USIO

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth accelerated to 19% in Q2, driven by 20% plus growth in Credit Card, ACH, and Output Solutions business lines. The Card segment's 28% revenue increase was primarily fueled by the PayFac business, which grew 43% as the 'flywheel' of software partners (ISVs) successfully onboarded and scaled their merchant bases. ACH revenue rose 21%, while a shift toward Real-Time Payments (RTP) is expected to improve margins but modestly weigh on top-line revenue., which management noted carries higher margins despite lower per-transaction costs compared to legacy PINless debit. Output Solutions achieved record second-quarter revenue through a 43% increase in pieces mailed, supported by a new high-speed printer that is 4x faster and reduces labor and maintenance costs. Profitability reached a milestone with the second consecutive quarter of positive GAAP net income, supported by disciplined SG&A expenses that decreased year-over-year despite double-digit revenue growth. Management attributed high client retention and recurring revenue stability to the 'Usio One' strategy, which integrated sales teams to drive more omnichannel wins across multiple payment channels. Full-year revenue growth guidance was raised to 14%-16% (up from 10%-12%) based on strong first-half momentum and a robust pipeline of new implementations. The card issuing business expects significant growth from school voucher programs, with one state alone expected to disburse approximately $1.2 billion; however, many initial disbursements are being processed via ACH, representing a revenue opportunity across multiple payment channels. Management anticipates a margin catalyst from the upcoming launch of 'Usio Ion', a platform designed to capture up to $300 million in daily float, generating 100% margin interest income. Profitability is expected to benefit from improved pricing terms secured with sponsoring banks, which are scheduled to take effect starting in the third quarter. The company plans to expand its university loan refund program, targeting a transition of 30 universities currently served by a strategic partner's legacy processor. The company utilized $235,000 for share repurchases in Q2, signaling management's confidence in the current valuation and long-term growth trajectory. A shift in transaction mix from PINless debit to RTP is expected to modestly weigh on top-line revenue growth while simultaneously improving overall gross margins. Operating cash flow, when adjusted for a prior-year $1.5 million employee retention credit, showed a year-over-year increase despite lower headline cash balances due to timing of annual outlays. The acquisition of PostCredit (now Usio Ion) was characterized as a strategic 'leapfrog' that completed a software development project in 6 months that was originally projected to take 18 to 24 months. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that growth is driven by a three-legged stool: adding new ISVs, those ISVs growing their own subscriber bases, and the natural volume growth of merchants within those communities. Merchant counts increased 34% in the first six months of the year, validating the long-term strategy of securing software partners with 100-500 subscribers that scale over time. Management confirmed a short-term gross margin target of 23% to 25%, noting that Q2 reached 24%. Surpassing the 25% margin threshold is dependent on the full launch of Ion, which generates high-margin revenue through float and card spend fees. Management believes AI makes software development easier, forcing SaaS companies to seek new ways to add value, such as embedding financial tools. This trend is expected to increase demand for Usio's 'PayFac-in-a-Box' offering as software companies look to monetize payments to differentiate their platforms. Ion acts as a cross-divisional layer, allowing customers to manage funds from Output, Card Issuing, and ACH in a single platform. The primary financial driver is the potential to increase daily float from the current $80-$100 million range to approximately $300 million.

This article first appeared on GuruFocus. Revenue Growth: Total revenue increased 19% year-over-year in Q2 2026, accelerating from 15% growth in Q1 2026. GAAP Net Income: Reported positive net income of $280,000, or $0.01 per share, marking the second consecutive quarter of positive GAAP net income. Adjusted EBITDA: Reached $1.1 million in Q2 2026, more than double the year-ago quarter; first-half 2026 adjusted EBITDA was $1.9 million. Gross Profit: Gross profit dollars increased 12% year-over-year, with margins improving sequentially from Q1. SG&A Expenses: Total selling, general, and administrative expenses decreased by approximately $190,000 from the prior year. Cash Position: Cash and cash equivalents were $6.4 million at quarter-end, down from the beginning of the year due to annual cash outlays. Operating Cash Flow: Lower in the first half compared to last year, but increased year-over-year when adjusting for the $1.5 million employee retention credit received in the prior year period. Card Revenue: Increased 28% year-over-year to $9 million, driven by PayFac revenue up 43%. ACH Revenue: Increased 21%, with transactions up 34% and dollar volume up 28%. Output Solutions Revenue: Increased 22% in Q2, accelerating from 19% growth in Q1; pieces processed and mailed up 43%. Card Issuing Purchase Volume: Rebounded, up 11% sequentially, with card loads flat and transactions down slightly. Total Payment Dollars Processed: Increased 27% year-over-year. Total Payment Transactions Processed: Increased 27% year-over-year. Share Repurchases: Used approximately $371,000 to repurchase 281,000 shares during the six months ended June 30, 2026. Fiscal 2026 Revenue Guidance: Raised to 14% to 16% growth, up from previous guidance of 10% to 12%. Warning! GuruFocus has detected 3 Warning Signs with USIO. Is USIO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Usio Inc (NASDAQ:USIO) delivered its second consecutive quarter of positive GAAP net income and EPS, with revenue growth accelerating to 19% year-over-year. The PayFac business saw a 43% revenue increase, with merchant count up 34% in the first half of 2026, driving strong card revenue growth of 28%. ACH revenue grew 21% with transactions up 34%, and July set a new monthly ACH transaction record, indicating continued momentum. Output Solutions revenue increased 22% in Q2, with new high-speed printer expected to reduce costs and improve production efficiency. The company raised its full-year revenue growth guidance to 14%-16% (from 10%-12%), reflecting strong performance and growth prospects. New growth opportunities include school voucher programs (5-6 states, ~$1.5 billion in potential volume) and university loan refunds, which could boost card issuing and ACH volumes. The upcoming UCO Ion platform is expected to drive higher margins through float income and cross-selling across all business lines. Cash and cash equivalents decreased to $6.4 million from the beginning of the year, partly due to timing of annual cash outlays. Card loads were flat and transactions down slightly in card issuing, despite purchase volume rebounding 11%. Operating cash flow was lower in the first half compared to last year, though adjusted for the prior-year employee retention credit, it increased. The shift from pinless debit to RTP transactions modestly weighs on