Usio Reports Strong Third Quarter 2026 Results; Adjusted EBITDA(1) Increases 222%

Nine-month operating cash flow increased despite the absence of nearly $1.5 million in one-time tax credit collections received a year earlier.

Rhea-AI Summary

Usio (USIO) reported third-quarter 2026 revenue of $23.8 million, with growth across all business lines and a return to profitability. Revenue rose 12% year over year. GAAP net income was $217,000, or $0.01 per share, versus a $0.4 million loss, or $0.02 per share. Adjusted EBITDA, a non-GAAP earnings measure, increased 222% to $1.2 million, with its margin rising to 5.0% from 1.7%.

Gross profit increased 18% to $5.7 million, and gross margin expanded to 24.1% from 23.0%. Payment dollars processed rose 25% to $2.73 billion. For the nine months ended September 30, revenue increased 15% to $72.9 million and operating cash flow rose 133% to $3.3 million, although gross margin fell to 22.8% from 23.5%. Cash reached $7.3 million at September 30. Usio reiterated guidance for 14–16% revenue growth versus the prior year and record adjusted EBITDA.

29 points · 0 major

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Positive

• Moderate pointThird-quarter revenue increased 12% year over year to $23.8 million.
• Moderate pointThird-quarter GAAP net income reached $217,000, or $0.01 per share, versus a $0.4 million loss.
• Moderate pointThird-quarter adjusted EBITDA increased 222% to $1.2 million; margin expanded to 5.0% from 1.7%.
• Moderate pointThird-quarter gross profit rose 18% to $5.7 million; gross margin increased to 24.1% from 23.0%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Usio reiterated guidance for 14–16% revenue growth versus the prior year and record adjusted EBITDA.
• Moderate pointNine-month operating cash flow rose 133% to $3.3 million, without the prior year's one-time tax credit collections.
• Moderate pointThird-quarter payment dollars processed increased 25% to $2.73 billion; transactions grew 27% to 20.7 million.

22 minor points

• Minor pointThird-quarter operating income reached $0.3 million, versus a $0.5 million operating loss a year earlier.
• Minor pointNine-month revenue increased 15% to $72.9 million versus the corresponding 2025 period.
• Minor pointNine-month net income reached approximately $0.6 million, or $0.02 per share, versus a $1.0 million loss.
• Minor pointNine-month operating income reached $0.9 million, versus a $1.1 million operating loss a year earlier.
• Minor pointNine-month adjusted EBITDA increased to $3.1 million from $1.5 million a year earlier.
• Minor pointNine-month gross profit increased 12% to $16.6 million versus the corresponding 2025 period.
• Minor pointNine-month total selling, general and administrative expenses, including depreciation and stock compensation, declined 1% to $15.7 million.
• Minor pointCash increased approximately $900,000 over three months, reaching $7.3 million at September 30, 2026.
• Minor pointCredit card revenue increased 18% in the quarter and 23% over nine months, year over year.
• Minor pointQuarterly PayFac revenue rose 29%, accounting for more than 75% of credit card revenue.
• Minor pointThird-quarter credit card dollars processed rose 7%; transactions increased 17% year over year.
• Minor pointAutomated clearing house (ACH) services revenue increased 9% quarterly and 18% over nine months, year over year.
• Minor pointThird-quarter ACH transactions rose 39%, marking a sixth consecutive quarterly record; dollars processed increased 26%.
• Minor pointThird-quarter return check transactions processed increased 44% year over year.
• Minor pointOutput Solutions revenue increased 14% quarterly and 18% over nine months, year over year.
• Minor pointThird-quarter electronic documents processed and delivered rose 28%; pieces processed and mailed increased 7% year over year.
• Minor pointThird-quarter prepaid card services revenue increased 1% year over year, its first quarterly increase in 2026.
• Minor pointThird-quarter prepaid card load volume rose 6%; purchase volume increased 17% year over year.
• Minor pointPrepaid interest revenue increased 8% in the third quarter year over year.
• Minor pointOutput Solutions interest revenue rose 9% quarterly and 10% over nine months, year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Usio expects its Harris Computer preferred payments provider relationship to expand its reach into utilities.
• Minor point. Forward-looking: it has not happened yet and may not happen.Usio sees potential for Usio Ion to expand third-party deposits and generate incremental interest revenue.

