Usio to Offer Business Banking Services to its Clients11 Usio Inc. is a financial technology company and not a bank. Banking services provided by TransPecos Banks, SSB, Member FDIC. SAN ANTONIO, Nov. 25, 2025 (GLOBE NEWSWIRE) -- Usio, Inc. (Nasdaq: USIO), a leading provider of fintech payment and card issuing solutions, today announced that it has acquired substantially all of the assets of PostCredit, Co (PostCredit), a Los Angeles-based financial technology company in an all-stock transaction. PostCredit ...

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - Usio Inc reported $21.18 million in revenue for the quarter ended September 2025, reflecting a year-over-year decline of 0.7% and a surprise of -6.03% compared to the Zacks Consensus Estimate of $22.54 million [1] - The EPS for the same period was -$0.02, consistent with the previous year, while the consensus EPS estimate was $0.01, resulting in an EPS surprise of -300% [1] Revenue Breakdown - Revenue from ACH and complementary services was $5.84 million, exceeding the two-analyst average estimate of $5.21 million [4] - Revenue from credit card services was $7.35 million, below the average estimate of $8.1 million [4] - Revenue from prepaid card services was $2.8 million, compared to the average estimate of $3.11 million [4] - Revenue from interest in Output Solutions was $0.05 million, slightly above the average estimate of $0.04 million [4] - Revenue from interest in ACH and complementary services was $0.16 million, below the estimated $0.19 million [4] - Revenue from interest in prepaid card services was $0.14 million, compared to the average estimate of $0.25 million [4] - Revenue from Output Solutions was $4.84 million, below the average estimate of $5.83 million [4] Stock Performance - Usio's shares have returned +2.8% over the past month, while the Zacks S&P 500 composite has changed by +4.6% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - Usio Inc reported a quarterly loss of $0.02 per share, missing the Zacks Consensus Estimate of $0.01, representing an earnings surprise of -300.00% [1] - The company posted revenues of $21.18 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 6.03% and down from $21.32 million a year ago [2] - Over the last four quarters, Usio has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with Usio shares gaining about 0.7% year-to-date compared to the S&P 500's gain of 16.4% [3] - The current consensus EPS estimate for the coming quarter is $0.01 on revenues of $23.31 million, and $0.04 on revenues of $87.82 million for the current fiscal year [7] - The Zacks Industry Rank for Financial Transaction Services is in the bottom 32% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Data and Key Metrics Changes - Q3 fiscal 2025 saw a record overall transaction volume of $16.2 million, an increase of 8% year-over-year, contributing to a sequential revenue increase of $1.2 million, primarily driven by ACH, which grew 30% year-over-year [3][4] - Adjusted EBITDA for the quarter was $368,000, down from $500,000 in the previous quarter and also down from the previous year [5] - Operating cash flow was $1.4 million, with cash increasing by over $200,000 to over $7.8 million at quarter end [5][6] Business Line Data and Key Metrics Changes - ACH revenues increased by 30% year-over-year, marking the eighth consecutive quarter of growth in electronic check transaction volume [16] - Card Issuing generated sequential volume growth with total dollars loaded exceeding $75 million, and profitability continues to improve [17][18] - Output Solutions saw sequential revenue growth, with electronic-only documents delivered increasing to 20 million pieces, up about 500,000 from a year ago [19][20] Market Data and Key Metrics Changes - The credit card segment processed dollars up 12% and transactions up 75% year-over-year, with PayFac revenues increasing by 32% [8][9] - The mortgage servicing and fintech industries significantly drove growth in the PINless debit offering, which saw transaction growth of 96% and dollar growth of 87% year-over-year [16] Company Strategy and Development Direction - The company is focusing on implementing new clients faster to capitalize on a strong sales pipeline, with a commitment to recurring revenue growth [25][26] - Usio One initiative aims to capture a greater share of electronic payment and printing volume, with a unified platform for customer onboarding [11][12] - The company is exploring new product offerings, including wearables and customized solutions, to enhance its competitive edge [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong processing metrics and recurring revenue, indicating a potential inflection point for growth [22][23] - The company anticipates improved performance in Card Issuing moving forward, with expectations of benefiting from financial assistance programs related to government shutdowns [18][30] - Management emphasized the importance of maintaining pricing discipline while growing transaction volumes [15] Other Important Information - The company has repurchased approximately $750,000 worth of shares year-to-date, with over $3 million remaining on the current repurchase authorization [22][34] - The balance sheet remains strong, allowing for continued investment in organic growth and potential strategic acquisitions [22] Q&A Session Summary Question: Is there a change in sales cycles affecting future opportunities? - Management noted a strong pipeline and is focusing on faster implementations of sold clients, which represent significant volume [25][26] Question: What criteria does the company have for potential M&A transactions? - The company looks for synergy, the right acquisition price, and no existing issues that could distract from organic growth [33] Question: How has the federal government shutdown impacted state or local governments? - The company received inquiries from cities and counties looking to bridge payments during the shutdown, indicating a potential for new business [30][32] Question: Can you clarify the recurring revenue in the ACH business? - Management explained that the current revenue is largely recurring, contrasting with the previous year that included one-time events [43][45] Question: Why did credit card transaction volumes increase significantly while revenues only rose slightly? - Management clarified that transaction metrics include PINless debit, which affects revenue reporting, emphasizing that revenue is primarily driven by dollars processed [50]

Financial Data and Key Metrics Changes - Q3 fiscal 2025 saw a record overall transaction volume of $16.2 million, up 8% year over year, leading to a sequential revenue increase of $1.2 million [3] - Adjusted EBITDA for the quarter was $368,000, down from $500,000 in the previous quarter and also down from a year ago [5] - Operating cash flow for the quarter was $1.4 million, with cash increasing to over $7.8 million at quarter end [5][6] Business Line Data and Key Metrics Changes - ACH revenues increased by 30% year over year, marking the eighth consecutive quarter of growth in electronic check transaction volume [16] - Card processing volumes increased, with credit card segment dollars processed up 12% and transactions processed up 75% year over year [8] - Output Solutions generated sequential revenue growth, with electronic-only documents delivered increasing to 20 million pieces, up about 500,000 from a year ago [19] Market Data and Key Metrics Changes - The company is experiencing strong demand in the mortgage servicing and fintech industries, particularly for its PINLESS Debit offering, which saw a 96% increase in transactions processed [16] - The healthcare market is also a focus, with expectations of significant volume increases from key accounts in the upcoming year [18] Company Strategy and Development Direction - The company is focusing on recurring revenue, with most new and total revenue being recurring in nature [4] - Technology upgrades and new product launches are expected to position the company for accelerated growth [7] - The UCO One initiative aims to capture a greater share of customers' electronic payment and printing volume, with a unified platform for customer onboarding [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pipeline of future opportunities and the focus on faster implementations of sold services [25] - The company anticipates a rebound in card issuing performance as comparisons normalize in the upcoming quarters [17] - There is a sense of being on the verge of a potential inflection point, with growing volumes and positive cash flow expected to continue [22][23] Other Important Information - The company has repurchased approximately $750,000 worth of shares year-to-date, with over $3 million remaining on the current repurchase authorization [22][34] - Management is strict about acquisition criteria, focusing on synergy, favorable pricing, and avoiding problematic acquisitions [33] Q&A Session Summary Question: Are there changes in sales cycles affecting future opportunities? - Management noted a strong pipeline and emphasized the focus on implementations rather than sales cycles [25][27] Question: Has the federal government shutdown impacted state or local governments? - Management indicated that they received numerous inquiries from local governments seeking assistance during the shutdown, but some programs may be delayed [30][32] Question: What criteria does the company consider for potential acquisitions? - The company looks for synergy, favorable pricing, and avoids acquisitions with existing issues that could distract from organic growth [33]

Financial Data and Key Metrics Changes - Q3 fiscal 2025 saw a record overall transaction volume of $16.2 million, up 8% year over year, leading to a sequential revenue increase of $1.2 million [3] - Adjusted EBITDA for the quarter was $368,000, down from $500,000 in the second quarter and also down from the previous year [5] - Operating cash flow for the quarter was $1.4 million, with cash increasing by over $200,000 to over $7.8 million at quarter end [5] Business Line Data and Key Metrics Changes - ACH revenues increased by 30% year over year, marking the eighth consecutive quarter of growth in electronic check transaction volume [16] - Card issuing generated sequential volume growth with total dollars loaded exceeding $75 million, and profitability continues to improve [17] - Output Solutions saw sequential revenue growth, with electronic-only documents delivered increasing to 20 million pieces in the quarter [19] Market Data and Key Metrics Changes - The credit card segment processed dollars up 12% and transactions processed up 75% from a year ago, with key payback revenues