Core Viewpoint - Usio Inc reported a revenue of $22.24 million for the quarter ended December 2025, marking an 8.2% year-over-year increase, but fell short of the Zacks Consensus Estimate of $23.05 million, resulting in a surprise of -3.48% [1] Financial Performance - The company reported an EPS of -$0.05 for the quarter, a decline from $0.02 a year ago, leading to an EPS surprise of -1100% compared to the consensus estimate of $0.01 [1] - Usio's stock has returned -5.3% over the past month, while the Zacks S&P 500 composite has changed by -1.8% [3] Revenue Breakdown - Revenue from ACH and complementary services was $6.1 million, exceeding the average estimate of $5.57 million from two analysts [4] - Revenue from credit card services was $7.7 million, below the estimated $8.7 million from two analysts [4] - Revenue from prepaid card services was $2.6 million, slightly above the average estimate of $2.56 million [4] - Revenue from Output Solutions was $5.4 million, falling short of the average estimate of $6.3 million [4] - Interest revenue from ACH and complementary services was $0.2 million, compared to the average estimate of $0.17 million [4] - Interest revenue from prepaid card services was $0.2 million, exceeding the average estimate of $0.14 million [4] - Interest revenue from Output Solutions was reported as $0 million, below the estimated $0.05 million [4]

Core Insights - Usio, Inc. (USIO) reported a sequential and year-over-year revenue increase, with record growth accelerating to 8% in Q4 2025, and a full-year revenue increase of 3% [2]. Revenue Growth Targets - The company is targeting a revenue growth of 10% to 12% by 2026 while focusing on enhancing cross-selling and ACH (Automated Clearing House) momentum [2].

分组1 - Usio Inc reported a quarterly loss of $0.05 per share, missing the Zacks Consensus Estimate of $0.01, and compared to earnings of $0.02 per share a year ago, resulting in an earnings surprise of -1,100.00% [1] - The company posted revenues of $22.24 million for the quarter ended December 2025, which was 3.48% below the Zacks Consensus Estimate and an increase from $20.56 million year-over-year [2] - Usio has not surpassed consensus EPS estimates over the last four quarters, indicating ongoing challenges in meeting market expectations [2] 分组2 - The stock has underperformed, losing about 8.1% since the beginning of the year, compared to a 1.9% decline in the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $23.43 million, and $0.10 on revenues of $93.7 million for the current fiscal year [7] 分组3 - The Zacks Industry Rank places Financial Transaction Services in the bottom 36% of over 250 Zacks industries, suggesting that the industry's outlook may negatively impact stock performance [8] - The estimate revisions trend for Usio was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Financial Data and Key Metrics Changes - Revenues increased by 8% in Q4 2025, leading to a 3% increase for the year, with product and service revenues up 4% excluding interest [3][4] - Total dollars processed set a record, up 19% for the year, and transactions processed increased by 30% [3] - Operating cash flow for the year was $1.5 million, with nearly $7.5 million in cash on hand for future investments [5][6] Business Line Data and Key Metrics Changes - ACH revenue grew over 30% for both Q4 and the full year, with dollars processed up 22% and transactions up 29% [4][20] - Card revenue increased by 7% in Q4 and finished the year up 3%, driven by PayFac growth [4][8] - Output Solutions saw a 6% revenue increase in Q4, with pieces mailed up 11% and electronic documents processed up 18% [4][19] Market Data and Key Metrics Changes - The company reported a diversified customer base, with no single client accounting for more than 10% of total revenue [5] - The pipeline remains strong across all business lines, indicating potential for continued growth [21] Company Strategy and Development Direction - The company aims to increase its share of customers' wallets and build a portfolio of recurring revenues through new product introductions [7][15] - The acquisition of PostCredit is seen as a strategic move to enhance business banking solutions and improve customer risk management [16] - The Usio One initiative focuses on cross-selling opportunities and improving sales team accountability [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting 10%-12% revenue growth and continued positive adjusted EBITDA [22] - The company is focused on completing tasks that offer immediate returns on investment while being cautious with guidance [21][22] - Management highlighted the importance of new customer implementations and the potential for significant revenue contributions in the latter half of 2026 [31][32] Other Important Information - The company has reported positive adjusted EBITDA for three consecutive years and anticipates maintaining this trend in fiscal 2026 [6][22] - The company is actively engaged with large commercial and governmental entities for its Card Issuing services, which are expected to rebound [18] Q&A Session Summary Question: Impact of a lost customer on 2025 revenue - Management estimated a loss of around $3 million due to a customer loss, which impacted Card Issuing revenue [24][25][26] Question: Update on Usio One initiative and sales force reorganization - Management reported a good transition with positive adjustments in the sales team and successful outreach campaigns [27][28][29] Question: Details on new large customers and onboarding cadence - Management provided insights on three large Card Issuing projects, with significant revenue expected to start in Q3 2026 [30][31][32] Question: Visibility on 2026 growth guidance - Management indicated that there are numerous deals in implementation, providing confidence in meeting growth targets [33] Question: Future of ACH growth - Management expressed confidence in ACH continuing to outperform, with expectations for record performance in Q1 2026 [37][38] Question: SG&A expenses and investment outlook - Management aims to keep SG&A expenses flat for 2026, with a focus on efficiency and cost savings [39][40][46] Question: Success metrics for Usio One initiative - Management highlighted the importance of diverse contracts and successful cross-selling as indicators of success for the Usio One initiative [41][42]