top-line revenue, though it improves profitability. Gross margins remain in the 23%-25% range, with improvement expected only with the full rollout of Ion, which is still in development. The company used $371,000 to repurchase shares, which may limit capital for other investments, though it signals confidence. Q: Can you elaborate on the PayFac flywheel effect and why it is really kicking in right now? A: Greg Carter (EVP, Chief Revenue Officer): The beauty of our PayFac model is we secure ISVs or software companies that may have anywhere from 100 to 500 subscribers today. Fast forward, if their business model goes like our current ISVs, four or five years down the road, that merchant base goes to 500 to 1,000. As those onboard, we get access for providing payments to those entities. That combined with the number of ISVs we've put on over the past several years is the flywheel of growth. As we add more ISVs, they in turn add merchants, which become our merchants by default. Q: With gross margins improving to 24%, and new programs launching, is it reasonable to assume margins can go even above 25% over the next few quarters? A: Louis Hoch (Chairman and CEO): The key to the growth there is going to be the full launch of Ion. The way we make money off of Ion is primarily through float and some card spend, but float is obviously 100% margin for us. So Ion is going to be a big catalyst for increasing our margins. Q: Regarding interest income, how should we think about a recovery through the second-half as the education programs come on? A: Louis Hoch (Chairman and CEO): The education programs have already started a little bit. Most of that traffic is occurring through ACH. We've gone from two states to around five or six that we'll be doing school voucher programs for. What's nice about these programs is that not all the money is dispersed when school starts; it happens over the course of a school year. We'll start seeing good volume from that when school kicks off in August and September. The other program is Title IV payments (school loan refunds), where we have one university coming live in the third or fourth quarter, but that reseller works with 30 universities today and we're hopeful we're going to get all that traffic. Q: Can you provide a ballpark on what total volumes would be across the five to six states for the school voucher programs? A: Louis Hoch (Chairman and CEO): Around $1.5 billion. Q: As AI transforms SaaS companies, do you think embedded payments become more of a determining factor in which platforms win, and is that showing itself in the ACH tailwinds you're seeing? A: Louis Hoch (Chairman and CEO): It's definitely going to benefit PayFac, which includes card and ACH. AI is making some software development tasks easier. What used to be competitive in software development was building software and having great infrastructure. Now people are able to reproduce it easier, so those software companies are looking for ways to increase the value of their platforms. The best way to do it is to embed payments and make a financial tool out of your software application, which is an absolute perfect fit for our PayFac in the Box offering. Q: Can you elaborate on the drivers behind the strong results and the new guidance, particularly around UCO1, RTP, and Ion? A: Louis Hoch (Chairman and CEO): We're very excited about Ion. We think that's a catalyst for not only top-line growth, but will increase our margins. We already have a handful of customers beta testing and the results are good. Every part of our business is doing really well, showing credibility to our strategy of having all payment channels. We're seeing some pinless transactions go to RTP, and while RTP transactions have less revenue, they have higher margins. If we didn't have RTP, we would have missed out on that traffic. When RTP allows for debits instead of just pushing funds, we'll see a big jump in usage. Q: Can you give us an update on PayFac and where you are now, as it seems much improved versus a couple of years ago? A: Greg Carter (EVP, Chief Revenue Officer): It's really lather, rinse and repeat. We've been doing the same thing for the last seven years and what we're seeing now is all that come to fruition. There has been a slow but steady upward climb of the PayFac revenue model and now we're just seeing the benefits of that. The key is adding as many ISVs as we can possibly accommodate into the implementation queue and then working with each entity individually to help them with that transition on their merchants. It's a culmination of doing this for many years and that patience and persistence is paying off. Q: You took a tiny product like Postcredit and revamped it into Ion, which you now call a major catalyst. Can you explain how that happened and the potential? A: Louis Hoch (Chairman and CEO): Ion was on our roadmap that we developed, and when Houston located this company and did his due diligence, we figured out we could implement the product faster. We really just bought software and it leapfrogged our development. What we were looking at developing in 18 months to two years, we're able to do in six months. The most exciting thing about Ion is the margin created from float. It will also increase our visibility for risk and fraud, potentially allow us to settle funds quicker to our customers, and we'll see usage on cards when they use the product as an expense management system. It is the first product that sits on top of all of our divisions. We believe there's over $200 million on a daily basis that we could potentially have in the Ion platform. Today, at any given time, we have $80 million to $100 million that's not ours. If we can increase that to $300 million, that's substantial float for us. Q: Will ION revenue show up in the number of product categories or service categories you announced, including interest income? A: Louis Hoch (Chairman and CEO): The card transactions will show up in card issuing, and interest income we'll leave up to Michael to figure out where that one's going to go. It's a product that sits on top of all of our divisions, so where we book it is a good problem to have. Q: You've had a good track record with acquisitions like Output Solutions and Ion. Are you going to follow that up with additional ones? A: Louis Hoch (Chairman and CEO): We look at deals all the time and we're just very selective, and that's part of the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Usio Inc? Here are five stocks we like better. Usio reported accelerating growth and improved profitability: Second-quarter revenue rose 19%, net income reached $280,000 for the second consecutive profitable quarter, and adjusted EBITDA more than doubled to $1.1 million. Payment dollars and transactions processed each increased 27% year over year. Payment businesses delivered strong operating momentum: Card revenue grew 28%, led by a 43% increase in PayFac revenue, while ACH revenue increased 21% and transactions rose 34%. Output Solutions revenue also grew 22%, with new contracts and increased processing volumes. Management raised its fiscal 2026 outlook: Usio now expects revenue growth of 14% to 16%, up from 10% to 12%, while continuing to generate positive adjusted EBITDA. The company is also preparing to expand Usio Ion, which could increase float income and help lift gross margins beyond the current 23%–25% range. Usio (NASDAQ:USIO) reported second-quarter fiscal 2026 revenue growth of 19% and its second consecutive quarter of positive GAAP net income, while raising its full-year revenue growth outlook. Senior Vice President and Chief Accounting Officer Michael White said the company met or exceeded analyst expectations for revenue and earnings. Revenue growth accelerated from 15% in the first quarter, while business-unit growth excluding interest income approached 20%, he said. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Usio reported net income of $280,000, or $0.01 per share, and adjusted EBITDA of $1.1 million, more than double the year-earlier quarter. Gross profit dollars rose 12%, and selling, general and administrative expenses declined by about $190,000 from a year earlier despite the increase in revenue. “This marks our second consecutive quarter of positive GAAP net income, an important milestone,” White said, adding that the quarter’s net income came from core operations and did not include unusual or one-time items. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Total payment dollars processed increased 27% from a year earlier, while payment transactions also rose 27%. White said no customer represented more than 10% of total revenue and that a majority of revenue remained recurring. Greg Carter, executive vice president of Payment Acceptance and chief revenue officer, said Card revenue increased 28% year over year to $9 million, marking the segment’s best second-quarter revenue performance. Card processing dollars rose 13%, while transactions increased 19%. → Apple’s Next iPhone Could Test How Much Pricing Power Is Left The performance was led by the company’s payment facilitator, or PayFac, business, where revenue increased 43%. PayFac accounted for more than three-quarters of Card revenue, according to Carter. Merchant count increased 34% during the first six months of the year. Carter described the PayFac model as a “flywheel” in which Usio adds independent software vendors, or ISVs, whose subscriber and merchant bases then grow over time. “New ISVs, ISV growth, and then merchant growth within that community” are the components of that growth model, Carter said during the question-and-answer session. Chairman and CEO Louis Hoch said revenue in Usio’s ACH business, its most profitable unit, increased 21%. ACH transactions grew 34%, payment dollar volume rose 28%, and return-check processing increased 35%. July set a monthly ACH transaction record, he said. Hoch also said the company had grown its real-time payments, or RTP, customer base to 12 accounts from none a year ago. Some customers have shifted volume from PINless debit to RTP, which produces less revenue per transaction but carries higher margins, according to Hoch. Card Issuing experienced what Hoch called an “improved quarter” despite continuing revenue headwinds. Purchase volume increased 11%, while card loads were flat and transactions declined slightly. The company signed 16 new issuing clients during the quarter and had more than 20 clients either in implementation or scaling volumes. Management highlighted school voucher programs and university loan-refund distributions as prospective issuing growth opportunities. Hoch said Usio expects to serve school voucher programs in approximately five or six states, up from two states discussed previously. The programs represent roughly $1.5 billion in total expected volume, he said. One state is expected to disburse about $1.2 billion, according to management. While initial voucher-program distributions have largely moved through ACH, Hoch said the programs provide opportunities for multiple channels on Usio’s platform. The company also expects to begin distributing Title IV university loan-payment refunds for several universities through a fintech partner in the second half. That partner currently serves 30 universities through another processor, and Usio believes it could transition those programs over time. Output Solutions revenue rose 22% in the second quarter, accelerating from 19% growth in the first quarter. Pieces processed and mailed increased 43%, while electronic documents processed and delivered grew 49%. Hoch said Output Solutions set monthly revenue records in each month of the first half and signed 11 new contracts while renewing two existing agreements. The business installed a new high-speed printer that is about four times faster than existing equipment and provides four times the resolution. Management expects the equipment to reduce labor, maintenance and ink costs while expanding the company’s ability to produce higher-quality print work. Usio is developing Usio Ion, the new name for PostCredit, which Hoch said is designed to sit across the company’s divisions. The platform has been beta tested by a handful of customers, and management said feedback has been positive. Hoch said Ion could create revenue through card spending, accelerated settlement fees and, primarily, float income from customer funds held on the platform. He said the company currently has between $80 million and $100 million held on behalf of others at a given time, and management believes Ion could potentially support more than $200 million of daily balances. Management said Ion’s fuller launch will be a key factor in lifting gross margins beyond the company’s stated near-term range of 23% to 25%. Usio also expects improved pricing from sponsoring banks beginning in the third quarter as processing volumes increase. For fiscal 2026, Usio raised its revenue growth guidance to 14% to 16%, from its prior expectation of 10% to 12%. The company also expects to continue generating positive adjusted EBITDA. Cash and cash equivalents totaled $6.4 million at quarter-end. White said the decline from the start of the year primarily reflected the timing of annual cash outlays, stock repurchases and investments in strategic initiatives, including Ion. During the first six months of 2026, Usio repurchased 281,000 shares for approximately $371,000. Usio, Inc (NASDAQ: USIO) is a financial technology company that delivers integrated payment, transaction processing, and money services solutions. The company's platform combines merchant acquiring, multi‐rail payment enablement and business management tools to support merchants, financial institutions and business partners in automating and securing electronic and cash‐based transactions. Through its subsidiaries, Usio provides a broad range of products and services, including point-of-sale terminals, payment gateway services, automated teller machine (ATM) processing, bill payment, money order issuance, domestic and international money transfer and remittance solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Usio Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Revenue, Earnings per Share, and Adjusted EBITDA1 beat Consensus Estimates Revenue up 19%, Adjusted EBITDA1 up 128% Raises Fiscal 2026 Revenue Guidance, Revenues Now Expected to be up 14-16% Total payment dollars processed through all payment channels up 27% SAN ANTONIO, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Usio, Inc., "Usio" or the "Company" (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the second quarter ended June 30, 2026. Louis Hoch, President and Chief Executive Officer of Usio, said, “The second quarter built upon a record start to the new year, with all of our key performance indicators showing sustained growth. I am particularly pleased with