Usio Announces Second Quarter 2026 Financial Results

Rhea-AI Summary

Usio (Nasdaq: USIO) reported second quarter 2026 revenue of $23.7 million, up 19% year over year, with all major lines except prepaid card services growing. Net income was approximately $0.3 million, or $0.01 per share, versus a net loss of $0.4 million a year ago. Adjusted EBITDA was $1.1 million, more than double the prior-year quarter. Total payment dollars processed rose 27% to $2.47 billion and total transactions increased 27% to 17.9 million. ACH revenues grew 21%, credit card revenues 28%, and Output Solutions revenues 22%, while prepaid card services revenues declined 10%. Gross margin was 24.2%, down from 25.8% due to lower interest income and mix. Full-year 2026 revenue guidance was raised, with revenues now expected to be up 14–16% versus the prior year.

Positive

• Q2 2026 revenue $23.7 million, up 19% year over year
• Q2 2026 net income $0.3 million vs. $0.4 million loss in 2025
• Adjusted EBITDA Q2 2026 $1.1 million vs. $0.5 million in 2025
• Total payment volume Q2 2026 $2.47 billion, up 27%
• ACH revenues Q2 2026 $6.3 million, up 21%; transactions up 34%
• Raised FY 2026 revenue guidance to 14–16% growth vs. prior 10–12%

Negative

• Prepaid card services revenue Q2 2026 $2.45 million, down 10% year over year
• Gross margin Q2 2026 24.2% vs. 25.8% in Q2 2025
• Interest revenue ACH Q2 2026 $90,876, down 49% year over year
• Operating cash flow $0.3 million for six months 2026 vs. $1.1 million in 2025
• Cash and equivalents $6.4 million at June 30, 2026, down $1.0 million from December 31, 2025

News Explained

The completed first half leaves a $6.4 million cash balance after share repurchases.

The quarter is complete, and the release adds that Usio used cash to repurchase 281,000 common shares in the six months ended June 30, 2026, while reported shares outstanding rose from 27,729,704 at December 31, 2025 to 28,513,915.

Cash and equivalents were $6.4 million at June 30, 2026, down from $7.4 million at December 31, 2025, so the disclosed capital change combines a completed repurchase with lower reported cash.

Market reaction after 2Q26 earnings report: USIO +3.41%

+3.41% $2.46 3.2x vol

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+3.41% Vs previous close

+10.4% Peak in 33 min

$2.46 Last Price

$2.21 $2.47 Day Range

$67.01M Market Cap

3.2x Rel. Volume

Following this news, USIO has gained 3.41%, reflecting a moderate positive market reaction. Argus tracked a peak move of +10.4% during the session. Our momentum scanner has triggered 13 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $2.46. Trading volume is very high at 3.2x the average, suggesting strong buying interest.

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Market Context

Usio’s earnings-tag history averaged -2.79% across five events. That record added a benchmark for th...

Analysis

Usio’s earnings-tag history averaged -2.79% across five events. That record added a benchmark for this release; lower year-over-year gross margins and reduced operating cash flow remained risks to monitor.

Key Figures

Revenue: $23.7 million Adjusted EBITDA: $1.1 million GAAP net income: $0.3 million; $0.01 per share +5 more

8 metrics

Revenue $23.7 million Q2 2026, up 19% from $20.0 million in Q2 2025

Adjusted EBITDA $1.1 million Q2 2026 versus $0.5 million in Q2 2025

GAAP net income $0.3 million; $0.01 per share Q2 2026 versus a net loss of $0.4 million and $0.01 per share in Q2 2025

Fiscal 2026 revenue guidance 14–16% growth Raised from previously expected 10–12% growth

Payment dollars processed $2.47 billion Q2 2026, up 27% from $1.94 billion in Q2 2025

Payment transactions 17.9 million Q2 2026, up 27% year over year

Gross margin 24.2% Q2 2026 versus 25.8% in Q2 2025

Operating cash flow $0.3 million First half of 2026 versus $1.1 million in the same period of 2025

Previous Earnings Reports

5 past events · Latest: May 13 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 13	Q1 earnings report	Positive	+21.4%	Record revenue, positive net income and improved EBITDA preceded a 21.37% gain.
Mar 18	Q4 earnings report	Negative	-9.9%	Net loss and cautious 10–12% growth outlook preceded a 9.92% decline.
Nov 12	Q3 earnings report	Negative	-0.7%	Flat revenue and net loss accompanied a 0.70% decline after results.
Aug 06	Q2 earnings report	Negative	-16.4%	Revenue declined and net loss followed prepaid weakness and reduced guidance, driving a 16.35% decline.
May 14	Q1 earnings report	Negative	-8.3%	Net loss and margin pressure accompanied an 8.33% decline despite record revenue.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Prior earnings reactions included both positive and negative moves, with a tag-specific average of -2.79%.