Financial Data and Key Metrics Changes - Revenues increased by 8% in Q4 2025, leading to a 3% increase for the year, with product and service revenues up 4% excluding interest [3][4] - Total dollars processed set a record, up 19% for the year, and transactions processed increased by 30% [3] - Operating cash flow for the year was $1.5 million, with nearly $7.5 million in cash on hand for future investments [5][6] Business Line Data and Key Metrics Changes - ACH revenue grew over 30% in Q4 and 33% for the full year, with pinless debit dollars processed up 81% [4][20] - Card revenue increased by 7% in Q4 and finished the year up 3%, driven by PayFac growth [4][8] - Output Solutions saw a 6% revenue increase in Q4, with pieces mailed up 11% and electronic documents processed up 18% [4][19] Market Data and Key Metrics Changes - Card Issuing revenues were down in Q4 but improved relative to Q3, with expectations for recovery in 2026 due to easier comps from prior year transactions [5][18] - The company reported no single client accounting for more than 10% of total revenue, indicating a diversified customer base [5] Company Strategy and Development Direction - The company aims to increase its share of customers' wallets and build a portfolio of recurring revenues through new product introductions [7][15] - The acquisition of PostCredit is seen as a strategic move to enhance business banking solutions and improve customer risk management [16] - The Usio One initiative focuses on cross-selling opportunities across different business units [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting 10%-12% revenue growth and continued positive adjusted EBITDA [22] - The company is focused on completing tasks that offer immediate returns on investment while being cautious with guidance [22] Other Important Information - The company has reported positive adjusted EBITDA for three consecutive years and anticipates maintaining this trend in fiscal 2026 [6] - The company is actively engaged with large commercial and governmental entities for its Card Issuing services [17] Q&A Session Summary Question: Impact of a lost customer on 2025 revenue - Management estimated a loss of around $3 million in revenue due to a customer loss, which would have significantly impacted growth [24][25][26] Question: Update on Usio One initiative and sales force reorganization - Management reported a good transition with successful sales outreach campaigns and positive responses from customers [27][28][29] Question: Details on new large customers and onboarding cadence - Management provided insights on three large projects, with significant revenue expected from a school voucher program and partnerships with a major bank and payment company, set to go live in Q3 2026 [30][31][32] Question: Visibility on 2026 growth guidance - Management indicated that there are numerous deals in implementation that could meet growth targets, but timing of go-lives is uncertain [33] Question: Future of ACH growth - Management confirmed that ACH is expected to continue its strong performance into Q1 2026, with ongoing momentum [38] Question: SG&A expenses outlook - Management aims to keep SG&A expenses flat compared to 2025, with a focus on efficiency [39][40][46] Question: Cross-selling targets for Usio One - Management noted that success will be measured by the diversity of contracts signed across business units, indicating positive early results [41][42]