Negative

• Moderate pointNine-month gross margin declined to 22.8% from 23.5%, reflecting revenue mix and lower interest revenue.
• Minor pointNine-month prepaid card services revenue declined 9% to $7,653,003 versus the corresponding 2025 period.
• Minor pointNine-month ACH services interest revenue declined 34% to $372,748 year over year.
• Minor pointNine-month prepaid card services interest revenue declined 17% to $379,677 year over year.
• Minor pointThird-quarter total selling, general and administrative expenses, including depreciation and stock compensation, increased approximately 2% to $5.5 million.

2 minor points

• Minor pointThird-quarter prepaid card transactions processed declined 2% year over year.
• Minor pointThird-quarter ACH services interest revenue fell to $159,671 from $160,296 a year earlier.

News Explained

Usio used $499,000 in cash to repurchase 327,000 common shares during the nine months ended September 30, 2026—a completed past-period cash outlay and share purchase, rather than new financing proceeds.

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Key Figures

Q3 revenue: $23.8 million (+12%) GAAP net income: $217,000 ($0.01 per share) Adjusted EBITDA: $1.2 million (+222%) +5 more

Q3 revenue

$23.8 million (+12%)

Third quarter 2026, year over year

GAAP net income

$217,000 ($0.01 per share)

Q3 2026; compared with a $0.4 million net loss in Q3 2025

Adjusted EBITDA

$1.2 million (+222%)

Third quarter 2026, year over year

Adjusted EBITDA margin

5.0%, up from 1.7%

Q3 2026 versus Q3 2025

Revenue growth guidance

14–16%

Reiterated guidance versus the prior year

Operating cash flow

$3.3 million (+133%)

First nine months of 2026

Gross profit

$5.7 million (+18%)

Third quarter 2026, year over year

Payment dollars processed

$2.73 billion (+25%)

Third quarter 2026, year over year

Previous Earnings Reports

3 past events · Latest: Aug 12

Same Type 3 events

1. Aug 12

   Q2 earnings

   24h Move

   +8.8%

   Revenue rose 19%; net income was positive and Adjusted EBITDA more than doubled.

2. May 13

   Q1 earnings

   24h Move

   +21.4%

   Net income turned positive versus prior-year loss; Adjusted EBITDA was $0.8 million.

3. Nov 12

   Q3 earnings

   24h Move

   -0.7%

   Revenue was nearly flat, with a $0.4 million net loss and $0.4 million Adjusted EBITDA.

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

Key Terms

gaap, adjusted ebitda, ach

3 terms

gaap financial

"GAAP Net Income Increases by over $632,000 Year-Over-Year"

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

adjusted ebitda financial

"Adjusted EBITDA1 was $1.2 million for the third quarter of 2026"

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.

ach technical

"ACH transactions increased 39%, setting a new quarterly record"

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.

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

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GAAP Net Income Increases by over $632,000 Year-Over-Year to $217,000, or $0.01 Per Share

Revenue Increases 12%; Gross Profit Increases 18%; Adjusted EBITDA Margin¹ Expands to 5.0%

Nine-Month Operating Cash Flow Increases 133% to $3.3 Million

SAN ANTONIO, Nov. 10, 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 third quarter ended September 30, 2026.

Louis Hoch, President and Chief Executive Officer of Usio, said, “It was another strong quarter for Usio, with revenue increasing 12% and Adjusted EBITDA¹ rising 222%, driven by sustained transaction growth and improving operating leverage. Total payment dollars processed increased 25% to $2.73 billion, while total payment transactions grew 27% to 20.7 million. ACH transactions increased 39%, setting a new quarterly record for the sixth consecutive quarter. Importantly, this growth is translating into meaningful bottom-line improvement. Adjusted EBITDA margin¹ expanded to 5.0% from 1.7% a year ago, GAAP operating income improved by approximately $743,000, and we delivered our third consecutive quarter of positive GAAP net income. For the first nine months of 2026, Adjusted EBITDA¹ more than doubled, while operating cash flow increased 133% to $3.3 million. Consequently, we are re-iterating our guidance of 14-16% revenue growth versus the prior year, alongside record Adjusted EBITDA¹.”

Mr. Hoch continued, “Looking ahead, we are particularly encouraged by the opportunities presented by Usio Ion and our recently announced strategic partnership with Harris Computer. Ion has the potential to deepen our existing customer relationships, expand our third-party owned deposit base and generate incremental high-margin interest revenue, while our preferred payments provider relationship with Harris expands our reach into the utility market. We believe both initiatives can contribute meaningfully to our long-term growth and operating leverage as adoption and implementation progress. It is exciting to soon enter 2027 with these two catalysts on top of the organic growth we are already experiencing.”

