Usio (USIO) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $25.5 million in Q1 2026, up 16% year-over-year, surpassing consensus by 9%, with strong growth across ACH, credit card, and Output Solutions, offset by prepaid card declines and lower interest revenues.

• Net income was $0.1 million, reversing a net loss of $0.2 million in the prior year quarter, driven by higher revenues and lower stock-based compensation and depreciation expenses.

• Adjusted EBITDA reached $0.8 million (3.1% margin), up from $0.7 million (3.0%) last year, beating consensus by 12%.

• All-time records set for processing volume and transactions, with total payment dollars processed up 28% to $2.50 billion and transactions up 22% to 16.8 million year-over-year.

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

Financial highlights

• Revenue up 16% year-over-year to $25.5 million; ACH revenue up 25%, card revenue up 23%, Output Solutions up 19%, while prepaid card services revenue declined 18%.

• 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 income was $0.2 million, compared to an operating loss of $0.2 million last year.

• Operating cash flow was $0.9 million, down from $1.4 million last year, which benefited from a $1.5 million tax refund.

• Cash and cash equivalents at quarter-end were $7.7 million, with working capital of $9.0 million.

Outlook and guidance

• Management expects continued double-digit revenue growth of 10%-12% in 2026, with positive adjusted EBITDA and margin improvement, driven by the Usio One strategy and new client implementations.

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

• Overhead expected to remain relatively flat for the year.

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