Usio (USIO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $21.2 million, down 1% year-over-year due to prepaid card and Output Solutions declines, but up over $1 million sequentially, with strong ACH and credit card growth.

• Net loss for Q3 2025 was $(0.4) million, or $(0.02) per share, compared to net income of $2.9 million in Q3 2024, mainly due to the absence of prior year tax credits and higher SG&A expenses.

• Most new and total revenue is now recurring, marking a significant milestone.

• Margins improved sequentially, with gross profit flat year-over-year at $4.87 million and gross margin at 23.0%.

• Cash and cash equivalents at quarter end were $7.7 million, with positive operating cash flow and continued share repurchases.

Financial highlights

• Adjusted EBITDA for Q3 2025 was $0.4 million (1.7% margin), down from $0.8 million (3.6% margin) in Q3 2024.

• Operating cash flow for Q3 2025 was $1.4 million.

• Year-to-date share repurchases totaled over $760,000, or just over 500,000 shares.

• SG&A expenses increased to $4.5 million in Q3 2025, up from $4.1 million in Q3 2024.

• Working capital was $10.0 million at quarter end.

Outlook and guidance

• Management expects second half 2025 results to exceed first half, with a return to top-line growth in Q4 and for the full year 2025.

• Cash position is anticipated to increase, supporting both organic expansion and potential acquisitions.

• Sequential growth in Card Issuing is seen as the start of a rebound expected to accelerate in 2026.

• Numerous new accounts in implementation, including an enterprise card customer expected to generate over $100 million in annual recurring processing volume.

• Available cash and credit facilities are considered sufficient to meet operational and legal obligations for at least the next 12 months.