Results in the third quarter were led by an 18% increase in credit card revenues on the strength of a 29% increase in PayFac revenues, which now account for more than 75% of total credit card revenues. ACH, our highest margin business, had another record quarter. Revenues were up 9% primarily due to record ACH transaction volume, which was up 39%, alongside record RTP volume and continued strong PINless debit growth. ACH has benefitted from new account growth and strong volumes in the education market. Output Solutions had an outstanding quarter with revenue growing 14%. Volumes were at record levels with electronic documents processed and delivered up 28% and total pieces printed and mailed up 7%. In addition, third quarter prepaid card services revenues were up from a year ago, the first quarterly increase this year. Prepaid card services also experienced increased volumes, providing further momentum to the recovery in revenues.

Reflective of the Company’s increasing operating leverage, gross profit was up approximately 18% to $5.7 million in the third quarter, with gross margins expanding to 24.1% from 23.0% in the prior-year quarter. Third quarter total selling, general and administrative expenses, inclusive of depreciation and amortization and stock-based compensation ("Total SG&A Expenses"), increased only approximately 2% year-over-year, while declining for the first nine months of 2026 compared to the prior-year period. This disciplined expense management was achieved while continuing to invest in back-office operations and network infrastructure to support sustainable growth.

For the quarter ended September 30, 2026, the Company reported GAAP net income of approximately $0.2 million, or $0.01 per share, compared to a net loss of ($0.4) million, or ($0.02) per share, for the third quarter of 2025. Adjusted EBITDA¹ was $1.2 million for the third quarter of 2026, up 222% from the same quarter a year ago. Operating cash flow more than doubled to approximately $3.3 million for the first nine months of 2026, an increase of 133%, despite the prior-year period benefiting from nearly $1.5 million in one-time employee retention tax credit collections that were not present in the current year period. Cash was in excess of $7.3 million at September 30, 2026, an increase of approximately $900,000 over the past three months. The Company used approximately $499,000 to repurchase 327,000 shares of its common stock during the nine months ended September 30, 2026. 

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 third quarter of 2026 were $2.73 billion, an increase of 25% over the $2.18 billion processed in last year's third quarter. Total payment transactions processed in the third quarter of 2026 were 20.7 million, an increase of 27% over the same quarter of last year. 

Our credit card segment continues to grow, where dollars processed in the third quarter of 2026 were up 7% and transactions processed were up 17% from the year ago quarter. In the third quarter of 2026, ACH electronic check transaction volume was up 39%, setting a new quarterly transaction volume record for the sixth consecutive quarter, while electronic check dollars processed were up 26% and return check transactions processed were up 44%, in each case, compared to the same quarter of 2025. In our prepaid card services business unit during the third quarter of 2026, card load volume was up 6%, and transactions processed were down 2%; however, purchase volume was up 17% for the third quarter of 2026, in each case, compared to the same quarter of 2025. Output Solutions pieces processed and mailed were up 7% while electronic documents processed and delivered were up 28% for the third quarter of 2026, in each case, compared to the same quarter of 2025.

Three and Nine Months Ended September 30, 2026 Revenue Detail

Revenues for the quarter ended September 30, 2026 were $23.8 million, up 12% from $21.2 million in the prior year quarter, due to increases in all of our business lines, as well as increased total interest revenues. Revenues for the nine months ended September 30, 2026 were $72.9 million, up 15% from $63.2 million in the prior year period, due to increases in all of our business lines, excluding prepaid card services, despite lower total interest revenues.

		Three Months Ended September 30,
		2026				2025				$ Change				% Change
ACH and complementary services		$	6,353,526			$	5,844,267			$	509,259				9	%
Credit card			8,692,163				7,351,400				1,340,763				18	%
Prepaid card services			2,826,028				2,796,782				29,246				1	%
Output Solutions			5,534,198				4,844,496				689,702				14	%
Interest - ACH and complementary services			159,671				160,296				(625	)			(0	)%
Interest - Prepaid card services			149,146				137,841				11,305				8	%
Interest - Output Solutions			49,106				45,251				3,855				9	%
Total Revenue		$	23,763,838			$	21,180,333			$	2,583,505				12	%

