Financial Data and Key Metrics Changes - The company reported record first-quarter revenues with a 5% increase in revenues, and a 6% increase excluding net income, which was down from the previous year [4][5] - Total processing volume increased by 34%, with ACH processing volume up 36% [5][19] - Adjusted EBITDA rose to $700,000 in the quarter, up from $500,000 in the previous quarter [6] - Cash position improved to $8.7 million at quarter end, generating $700,000 in cash during the quarter [6][26] Business Line Data and Key Metrics Changes - PayFac processing dollars were up 33%, leading to a 25% increase in PayFac revenue, which now accounts for approximately 59% of total card revenues [12][19] - ACH revenues increased by 33%, with electronic transaction volumes up 36%, marking the sixth consecutive quarter of growth [19] - Output Solutions revenues increased by 12% sequentially, with electronic documents processed up 5% [20] Market Data and Key Metrics Changes - The company is experiencing strong growth in its PayFac business, with 17 new ISVs in various stages of implementation [12] - The company is focusing on small to medium business markets, leveraging its technology to diversify its account base [23] Company Strategy and Development Direction - The company launched the UCO-one initiative to enhance cross-selling opportunities across its business lines [10][18] - There is a strategic focus on improving gross and EBITDA margins, with a long-term goal of achieving 25% gross margins and 8% to 10% EBITDA margins [40][26] - The company is exploring M&A opportunities that align with its strategic goals and can provide synergies [44][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 14% to 16% revenue growth for the year, driven by a strong pipeline of deals expected to close in the second half [8][27] - The company is insulated from macroeconomic challenges due to its diversified product portfolio [27] - Management highlighted the potential of new technologies, including a biometrics AI-driven application, to revolutionize payment methods [24][26] Other Important Information - The company is committed to improving operating leverage, with headcount below that of the previous year [6] - The company is generating strong cash flow and has a healthy balance sheet, providing flexibility for growth initiatives and potential acquisitions [26] Q&A Session Summary Question: Clarification on organic revenue growth - Management confirmed that adjusting for spoilage revenue from the previous year, organic growth was over 10% [29] Question: Insights on UCO-one initiative and sales team composition - The company has 12 quota-bearing salespeople and is moving to a standardized CRM to facilitate cross-selling [32][34] Question: Gross margin decline explanation - Management explained that the decline was due to the absence of high-margin spoilage revenue from the previous year [35] Question: Future gross margin expectations - Management aims to return gross margins to mid-20s as revenue scales [40] Question: M&A criteria and opportunities - The company looks for synergies, favorable acquisition multiples, and the ability for acquired companies to operate independently post-acquisition [44] Question: Investor sentiment and stock performance - Management noted increased interest from quant funds and positive investor sentiment due to strong financial performance [45][46]

Financial Data and Key Metrics Changes - The company reported record first quarter revenues with a 5% increase in revenues, and a 6% increase excluding net income, which was down from the previous year [4][6] - Total processing volume increased by 34%, with ACH processing volume up 36% [4][6] - Adjusted EBITDA rose to $700,000 in the quarter, up from $500,000 in the fourth quarter of 2024 [5] - Cash position improved to $8.7 million at quarter end, generating $700,000 in cash during the quarter [5][6] Business Line Data and Key Metrics Changes - PayFac processing dollars were up 33% in the quarter, leading to a 25% increase in PayFac revenue, which now accounts for approximately 59% of total card revenues [11][12] - ACH revenues increased by 33%, with electronic transaction volumes up 36%, marking the sixth consecutive quarter of growth [17][18] - Output Solutions revenues increased by 12% sequentially, with electronic documents processed up 5% [19][20] Market Data and Key Metrics Changes - The company is experiencing strong growth in its PayFac business, with 17 new ISVs in various stages of implementation [11] - The company is focusing on small retail merchants with a new filtered spend program, which allows targeted spending [13] Company Strategy and Development Direction - The company is pursuing a dual mandate to grow the business while improving profitability through better leveraging of its infrastructure [6][25] - The UCO-one initiative aims to enhance cross-selling opportunities across business lines, with early successes already noted [8][10] - The company is strategically focused on the small to medium business market and plans to add a payroll card offering to its portfolio [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 14% to 16% top-line revenue growth for the year, with expectations for acceleration in the second half [6][26] - The company remains insulated from macroeconomic challenges due to its diversified product portfolio [26] - Management highlighted the potential of new technologies, including a biometrics AI-driven application, to revolutionize payment methods [23][24] Other Important Information - The company is generating strong cash flow and has the flexibility to evaluate strategic acquisitions [25] - Management emphasized the importance of efficiency and productivity efforts to improve gross and EBITDA margins [25] Q&A Session Summary Question: Clarification on organic revenue growth - Management confirmed that there was over $1 million in spoilage revenue in the year-ago period, affecting organic growth rates [30] Question: Insights on UCO-one initiative and sales team composition - The company has 12 quota-bearing salespeople and is moving to a standardized CRM to facilitate cross-selling [33][35] Question: Gross margin decline explanation - Management explained that the decline in gross margin was due to the absence of high-margin spoilage revenue from the previous year [37] Question: Future gross margin expectations - Management aims for gross margins to reach around 25% as revenue scales [42] Question: M&A criteria and opportunities - The company looks for synergies, favorable acquisition multiples, and the ability for acquired companies to operate independently post-acquisition [46][47]

