Usio Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Usio (Nasdaq: USIO) reported Q1 2026 revenue of $25.5 million, up 16% year over year, an all‑time quarterly record. Credit card revenue grew 23%, ACH 25% and Output Solutions 19%, while prepaid card services declined 18%.
Net income was about $0.1 million versus a prior‑year loss, with Adjusted EBITDA of $0.8 million and operating cash flow of $0.9 million. Gross margin was 20.2% and Total SG&A Expenses fell to $4.9 million. Cash reached $7.7 million after repurchasing 182,000 shares.
AI-generated analysis. Not financial advice.
Positive
- Revenue up 16% year over year to $25.5 million
- Record total payment volume up 28% to $2.50 billion
- ACH revenue up 25%; electronic check transactions up 34%
- Credit card revenue up 23%; transactions up 22%
- Output Solutions revenue up 19%; electronic documents up 41%
- Net income $0.1 million vs. prior-year net loss ($0.2 million)
- Operating income $0.2 million vs. prior-year operating loss ($0.2 million)
- Adjusted EBITDA increased to $0.8 million from $0.7 million
- Total SG&A Expenses reduced to $4.9 million from over $5.0 million
- Operating cash flow $0.9 million; cash balance increased to $7.7 million
- Repurchase of 182,000 shares for approximately $235,000
Negative
- Gross margin decreased to 20.2% from 21.9% year over year
- Prepaid card services revenue fell 18% to $2.37 million
- Prepaid card load volume down 19%; transactions down 16%; purchase volume down 7%
- Interest revenue in ACH segment down 45% to $122,201
- Interest revenue in prepaid segment down 35% to $118,029
- Operating cash flow declined to $0.9 million from $1.4 million
- SG&A (excluding D&A and stock comp) increased to $4.4 million from $4.1 million
News Market Reaction – USIO
On the day this news was published, USIO gained 21.37%, reflecting a significant positive market reaction. Argus tracked a peak move of +23.6% during that session. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $8M to the company's valuation, bringing the market cap to $45.57M at that time. Trading volume was very high at 4.7x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
USIO is up 2.4% while the only peer in the momentum scan, DVLT, is up about 1.9%. Other tracked peers show mixed moves, pointing to a stock-specific reaction rather than a broad software/fintech rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 18 | Full-year 2025 results | Positive | -9.9% | Record 2025 revenue and volumes but full-year net loss and lower EBITDA. |
| Nov 12 | Q3 2025 results | Negative | -0.7% | Flat revenue with net loss despite ACH strength and solid gross margin. |
| Aug 06 | Q2 2025 results | Negative | -16.4% | Revenue decline, net loss, and trimmed 2025 guidance despite higher volumes. |
| May 14 | Q1 2025 results | Positive | -8.3% | Record revenue and strong ACH growth but lower margins and net loss. |
| Mar 26 | FY 2024 earnings | Positive | -1.9% | GAAP profitability and record processing with new buyback authorization. |
Earnings releases have historically been followed by average moves of -7.44%, often negative even on strong fundamental reports.
Across the last five earnings releases from March 2024 through March 2026, Usio repeatedly posted record processing volumes and growing ACH revenues, but profitability and revenue growth were uneven, with multiple quarters showing net losses or flat sales. Market reactions skewed negative, including a -16.35% move on Q2 2025 results and -9.92% after 2025 full-year numbers, indicating a pattern of selling into earnings even when operational metrics improved.
Historical Comparison
In the past 5 earnings releases, USIO averaged a -7.44% move. Today’s +2.4% reaction to stronger Q1 2026 metrics contrasts with that pattern.
Earnings history shows Usio moving from modest or flat revenues and recurring net losses in 2024–2025 to Q1 2026’s $25.5M revenue (up 16%) and a return to GAAP net income, alongside sustained ACH and volume growth.
