacted by the proposed sale to Euronet Worldwide, Inc., with an exchange ratio between 0.2783 and 0.3142 of Euronet common stock per share. Shareholder law firms, including Halper Sadeh LLC and The Ademi Firm, are investigating the fairness of the deal, citing potential breaches of fiduciary duty. Despite beating earnings estimates with $0.31 per share, concerns surrounding the acquisition and its implications for shareholders have emerged.

1.c. Company Highlights

2. CoreCard Corporation Posts Strong Q1 2025 Earnings, Exceeds Expectations

CoreCard Corporation delivered an impressive performance in Q1 2025, surpassing analyst expectations with total revenue of $16.7 million, marking a 28% year-over-year increase. Professional services revenue, bolstered by higher rates from Goldman Sachs, reached $8.7 million, while processing and maintenance revenue grew 3% to $6.3 million. Excluding one-time items and legacy CABG revenues, processing and maintenance growth was a robust 16%. Operating income rose to $2.8 million with a 16.8% margin, up significantly from 4% in Q1 2024. The company reported an EPS of $0.24 and an adjusted EPS of $0.28, exceeding consensus estimates of $0.16, and showcasing strong profitability. Tax rate for the quarter was 24%, while adjusted EBITDA climbed to $4 million from $1.7 million in the prior year.

Publication Date: May -08

📋 Highlights
  • Total Revenue Growth: Achieved $16.7 million, a 28% year-over-year increase.
  • Professional Services Revenue: Generated $8.7 million, driven by higher rates from Goldman Sachs.
  • Processing & Maintenance Growth: 3% overall, with 16% growth excluding one-time items and legacy CABG.
  • Operating Income Improvement: $2.8 million with a 16.8% margin, up from 4% in Q1 2024.
  • Adjusted EBITDA Increase: Reached $4 million, up from $1.7 million in the prior year.

Segment Performance and Growth Drivers

Professional services revenue saw a significant boost, driven by higher managed services rates from Goldman Sachs, a key client. This segment's strength underscores CoreCard's ability to secure favorable pricing and maintain strong client relationships. Processing and maintenance revenue, while growing modestly at 3% on a reported basis, demonstrated robust growth of 16% when excluding legacy CABG and accelerated revenue. This highlights the resilience of the company's recurring revenue streams and the success of its core operations.

Guidance and Outlook

CoreCard provided a bullish full-year revenue guidance of $65-$69 million, with an expected EPS range of $1.10-$1.18. For Q2, revenue is projected at $16.2-$16.9 million, with professional services revenue expected to contribute $8.4-$8.8 million. CEO Leland Strange highlighted the strong quarterly performance and expressed confidence in the company's continued success. Management also addressed succession planning and potential acquisitions, emphasizing a focus on independence while exploring strategic opportunities. The loss of Deserve to Intuit, which accounted for less than 3% of 2024 revenue, is already factored into guidance, though management remains cautious due to limited visibility on Deserve's future under Intuit.

Valuation and Financial Health

CoreCard's strong financial performance and growth prospects are reflected in its valuation metrics. The stock currently trades at a P/E ratio of 29.48 and a P/S ratio of 2.71, indicating that the market is pricing in the company's growth potential. The EV/EBITDA ratio of 13.67 also highlights the premium investors are placing on its earnings growth. With a free cash flow yield of 0.57% and an ROIC of 9.57%, CoreCard demonstrates solid fundamentals and efficient capital allocation. The company's net debt/EBITDA ratio of -1.75 further underscores its strong balance sheet and financial health.

3. NewsRoom

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10,568 Shares in CoreCard Corporation $CCRD Purchased by D.A. Davidson & CO.

Oct -31

Source: defenseworld.net

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$HAREHOLDER ALERT: The M&A Class Action Firm Reminds $hareholders of Upcoming Merger Deadlines - MLNK, CCRD, AMWD, and PNFP

Oct -16

Source: globenewswire.com

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Shareholder Alert: The Ademi Firm Continues to Investigate Whether CoreCard Corporation Is Obtaining a Fair Price for Its Public Shareholders

Sep -15

Source: businesswire.com

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CoreCard Corporation (CCRD) Q2 Earnings and Revenues Top Estimates

Aug -14

Source: zacks.com

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CoreCard Corporation Reports Second Quarter 2025 Results

Aug -14

Source: globenewswire.com

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CORECARD INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of CoreCard Corporation - CCRD

Aug -03

Source: businesswire.com

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CoreCard (CCRD) Surges 10.0%: Is This an Indication of Further Gains?