Revenue Growth - In Q1 2025, revenues increased by 5% to $22.0 million compared to $21.0 million in Q1 2024, driven by strong growth in ACH and complementary services [119]. - Total revenue for the quarter ended March 31, 2025, increased by 5% to $22.0 million, compared to $21.0 million for the same period in 2024, driven primarily by a 30% growth in ACH and complementary services [155]. - The company reported revenues of $22,009,050 for Q1 2025, compared to $20,970,386 in Q1 2024 [151]. Transaction Growth - Credit card transactions processed increased by 65% in Q1 2025 compared to Q1 2024, with credit card dollar volume up by 17% [126]. - ACH transaction counts rose by 36% in Q1 2025 compared to Q1 2024, with electronic check dollars processed increasing by 42% [127]. - ACH and complementary services revenue growth was attributed to a 42% increase in ACH check dollar volume, a 36% increase in transactions, and a 24% increase in returned check transactions [155]. Financial Performance - Adjusted EBITDA for Q1 2025 was $0.7 million, down from $0.8 million in the same period last year, with Adjusted EBITDA margins at 3.0% compared to 3.8% [149]. - Gross profit decreased by 1% to $4.8 million for the quarter ended March 31, 2025, with a gross profit percentage of revenue at 21.9%, down from 23.1% in the prior year [159]. - Net loss for the quarter ended March 31, 2025, was $0.2 million, an improvement from a net loss of $0.3 million for the same period in the prior year [166]. Cash Flow - Cash provided by operations was $1.4 million for the three months ended March 31, 2025, compared to $0.1 million for the same period in 2024, reflecting improved net income and reduced depreciation expense [176]. - Cash used in investing activities increased to $0.3 million for the three months ended March 31, 2025, primarily due to capital expenditures associated with software development and other investments [177]. - Cash provided by financing activities was $3.6 million for the three months ended March 31, 2025, compared to cash used of $6.8 million in the same period in 2024, driven by an increase in assets held for customers [178]. Expenses Management - The company has a focus on managing selling, general, and administrative expenses, maintaining them at $4.1 million, flat compared to the prior year [120]. - Cost of services increased by 7% to $17.2 million for the quarter ended March 31, 2025, due to increased revenues driving similar increases in processing and transactional expenses [157]. - Stock-based compensation expenses decreased to $0.4 million for the quarter ended March 31, 2025, down from $0.5 million in the prior year [160]. Strategic Initiatives - The company adopted a "One Usio" strategy to unify brand and sales approach, enhancing client onboarding and customer management [106]. - The company aims to assimilate current and future acquisitions to enhance its suite of payment technologies, with past acquisitions contributing significantly to current revenues [123]. - The company continues to invest in technology for faster payment methods, including expansion into Real Time Payments (RTP) in 2023 [105]. Market Position and Risks - The company holds NACHA certification for Third-Party Senders, being one of only nine companies to do so, enhancing its credibility in the market [108]. - Concerns about a potential recession increased during Q1 2025 due to geopolitical risks and changes in international trade policies [132]. - The Federal Reserve's interest rate cuts in late 2024 have led to lower interest earnings on cash accounts, impacting future income [131]. Prepaid Card Performance - The company’s prepaid card offerings include customizable options for expense management and disbursements, supporting various payment methods [113]. - Prepaid card load volumes decreased by 15% in Q1 2025 compared to Q1 2024, while transaction counts increased by 5% [128]. Processing Losses - The reserve for processing losses was $541,521 as of March 31, 2025, down from $897,116 at December 31, 2024 [138]. - Interest earnings from cash balances amounted to $0.5 million in Q1 2025, with $0.4 million recognized as revenue [131].

