CoreCard (CCRD -1.09%), a provider of financial technology software and services, delivered its second quarter 2025 earnings on August 14, 2025. The main highlight was a surge in both revenue and adjusted earnings per share (non-GAAP), each beating analyst estimates. Revenue (GAAP) reached $17.6 million, ahead of the $16.45 million GAAP consensus, and adjusted non-GAAP EPS landed at $0.31, outpacing the $0.27 expected (Non-GAAP). Strong growth in its core professional services segment led the upside, while overall profitability and operating margins improved compared to the prior year. The period marks a key moment for the company as it prepares for a pending acquisition by Euronet Worldwide. Overall, the quarter demonstrated solid operational execution and financial performance.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.31 | $0.27 | $0.15 | 106.7 % |
| EPS (GAAP) | $0.24 | $0.11 | 118.2% | |
| Revenue (GAAP) | $17.6 million | $16.45 million | $13.8 million | 27.5 % |
| Adjusted EBITDA | $4.2 million | $2.5 million | 67.7 % | |
| Adjusted EBITDA Margin | 23.8 % | 17.9 % | 5.9 pp |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Recent Focus
CoreCard is a technology firm offering software platforms for processing and managing credit, debit, and prepaid card accounts. Its main product, CoreENGINE™, is a proprietary system that lets banks and fintech companies handle various types of card programs. CoreCard’s largest revenue category is professional services, including project implementations, software customization, and technical consulting. Other revenue streams include processing services, system maintenance, and third-party fees. License and product revenue have been absent in recent quarters (GAAP, Q1 and Q2 2025). Professional services are largely driven by client-specific projects and ongoing demands for customization.
The company's recent focus has stayed on advancing its next-generation, cloud-native platform, aiming to enhance scalability and flexibility. Investment in software development and compliance updates remains essential, given the evolving regulations in financial services. Key drivers for CoreCard include technological innovation, its ability to respond to regulatory needs, and maintaining close relationships with large institutional clients – most significantly, Goldman Sachs Group, Inc, which accounted for a significant share of its revenue. Managing this customer concentration risk and expanding the customer base are ongoing priorities.
Key Events and Performance During the Quarter
Revenue (GAAP) increased to $17.6 million, up from $13.8 million a year earlier. This outpaced analyst expectations by $1.1 million, or 7.0% (GAAP). Adjusted earnings per share reached $0.31 for Q2 2025, beating consensus by $0.04 on a non-GAAP basis. Segment data showed professional services revenue climbed 34.5% year over year to $9,381,000. Processing and maintenance fees (GAAP) also rose, growing 15.3% to $6,564,000, while third-party revenue expanded 45.9% to $1,649,000. No product or license revenue was reported, as anticipated.
while adjusted EBITDA margin expanded to 23.8%. This was driven largely by a sustained increase in professional services revenue, especially from Goldman Sachs, as stated by management in Q1 2025. The bottom line benefited from cost controls, with cost of revenue rising more slowly than overall sales. Research and development (R&D) costs increased by 63.3% to $3,188,000, compared to Q2 2024 (GAAP). This rise reflects ongoing investments in new platform technologies and enhancements, both to ensure compliance and keep CoreCard’s offerings attractive in a competitive market.
Cash and marketable securities on hand rose to $32,263,000 as of June 30, 2025, up from $24,891,000 at December 31, 2024. Accounts receivable (GAAP) fell to $6.8 million as of June 30, 2025, from $10.2 million at December 31, 2024, indicating improved payment collection or a shift in billing. Property and equipment assets also increased, hinting at continued investment in infrastructure.
Customer concentration continues to be a key issue, as management noted “professional services revenue primarily from our largest customer, Goldman Sachs” in Q1 2025. Dependency on that account remains central to future results.
Product Portfolio and Services
CoreCard’s products are built around its proprietary CoreENGINE™ platform, a software system powering card and account processing. The company services banks, fintechs, and enterprise clients who use its platform to handle the full life cycle of payment cards—including issuing, transaction processing, customer servicing, and compliance checks. The bulk of revenue comes from professional services such as technical integration, software upgrades, and ongoing support. Outsourced processing and system maintenance also feature as core offerings, providing clients with technology management for their financial products. There is no reported revenue from software license sales or standalone products; the company’s focus remains on managed services and platform-driven value.
Looking Ahead
Management did not offer updated financial guidance for the remainder of fiscal 2025. This decision is tied to the pending acquisition by Euronet Worldwide, which was announced on July 30, 2025. The lack of guidance introduces short-term uncertainty; Prior targets, shared in the previous quarter, anticipated full year 2025 revenues between $65 million and $69 million and EPS between $1.10 and $1.18, but these targets were not reiterated in the current period.
With the acquisition pending, investors will want to track updates related to regulatory approvals, leadership transitions, and how the integration with Euronet Worldwide may affect existing customers and ongoing strategic projects. Special attention should be given to customer concentration risk, any changes in major client relationships, and progress in ramping up next-generation technology efforts. The absence of a dividend continues: CCRD does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