Market Pulse Summary
The stock surged +21.4% in the session following this news. A strong positive reaction aligns with the company’s record Q1 2026 performance, including $25.5M revenue (up 16%) and a shift to GAAP profitability. However, past earnings events averaged a -7.44% move, suggesting investors previously sold on good news. Sustainability would depend on continued double-digit growth, margin recovery from the current 20.2% level, and execution in weaker areas like prepaid card services, which declined 18% year over year.
Key Terms
adjusted EBITDA financial
GAAP financial
non-GAAP financial measures financial
ACH financial
PINless debit financial
operating lease right-of-use assets technical
AI-generated analysis. Not financial advice.
Revenue Up
Adjusted EBITDA1 of
All-time Record Quarterly Revenue, Processing Volume and Transactions
Total payment dollars processed through all payment channels up
SAN ANTONIO, May 13, 2026 (GLOBE NEWSWIRE) -- Usio, Inc., "Usio" or the "Company" (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the first quarter ended March 31, 2026.
Louis Hoch, President and Chief Executive Officer of Usio, said, “It was a record start to the new year, affirming our belief that the momentum coming out of our record 2025 would provide a strong tailwind for continued growth and profitability. All of our key performance metrics were at record levels in the first quarter, with revenues up
Results in the first quarter were led by a
Output Solutions generated accelerating revenue growth, with revenues up
For the quarter, gross profits were up over
1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below
Quarterly Processing and Transaction Volumes
Total payment dollars processed through all payment channels in the first quarter of 2026 were
Our credit card segment continues to grow, where dollars processed were up
First Quarter 2026 Revenue Detail
Revenues for the quarter ended March 31, 2026 were
| Three Months Ended March 31, | |||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||
| ACH and complementary services | $ | 6,293,066 | $ | 5,044,517 | $ | 1,248,549 | 25 | % | |||||||
| Credit card | 9,710,324 | 7,878,694 | 1,831,630 | 23 | % | ||||||||||
| Prepaid card services | 2,373,201 | 2,907,451 | (534,250 | ) | (18 | )% | |||||||||
| Output Solutions | 6,805,314 | 5,732,867 | 1,072,447 | 19 | % | ||||||||||
| Interest - ACH and complementary services | 122,201 | 224,129 | (101,928 | ) | (45 | )% | |||||||||
| Interest - Prepaid card services | 118,029 | 182,661 | (64,632 | ) | (35 | )% | |||||||||
| Interest - Output Solutions | 43,639 | 38,731 | 4,908 | 13 | % | ||||||||||
| Total Revenue | $ | 25,465,774 | $ | 22,009,050 | $ | 3,456,724 | 16 | % | |||||||
Gross profit for the first quarter of 2026 was
Total SG&A Expenses for the first quarter of 2026, were
For the first quarter of 2026, we reported operating income of
Operating Cash Flows declined to
We believe we continue to be in solid financial condition. Cash and cash equivalents as of March 31, 2026 were
1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below
Conference Call and Webcast
Usio's management will host a conference call on Wednesday, May 13, 2026, at 4:30 pm Eastern time to review financial results and provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-833-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the Company’s website at www.usio.com/investors.
A replay of the call will be available approximately one hour after the end of the call through June 13, 2026. The replay can be accessed via the Company’s website or by dialing 1-855-669-9658 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is 4785914.
About Usio, Inc.
Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to clients through its unique payment facilitation platform as a service. The Company, through its Usio Output Solutions division, offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector.
Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas. Websites: www.usio.com and www.akimbocard.com.
Find us on LinkedIn, Facebook® and Twitter.
Comparisons
Unless otherwise indicated, all comparisons and growth rates represent year-over-year comparisons, with the quarterly period of this year compared to the corresponding quarter of the prior year.
About Non-GAAP Financial Measures
This press release includes the non-GAAP financial measures, as defined in Regulation G adopted by the Securities and Exchange Commission, of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures is useful to investors because it provides them with financial measures the Company uses in the management of its business.
- The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles.
- The Company defines Adjusted EBITDA as EBITDA, as defined above, plus non-cash stock-based compensation and certain non-recurring items, such as costs related to acquisitions.