		Nine Months Ended September 30,
		2026				2025				$ Change				% Change
ACH and complementary services		$	18,954,873			$	16,081,008			$	2,873,865				18	%
Credit card			27,399,661				22,275,124				5,124,537				23	%
Prepaid card services			7,653,003				8,430,643				(777,640	)			(9	)%
Output Solutions			18,008,861				15,220,264				2,788,597				18	%
Interest - ACH and complementary services			372,748				560,943				(188,195	)			(34	)%
Interest - Prepaid card services			379,677				455,325				(75,648	)			(17	)%
Interest - Output Solutions			139,425				127,066				12,359				10	%
Total Revenue		$	72,908,248			$	63,150,373			$	9,757,875				15	%

Gross profit for the third quarter of 2026 was $5.7 million, up 18% versus $4.9 million in the third quarter of 2025. Gross margins (defined as gross profit as a percentage of total revenues) were 24.1% in the third quarter of 2026, up versus 23.0% in the third quarter of 2025. This was primarily due to revenue mix, as our higher margin business lines contributed proportionally more revenue in the quarter.

Gross profit for the nine months ended September 30, 2026 was $16.6 million, up 12% versus $14.8 million in the first nine months of 2025. Gross margins were 22.8% in the nine months ended September 30, 2026, down versus 23.5% in the corresponding period of 2025. This was primarily due to revenue mix and lower interest revenues, a high margin revenue source.

Total SG&A Expenses for the third quarter of 2026 were $5.5 million, an increase of approximately 2% compared to $5.3 million in the prior-year quarter, primarily reflecting continued investments in back-office operations and network infrastructure. Notably, Total SG&A Expenses grew significantly slower than revenue and gross profit, demonstrating the Company's increasing operating leverage. SG&A expense for the third quarter of 2026 was up marginally from the corresponding prior year quarter, primarily due to increases in salary alongside increases in network infrastructure and professional fees.

Total SG&A Expenses for the nine months ended September 30, 2026 were $15.7 million, down 1% versus the corresponding year ago period primarily due to lower depreciation and amortization expense offsetting slightly higher SG&A expenses. SG&A expenses for the nine months ended September 30, 2026 were up marginally from the corresponding prior year period, primarily due to increases in salary alongside increases in network infrastructure and professional fees.

For the third quarter of 2026, we reported operating income of $0.3 million compared to an operating loss of ($0.5) million for the same quarter a year ago, primarily due to increased revenues and gross profit, offsetting a nominal increase in Total SG&A Expenses. Adjusted EBITDA¹ was $1.2 million for the third quarter of 2026, compared to Adjusted EBITDA¹ of $0.4 million for the same quarter a year ago. Net income in the quarter ended September 30, 2026 was $0.2 million, or $0.01 per share, compared to a net loss of ($0.4) million, or ($0.02) per share, for the same period in the prior year.

For the nine months ended September 30, 2026, we reported operating income of $0.9 million compared to an operating loss of ($1.1) million for the same period a year ago, primarily due to increased revenues and gross profit, alongside a decrease in Total SG&A Expenses. Adjusted EBITDA¹ was $3.1 million for the nine months ended September 30, 2026, compared to Adjusted EBITDA¹ of $1.5 million for the same period a year ago. Net income in the nine months ended September 30, 2026 was approximately $0.6 million, or $0.02 per share, compared to a net loss of ($1.0) million, or ($0.04) per share, for the same period in the prior year.

Operating cash flow increased 133% to $3.3 million for the nine months ended September 30, 2026, compared to $1.4 million in the same period of 2025, supported by improved profitability. Notably, the prior-year period benefited from nearly $1.5 million in one-time employee retention tax credit collections that were not present in the current year period.

We believe we continue to be in solid financial condition. Cash and cash equivalents as of September 30, 2026 were $7.3 million with minimal long-term debt. Cash this year has been used for capital expenditures, primarily Output Solutions equipment. In addition, approximately $499,000 in cash was used to repurchase 327,000 shares of our common stock during the nine months ended September 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 Tuesday, November 10, 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 +1-844-883-3890. 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 November 25, 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 7548744.

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, www.usioion.com and www.akimbocard.com. 

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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 and the nine-month period ended September 30, 2026 compared to the corresponding nine-month period 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 margin. 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 net income (loss), before interest income, interest expense, taxes, depreciation and amortization of intangibles.
•	The Company defines Adjusted EBITDA as EBITDA, as defined above, less other income, plus non-cash stock-based compensation and certain non-recurring items, such as costs related to acquisitions.
•	The Company defines Adjusted EBITDA margin as Adjusted EBITDA, as defined above, divided by total revenues.