our bottom line, which we have been intently focused on improving, where Adjusted EBITDA1 was up 128% from a year ago and GAAP net income was approximately $0.3 million, or $0.01 per share. Revenue growth accelerated sequentially from the first quarter, up 19% versus the prior year period with all of Card, ACH and Output Solutions generating over 20% growth in the quarter. Total processing transactions set new records, led by 34% transaction growth in ACH during the quarter. Our financial condition and liquidity remain strong. Consequently, based on our extremely strong first half of the fiscal year and confidence in our new business opportunities, we have raised our expectations for our top line growth, with full year revenues now expected to be up 14 to 16% compared to the prior year, an increase from the previously expected 10 to 12%.” Results in the second quarter were led by a 28% increase in credit card revenues where volumes were up strongly, with dollars processed up 13% and transactions processed up 19% from a year ago. PayFac revenues were up 43% in the quarter and continue to comprise over three quarters of credit card revenues, which has precipitated the inflection in credit card's growth trajectory. ACH, our highest margin business, had another record quarter. Revenues were up 21% on record transaction volume, which was up 34%, and as the result of our growing RTP business and strong PINless debit growth. Further penetration of the mortgage servicing and fintech industries as well as the addition of new accounts continues to fuel ACH growth. Output Solutions had an outstanding quarter, with 22% revenue growth in the second quarter of 2026 over the same period last year, sequentially improving from 19% in the previous quarter. Volumes were at record levels with electronic documents processed and delivered up 49% and total pieces printed and mailed up 43%. For the quarter, gross profits were up over 11%, with gross margins at 24% in the quarter, a sequential improvement from 20% in the first quarter of 2026. Gross margins were down nominally versus the prior year period, primarily attributable to a decrease in interest revenue (which has a 100% margin) and revenue mix. Total selling, general and administrative expenses, inclusive of depreciation and amortization and stock-based compensation ("Total SG&A Expenses"), were down approximately $190,000 from the year ago period, while "SG&A," consisting of selling, general and administrative expenses only, was down nominally at 1% from the year ago quarter. For the quarter ended June 30, 2026, the Company reported net income of approximately $0.3 million, or $0.01 per share, compared to a net loss of ($0.4) million, or ($0.01) per share, for the second quarter of 2025. Note that there were no extraordinary items that contributed to the second quarter 2026 net income as calculated in accordance with United States generally accepted accounting principles ("GAAP"). Adjusted EBITDA1 was $1.1 million for the second quarter of 2026, more than double the $0.5 million in the same quarter a year ago. The Company used approximately $371,000 to repurchase 281,000 shares of its common stock in the six months ended June 30, 2026. Cash was in excess of $6.4 million at June 30, 2026, down over the six months, with the decrease being related to some annual cash outlays occurring in the period. In addition, cash was used for leasehold improvements and integration of our new Output Solutions printer in the second quarter, which helped accelerate Output Solutions revenues. 1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below Quarterly Processing and Transaction Volumes Total payment dollars processed through all payment channels in the second quarter of 2026 were $2.47 billion, an increase of 27% over the $1.94 billion processed in last year's second quarter. Total payment transactions processed in the second quarter of 2026 were 17.9 million, an increase of 27% over the same quarter of last year. Our credit card segment continues to grow, where dollars processed in the second quarter of 2026 were up 13% and transactions processed were up 19% from the year ago quarter. In the second quarter of 2026, ACH electronic check transaction volume was up 34%, setting a new quarterly transaction record for the fifth consecutive quarter, while electronic check dollars processed were up 28% and return check transactions processed were up 35%, in each case, compared to the same quarter of 2025. In our prepaid card services business unit, card load volume was flat, and transactions processed were down 4%; however, purchase volume was up 11% for the second quarter of 2026, in each case, compared to the same quarter of 2025. Output Solutions pieces processed and mailed were up 43% while electronic documents processed and delivered were up 49% for the second quarter of 2026, in each case, compared to the same quarter of 2025. Second Quarter 2026 Revenue Detail Revenues for the quarter ended June 30, 2026 were $23.7 million, up 19% from $20.0 million in the prior year quarter, due to increases in all of our business lines, excluding prepaid card services. Interest revenues were also lower. Revenues for the six months ended June 30, 2026 were $49.1 million, up 17% from $42.0 million in the prior year period, once again due to increases in all of our business lines, excluding prepaid card services, and lower interest revenues. Gross profit for the second quarter of 2026 was $5.7 million, up 11% versus $5.1 million in the second quarter of 2025. Gross margins (defined as gross profit as a percentage of total revenues) were 24.2% in the second quarter of 2026, down versus 25.8% in the second quarter of 2025. This was primarily due to lower interest revenues, a high margin revenue source, and revenue mix. Gross profit for the six months ended June 30, 2026 was $10.9 million, up 9% versus $9.9 million in the first half of 2025. Gross margins were 22.1% in the first half of 2026, down versus 23.7% in the first half of 2025. This was primarily due to lower interest revenues, a high margin revenue source, and revenue mix. Total SG&A Expenses for the second quarter of 2026 were $5.3 million, down from $5.5 million in the year ago quarter primarily due to lower depreciation and amortization expense. Total SG&A Expenses for the six months ended June 30, 2026 were $10.3 million, down from $10.6 million in the comparable year ago period primarily due to lower depreciation and amortization. SG&A was $8.9 million for the first half of 2026 compared to $8.8 million in the comparable prior year period. This nominal increase in SG&A was primarily related to increases in salary alongside increases in network infrastructure and professional fees that occurred in the first quarter of 2026. For the second quarter of 2026, we reported operating income of $0.4 million compared to an operating loss of ($0.4) million for the same quarter a year ago, primarily due to increased revenues and gross profits, alongside a decrease in Total SG&A Expenses. Adjusted EBITDA1 was $1.1 million for the second quarter of 2026, compared to Adjusted EBITDA1 of $0.5 million for the same quarter a year ago. Net income in the quarter ended June 30, 2026 was approximately $0.3 million, or $0.01 per share, compared to a net loss of ($0.4) million, or ($0.01) per share, for the same period in the prior year. For the six months ended June 30, 2026, we reported