- The Company defines Adjusted EBITDA margins as Adjusted EBITDA, as defined above, divided by total revenues.
Management believes presenting EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins is helpful to investors in evaluating the Company's operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded.
EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided by (used in) operating activities, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins have limitations as analytical tools and you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our operating results as reported under GAAP.
1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below
FORWARD-LOOKING STATEMENTS DISCLAIMER
Except for the historical information contained herein, this release contains forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding management's intentions, beliefs, expectations, and strategies for the future, including statements regarding the Company’s operating and growth strategies. Forward-looking statements can be identified by words such as "believe," "intend," "look forward," "anticipate," "schedule," "expect," and similar expressions.
These forward-looking statements are subject to risks and uncertainties inherent in the Company's business that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, among others, risk relating to economic conditions; the realization of anticipated benefits from the PostCredit acquisition; the Company’s ability to manage growth; the loss of key resellers; relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers, and merchants; the security of the Company’s software, hardware, and information systems; volatility in the Company’s stock price; the need for additional financing; risks associated with new tax legislation; and compliance with complex federal, state, and local laws and regulations, as well as other risks described from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
One or more of these factors have affected, and in the future, could affect, the Company’s businesses and financial results and could cause actual results to differ materially from management’s plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, undue reliance should not be placed on such statements which speak as of the date hereof. The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law.
Contact:
Paul Manley
Senior Vice President, Investor Relations
paul.manley@usio.com
612-834-1804
| USIO, INC. CONSOLIDATED BALANCE SHEETS | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 7,728,795 | $ | 7,434,051 | |||
| Settlement processing assets | 69,522,444 | 74,180,475 | |||||
| Prepaid card load assets | 15,466,828 | 27,623,728 | |||||
| Customer deposits | 2,239,829 | 2,281,220 | |||||
| Accounts receivable, net | 5,418,653 | 5,274,586 | |||||
| Inventory | 392,873 | 461,675 | |||||
| Prepaid expenses and other | 1,903,690 | 1,359,382 | |||||
| Merchant reserves | 4,617,537 | 4,795,537 | |||||
| Total current assets | 107,290,649 | 123,410,654 | |||||
| Property and equipment, net | 4,545,252 | 4,157,393 | |||||
| Other assets: | |||||||
| Intangibles, net | 9,759 | 9,759 | |||||
| Deferred tax asset, net | 4,459,144 | 4,526,228 | |||||
| Operating lease right-of-use assets | 3,524,650 | 2,423,231 | |||||
| Other assets | 362,949 | 362,949 | |||||
| Total other assets | 8,356,502 | 7,322,167 | |||||
| Total Assets | $ | 120,192,403 | $ | 134,890,214 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,275,061 | $ | 880,590 | |||
| Accrued expenses | 4,052,640 | 3,326,445 | |||||
| Operating lease liabilities, current portion | 756,708 | 639,805 | |||||
| Equipment loan, current portion | 337,544 | 289,317 | |||||
| Settlement processing obligations | 69,522,444 | 74,180,475 | |||||
| Prepaid card load obligations | 15,466,828 | 27,623,728 | |||||