up 32% [8] - The PINLESS Debit offering set all-time records for both transactions and dollars processed, with growth of 96% for transactions and 87% for dollars processed year over year [16] Company Strategy and Development Direction - The company is focusing on accelerating implementations of new clients to drive volume and recurring revenue [25] - UCO One initiative aims to capture a greater share of customers' electronic payment and printing volume, with a unified platform for customer onboarding [11] - The company is exploring new product offerings, including wearables and customized solutions, to enhance market competitiveness [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong pipeline of future opportunities and the potential for a rebound in card issuing performance [4][19] - The company anticipates continued cash growth and is positioned to invest in organic expansion and strategic acquisitions [5][21] - Management noted that the recurring nature of revenue is becoming more pronounced, which is expected to support future growth [14] Other Important Information - The company completed share repurchases totaling $750,000 year-to-date, with over $3 million remaining on the current repurchase authorization [21][33] - The company is experiencing a positive momentum with record processing volumes and sustained profitability [5][22] Q&A Session Summary Question: Changes in sales cycles and future opportunities - Management indicated a strong pipeline and focus on faster implementations of sold services, with a rich sales pipeline across divisions [25][26] Question: Impact of federal government shutdown on business - Management noted increased inquiries from local governments seeking assistance during the shutdown, indicating potential business opportunities [29][31] Question: Criteria for potential M&A transactions - The company outlined strict criteria for acquisitions, focusing on synergy, favorable pricing, and avoiding problematic acquisitions [32] Question: Recurring revenue in ACH business - Management clarified that the current revenue is largely recurring, contrasting with the previous year which included one-time events [42][44] Question: Confusion regarding credit card processing volumes and revenues - Management explained that while transaction volumes were up significantly, revenue growth was more modest due to the nature of the transactions processed [49]

Revenue Performance - In Q3 2025, the company's revenues declined by 1% to $21.2 million compared to $21.3 million in Q3 2024, primarily due to decreases in prepaid card services and Output Solutions[124]. - For the nine months ended September 30, 2025, revenues increased by 1% to $63.2 million, up from $62.4 million for the same period in 2024, driven mainly by growth in ACH and complementary services[125]. - Total revenue for the quarter ended September 30, 2025, was $21.2 million, a decrease of 1% compared to $21.3 million for the same period in 2024, primarily due to a 30% decline in prepaid card services[162]. - Total revenue for the nine months ended September 30, 2025, increased by 1% to $63.2 million compared to $62.4 million for the same period in 2024, driven by a 33% growth in ACH and complementary services[163]. Expenses and Profitability - Selling, general, and administrative (SG&A) expenses rose to $4.5 million in Q3 2025, compared to $4.1 million in the prior year quarter, attributed to higher salaries and increased operational costs[126]. - Adjusted EBITDA for Q3 2025 was $0.4 million, down from $0.8 million in Q3 2024, with Adjusted EBITDA margins decreasing to 1.7% from 3.6%[155]. - Gross profit for the quarter ended September 30, 2025, decreased by 1% to $4.87 million, maintaining a gross profit percentage of 23.0%[168]. - Net loss for the quarter ended September 30, 2025, was $0.4 million, a significant decrease from net income of $2.9 million in the prior year, attributed to increased SG&A and absence of prior year tax benefits[180]. - The company reported a net loss of ($1.0) million for the nine months ended September 30, 2025, compared to a net income of $2.7 million for the same period in the prior year[181]. Cash Flow and Financial Position - Cash and cash equivalents stood at $7.7 million as of September 30, 2025, with cash provided by operations amounting to $1.4 million for the nine months ended September 30, 2025[183]. - Net cash provided by operating activities decreased to $1.4 million for the nine months ended September 30, 2025, down from $1.9 million in the same period of 2024[190]. - Net cash used in investing activities increased to $1.1 million for the nine months ended September 30, 2025, compared to $0.7 million for the same period in 2024[191]. - Net cash used in financing activities was $6.5 million for the nine months ended September 30, 2025, compared to net cash provided of $4.7 million in the same period of 2024[192]. - The company has working capital of $10.0 million as of September 30, 2025, slightly down from $10.2 million at December 31, 2024[184]. Business Strategy and Developments - The company has adopted a "One Usio" strategy to unify its brand and enhance client onboarding, customer management, and reporting capabilities[113]. - The company is focusing on expanding its ACH merchants and electronic bill presentment services while optimizing its infrastructure for