operating income of $0.6 million compared to an operating loss of ($0.6) million for the same period a year ago, primarily due to increased revenues and gross profits, alongside a decrease in Total SG&A Expenses. Adjusted EBITDA1 was $1.9 million for the six months ended June 30, 2026, compared to Adjusted EBITDA1 of $1.2 million for the same period a year ago. Net income in the six months ended June 30, 2026 was approximately $0.4 million, or $0.01 per share, compared to a net loss of ($0.6) million, or ($0.02) per share, for the same period in the prior year. Operating Cash Flows declined to $0.3 million for the six months ended June 30, 2026, as compared to $1.1 million in the same period a year ago. The year ago period benefited from an approximately $1.5 million tax refund. Additionally, accounts receivable at June 30, 2026 was up as compared to December 31, 2025, reflecting our strong revenue growth. We believe we continue to be in solid financial condition. Cash and cash equivalents as of June 30, 2026 were $6.4 million, a $1.0 million decrease over cash and cash equivalents as of December 31, 2025, due to items occurring once annually such as payment of state taxes and insurance, alongside some one-time cash outlays related to leasehold improvements and integration of our new Output Solutions printer in the second quarter. This was in addition to the use of over $371,000 to repurchase 281,000 shares of our common stock during the six months ended June 30, 2026. 1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below Conference Call and Webcast Usio's management will host a conference call on Wednesday, August 12, 2026, at 4:30 pm Eastern time to review financial results and provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-833-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the Company’s website at www.usio.com/investors. A replay of the call will be available approximately one hour after the end of the call through September 12, 2026. The replay can be accessed via the Company’s website or by dialing 1-855-669-9658 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is 8298156. About Usio, Inc. Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to clients through its unique payment facilitation platform as a service. The Company, through its Usio Output Solutions division, offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas. Websites: www.usio.com and www.akimbocard.com. Find us on LinkedIn, Facebook® and Twitter. Comparisons Unless otherwise indicated, all comparisons and growth rates represent year-over-year comparisons, with the quarterly period of this year compared to the corresponding quarter of the prior year. About Non-GAAP Financial Measures This press release includes the non-GAAP financial measures, as defined in Regulation G adopted by the Securities and Exchange Commission, of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures is useful to investors because it provides them with financial measures the Company uses in the management of its business. The Company defines EBITDA as operating income (loss), before interest income, interest expense, taxes, depreciation and amortization of intangibles. The Company defines Adjusted EBITDA as EBITDA, as defined above, plus non-cash stock-based compensation and certain non-recurring items, such as costs related to acquisitions. The Company defines Adjusted EBITDA margins as Adjusted EBITDA, as defined above, divided by total revenues. Management believes presenting EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins is helpful to investors in evaluating the Company's operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided by (used in) operating activities, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins have limitations as analytical tools and you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our operating results as reported under GAAP. 1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below FORWARD-LOOKING STATEMENTS DISCLAIMER Except for the historical information contained herein, this release contains forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding management's intentions, beliefs, expectations, and strategies for the future, including statements regarding the Company’s operating and growth strategies. Forward-looking statements can be identified by words such as "believe," "intend," "look forward," "anticipate," "schedule," "expect," and similar expressions. These forward-looking statements are subject to risks and uncertainties inherent in the Company's business that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, among others, risk relating to economic conditions; the realization of anticipated benefits from the PostCredit acquisition; the Company’s ability to manage growth; the loss of key resellers; relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers, and merchants; the security of the Company’s software, hardware, and information systems; volatility in the Company’s stock price; the need for additional financing; risks associated with new tax legislation; and compliance with complex federal, state, and local laws and regulations, as well as other risks described from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. One or more of these factors have affected, and in the future, could affect, the Company’s businesses and financial results and could cause actual results to differ materially from management’s plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, undue reliance should not be placed on such statements which speak as of the date hereof. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law. Contact: Investor [email protected]

Usio Inc (USIO) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to a loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +200.00%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced break-even earnings, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Usio, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $23.68 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.31%. This compares to year-ago revenues of $19.96 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Usio shares have added about 64% since the beginning of the year versus the S&P 500's gain of 12.9%. While Usio has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Usio was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.01 on $23.16 million in revenues for the coming quarter and -$0.02 on $95.28 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, DLocal (DLO), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This online payment company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +42.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. DLocal's revenues are expected to be $359.84 million, up 40.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Usio Inc (USIO) : Free Stock Analysis Report DLocal Limited (DLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fiserv (FISV) came out with quarterly earnings of $1.84 per share, missing the Zacks Consensus Estimate of $1.89 per share. This compares to earnings of $2.47 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.65%. A quarter ago, it was expected that this financial services technology company would post earnings of $1.57 per share when it actually produced earnings of $1.79, delivering a surprise of +14.01%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Fiserv, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $4.96 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.74%. This compares to year-ago revenues of $5.2 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Fiserv shares have lost about 19.4% since the beginning of the year versus the S&P 500's gain of 12.8%. While Fiserv has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Fiserv was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.16 on $5.26 billion in revenues for the coming quarter and $8.13 on $20.