Management believes presenting EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin 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 margin 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 margin 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
		September 30, 2026				December 31, 2025
		(Unaudited)
ASSETS
Cash and cash equivalents		$	7,335,367			$	7,434,051
Settlement processing assets			65,850,763				74,180,475
Prepaid card load assets			15,380,635				27,623,728
Customer deposits			2,751,854				2,281,220
Merchant reserves			4,503,537				4,795,537
Accounts receivable, net			6,199,363				5,274,586
Inventory			624,635				461,675
Prepaid expenses and other			869,027				1,359,382
Total current assets			103,515,181				123,410,654
Property and equipment, net			6,245,265				4,157,393
Other assets:
Intangibles, net			9,759				9,759
Operating lease right-of-use assets, net			3,000,273				2,423,231
Other assets			362,949				362,949
Deferred tax asset, net			4,376,596				4,526,228
Total other assets			7,749,577				7,322,167
Total Assets		$	117,510,023			$	134,890,214
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	1,095,833			$	880,590
Accrued expenses			3,760,626				3,326,445
Operating lease liabilities, current portion			743,160				639,805
Equipment loan, current portion			349,316				289,317
Settlement processing obligations			65,850,763				74,180,475
Prepaid card load obligations			15,380,635				27,623,728
Customer deposits			2,751,854				2,281,220
Merchant reserve obligations			4,503,537				4,795,537
Total current liabilities			94,435,724				114,017,117
Non-current liabilities:
Operating lease liabilities, net of current portion			2,427,389				1,885,983
Equipment loan, net of current portion			1,131,175				1,074,711
Total liabilities			97,994,288				116,977,811
Stockholders' equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at September 30, 2026 (unaudited) and December 31, 2025			—				—
Common stock, $0.001 par value, 200,000,000 shares authorized; 32,649,119 and 31,562,178 issued, and 28,509,743 and 27,729,704 outstanding at September 30, 2026 (unaudited) and December 31, 2025, respectively			32,649				31,562
Additional paid-in capital			104,302,327				102,363,590
Treasury stock, at cost; 4,139,376 and 3,832,474 shares at September 30, 2026 (unaudited) and December 31, 2025, respectively			(7,335,943	)			(6,837,181	)
Deferred compensation			(7,558,266	)			(7,100,573	)
Accumulated deficit			(69,925,032	)			(70,544,995	)
Total stockholders' equity			19,515,735				17,912,403
Total Liabilities and Stockholders' Equity		$	117,510,023			$	134,890,214

USIO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Revenues		$	23,763,838			$	21,180,333			$	72,908,248			$	63,150,373
Cost of services			18,025,493				16,310,314				56,307,033				48,331,142
Gross profit			5,738,345				4,870,019				16,601,215				14,819,231
Selling, general and administrative expenses:
Stock-based compensation			570,431				399,582				1,382,223				1,243,899
SG&A			4,553,317				4,501,762				13,490,007				13,282,842
Depreciation and amortization			335,865				432,846				847,628				1,393,215
Total selling, general and administrative			5,459,613				5,334,190				15,719,858				15,919,956
Operating income (loss)			278,732				(464,171	)			881,357				(1,100,725	)
Other income (expense):
Interest income			94,910				124,449				282,599				314,368
Other income			—				5,000				—				5,000
Interest expense			(22,680	)			(11,328	)			(68,440	)			(34,906	)
Other income, net			72,230				118,121				214,159				284,462
Income (loss) before income taxes			350,962				(346,050	)			1,095,516				(816,263	)
Federal income tax expense			27,829				—				149,632				—
State income tax expense			105,753				69,036				325,921				200,447
Income tax expense			133,582				69,036				475,553				200,447
Net income (loss)		$	217,380			$	(415,086	)		$	619,963			$	(1,016,710	)
Income (loss) Per Share
Basic income (loss) per common share:		$	0.01			$	(0.02	)		$	0.02			$	(0.04	)
Diluted income (loss) per common share:		$	0.01			$	(0.02	)		$	0.02			$	(0.04	)
Weighted average common shares outstanding
Basic			28,474,331				26,892,925				28,015,807				26,719,488
Diluted			28,474,331				26,892,925				28,015,807				26,719,488

