Usio (USIO) investor relations material

Executive summary

• Achieved record quarterly revenue of $25.5 million, up 16% year-over-year, surpassing consensus by 9%, with strong growth across all business units and processing volumes.

• Net income was $0.1 million, reversing a net loss of $0.2 million in the prior year quarter, with positive adjusted EBITDA and operating cash flow.

• Adjusted EBITDA reached $0.8 million, up from $0.7 million last year and beating consensus by 12%.

• All-time records set for processing volume and transactions, with broad-based growth across business lines.

• Majority of revenue is recurring, with high client retention and no single client over 10% of revenue.

Financial highlights

• Total payment dollars processed rose 28% to $2.50 billion; transactions processed increased 22% to 16.8 million year-over-year.

• Revenue up 16% year-over-year; ACH revenue up 25%, card revenue up 23%, Output Solutions up 19%.

• Prepaid card services revenue declined 18% to $2.4 million; card load volume down 19%, transactions down 16%.

• Gross profit increased to $5.1 million, but gross margin declined to 20.2% from 21.9% due to revenue mix shift and lower interest income.

• Operating cash flow was $0.9 million, down from $1.4 million last year; cash and equivalents at $7.7 million at quarter-end.

Outlook and guidance

• Management reiterated 2026 guidance for 10%-12% revenue growth, continued profitability, and positive adjusted EBITDA, with margins expected to improve.

• Prepaid segment expected to return to growth in the second half of 2026 as new contracts are onboarded.

• Sufficient liquidity is expected to support operations and capital needs for at least the next 12 months.

• Overhead expected to remain relatively flat for the year.