| Customer deposits | 2,239,829 | 2,281,220 | |||||
| Current liabilities before merchant reserve obligations | 93,651,054 | 109,221,580 | |||||
| Merchant reserve obligations | 4,617,537 | 4,795,537 | |||||
| Total current liabilities | 98,268,591 | 114,017,117 | |||||
| Non-current liabilities: | |||||||
| Equipment loan, net of current portion | 987,996 | 1,074,711 | |||||
| Operating lease liabilities, net of current portion | 2,790,905 | 1,885,983 | |||||
| Total liabilities | 102,047,492 | 116,977,811 | |||||
| Stockholders' equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 31,667 | 31,562 | |||||
| Additional paid-in capital | 102,455,703 | 102,363,590 | |||||
| Treasury stock, at cost; 3,995,137 and 3,832,474 shares at March 31, 2026 (unaudited) and December 31, 2025, respectively | (7,070,640 | ) | (6,837,181 | ) | |||
| Deferred compensation | (6,849,327 | ) | (7,100,573 | ) | |||
| Accumulated deficit | (70,422,492 | ) | (70,544,995 | ) | |||
| Total stockholders' equity | 18,144,911 | 17,912,403 | |||||
| Total Liabilities and Stockholders' Equity | $ | 120,192,403 | $ | 134,890,214 | |||
| USIO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenues | $ | 25,465,774 | $ | 22,009,050 | |||
| Cost of services | 20,328,891 | 17,199,907 | |||||
| Gross profit | 5,136,883 | 4,809,143 | |||||
| Selling, general and administrative expenses: | |||||||
| Stock-based compensation | 329,284 | 410,062 | |||||
| SG&A | 4,356,142 | 4,142,895 | |||||
| Depreciation and amortization | 225,745 | 495,770 | |||||
| Total selling, general and administrative | 4,911,171 | 5,048,727 | |||||
| Operating income (loss) | 225,712 | (239,584 | ) | ||||
| Other income (expense): | |||||||
| Interest income | 91,491 | 79,011 | |||||
| Interest expense | (22,826 | ) | (11,843 | ) | |||
| Other income, net | 68,665 | 67,168 | |||||
| Income (loss) before income taxes | 294,377 | (172,416 | ) | ||||
| Federal income tax expense | 67,084 | — | |||||
| State income tax expense | 104,790 | 62,554 | |||||
| Income tax expense | 171,874 | 62,554 | |||||
| Net income (loss) | $ | 122,503 | $ | (234,970 | ) | ||
| Income (loss) Per Share | |||||||
| Basic income (loss) per common share: | $ | 0.00 | $ | (0.01 | ) | ||
| Diluted income (loss) per common share: | $ | 0.00 | $ | (0.01 | ) | ||
| Weighted average common shares outstanding | |||||||
| Basic | 27,748,037 | 26,615,947 | |||||
| Diluted | 27,748,037 | 26,615,947 | |||||
| USIO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Operating Activities | |||||||
| Net income (loss) | $ | 122,503 | $ | (234,970 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Depreciation and Amortization | 225,745 | 495,770 | |||||
| Deferred federal income tax | 67,084 | — | |||||
| Employee stock-based compensation | 329,284 | 410,062 | |||||
| Reserve for processing losses | 18,000 | 355,595 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (144,067 | ) | 484,023 | ||||
| Accounts receivable, tax credit | — | 1,494,612 | |||||
| Prepaid expenses and other | (544,308 | ) | (143,539 | ) | |||
| Operating lease right-of-use assets | 104,851 | 153,237 | |||||
| Inventory | 68,802 | 55,303 | |||||
| Accounts payable and accrued expenses | 1,102,666 | (1,558,994 | ) | ||||
| Operating lease liabilities | (184,445 | ) | (160,253 | ) | |||
| Merchant reserves | (178,000 | ) | 35,000 | ||||
| Customer deposits | (41,391 | ) | (11,636 | ) | |||
| Net cash provided by operating activities | 946,724 | 1,374,210 | |||||
| Investing Activities | |||||||
| Purchases of property and equipment | (398,072 | ) | (22,604 | ) | |||
| Capitalized labor for internal use software | (215,532 | ) | (290,650 | ) | |||
| Net cash (used in) investing activities | (613,604 | ) | (313,254 | ) | |||
| Financing Activities | |||||||
| Payments on equipment loan | (38,488 | ) | (36,110 | ) | |||
