CoreCard Corporation

Total revenue in Q1 2025 was $16.7 million, up 28% year over year. Professional services revenue was $8.7 million, processing and maintenance revenue was $6.3 million, and third-party revenue was $1.6 million; there was no license revenue, which management said it does not expect for the year. Income from operations was $2.8 million versus $0 a year ago, operating margin was 16.8% versus 4%, diluted EPS was $0.24 versus $0.05, adjusted diluted EPS was $0.28 versus $0.07, and adjusted EBITDA was $4 million versus $1.7 million. For Q2 2025, guidance is revenue of $16.2 million-$16.9 million, EPS of $0.23-$0.28, and professional services revenue of $8.4 million-$8.8 million. For full-year 2025, guidance is revenue of $65 million-$69 million and EPS of $1.10-$1.18. Management also reiterated full-year revenue growth excluding the largest customer and certain legacy items should be 30%-35%.

Leland Strange struck a calm, upbeat tone and described the quarter as “good,” saying the rest of the year should be “equally as good or better.” He emphasized that CoreCard is run as if it will remain independent, while also noting the board is actively evaluating succession and acquisition possibilities. On the largest customer risk, he said he had “nothing new to report” and that, from what the company knows today, there is “nothing to report.”

Matt White said Q1 results exceeded expectations, mainly because professional services revenue was higher than expected from Goldman Sachs due to higher managed services rates and continued development work. He noted processing and maintenance revenue grew 3% year over year, or 16% excluding a one-time accelerated item and legacy CABG revenue, and said the company expects ex-Goldman revenue growth to accelerate through 2025. He also highlighted that the new platform build impacted the income statement by $800,000 in Q1 versus $700,000 a year ago, headcount has been kept steady, and the ongoing tax rate is expected to stay in the 24% to 27% range.

Analysts focused on three issues: industry consolidation, the Intuit purchase of Deserve, and the strength of Goldman revenues. Management said consolidation in card issuing should not cause major disruption, though it may create a little opportunity for CoreCard. On Deserve, management said the relationship will likely roll off over time, CoreCard is not in discussions with Intuit, and the expected impact is already included in guidance. On Goldman, management said the Q1 run rate reflects higher managed services rates and that this is the level expected for the rest of 2025.