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Usio Inc (USIO), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Usio Inc's revenues are expected to be $23.61 million, up 18.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fiserv, Inc. (FISV) : Free Stock Analysis Report Usio Inc (USIO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SAN ANTONIO, July 29, 2026 (GLOBE NEWSWIRE) -- Usio, Inc., (Nasdaq:USIO), a leading provider of integrated, cloud-based electronic payment and embedded financial solutions, today announced plans to release its second quarter of fiscal 2026 financial results after the market closes on Wednesday, August 12, 2026. Usio’s management will host a conference call on August 12, 2026, at 4:30 p.m. Eastern time to review financial results and provide a business update, followed by a question-and-answer session. To listen to the conference call, parties within the U.S. should call 1-844-883-3890. International callers should call 1-412-317-9246. All callers should request the Usio conference call. The conference call will also be available via a live webcast, accessible through the company’s website at https://www.usio.com/events/. A replay of the conference will be available approximately one hour after the conclusion and will remain accessible through September 12, 2026. The replay may be accessed via the Company’s website or by dialing 1-855-669-9658 (U.S.) or 1-412-317-0088 (International). The replay conference playback code is: 8298156. To register as a financial professional in order to ask questions during the call, please email [email protected] no later than 5:00 p.m. Eastern time on Monday, August 10, 2026. About Usio, Inc.Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to clients through its unique payment facilitation platform as a service. The company, through its Usio Output Solutions division, offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas. Websites: www.usio.com  and www.akimbocard.com. Find us on LinkedIn, Facebook® and Twitter. FORWARD-LOOKING STATEMENTS DISCLAIMER Except for the historical information contained herein, this release contains forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding management's intentions, beliefs, expectations, and strategies for the future, including statements regarding the Company’s operating and growth strategies. Forward-looking statements can be identified by words such as "believe," "intend," "look forward," "anticipate," "schedule," and "expect," and similar expressions. These forward-looking statements are subject to risks and uncertainties inherent in the Company's business that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, among others, risk relating to economic conditions, including effects related to the COVID-19 pandemic; the realization of anticipated benefits from the PostCredit acquisition; the Company’s ability to manage growth; the loss of key resellers; relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers, and merchants; the security of the Company’s software, hardware, and information systems; volatility in the Company’s stock price; the need for additional financing; risks associated with new tax legislation; and compliance with complex federal, state, and local laws and regulations, as well as other risks described from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. One or more of these factors have affected, and in the future, could affect, the Company’s businesses and financial results and could cause actual results to differ materially from management’s plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, undue reliance should not be placed on such statements which speak as of the date hereof. The Company undertakes no obligation to update or revise any forward‑looking statements, except as required by law. Contact: [email protected]

This article first appeared on GuruFocus. Revenue Growth: Increased 16% year over year, achieving the highest quarterly revenue in the company's history. ACH and Complementary Services Revenue: Up 25% year over year. Card Revenue: Increased 23% year over year to a record $9.7 million. Output Solutions Revenue Growth: Accelerated to 19% in the quarter. Total Payment Dollars Processed: Up 28% year over year. Total Payment Transactions Processed: Increased 22% year over year. Net Income: Approximately $130,000 for the quarter ended March 31, 2026. Operating Cash: Ended the quarter with over $7.7 million, up about $300,000 since the end of 2025. Operating Income, Adjusted EBITDA, and Earnings Per Share: All reported positive and up from the comparable year-ago quarter. Prepaid Card Loads: Processed over $80 million in the first quarter. Output Solutions Pieces Processed and Mailed: Up 31% in the first quarter. Electronic Documents Processed and Delivered: Up 41% in the first quarter. Warning! GuruFocus has detected 4 Warning Signs with USIO. Is USIO fairly valued? Test your thesis with our free DCF calculator. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Usio Inc (NASDAQ:USIO) reported a record quarter with strong growth leading to record processing volumes and quarterly revenues. Revenue increased 16% year over year, marking the highest quarterly revenue in the company's history. The company achieved positive adjusted EBITDA and GAAP net income, along with positive operating cash flow. Card revenue was up 23% year-over-year to a record $9.7 million, driven by the rapid growth of PayFac. Output Solutions saw a 31% increase in pieces processed and mailed, and a 41% increase in electronic documents processed and delivered. Margins were somewhat lower compared to the prior-year quarter, partly due to a decrease in top-line interest income. The company experienced a decline in interest revenue, which has 100% gross margins, affecting overall margins. Overhead costs were modestly higher compared to the prior-year quarter. Card issuing revenues were down this quarter, although growth is expected later in the year. The company remains cautious about potential economic challenges such as inflation and higher interest rates. Q: Can you confirm the guidance for the year, including revenue growth and profitability expectations? A: Yes, we expect double-digit revenue growth of 10% to 12%, profitability, and positive EBITDA. Cash SG&A is expected to remain roughly flat for the rest of the year, and prepaid should return to growth for the full year. - Louis Hoch, Chairman and CEO Q: Can you provide an overview of the sales funnel and which products are leading in it? A: Our pipeline is robust across all business lines, with billions in total processing volume. The focus is on implementation and processing. We are optimistic about all business lines for the rest of 2026. - Greg Carter, EVP, Chief Revenue Officer Q: How is the PayFac segment performing, and did it impact the positive Card results? A: PayFac is performing well, with a combination of enterprise