SAN ANTONIO, Jan. 21, 2026 (GLOBE NEWSWIRE) -- Usio, Inc. (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, has published its 2025 annual shareholder letter from Chairman and CEO, Louis Hoch. The full text of the Letter is provided below. Dear Fellow Shareholder:As we close out another transformative year at Usio, Inc., I am proud to share our progress and reaffirm our confidence in the strategy that position ...

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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 - The Bancorp earned $1.27 per diluted share in Q2 2025, with year-over-year revenue growth of 11%, excluding FinTech loan credit enhancement income, and expense growth of 11% [6][9] - EPS growth was reported at 21% year-over-year [6] - Overall loan balances grew 17% year-over-year, while loan balances excluding consumer FinTech loans grew 6% [12] - Average fintech solution deposits increased 20% to $7.76 billion from $6.44 billion in Q2 2024 [12] - Net interest income was 4% higher than Q2 2024, with a net interest margin of 4.44% compared to 4.07% in Q1 2025 [12] Business Line Data and Key Metrics Changes - Noninterest income for Q2 2025 was $40.5 million, a 32% increase from Q2 2024, primarily driven by fintech fees [11] - Prepaid debit card, ACH, and other payment fees increased 14% to $31.7 million [11] - Consumer fintech loans increased 871% year-over-year to $680.5 million [12] Market Data and Key Metrics Changes - The Gross Dollar Volume (GDV) climbed 18% year-over-year, with total fee and related interest income growth from all FinTech activities growing 30% [6][7] - The company announced a five-year expansion of its relationship with Block, adding debit and prepaid card issuance for Cash App customers, expected to enhance GDV and fees in the future [7] Company Strategy and Development Direction - The Bancorp plans to increase its share repurchase program to $500 million over the next 18 months, funded by core earnings growth and replacing maturing senior unsecured debt [8][9] - The company maintains guidance of $5.25 EPS for 2025 and targets a $7 EPS run rate by the end of 2026 through fintech revenue growth and efficiency gains [9][10] - The focus is shifting towards becoming a fintech and technology platform, reallocating resources from traditional banking to fintech operations [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage criticized loans and non-accruals, indicating a proactive approach to working with borrowers [26][46] - The company does not expect a significant increase in substandard loans, with visibility into borrowers' business plans [26][46] - Management highlighted the potential for AI to enhance productivity and efficiency in operations, with plans to leverage AI tools in the near future [38] Other Important Information - The company is actively working on the Aubrey property, which has seen occupancy increase from mid-thirties to mid-sixties, with plans to fund remaining renovations if necessary [32][54] - The appraisal value of the Aubrey property increased due to significant investments and improvements made during the holding period [55] Q&A Session Summary Question: Details on the new partnership with Block - The partnership involves card issuance for Cash App customers, aiming to replace Sutton Bank as the issuer over time [22] Question: Reason for lower deposits this quarter - The decrease was due to balance sheet management actions, including taking savings deposits off balance sheet and managing tax receipts [23] Question: Credit quality concerns regarding maturing loans - Management indicated that they have visibility into borrowers' plans and do not expect a spike in substandard assets [26][46] Question: Impact of AI on productivity - Management discussed the potential for AI to improve efficiency, particularly in legal and compliance processes, with plans to implement these tools in 2026 [38] Question: Status of the Aubrey property renovations - Renovations are ongoing, with a significant increase in occupancy and discussions for potential sale [32][54] Question: Legal process regarding earnest money deposits - Management expressed confidence in retaining the earnest money deposit, expecting resolution in the next quarter [62]

