Usio (USIO) investor relations material

Business model and reach

• Four complementary divisions cover payment facilitation, ACH, card issuing, and print and mail; technology supports checks, cards, ACH, and real-time payments.

• Serves 200 U.S. cities and counties, including 7 of the 10 largest; named customers include Verizon, T-Mobile, Pfizer, Medtronic, and Eli Lilly.

• Payment facilitation sells through integrated software vendors; revenue from each payment is shared equally with software partners.

Segment trends

• ACH volume grew 34% YoY in H1 2026; gross margin was 70%, and each of the last six quarters set a volume record.

• Prepaid card spend was just under $115M in H1 2026, up 9% YoY; 37 state school voucher programs processed $1.3B in the prior 12 months, with one additional state over $1B in implementation.

• Output Solutions H1 volume grew 36% in printed and mailed documents and 45% in electronic documents.

• ACH growth reflects new sales and student-market disbursements; broad payment-channel coverage positions the business to capture shifts to real-time payments and other methods.

Growth initiatives

• Usio One, launched in early 2025, consolidated sales, customer support, IT, and finance across the four divisions to improve operating leverage and cross-selling.

• Usio Ion, purchased in November 2025, adds a business banking platform that can settle payments into customer wallets; management cited $80M-$100M in funds in the ecosystem and potential access to another $300M in deposits.

• Ion could increase interest income and margins as more funds remain in the ecosystem; management described this revenue stream as carrying 100% margin.

• Harris Computer named the business its preferred payments provider; integration will add payment processing and print-and-mail services for utility clients, with implementation expected to be gradual.

• University Title IV refunds are another opportunity; recipients can choose ACH, prepaid card, pinless debit, real-time payments, or check.