Key Terms

adjusted ebitda, gaap, ach, payfac

4 terms

adjusted ebitda financial

"Adjusted EBITDA1 was up 128% from a year ago"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

gaap financial

"GAAP net income was approximately $0.3 million, or $0.01 per share."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

ach financial

"34% transaction growth in ACH during the quarter."

ACH (Automated Clearing House) is an electronic network banks use to move money between accounts, like a digital mail carrier that delivers payroll, dividends, bill payments and other transfers. Investors care because ACH affects how quickly a company can pay shareholders, collect revenue or move cash for operations; slower or disrupted ACH flows can change available cash, timing of dividends and short-term liquidity assumptions.

payfac financial

"PayFac revenues were up 43% in the quarter"

A payfac (payment facilitator) is a company that lets many smaller businesses accept credit and debit card payments under its master account, handling sign-ups, payment routing, and the fraud or refund risks on their behalf — like a landlord who rents space and takes care of utilities so tenants can move in fast. Investors watch payfacs because they can scale revenue quickly through transaction fees and value-adding services, but they also concentrate operational and credit risk tied to payment volumes, chargebacks, and regulatory controls.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Revenue, Earnings per Share, and Adjusted EBITDA¹ beat Consensus Estimates

Revenue up 19%, Adjusted EBITDA¹ up 128%

Raises Fiscal 2026 Revenue Guidance, Revenues Now Expected to be up 14-16%

Total payment dollars processed through all payment channels up 27%

SAN ANTONIO, Aug. 12, 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 second quarter ended June 30, 2026.

Louis Hoch, President and Chief Executive Officer of Usio, said, “The second quarter built upon a record start to the new year, with all of our key performance indicators showing sustained growth. I am particularly pleased with our bottom line, which we have been intently focused on improving, where Adjusted EBITDA¹ was up 128% from a year ago and GAAP net income was approximately $0.3 million, or $0.01 per share. Revenue growth accelerated sequentially from the first quarter, up 19% versus the prior year period with all of Card, ACH and Output Solutions generating over 20% growth in the quarter. Total processing transactions set new records, led by 34% transaction growth in ACH during the quarter. Our financial condition and liquidity remain strong. Consequently, based on our extremely strong first half of the fiscal year and confidence in our new business opportunities, we have raised our expectations for our top line growth, with full year revenues now expected to be up 14 to 16% compared to the prior year, an increase from the previously expected 10 to 12%.”

Results in the second quarter were led by a 28% increase in credit card revenues where volumes were up strongly, with dollars processed up 13% and transactions processed up 19% from a year ago. PayFac revenues were up 43% in the quarter and continue to comprise over three quarters of credit card revenues, which has precipitated the inflection in credit card's growth trajectory. ACH, our highest margin business, had another record quarter. Revenues were up 21% on record transaction volume, which was up 34%, and as the result of our growing RTP business and strong PINless debit growth. Further penetration of the mortgage servicing and fintech industries as well as the addition of new accounts continues to fuel ACH growth.

Output Solutions had an outstanding quarter, with 22% revenue growth in the second quarter of 2026 over the same period last year, sequentially improving from 19% in the previous quarter. Volumes were at record levels with electronic documents processed and delivered up 49% and total pieces printed and mailed up 43%.

For the quarter, gross profits were up over 11%, with gross margins at 24% in the quarter, a sequential improvement from 20% in the first quarter of 2026. Gross margins were down nominally versus the prior year period, primarily attributable to a decrease in interest revenue (which has a 100% margin) and revenue mix. Total selling, general and administrative expenses, inclusive of depreciation and amortization and stock-based compensation ("Total SG&A Expenses"), were down approximately $190,000 from the year ago period, while "SG&A," consisting of selling, general and administrative expenses only, was down nominally at 1% from the year ago quarter.