Aug -01

Source: zacks.com

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$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Chart Industries, Inc. (NYSE: GTLS)

Jul -31

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.88%)

6. Segments

Professional Services

Expected Growth: 1.8%

CoreCard Corporation's 1.8% growth in Professional Services is driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's expertise in card management and processing, as well as its ability to provide customized solutions, have contributed to its growth.

Processing and Maintenance

Expected Growth: 1.9%

CoreCard Corporation's 1.9% growth in Processing and Maintenance is driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's investments in technology and infrastructure have improved operational efficiency, leading to cost savings and enhanced customer experience.

Third Party

Expected Growth: 2.1%

Third Party from CoreCard Corporation's 2.1% growth driven by increasing demand for digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, security, and customer experience has contributed to its growth. The rising adoption of contactless payments, mobile wallets, and online transactions has also fueled the segment's growth.

License

Expected Growth: 2.2%

The 2.2% growth driven by increasing adoption of digital payment solutions, expanding partnerships with fintech companies, and rising demand for cloud-based card management services. Additionally, CoreCard's license provides a scalable and secure platform, enabling clients to issue and manage cards efficiently, further fueling growth.

7. Detailed Products

Card Management System

A comprehensive platform for managing credit, debit, and prepaid card programs, offering features like card issuance, transaction processing, and reporting.

Loan Management System

A robust platform for managing loan products, including loan origination, servicing, and collections, offering features like credit decisioning and risk assessment.

Digital Wallet

A mobile-based digital wallet solution enabling users to store, manage, and use their payment cards, loyalty cards, and other credentials.

Payment Processing

A secure and scalable payment processing platform for online, mobile, and in-store transactions, supporting various payment methods and currencies.

Risk Management

A suite of risk management tools and services to detect, prevent, and mitigate fraud, offering real-time monitoring and analytics.

8. CoreCard Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

CoreCard Corporation operates in a niche market, and the threat of substitutes is moderate. While there are some alternatives available, they are not as comprehensive as CoreCard's offerings.

Bargaining Power Of Customers

CoreCard Corporation's customers are primarily large financial institutions, which have limited bargaining power due to the specialized nature of CoreCard's products.

Bargaining Power Of Suppliers

CoreCard Corporation has a diversified supplier base, which reduces the bargaining power of individual suppliers. Additionally, the company's strong relationships with its suppliers mitigate the risk of supply chain disruptions.

Threat Of New Entrants

The threat of new entrants is high in the fintech industry, as new companies are constantly emerging with innovative solutions. However, CoreCard Corporation's established presence and strong brand recognition provide a competitive advantage.

Intensity Of Rivalry

The intensity of rivalry in the fintech industry is moderate, with several established players competing for market share. However, CoreCard Corporation's differentiated products and strong customer relationships help to mitigate the impact of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.08%
Debt Cost 3.95%
Equity Weight 97.92%
Equity Cost 5.69%
WACC 5.65%
Leverage 2.13%

11. Quality Control: CoreCard Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CoreCard

A-Score: 5.1/10

Value: 3.7

Growth: 5.7

Quality: 7.4

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Paycor HCM

A-Score: 5.0/10

Value: 2.8

Growth: 7.7

Quality: 5.2

Yield: 0.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Rimini Street

A-Score: 4.7/10

Value: 7.9

Growth: 2.4

Quality: 6.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
SoundHound AI

A-Score: 4.0/10

Value: 6.0

Growth: 4.3

Quality: 3.9

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
NextPlat

A-Score: 3.7/10

Value: 9.2

Growth: 5.6

Quality: 4.2

Yield: 0.0

Momentum: 2.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Getaround

A-Score: 3.4/10

Value: 10.0

Growth: 5.0

Quality: 5.4

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.6$

Current Price

23.6$

Potential

-0.00%

Expected Cash-Flows