and new additions to existing ISV customers. Legacy ISVs continue to add merchants, and larger enterprise accounts have been implemented, contributing to the positive Card results. - Greg Carter, EVP, Chief Revenue Officer Q: What is the outlook for margins, particularly gross and operating margins? A: We expect margins to improve as we move traffic from pinless to real-time payments, which has higher margins. Electronic presentments through Output also have high margins. We anticipate gross margins to return to 23% to 25% in the short term. - Louis Hoch, Chairman and CEO Q: Can you elaborate on the expected growth in the Prepaid segment? A: Growth is expected from a school voucher program distributing up to $1 billion, mostly on cards, and new strategic partnerships and fintech deals. We implemented 27 new accounts in Q1, contributing to growth. - Louis Hoch, Chairman and CEO and Jerry Uffner, SVP, Card Issuing For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Usio Inc (USIO) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.01. This compares to a loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced a loss of $0.05, delivering a surprise of -600%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Usio, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $25.47 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 7.66%. This compares to year-ago revenues of $22.01 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Usio shares have lost about 5.9% since the beginning of the year versus the S&P 500's gain of 8.1%. While Usio has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Usio was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.01 on $23.61 million in revenues for the coming quarter and -$0.04 on $93.73 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Klarna (KLAR), is yet to report results for the quarter ended March 2026. The results are expected to be released on May 14. This Swedish buy now, pay later company is expected to post quarterly loss of $0.37 per share in its upcoming report, which represents a year-over-year change of -42.3%. The consensus EPS estimate for the quarter has been revised 1.7% higher over the last 30 days to the current level. Klarna's revenues are expected to be $939.23 million, up 34% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Usio Inc (USIO) : Free Stock Analysis Report Klarna Group plc (KLAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Revenue Up 16%, Beats Consensus by 9% Adjusted EBITDA1 of $0.8 Million Beats Consensus by 12% All-time Record Quarterly Revenue, Processing Volume and Transactions Total payment dollars processed through all payment channels up 28% versus the prior year period SAN ANTONIO, May 13, 2026 (GLOBE NEWSWIRE) -- Usio, Inc., "Usio" or the "Company" (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the first quarter ended March 31, 2026. Louis Hoch, President and Chief Executive Officer of Usio, said, “It was a record start to the new year, affirming our belief that the momentum coming out of our record 2025 would provide a strong tailwind for continued growth and profitability. All of our key performance metrics were at record levels in the first quarter, with revenues up 16%, the fastest rate of revenue growth in nine quarters. Total processing volume and transactions also set new records, which is an impressive encore to the prior quarter where we set many of the previous all-time records. The strength of our business is broad based, with better than 20% growth in ACH and credit card, and nearly the same in Output Solutions, which was up 19%. This strong growth, coupled with our fiscal discipline, led to a significant year-over-year improvement in the bottom line as well as positive operating cash flow, and a further improvement in our balance sheet and liquidity. The implementation of our Usio One strategy, our growing reputation in the payments industry, and the innovative technologies integrated into our diversified businesses are increasingly taking hold, providing us with confidence in our expectation of achieving another year of profitable, double-digit growth in fiscal 2026.” Results in the first quarter were led by a $1.8 million, or 23%, increase in credit card revenues. Volumes were up strongly, with dollars processed up 16% and transactions processed up 22% from a year ago. Credit card results increasingly reflect the strength of our PayFac business, which now accounts for nearly 80% of total credit card segment revenues, and has consistently grown revenues at double digit rates. We expect this to be the new growth trajectory of our credit card business. ACH, our highest margin business, had another record quarter with strong volumes driving revenues up 25%. ACH revenue growth was primarily attributable to an increase in ACH and PINLess debit volume from net, new business and organic growth. ACH set new processing volume records with electronic check dollar volume increasing 31%, transactions growing 34% and returned check transactions up 54%, all as compared to the same period last year. PINless debit also set quarterly all-time records as transactions and dollars processed were up 23% and 36%, respectively, from the same period a year ago, driven by growth in the mortgage servicing and fintech industries. Output Solutions generated accelerating revenue growth, with revenues up 19% in the quarter, a strong sequential improvement from the previous quarter’s 8% growth. Volumes were at record levels with highly profitable electronic documents processed and delivered up 41% for the first quarter of 2026 compared to the same quarter of 2025. For the quarter, gross profits were up over 6%, although gross margins were somewhat softer in the quarter, primarily attributable to a decrease in interest revenue (which has a 100% margin) and revenue mix. Margins are expected to improve over the balance of the year. Total selling, general and administrative expenses, inclusive of depreciation and amortization and stock-based compensation ("Total SG&A Expenses"), were down over $130,000 from the year ago period, although the line item "SG&A," consisting of selling, general and administrative expenses only, was up modestly from the year ago quarter. On a sequential basis, SG&A was reduced by $700,000 and is now at a level that is not expected to materially increase this year. For the quarter ended March 31, 2026, the Company reported net income of approximately $0.1 million, or $0.00 per share, compared to a net loss of ($0.2) million, or ($0.01) per share, for the first quarter of 2025. Note that there were no extraordinary items that contributed to the first quarter 2026 net income as calculated in accordance with the United States generally accepted accounting principles ("GAAP"). Adjusted EBITDA1 was $0.8 million for the first quarter of 2026, up compared to $0.7 million in the same quarter a year ago. Operating cash flow for the quarter was $0.9 million, representing the continued strength of our business. The Company used approximately $235,000 to repurchase 182,000 shares of its common stock. Cash increased $0.3 million over the quarter and was in excess of $7.7 million at March 31, 2026. 