For the quarter ended June 30, 2026, the Company reported net income of approximately $0.3 million, or $0.01 per share, compared to a net loss of ($0.4) million, or ($0.01) per share, for the second quarter of 2025. Note that there were no extraordinary items that contributed to the second quarter 2026 net income as calculated in accordance with United States generally accepted accounting principles ("GAAP"). Adjusted EBITDA¹ was $1.1 million for the second quarter of 2026, more than double the $0.5 million in the same quarter a year ago. The Company used approximately $371,000 to repurchase 281,000 shares of its common stock in the six months ended June 30, 2026. Cash was in excess of $6.4 million at June 30, 2026, down over the six months, with the decrease being related to some annual cash outlays occurring in the period. In addition, cash was used for leasehold improvements and integration of our new Output Solutions printer in the second quarter, which helped accelerate Output Solutions revenues.

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 second quarter of 2026 were $2.47 billion, an increase of 27% over the $1.94 billion processed in last year's second quarter. Total payment transactions processed in the second quarter of 2026 were 17.9 million, an increase of 27% over the same quarter of last year. 

Our credit card segment continues to grow, where dollars processed in the second quarter of 2026 were up 13% and transactions processed were up 19% from the year ago quarter. In the second quarter of 2026, ACH electronic check transaction volume was up 34%, setting a new quarterly transaction record for the fifth consecutive quarter, while electronic check dollars processed were up 28% and return check transactions processed were up 35%, in each case, compared to the same quarter of 2025. In our prepaid card services business unit, card load volume was flat, and transactions processed were down 4%; however, purchase volume was up 11% for the second quarter of 2026, in each case, compared to the same quarter of 2025. Output Solutions pieces processed and mailed were up 43% while electronic documents processed and delivered were up 49% for the second quarter of 2026, in each case, compared to the same quarter of 2025.

Second Quarter 2026 Revenue Detail

Revenues for the quarter ended June 30, 2026 were $23.7 million, up 19% from $20.0 million in the prior year quarter, due to increases in all of our business lines, excluding prepaid card services. Interest revenues were also lower. Revenues for the six months ended June 30, 2026 were $49.1 million, up 17% from $42.0 million in the prior year period, once again due to increases in all of our business lines, excluding prepaid card services, and lower interest revenues.

	Three Months Ended June 30,
	2026				2025				$ Change				% Change
ACH and complementary services	$	6,308,281			$	5,192,224			$	1,116,057				21	%
Credit card		8,997,174				7,045,030				1,952,144				28	%
Prepaid card services		2,453,774				2,726,410				(272,636	)			(10	)%
Output Solutions		5,669,349				4,642,901				1,026,448				22	%
Interest - ACH and complementary services		90,876				176,518				(85,642	)			(49	)%
Interest - Prepaid card services		112,502				134,823				(22,321	)			(17	)%
Interest - Output Solutions		46,680				43,084				3,596				8	%
Total Revenue	$	23,678,636			$	19,960,990			$	3,717,646				19	%

	Six Months Ended June 30,
	2026				2025				$ Change				% Change
ACH and complementary services	$	12,601,347			$	10,236,741			$	2,364,606				23	%
Credit card		18,707,498				14,923,724				3,783,774				25	%
Prepaid card services		4,826,975				5,633,861				(806,886	)			(14	)%
Output Solutions		12,474,663				10,375,768				2,098,895				20	%
Interest - ACH and complementary services		213,077				400,647				(187,570	)			(47	)%
Interest - Prepaid card services		230,531				317,484				(86,953	)			(27	)%
Interest - Output Solutions		90,319				81,815				8,504				10	%
Total Revenue	$	49,144,410			$	41,970,040			$	7,174,370				17	%

Gross profit for the second quarter of 2026 was $5.7 million, up 11% versus $5.1 million in the second quarter of 2025. Gross margins (defined as gross profit as a percentage of total revenues) were 24.2% in the second quarter of 2026, down versus 25.8% in the second quarter of 2025. This was primarily due to lower interest revenues, a high margin revenue source, and revenue mix.