USIO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
		Nine Months Ended September 30,
		2026				2025
Operating Activities
Net income (loss)		$	619,963			$	(1,016,710	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			847,628				1,393,215
Deferred federal income tax			149,632				—
Employee stock-based compensation			1,382,223				1,243,899
Allowance for expected credit losses			(223,096	)			—
Reserve for processing losses			(100,102	)			(145,179	)
Changes in operating assets and liabilities:
Accounts receivable			(701,681	)			(158,132	)
Accounts receivable, tax credit			—				1,494,612
Prepaid expenses and other			490,355				(554,348	)
Operating lease right-of-use assets			629,228				467,957
Inventory			(162,960	)			66,103
Accounts payable and accrued expenses			749,526				(920,666	)
Operating lease liabilities			(561,509	)			(463,882	)
Merchant reserves			(292,000	)			(13,564	)
Customer deposits			470,634				20,851
Net cash provided by operating activities			3,297,841				1,414,156
Investing Activities
Purchases of property and equipment			(2,010,228	)			(292,590	)
Capitalized labor for internal use software			(925,272	)			(846,375	)
Net cash used in investing activities			(2,935,500	)			(1,138,965	)
Financing Activities
Payments on equipment loan, net			(188,923	)			(108,953	)
Proceeds from equipment loan			305,386				226,212
Proceeds from issuance of common stock			99,908				70,289
Purchases of treasury stock			(498,762	)			(765,887	)
Assets held for customers			(20,572,805	)			(5,933,757	)
Net cash used in financing activities			(20,855,196	)			(6,512,096	)
Change in cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves			(20,492,855	)			(6,236,905	)
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		$	95,822,156			$	81,381,586
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest		$	68,440			$	34,906
Income taxes			450,000				438,000
Non-cash investing and financing activities:
Issuance of deferred stock compensation		$	1,350,900			$	1,324,800
Right-of-use assets obtained in exchange for operating lease liabilities			1,206,270				—

USIO, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025 (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
Issuance of common stock under equity incentive plan			16,200				16				231,928				—				—				—				231,944
Issuance of common stock under employee stock purchase plan			25,527				26				63,281				—				—				—				63,307
Deferred compensation amortization			—				—				—				—				338,487				—				338,487
Purchase of treasury stock, at costs			—				—				—				(127,830	)			—				—				(127,830	)
Net income for the period			—				—				—				—				—				217,380				217,380
Balance at September 30, 2026			32,649,119			$	32,649			$	104,302,327			$	(7,335,943	)		$	(7,558,266	)		$	(69,925,032	)		$	19,515,735
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
Issuance of common stock under equity incentive plan			937,400				938				1,438,747				—				(1,324,800	)			—				114,885
Issuance of common stock under employee stock purchase plan			18,821				19				28,777				—				—				—				28,796
Deferred compensation amortization			—				—				—				—				284,697				—				284,697
Purchase of treasury stock, at costs			—				—				—				(57,589	)			—				—				(57,589	)
Net loss for the period			—				—				—				—				—				(415,086	)			(415,086	)
Balance at September 30, 2025			31,191,733			$	31,192			$	101,650,557			$	(6,536,479	)		$	(7,407,350	)		$	(69,049,366	)		$	18,688,554

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Reconciliation from net income (loss) to Adjusted EBITDA:
Net income (loss)		$	217,380			$	(415,086	)		$	619,963			$	(1,016,710	)
Income tax expense			133,582				69,036				475,553				200,447
Interest income			(94,910	)			(124,449	)			(282,599	)			(314,368	)
Interest expense			22,680				11,328				68,440				34,906
Depreciation and amortization			335,865				432,846				847,628				1,393,215
EBITDA			614,597				(26,325	)			1,728,985				297,490
Other income			—				(5,000	)			—				(5,000	)
Non-cash stock-based compensation expense, net			570,431				399,582				1,382,223				1,243,899
Adjusted EBITDA		$	1,185,028			$	368,257			$	3,111,208			$	1,536,389
Calculation of Adjusted EBITDA margin:
Revenues		$	23,763,838			$	21,180,333			$	72,908,248			$	63,150,373
Adjusted EBITDA		$	1,185,028			$	368,257			$	3,111,208			$	1,536,389
Adjusted EBITDA margin			5.0	%			1.7	%			4.3	%			2.4	%

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Usio's third-quarter 2026 earnings results?

Usio reported $217,000 in GAAP net income, or $0.01 per share, compared with a $0.4 million net loss, or $0.02 per share, a year earlier. Revenue increased 12% to $23.8 million. Adjusted EBITDA, a non-GAAP earnings measure, rose 222% to $1.2 million.

What revenue growth guidance did Usio reiterate with its third-quarter 2026 results?

Usio reiterated guidance for 14–16% revenue growth versus the prior year, alongside its expectation of record adjusted EBITDA.