Financial Data and Key Metrics Changes - The Bancorp earned $1.27 per diluted share in Q2 2025, with year-over-year revenue growth of 11%, excluding FinTech loan credit enhancement income, and expense growth of 11% [6][10] - EPS growth was reported at 21% year-over-year [6] - Overall loan balances grew 17% year-over-year, while loan balances excluding consumer FinTech loans grew 6% [11] - Average fintech solution deposits increased 20% to $7.76 billion from $6.44 billion in Q2 2024 [11] - Net interest income was 4% higher than Q2 2024, with a net interest margin of 4.44% compared to 4.07% in Q1 2025 [11][12] Business Line Data and Key Metrics Changes - Noninterest income for Q2 2025 was $40.5 million, a 32% increase from Q2 2024, primarily driven by fintech fees [10] - Prepaid debit card, ACH, and other payment fees increased 14% to $31.7 million [10] - Consumer fintech loans increased 871% year-over-year to $680.5 million [11] Market Data and Key Metrics Changes - The company announced a five-year expansion of its relationship with Block, adding debit and prepaid card issuance for Cash App customers, expected to enhance GDV and fees [7] - The company anticipates purchasing $300 million worth of shares for the remainder of 2025, a 300% increase over the previous buyback program [8] Company Strategy and Development Direction - The Bancorp is targeting a $7 EPS run rate by the end of 2026 through fintech revenue growth, share buybacks, and efficiency gains [8] - The company is transitioning from a traditional banking model to a fintech and technology platform, focusing on building an ecosystem for the fintech industry [36][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage criticized loans and non-accrual loans, indicating a proactive approach to borrower relationships [24][48] - The company is optimistic about the impact of AI on productivity gains, with plans to leverage AI tools in various operational areas [36][37] Other Important Information - The company announced a substantial increase in its share repurchase program to $500 million over the next 18 months, funded by core earnings growth [7][8] - Management noted that the increase in criticized loans is manageable and that they do not expect a significant spike in substandard assets [24][48] Q&A Session Summary Question: Details on the partnership with Block and Cash App - The partnership involves card issuance, supplementing existing rapid funds transfer offerings, and is expected to significantly impact GDV and fee growth [19][20] Question: Reasons for lower deposits this quarter - The decrease was attributed to balance sheet management, including tax receipts and the removal of excess liquidity [21][22] Question: Credit quality and borrower repayment capabilities - Management indicated that they have visibility into borrowers' plans and are prepared to extend loans if necessary, with no expected spike in substandard assets [24][44] Question: Updates on the Aubrey property renovations and funding - Renovations are ongoing, with occupancy increasing significantly, and management is in discussions for potential sales [30][31] Question: Impact of AI on productivity and future operations - The company is exploring AI applications to enhance productivity and efficiency, with expectations for significant gains in the coming years [36][37] Question: Non-accrual loans and credit migration in the SBL book - Management noted that the increase in non-accrual loans was minimal and manageable, with no significant deterioration in the overall portfolio [64][66] Question: Capacity for new partners and programs - The company has built an infrastructure capable of supporting significantly higher volumes, indicating readiness to take on more partnerships [70]

Financial Data and Key Metrics Changes - The Bancorp earned $1.19 per diluted share in Q1 2025, reflecting a 12% increase over Q1 2024 [9] - Net income increased by 1% year-over-year, while outstanding shares were reduced due to increased repurchases in 2024 [10] - Net interest income decreased by 3% compared to Q1 2024, impacted by a lower rate environment [16] - Loan balances grew by 17% year-over-year, but net interest income from loans was down 5% [11][12] Business Line Data and Key Metrics Changes - The FinTech Solutions Group showed significant momentum with GDP increasing by 18% year-over-year and total fees growing by 26% [10] - Credit sponsorship balances grew to $574 million, a 26% increase quarter-over-quarter, with expectations to exceed $1 billion by year-end 2025 [10] - Average FinTech Solutions deposits increased by 26% to $7.81 billion from $6.18 billion in Q1 2024 [17] - Non-interest income for Q1 2025, excluding consumer fintech loan credit enhancement income, was $37.8 million, a 29% increase from Q1 2024 [17] Market Data and Key Metrics Changes - The company experienced a significant increase in deposit balances, reaching $9 billion for the first time due to strong tax receipts [52] - The impact of tax refunds was noted as a factor that slowed growth in the first quarter [10] Company Strategy and Development Direction - The company is focused on reducing substandard assets in its Rebel portfolio, with substandard loans down 1% and special mentioned loans down 20% compared to the prior quarter [13] - The company confirmed guidance of $5.25 per diluted share for 2025, excluding the impact of $150 million in stock buybacks authorized for the year [14] - The Bancorp is preparing to expand relationships with larger partners and enhance product capabilities, aiming for sustained GDP growth [66] Management's Comments on Operating Environment and Future Outlook - Management believes that the current economic environment presents opportunities for growth, particularly in the FinTech sector [66] - The company expects to maintain a sustainable level of higher GDP growth and is investing in its platform to support this [67] - Management noted that inflation could positively impact revenue realization, as much of the payment volume is necessary spending [81] Other Important Information - The company recorded provisions for credit losses for consumer fintech loans at $45.9 million, with no impact on net income [15] - Non-interest expense for Q1 2025 was $53.3 million, a 14% increase from Q1 2024, driven by an 11% increase in salaries and benefits [18] Q&A Session Summary Question: Margin and Asset Sensitivity - The average yield on fintech loans is 5%, primarily flowing through fees rather than net interest income [31] - Asset sensitivity has been reduced to around 1%, with a target to remain slightly asset sensitive [30] Question: Deposit Costs and NIM - Higher deposit costs were attributed to a mix issue and insurance-related deposits, which are expected to roll off [49] Question: Credit Sponsorship Program - The company is confident in reaching its targets with the current four programs, expecting robust growth [75] Question: Buyback Activity - Future buyback activity is under consideration, dependent on board approval and market conditions [78] Question: Consumer Behavior and Economic Uncertainty - The company noted that much of its payment volume comes from necessary spending, which remains stable despite economic fluctuations [81]

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]