Financial Data and Key Metrics Changes - Revenues increased by 8% in the fourth quarter, leading to a 3% increase for the year, with product and service revenues up 4% excluding interest [2][3] - Total dollars processed set a record, up 19% for the year, and transactions processed increased by 30% [2] - Operating cash flow for the year was $1.5 million, with nearly $7.5 million in cash on hand for investments [4][5] Business Line Data and Key Metrics Changes - ACH revenue grew more than 30% for both the quarter and the full year, making it the fastest-growing segment [2][3] - Card revenue increased by 7% in the fourth quarter and finished the year up 3%, driven by PayFac growth [3] - Output Solutions saw a 6% revenue increase in the fourth quarter, with pieces mailed up 11% and electronic documents processed up 18% [3] Market Data and Key Metrics Changes - The majority of revenue in the quarter was generated from ongoing programs, with no single client accounting for more than 10% of total revenue, indicating a diversified customer base [4] - Card Issuing revenues were down in the quarter but improved relative to the third quarter, with profitability also improving [3] Company Strategy and Development Direction - The company aims to increase its share of customers' wallets and build a portfolio of recurring revenues through new products and services [6][14] - The acquisition of PostCredit is seen as a strategic move to enhance business banking solutions and improve customer risk management [14][16] - The company is focused on cross-selling opportunities through the Usio One initiative, which aims to integrate various services for clients [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting 10%-12% revenue growth and continued positive adjusted EBITDA [21] - The company is confident in its ability to rebound from past challenges, particularly in Card Issuing, and anticipates strong performance in Q1 2026 [18][20] - There is a strong pipeline across all business lines, with ongoing efforts to increase wallet share and improve profitability [21] Other Important Information - The company reported positive adjusted EBITDA for three consecutive years and expects to maintain this trend in fiscal 2026 [5] - The company has made significant investments in expanding both tangible and intangible fixed assets, including share repurchases [5] Q&A Session Summary Question: What would 2025 revenue have looked like without the loss of a customer? - Management estimated a loss of around $3 million due to the customer loss, which impacted Card Issuing revenue [24][25] Question: How is the Usio One initiative progressing? - The transition has been positive, with changes in the sales team structure and successful cross-selling efforts noted [27][29] Question: What are the details on new large customers signed for 2026? - Three large projects were mentioned, including a school voucher program and partnerships with a major bank and a top payment company, expected to go live in Q3 [31][32] Question: How much of the 10%-12% growth is already booked? - Management indicated that there are numerous deals in implementation, but the timing of their go-live is uncertain [34] Question: Will SG&A expenses continue to rise in 2026? - SG&A expenses are expected to remain flat or see moderate growth, with a focus on maintaining efficiency [39][40]

Payment Volume and Transactions - Usio processed over $8.4 billion in payment volume in 2025, a 19% increase from $7.1 billion in 2024[5] - Total payment transactions processed exceeded 60.4 million, up 29% from 47 million in the previous year[5] - The ACH division set all-time quarterly records for transactions and dollar volumes processed in Q4 2025, with a sequential growth of 14% compared to Q3[6] Card Issuing Division Performance - Prepaid load volume in the Card Issuing division declined to approximately $300 million in 2025 from $500 million in 2024, with prepaid transactions falling to over 8 million from 11 million[17] - Nearly 50% of loaded dollars in 2025 were spent through signature-based transactions, generating interchange revenue of 2% per dollar spent, compared to 34% in 2024[22] Revenue Expectations and Business Model - Usio expects to report record revenues in 2025, driven by increases in payment volumes and growth in segments like ACH and real-time payments[24] - The company maintained positive adjusted EBITDA over multiple consecutive quarters, affirming the consistency of its business model[25] Strategic Investments and Future Plans - Usio made significant investments in its go-to-market strategy and technology stack, enhancing its operational capabilities[26] - Strategic priorities for 2026 include scaling recurring revenue streams and expanding offerings to include emerging payment technologies[30] - The integration of PostCredit, a recent acquisition, is expected to leverage banking services for Usio's customer base[30]

Core Insights - Usio, Inc. reported record full-year revenues and processing volume, with total processing volume reaching $8.4 billion, up 19% from 2024, and transactions processed increasing by 30% [1][2]. Financial Performance - For the fourth quarter of 2025, revenues were $22.2 million, an 8% increase from $20.6 million in the same period of 2024 [6][8]. - Full-year revenues for 2025 were $85.4 million, up 3% from $82.9 million in 2024 [12][15]. - ACH and complementary services saw a revenue growth of 33% for the year compared to 2024, while credit card revenue grew by 3% [3][13]. - Gross profit for the fourth quarter was $4.9 million, down 4% from $5.1 million in the same period of 2024, with gross margins at 21.9% compared to 24.6% in 2024 [8][14]. Operational Highlights - The company achieved strong revenue growth in its three largest business segments: ACH and complementary services, credit card, and output solutions [2][3]. - The ACH segment had record processing volume and transactions, contributing significantly to revenue growth [3][4]. - The company experienced a modest decline in gross margins due to product mix and decreased interest revenues [4][8]. Cash Flow and Investments - Usio generated strong cash flow, which was utilized for business investments and stock repurchases totaling $1.1 million in 2025 [4][11]. - The company reported a net loss of $2.5 million for 2025, compared to a net income of $3.3 million in 2024, largely due to increased SG&A expenses [15][10]. Future Outlook - For fiscal 2026, Usio expects revenue growth of 10-12% and continued positive Adjusted EBITDA, contingent on stable economic conditions [5].