Gross profit for the six months ended June 30, 2026 was $10.9 million, up 9% versus $9.9 million in the first half of 2025. Gross margins were 22.1% in the first half of 2026, down versus 23.7% in the first half of 2025. This was primarily due to lower interest revenues, a high margin revenue source, and revenue mix.

Total SG&A Expenses for the second quarter of 2026 were $5.3 million, down from $5.5 million in the year ago quarter primarily due to lower depreciation and amortization expense.

Total SG&A Expenses for the six months ended June 30, 2026 were $10.3 million, down from $10.6 million in the comparable year ago period primarily due to lower depreciation and amortization. SG&A was $8.9 million for the first half of 2026 compared to $8.8 million in the comparable prior year period. This nominal increase in SG&A was primarily related to increases in salary alongside increases in network infrastructure and professional fees that occurred in the first quarter of 2026.

For the second quarter of 2026, we reported operating income of $0.4 million compared to an operating loss of ($0.4) million for the same quarter a year ago, primarily due to increased revenues and gross profits, alongside a decrease in Total SG&A Expenses. Adjusted EBITDA¹ was $1.1 million for the second quarter of 2026, compared to Adjusted EBITDA¹ of $0.5 million for the same quarter a year ago. Net income in the quarter ended June 30, 2026 was approximately $0.3 million, or $0.01 per share, compared to a net loss of ($0.4) million, or ($0.01) per share, for the same period in the prior year.

For the six months ended June 30, 2026, we reported operating income of $0.6 million compared to an operating loss of ($0.6) million for the same period a year ago, primarily due to increased revenues and gross profits, alongside a decrease in Total SG&A Expenses. Adjusted EBITDA¹ was $1.9 million for the six months ended June 30, 2026, compared to Adjusted EBITDA¹ of $1.2 million for the same period a year ago. Net income in the six months ended June 30, 2026 was approximately $0.4 million, or $0.01 per share, compared to a net loss of ($0.6) million, or ($0.02) per share, for the same period in the prior year.

Operating Cash Flows declined to $0.3 million for the six months ended June 30, 2026, as compared to $1.1 million in the same period a year ago. The year ago period benefited from an approximately $1.5 million tax refund. Additionally, accounts receivable at June 30, 2026 was up as compared to December 31, 2025, reflecting our strong revenue growth.

We believe we continue to be in solid financial condition. Cash and cash equivalents as of June 30, 2026 were $6.4 million, a $1.0 million decrease over cash and cash equivalents as of December 31, 2025, due to items occurring once annually such as payment of state taxes and insurance, alongside some one-time cash outlays related to leasehold improvements and integration of our new Output Solutions printer in the second quarter. This was in addition to the use of over $371,000 to repurchase 281,000 shares of our common stock during the six months ended June 30, 2026.

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, August 12, 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 September 12, 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 8298156.

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 income, interest expense, 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:

Investor Relations
ir@usio.com
210-249-4055

USIO, INC. CONSOLIDATED BALANCE SHEETS
	June 30, 2026				December 31, 2025
	(Unaudited)
ASSETS
Cash and cash equivalents	$	6,385,966			$	7,434,051
Settlement processing assets		72,172,358				74,180,475
Prepaid card load assets		16,945,868				27,623,728
Customer deposits		2,355,284				2,281,220
Merchant reserves		4,568,537				4,795,537
Accounts receivable, net		6,525,621				5,274,586
Inventory		392,108				461,675
Prepaid expenses and other		1,824,140				1,359,382
Total current assets		111,169,882				123,410,654
Property and equipment, net		4,654,545				4,157,393
Other assets:
Intangibles, net		9,759				9,759
Operating lease right-of-use assets, net		3,185,438				2,423,231
Other assets		362,949				362,949
Deferred tax asset, net		4,404,425				4,526,228
Total other assets		7,962,571				7,322,167
Total Assets	$	123,786,998			$	134,890,214
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	967,359			$	880,590
Accrued expenses		3,371,039				3,326,445
Operating lease liabilities, current portion		750,013				639,805
Equipment loan, current portion		343,339				289,317
Settlement processing obligations		72,172,358				74,180,475
Prepaid card load obligations		16,945,868				27,623,728
Customer deposits		2,355,284				2,281,220
Merchant reserve obligations		4,568,537				4,795,537
Total current liabilities		101,473,797				114,017,117
Non-current liabilities:
Operating lease liabilities, net of current portion		2,610,444				1,885,983
Equipment loan, net of current portion		910,310				1,074,711
Total liabilities		104,994,551				116,977,811
Stockholders' equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at June 30, 2026 (unaudited) and December 31, 2025		—				—
Common stock, $0.001 par value, 200,000,000 shares authorized; 32,607,392 and 31,562,178 issued, and 28,513,915 and 27,729,704 outstanding at June 30, 2026 (unaudited) and December 31, 2025, respectively		32,607				31,562
Additional paid-in capital		104,007,118				102,363,590
Treasury stock, at cost; 4,093,477 and 3,832,474 shares at June 30, 2026 (unaudited) and December 31, 2025, respectively		(7,208,113	)			(6,837,181	)
Deferred compensation		(7,896,753	)			(7,100,573	)
Accumulated deficit		(70,142,412	)			(70,544,995	)
Total stockholders' equity		18,792,447				17,912,403
Total Liabilities and Stockholders' Equity	$	123,786,998			$	134,890,214