1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below Quarterly Processing and Transaction Volumes Total payment dollars processed through all payment channels in the first quarter of 2026 were $2.50 billion, an improvement of 28% over the $1.96 billion processed in last year's first quarter. Total payment transactions processed in the first quarter of 2026 were 16.8 million, an increase of 22% over the same quarter of last year. Our credit card segment continues to grow, where dollars processed were up 16% and transactions processed were up 22% from a year ago. In the first quarter of 2026, ACH electronic check transaction volume was up 34%, electronic check dollars processed were up 31% and return check transactions processed were up 54%, in each case, compared to the same quarter of 2025. In our prepaid card services business unit, card load volume was down 19%, transactions processed down 16% and purchase volume down 7% for the first quarter of 2026, in each case, compared to the same quarter of 2025. Output Solutions pieces processed and mailed were up 31% while electronic documents processed and delivered were up 41% for the first quarter of 2026, in each case, compared to the same quarter of 2025. First Quarter 2026 Revenue Detail Revenues for the quarter ended March 31, 2026 were $25.5 million, up 16% from $22.0 million in the prior year quarter, due primarily to increases in all of our business lines, excluding prepaid card services and interest revenues. Gross profit for the first quarter of 2026 was $5.1 million, up versus $4.8 million in the first quarter of 2025. Gross margins (defined as gross profit as a percentage of revenues) were 20.2% in the first quarter of 2026, down versus 21.9% in 2025. This was primarily due to lower interest revenues, a high margin revenue source, and revenue mix. Total SG&A Expenses for the first quarter of 2026, were $4.9 million, down from over $5.0 million in the year ago quarter primarily due to lower depreciation and amortization and stock-based compensation expense. SG&A was $4.4 million for the quarter ended March 31, 2026, compared to $4.1 million in the prior year period. This increase was primarily related to increases in salary alongside increases in network infrastructure and professional fees. For the first quarter of 2026, we reported operating income of $0.2 million compared to an operating loss of ($0.2) million for the same quarter a year ago primarily due to increased revenues and gross profits, alongside a decrease in Total SG&A Expenses. Adjusted EBITDA1 was $0.8 million for the first quarter of 2026, compared to Adjusted EBITDA1 of $0.7 million for the same quarter a year ago. Net income in the quarter ended March 31, 2026 was approximately $0.1 million, or $0.00 per share, compared to a net loss of ($0.2) million, or ($0.01) per share, for the same period in the prior year. Operating Cash Flows declined to $0.9 million for the three months ended March 31, 2026, as compared to $1.4 million in the same period a year ago. The year ago period benefited from an approximately $1.5 million tax refund. Additionally, prepaid expenses and accounts receivable March 31, 2026 were up as compared to December 31, 2025. We believe we continue to be in solid financial condition. Cash and cash equivalents as of March 31, 2026 were $7.7 million, a $0.3 million increase over cash and cash equivalents as of December 31, 2025, even after the use of over $230,000 to repurchase 182,000 shares of our common stock during the first quarter of 2026. 1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below Conference Call and Webcast Usio's management will host a conference call on Wednesday, May 13, 2026, at 4:30 pm Eastern time to review financial results and provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-833-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the Company’s website at www.usio.com/investors. A replay of the call will be available approximately one hour after the end of the call through June 13, 2026. The replay can be accessed via the Company’s website or by dialing 1-855-669-9658 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is 4785914. About Usio, Inc. Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to clients through its unique payment facilitation platform as a service. The Company, through its Usio Output Solutions division, offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas. Websites: www.usio.com and www.akimbocard.com. Find us on LinkedIn, Facebook® and Twitter. Comparisons Unless otherwise indicated, all comparisons and growth rates represent year-over-year comparisons, with the quarterly period of this year compared to the corresponding quarter of the prior year. About Non-GAAP Financial Measures This press release includes the non-GAAP financial measures, as defined in Regulation G adopted by the Securities and Exchange Commission, of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures is useful to investors because it provides them with financial measures the Company uses in the management of its business. The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles. The Company defines Adjusted EBITDA as EBITDA, as defined above, plus non-cash stock-based compensation and certain non-recurring items, such as costs related to acquisitions. The Company defines Adjusted EBITDA margins as Adjusted EBITDA, as defined above, divided by total revenues. Management believes presenting EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins is helpful to investors in evaluating the Company's operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided by (used in) operating activities, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins have limitations as analytical tools and you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our operating results as reported under GAAP. 1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below FORWARD-LOOKING STATEMENTS DISCLAIMER Except for the historical information contained herein, this release contains forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding management's intentions, beliefs, expectations, and strategies for the future, including statements regarding the Company’s operating and growth strategies. Forward-looking statements can be identified by words such as "believe," "intend," "look forward," "anticipate," "schedule," "expect," and similar expressions. These forward-looking statements are subject to risks and uncertainties inherent in the Company's business that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, among others, risk relating to economic conditions; the realization of anticipated benefits from the PostCredit acquisition; the Company’s ability to manage growth; the loss of key resellers; relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers, and merchants; the security of the Company’s software, hardware, and information systems; volatility in the Company’s stock price; the need for additional financing; risks associated with new tax legislation; and compliance with complex federal, state, and local laws and regulations, as well as other risks described from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. One or more of these factors have affected, and in the future, could affect, the Company’s businesses and financial results and could cause actual results to differ materially from management’s plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, undue reliance should not be placed on such statements which speak as of the date hereof. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law. Contact: Paul ManleySenior Vice President, Investor [email protected] 612-834-1804