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]