USIO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
Revenues	$	23,678,636			$	19,960,990			$	49,144,410			$	41,970,040
Cost of services		17,952,649				14,820,921				38,281,540				32,020,828
Gross profit		5,725,987				5,140,069				10,862,870				9,949,212
Selling, general and administrative expenses:
Stock-based compensation		482,508				434,255				811,792				844,317
SG&A		4,580,548				4,638,185				8,936,690				8,781,080
Depreciation and amortization		286,018				464,599				511,763				960,369
Total selling, general and administrative		5,349,074				5,537,039				10,260,245				10,585,766
Operating income (loss)		376,913				(396,970	)			602,625				(636,554	)
Other income (expense):
Interest income		96,198				110,908				187,689				189,919
Interest expense		(22,934	)			(11,735	)			(45,760	)			(23,578	)
Other income, net		73,264				99,173				141,929				166,341
Income (loss) before income taxes		450,177				(297,797	)			744,554				(470,213	)
Federal income tax expense		54,719				—				121,803				—
State income tax expense		115,378				68,857				220,168				131,411
Income tax expense		170,097				68,857				341,971				131,411
Net income (loss)	$	280,080			$	(366,654	)		$	402,583			$	(601,624	)
Income (loss) Per Share
Basic income (loss) per common share:	$	0.01			$	(0.01	)		$	0.01			$	(0.02	)
Diluted income (loss) per common share:	$	0.01			$	(0.01	)		$	0.01			$	(0.02	)
Weighted average common shares outstanding
Basic		27,819,834				26,456,411				27,764,064				26,577,052
Diluted		27,819,834				26,456,411				27,764,064				26,577,052

USIO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	Six Months Ended June 30,
	2026				2025
Operating Activities
Net income (loss)	$	402,583			$	(601,624	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		511,763				960,369
Deferred federal income tax		121,803				—
Employee stock-based compensation		811,792				844,317
Allowance for expected credit losses		(223,096	)			—
Reserve for processing losses		(155,100	)			(171,525	)
Changes in operating assets and liabilities:
Accounts receivable		(1,027,939	)			162,045
Accounts receivable, tax credit		—				1,494,612
Prepaid expenses and other		(464,758	)			(520,027	)
Operating lease right-of-use assets		444,063				310,086
Inventory		69,567				23,339
Accounts payable and accrued expenses		286,463				(1,255,292	)
Operating lease liabilities		(371,601	)			(310,483	)
Merchant reserves		(227,000	)			105,000
Customer deposits		74,064				69,509
Net cash provided by operating activities		252,604				1,110,326
Investing Activities
Purchases of property and equipment		(532,124	)			(73,925	)
Capitalized labor for internal use software		(476,791	)			(673,242	)
Net cash (used in) investing activities		(1,008,915	)			(747,167	)
Financing Activities
Payments on equipment loan, net		(110,379	)			(72,328	)
Proceeds from issuance of common stock		36,601				41,496
Purchases of treasury stock		(370,932	)			(708,298	)
Assets held for customers		(12,685,977	)			3,202,631
Net cash provided by used in financing activities		(13,130,687	)			2,463,501
Change in cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves		(13,886,998	)			2,826,660
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	$	102,428,013			$	90,445,151
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	45,760			$	23,578
Income taxes		450,000				438,000
Non-cash investing and financing activities:
Issuance of deferred stock compensation	$	1,350,900			$	—
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 costs			—				—				—				(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
Issuance of common stock under equity incentive plan			920,420				920				1,529,014				—				(1,350,900	)			—				179,034
Issuance of common stock under employee stock purchase plan			19,667				20				22,401				—				—				—				22,421
Deferred compensation amortization			—				—				—				—				303,474				—				303,474
Purchase of treasury stock, at costs			—				—				—				(137,473	)			—				—				(137,473	)
Net income for the period			—				—				—				—				—				280,080				280,080
Balance at June 30, 2026			32,607,392			$	32,607			$	104,007,118			$	(7,208,113	)		$	(7,896,753	)		$	(70,142,412	)		$	18,792,447
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 costs			—				—				—				(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
Issuance of common stock under equity incentive plan			176,622				177				160,420				—				—				—				160,597
Issuance of common stock under employee stock purchase plan			20,535				20				29,958				—				—				—				29,978
Deferred compensation amortization			—				—				—				—				273,658				—				273,658
Purchase of treasury stock, at costs			—				—				—				(356,658	)			—				—				(356,658	)
Net loss for the period			—				—				—				—				—				(366,654	)			(366,654	)
Balance at June 30, 2025			30,235,512			$	30,235			$	100,183,033			$	(6,478,890	)		$	(6,367,247	)		$	(68,634,280	)		$	18,732,851