growth without significantly increasing operating costs[123]. - The company has entered the Real Time Payments (RTP) market in 2023, expanding its payment technology offerings[109]. - The company completed the development of a new Electronic Bill Presentment and Payment (EBPP) system in the first half of 2025, allowing merchants to create and distribute bills online[110]. - The assimilation of acquisitions such as Akimbo Financial, Singular Payments, and IMS has been crucial for enhancing the company's payment technology offerings and revenue streams[130]. Transaction Metrics - Processing volume and transaction counts are key metrics for assessing the addition of new customers and growth from existing clients, directly correlating to revenue performance[131]. - The number of credit card transactions processed increased by 75% in Q3 2025 compared to Q3 2024, while the volume of credit card dollars processed rose by 12%[132]. - ACH (eCheck) transaction counts increased by 26%, and returned check transactions rose by 35% in Q3 2025 compared to Q3 2024[133]. - Prepaid card load volumes decreased by 46%, and transaction counts decreased by 33% in Q3 2025 compared to Q3 2024, primarily due to processing reductions from a key client[134]. - Total dollar volumes processed across all business lines reached $2.18 billion in Q3 2025, an 8% increase from $2.02 billion in Q3 2024[136]. Other Financial Metrics - Interest earnings amounted to $1.5 million for the nine months ended September 30, 2025, with $1.1 million recognized as revenue[138]. - The company's reserve for processing losses was $751,937 as of September 30, 2025, down from $897,116 at December 31, 2024[144]. - Stock-based compensation expenses for the quarter ended September 30, 2025, were $0.4 million, down from $0.6 million in the prior year due to completed amortization of previous awards[170]. - Cost of services for the quarter ended September 30, 2025, decreased by 1% to $16.3 million, reflecting increased revenue from higher margin business lines[165]. - Depreciation and amortization expense for the nine months ended September 30, 2025, totaled $1.4 million, down from $1.7 million in the prior year, due to completed amortization of intangible assets[176]. Market and Economic Conditions - The company continues to face uncertainties due to inflation, geopolitical concerns, and potential changes in international trade policies, which may impact future financial results[139]. - The ongoing transition to electronic document delivery has reduced the price per unit processed, impacting revenue despite strong processing activity[135]. - The company continues to invest in infrastructure, including employee retention and marketing efforts, to achieve scale across all business lines[190]. - The company entered into a debt arrangement on September 19, 2025, to finance $1,017,954 for the purchase of an Output Solutions printer[186]. - The company has an unsecured revolving line of credit with a maximum borrowing capacity of $475,000, which remains undrawn as of September 30, 2025[187].

Exhibit 99.1 Usio Announces Third Quarter 2025 Financial Results Revenue up over $1 million sequentially from Second Quarter 2025 Total payment dollars processed through all payment channels up 8% versus the prior year period Sequential increase across all processing metrics for all divisions All-time quarterly records for all ACH processing metrics, Credit Card volume, and PINless Debit volume and transactions SAN ANTONIO, November 12, 2025 (GLOBE NEWSWIRE) – Usio, Inc., "Usio" or the "Company": (Nasdaq: U ...

Core Insights - Usio, Inc. reported a solid performance in Q3 2025, with total payment dollars processed increasing by 8% year-over-year, reaching $2.18 billion, and achieving all-time quarterly records in various processing metrics [1][7][9] Financial Performance - Consolidated revenues for Q3 2025 were $21.18 million, slightly down from $21.32 million in Q3 2024, primarily due to a decline in prepaid card services [4][9] - ACH and complementary services revenues grew by 36% to $5.84 million, while credit card revenues increased by 2% to $7.35 million [10][9] - The company reported a net loss of approximately $0.4 million, or $0.02 per share, compared to a net income of $2.9 million, or $0.10 per share, in the same quarter of the previous year [5][14] Operational Metrics - Total payment transactions processed in Q3 2025 were 16.2 million, a 27% increase from the same quarter last year [7] - The ACH division saw electronic check dollar volume increase by 8%, with transactions growing by 26% and returned check transactions up by 35% year-over-year [3][8] Strategic Developments - The company is focused on growing its recurring revenue base and has implemented a significant enterprise customer in its card business, expected to generate over $100 million in annual recurring processing volume [6] - Usio has invested over $760,000 in share repurchases this year, indicating a strong financial position with $7.7 million in cash and positive cash flow [6][19] Expense Management - Selling, general and administrative (SG&A) expenses increased to $4.5 million in Q3 2025 from $4.1 million in the prior year, attributed to higher salaries and operational costs [13][14] - Adjusted EBITDA for Q3 2025 was $0.4 million, down from $0.8 million in the same quarter a year ago [5][14]