Core Insights - Usio, Inc. reported a 34% increase in total payment dollars processed, reaching $2.0 billion in the first quarter of 2025 compared to $1.5 billion in the same period of 2024 [1][6] - The company achieved positive Adjusted EBITDA of $0.7 million, reflecting improved operational performance and strong cash management [2][4] - The growth in payment processing was primarily driven by a 42% increase in ACH electronic check dollar volume and a 36% increase in ACH transactions [2][7] Financial Performance - Revenues for the first quarter of 2025 were $22.0 million, up 5% from $20.97 million in the prior year, mainly due to strong growth in ACH and complementary services [3][8] - ACH and complementary services revenue grew by 30%, while credit card revenues increased by 4% and PayFac revenues surged by 25% [10][8] - Gross profit for the quarter was $4.8 million, with gross margins declining to 21.9% from 23.1% a year ago, primarily due to lower interest revenues [10][4] Operational Metrics - Total payment transactions processed in Q1 2025 reached 13.7 million, a 41% increase year-over-year [6] - The company set records in its credit card segment, with dollars processed up 17% and transactions processed up 65% compared to the previous year [7] - Operating cash flows improved significantly to $1.4 million from $0.1 million in the same period last year, driven by a reduction in accounts receivable [13] Strategic Outlook - The company has a strong implementation queue from signed deals, indicating potential for future revenue growth [2][5] - Usio is focused on expanding its market presence and strengthening its financial position, with a commitment to disciplined cost control [5][2] - The company ended the quarter with $8.7 million in cash and cash equivalents, reflecting a $0.7 million increase during the first three months of the year [13]

Revenue Performance - First quarter 2025 revenues reached $22.0 million, a 5% increase compared to the same quarter last year[8] - Revenues for the three months ended March 31, 2025, increased to $22,009,050, up from $20,970,386 in the same period of 2024, representing a growth of approximately 4.95%[28] - Credit card revenues increased by 4%, while PayFac revenues grew by 25%, reflecting a shift in the revenue mix[3] Payment Processing Metrics - Total payment dollars processed in Q1 2025 were $2.0 billion, up 34% from $1.5 billion in Q1 2024[6] - Total payment transactions processed in Q1 2025 were 13.7 million, representing a 41% increase over the same quarter last year[6] - ACH electronic check dollar volume increased by 42%, with transactions growing by 36% and returned check transactions up by 24% year-over-year[2] - Prepaid card load volume was strong at $98 million, indicating a focus on growing programs with recurring revenues[3] Profitability and Loss - Adjusted EBITDA for the quarter was $0.7 million, a slight decrease from $0.8 million in the prior year[4] - The company reported a net loss of approximately $0.2 million, or ($0.01) per share, compared to a net loss of $0.3 million, or ($0.01) per share, a year ago[4] - Gross profit for the same period was $4,809,143, slightly down from $4,853,695, indicating a decrease of about 0.91%[28] - The net loss for the three months ended March 31, 2025, was $234,970, compared to a net loss of $250,188 for the same period in 2024, showing an improvement of approximately 6.06%[28] - Adjusted EBITDA for the three months ended March 31, 2025, was $666,248, down from $793,470 in 2024, resulting in a margin of 3.0% compared to 3.8% in the prior year[33] Cash Flow and Assets - Operating cash flows improved to $1.4 million in Q1 2025, compared to $0.1 million in the same period last year[12] - The company added $0.7 million in cash to its balance sheet, ending Q1 2025 with $8.7 million in cash and cash equivalents[12] - Total current assets increased to $97,903,481 as of March 31, 2025, from $95,156,038 at December 31, 2024, reflecting a growth of approximately 2.89%[26] - Cash and cash equivalents, along with settlement processing assets, increased to $92,256,333 at the end of the period, up from $83,913,908 in the previous year, marking a growth of approximately 9.99%[30] Liabilities and Equity - Total liabilities rose to $90,628,208 as of March 31, 2025, compared to $88,051,484 at December 31, 2024, indicating an increase of about 2.92%[26] - The company issued 128,053 shares of common stock under its equity incentive plan during the period, contributing to an increase in additional paid-in capital to $99,992,655[32] - The company reported a decrease in stock-based compensation expenses to $410,062 for the three months ended March 31, 2025, down from $499,273 in the same period of 2024, reflecting a reduction of approximately 17.83%[28] Merchant Reserves - Merchant reserves increased to $4,925,101 as of March 31, 2025, compared to $4,890,101 at December 31, 2024, showing a slight increase of about 0.71%[26]

Core Viewpoint - Usio, Inc. will release its first quarter 2025 financial results on May 14, 2025, after market close, and will host a conference call to discuss these results and provide a business update [1][2]. Financial Results Announcement - The financial results for the period ended March 31, 2025, will be announced after the market closes on May 14, 2025 [1]. - A conference call will take place on the same day at 4:30 p.m. Eastern time to review the financial results and provide a business update [2]. Conference Call Details - U.S. participants can join the conference call by calling 1-844-883-3890, while international callers should dial 1-412-317-9246 [3]. - The conference 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 May 28, 2025 [4]. - The replay can be accessed through the company's website or by dialing specific numbers for U.S. and international callers [4]. Company Overview - Usio, Inc. is a leading provider of integrated, cloud-based electronic payment and embedded financial solutions [5]. - The company offers a wide range of payment solutions, including credit, debit/prepaid, and ACH payment processing platforms [5]. - Usio specializes in tailored solutions for card issuance, payment acceptance, and bill payments, leveraging unique technology in the card issuing sector [5].