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)
	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
Reconciliation from Operating income (loss) to Adjusted EBITDA:
Operating income (loss)	$	376,913			$	(396,970	)		$	602,625			$	(636,554	)
Depreciation and amortization		286,018				464,599				511,763				960,369
EBITDA		662,931				67,629				1,114,388				323,815
Non-cash stock-based compensation expense, net		482,508				434,255				811,792				844,317
Adjusted EBITDA	$	1,145,439			$	501,884			$	1,926,180			$	1,168,132
Calculation of Adjusted EBITDA margins:
Revenues	$	23,678,636			$	19,960,990			$	49,144,410			$	41,970,040
Adjusted EBITDA	$	1,145,439			$	501,884			$	1,926,180			$	1,168,132
Adjusted EBITDA margins		4.8	%			2.5	%			3.9	%			2.8	%

FAQ

How did Usio (USIO) perform financially in the second quarter of 2026?

Usio reported Q2 2026 revenue of $23.7 million, up 19% year over year, and net income of $0.3 million, or $0.01 per share. According to Usio, Adjusted EBITDA reached $1.1 million, more than double the prior-year quarter’s $0.5 million.

What revenue guidance did Usio (USIO) provide for full-year 2026?

Usio raised its fiscal 2026 revenue guidance, now expecting full-year revenues to increase 14–16% versus the prior year. According to Usio, this is up from previous expectations of 10–12% growth, reflecting strong first-half performance and confidence in new business opportunities.

How did Usio’s payment volumes and transactions change in Q2 2026?

Total payment dollars processed in Q2 2026 were $2.47 billion, up 27% year over year, with 17.9 million transactions, also up 27%. According to Usio, ACH transaction volume rose 34%, and Output Solutions volumes saw significant double-digit increases across mailed and electronic documents.

What were Usio’s segment revenue trends in Q2 2026 for USIO stock investors?

In Q2 2026, ACH revenues rose 21%, credit card revenues 28%, and Output Solutions revenues 22%, while prepaid card services revenues declined 10%. According to Usio, PayFac revenues grew 43% and remain over three quarters of credit card revenues, supporting overall segment growth.

How did Usio’s profitability and margins evolve in Q2 2026?

Usio reported Q2 2026 operating income of $0.4 million versus a $0.4 million operating loss a year earlier, and net income of $0.3 million. According to Usio, gross margin was 24.2%, down from 25.8%, mainly due to lower high-margin interest revenue and revenue mix.

What is Usio’s cash position and share repurchase activity as of June 30, 2026?

Cash and cash equivalents were $6.4 million at June 30, 2026, down $1.0 million from year-end 2025. According to Usio, the company used about $371,000 to repurchase 281,000 shares during the first half and incurred annual and one-time cash outlays.