Financial Performance - In 2025, the company processed $8.4 billion across all payment types, a 19% increase from $7.1 billion in 2024, driven by strong growth in ACH and complementary services [281]. - Total revenues for 2025 increased by 3% to $85.4 million from $82.9 million in 2024, primarily driven by a 33% increase in ACH and complementary services revenue [315]. - The company processed record metrics for dollars and transactions in 2025, indicating strong performance in the payments ecosystem [288]. - Net income reported a loss of $2.5 million in 2025 compared to net income of $3.3 million in 2024, primarily due to the absence of a $1.7 million employee retention tax credit received in 2024 [327]. Transaction Metrics - Total transactions processed rose by 30% in 2025, reaching 60.8 million [281]. - ACH transactions processed increased by 29.3% in 2025 compared to 2024, while returned check transactions rose by 31.2% [284]. - Credit card dollars processed grew by 12.7% in 2025, with credit card transactions increasing by 66.3% [286]. - Total revenues from prepaid card services declined by 22% to $11.0 million in 2025, impacted by the loss of a key downstream customer [315]. Expenses and Profitability - SG&A expenses increased to $18.4 million in 2025 from $16.7 million in the prior year, primarily due to higher salaries and network infrastructure costs [279]. - Adjusted EBITDA loss for the quarter ended December 31, 2025, was ($0.2) million, down from $0.5 million in the same period in the prior year, attributed to increased SG&A and reduced gross profit [308]. - Adjusted EBITDA for the twelve months ended December 31, 2025, was $1.3 million, compared to $2.9 million for the same period in 2024, reflecting increased SG&A expenses [309]. - Gross profit for 2025 was $19.7 million, a nominal increase of $0.1 million, with gross profit margins declining from 23.7% in 2024 to 23.1% in 2025 [317]. - Stock-based compensation expense decreased to $1.7 million in 2025 from $2.1 million in 2024, primarily due to vesting of previous stock grants [318]. Cash Flow and Capital Management - Net cash provided by operating activities totaled $1.5 million for 2025, down from $2.9 million in 2024, mainly due to the lack of the employee retention tax credit and increased SG&A expenses [338]. - Net cash used by investing activities increased to $1.5 million in 2025 from $0.9 million in 2024, driven by higher expenditures related to capitalized labor for internal use software [339]. - Net cash provided by financing activities was $28.7 million in 2025, a significant increase compared to net cash used of $5.1 million in 2024, primarily due to changes in customer payment processing assets and proceeds from a new equipment loan [340]. - As of December 31, 2025, the company had $7.4 million in cash and cash equivalents, down from $8.1 million in 2024, reflecting increased SG&A and lower interest income [328]. - Working capital decreased to $9.4 million in 2025 from $10.2 million in 2024, attributed to declines in cash and cash equivalents and lower accounts receivable [329]. Strategic Initiatives - The company acquired the assets of PostCredit in 2025, enhancing its product offerings in the expense management market [278]. - The company aims to expand its product offerings and deepen partner relationships to drive recurring revenues and operational execution [275]. Reserves and Allowances - The reserve for processing losses was $784,937 and $897,116 at December 31, 2025 and 2024, respectively, indicating a decrease in reserves [298]. - Accounts receivable allowance for expected credit losses was $404,132 and $324,000 at December 31, 2025 and 2024, respectively [299]. Debt and Credit Arrangements - The company entered into a debt arrangement on September 19, 2025, financing $1,017,954 for a new printer, with monthly payments of $20,088 required [332]. - The company maintains an unsecured revolving line of credit with a maximum borrowing capacity of $475,000, established on May 29, 2024, with no amounts drawn as of December 31, 2025 [334]. - The company has no off-balance sheet arrangements that could materially affect its financial condition or results of operations [341].

Core Viewpoint - Usio, Inc. will release its financial results for the fourth quarter and fiscal year ended December 31, 2025, on March 18, 2026, after market close [1] Financial Results Announcement - The financial results will be discussed in a conference call on March 18, 2026, at 4:30 p.m. Eastern time, which will include a business update and a Q&A session [2] Conference Call Details - U.S. participants can join the call by dialing 1-844-883-3890, while international callers should use 1-412-317-9246. The call will also be available via a live webcast on the company's website [3] Replay Information - A replay of the conference call will be available approximately one hour after the call ends and can be accessed until April 18, 2026, through the company's website or by calling designated numbers [4] Upcoming Conferences - Usio is scheduled to participate in the 38th Annual Roth Conference from March 22-24, 2026, in Dana Point, CA, and the 16th Annual LD Micro Invitational from May 17-19, 2026, in Los Angeles, CA [5] Company Overview - Usio, Inc. is a leading provider of integrated, cloud-based electronic payment and embedded financial solutions, offering a wide range of payment solutions to various clients including merchants, banks, and service bureaus. The company operates credit, debit/prepaid, and ACH payment processing platforms and provides tailored solutions for card issuance and payment acceptance [5]