| Proceeds from issuance of common stock | 14,180 | 11,515 | |||||
| Purchases of treasury stock | (233,459 | ) | (351,640 | ) | |||
| Assets held for customers | (16,814,931 | ) | 3,953,121 | ||||
| Net cash provided by (used in) financing activities | (17,072,698 | ) | 3,576,886 | ||||
| Change in cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves | (16,739,578 | ) | 4,637,842 | ||||
| Cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves, beginning of year | 116,315,011 | 87,618,491 | |||||
| Cash, Cash Equivalents, Settlement Processing Assets, Prepaid Card Loads, Customer Deposits and Merchant Reserves, End of Period | 99,575,433 | 92,256,333 | |||||
| Supplemental disclosures of cash flow information | |||||||
| Cash paid during the period for: | |||||||
| Interest | $ | 22,826 | $ | 11,843 | |||
| Income taxes | — | — | |||||
| Non-cash investing and financing activities: | |||||||
| Right of use assets obtained in exchange for operating lease liabilities | 1,206,270 | — | |||||
| USIO, INC. CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) | |||||||||||||||||||||||||||
| Common Stock | Additional Paid- In | Treasury | Deferred | Accumulated | Total Stockholders' | ||||||||||||||||||||||
| Shares | Amount | Capital | Stock | Compensation | Deficit | Equity | |||||||||||||||||||||
| Balance at December 31, 2025 | 31,562,178 | $ | 31,562 | $ | 102,363,590 | $ | (6,837,181 | ) | $ | (7,100,573 | ) | $ | (70,544,995 | ) | $ | 17,912,403 | |||||||||||
| Issuance of common stock under equity incentive plan | 94,700 | 95 | 77,943 | — | — | — | 78,038 | ||||||||||||||||||||
| Issuance of common stock under employee stock purchase plan | 10,427 | 10 | 14,170 | — | — | — | 14,180 | ||||||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 251,246 | — | 251,246 | ||||||||||||||||||||
| Purchase of treasury stock, at cost | — | — | — | (233,459 | ) | — | — | (233,459 | ) | ||||||||||||||||||
| Net income for the period | — | — | — | — | — | 122,503 | 122,503 | ||||||||||||||||||||
| Balance at March 31, 2026 | 31,667,305 | $ | 31,667 | $ | 102,455,703 | $ | (7,070,640 | ) | $ | (6,849,327 | ) | $ | (70,422,492 | ) | $ | 18,144,911 | |||||||||||
| Balance at December 31, 2024 | 29,902,415 | $ | 198,317 | $ | 99,676,457 | $ | (5,770,592 | ) | $ | (6,914,563 | ) | $ | (68,032,656 | ) | $ | 19,156,963 | |||||||||||
| Adjustment to par value of common stock | — | (168,415 | ) | 168,415 | — | — | — | - | |||||||||||||||||||
| Issuance of common stock under equity incentive plan | 128,053 | 128 | 136,276 | — | — | — | 136,404 | ||||||||||||||||||||
| Issuance of common stock under employee stock purchase plan | 7,887 | 8 | 11,507 | — | — | — | 11,515 | ||||||||||||||||||||
| Deferred compensation amortization | — | — | — | — | 273,658 | — | 273,658 | ||||||||||||||||||||
| Purchase of treasury stock, at cost | — | — | — | (351,640 | ) | — | — | (351,640 | ) | ||||||||||||||||||
| Net loss for the period | — | — | — | — | — | (234,970 | ) | (234,970 | ) | ||||||||||||||||||
| Balance at March 31, 2025 | 30,038,355 | $ | 30,038 | $ | 99,992,655 | $ | (6,122,232 | ) | $ | (6,640,905 | ) | $ | (68,267,626 | ) | $ | 18,991,930 | |||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Reconciliation from Operating income (loss) to Adjusted EBITDA: | |||||||
| Operating income (loss) | $ | 225,712 | $ | (239,584 | ) | ||
| Depreciation and amortization | 225,745 | 495,770 | |||||
| EBITDA | 451,457 | 256,186 | |||||
| Non-cash stock-based compensation expense, net | 329,284 | 410,062 | |||||
| Adjusted EBITDA | $ | 780,741 | $ | 666,248 | |||
| Calculation of Adjusted EBITDA margins: | |||||||
| Revenues | $ | 25,465,774 | $ | 22,009,050 | |||
| Adjusted EBITDA | $ | 780,741 | $ | 666,248 | |||
| Adjusted EBITDA margins | 3.1 | % | 3.0 | % | |||