Company Overview - Usio, Inc. is a U.S.-based financial technology company with a market capitalization of approximately $43 million, categorizing it between nano-cap and micro-cap [1] Mission and Research Focus - The mission of Grassroots Trading emphasizes providing objective, unbiased, and balanced research, supported by solid data and devoid of emotional influences [1] - The focus is primarily on small- to mid-cap companies, offering compelling investment insights to investors who may overlook these opportunities [1] - Grassroots Trading also identifies potential opportunities in large- and mega-cap companies, broadening its coverage of the dynamic equity markets [1]

Usio (USIO) Q4 2024 Earnings Call March 26, 2025 09:48 PM ET Company Participants Paul Manley - SVP, IRLouis Hoch - Chairman and CEOGreg Carter - EVP, Payment Acceptance Conference Call Participants Scott Buck - Managing Director & Senior Technology Analyst Operator Hello, and welcome to the UCO's Fourth Quarter and Fiscal Year End twenty twenty four Earnings Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please als ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 3% compared to the previous quarter, with growth in Card, ACH, and Output Solutions [6] - GAAP net income was reported at $600,000 or $0.02 per share, including a $1.5 million ERC benefit, marking the third consecutive quarter of positive GAAP net income [6][7] - Total dollars processed exceeded $1.9 billion in Q4, representing a 36% increase year-over-year, while total dollars processed for the full year reached $7.1 billion, up 33% [7][8] - Operating cash flow generated in Q4 was $2.9 million, with a year-end cash position exceeding $8 million [8][9] Business Line Data and Key Metrics Changes - Card processing dollars increased by 15% in Q4, with transactions processed up 34%, leading to a record full-year processing volume of over $1.5 billion, a 10% increase from fiscal 2023 [19] - ACH electronic transaction volumes rose by 34% in Q4, marking its fifth consecutive quarter of growth, while electronic check dollars processed increased by 44% [27] - Output Solutions saw electronic documents processed rise by 86%, with total pieces mailed exceeding 5.4 million in Q4, leading to a record year for electronic documents processed [29][30] - Card issuing added nearly 70 new client partner agreements in 2024, with prepaid dollars loaded exceeding $100 million for the sixth consecutive quarter [31][32] Market Data and Key Metrics Changes - PayFac business within Card processing saw a 44% increase in dollars processed in Q4, contributing to a 28% increase in PayFac volume for the full year [19][20] - The company is experiencing a steady flow of new accounts, which has helped offset variability in performance due to implementation timing [21] Company Strategy and Development Direction - The company announced the "Usio One" initiative to unify and integrate all products and services under one brand, aiming to enhance customer understanding and cross-selling opportunities [13][14] - The initiative includes a new client onboarding system and a proprietary checkout page tool, with a focus on leveraging AI for improved efficiency and fraud protection [16][17] - The company is committed to improving profitability through better margins and operating leverage while continuing to fund operations through positive cash flow [10][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth of 14% to 16% in 2025, supported by a widespread customer base rather than reliance on a few large customers [35][39][40] - The company is actively looking at M&A opportunities while balancing share repurchases and reinvestment in the business [43] Other Important Information - The Board of Directors approved a new share repurchase program, adding $4 million to the original authorization [34][35] Q&A Session Summary Question: What does the visibility look like for 2025 and revenue cadence throughout the year? - Management expects great growth with implementations starting to come live, indicating a loaded growth pattern [39] Question: Is the growth reliant on a single or a few large customers? - Management confirmed that the growth is widespread [40] Question: How is the company prioritizing repurchases versus reinvestment or M&A? - Management stated that they are authorized to repurchase up to $4 million and are always looking at M&A deals while generating cash [42][43] Question: Any changes in sales conversations with local or state governments due to federal administration changes? - Management noted that while the PayFac side is not affected, there may be potential opportunities in the disbursement space [46]

分组1 - Usio Inc reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, representing an earnings surprise of 300% [1] - The company posted revenues of $20.56 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.50%, compared to year-ago revenues of $19.36 million [2] - Usio shares have increased approximately 13% since the beginning of the year, while the S&P 500 has declined by 1.8% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.04 on revenues of $21.84 million, and for the current fiscal year, it is $0.14 on revenues of $94.02 million [7] - The Zacks Industry Rank indicates that the Financial Transaction Services sector is in the bottom 49% of over 250 Zacks industries, which may impact stock performance [8]