Usio Q3 profit reaches $217K on 12% revenue growth

Nine-month operating cash flow rose to $3,297,841 despite nearly $1.5 million of one-time tax-credit collections in the prior-year period.

Available on EDGAR 11/10/2026 - 04:02 PM EST Accepted by SEC EDGAR 11/10/2026 - 04:01 PM EST Learn about SEC filing dates

Rhea-AI Filing Summary

Usio, Inc. reported third-quarter 2026 revenue of $23,763,838, up 12% year over year, and gross profit of $5,738,345, up 18%. GAAP net income was $217,380, versus a $415,086 net loss a year earlier; Adjusted EBITDA was $1,185,028, up 222%, and its margin rose to 5.0% from 1.7%. Payment dollars processed increased 25% to $2.73 billion, and transactions increased 27% to 20.7 million. Credit-card revenue grew 18%, ACH revenue grew 9% alongside 39% transaction growth, and Output Solutions revenue grew 14%. Third-quarter gross margin was 24.1%, compared with 23.0%.

For the first nine months, revenue was $72,908,248, up 15%, and operating cash flow rose 133% to $3,297,841; the prior-year period included nearly $1.5 million in one-time employee retention tax credit collections. Usio reiterated guidance for 14% to 16% revenue growth versus the prior year, alongside record Adjusted EBITDA. Prepaid card services revenue increased 1% for the quarter but declined 9% for the nine-month period; nine-month gross margin was 22.8%, compared with 23.5%.

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Positive

• Moderate pointQuarterly revenue increased 12% to $23,763,838 year over year.
• Moderate pointAdjusted EBITDA increased 222% to $1,185,028 in the quarter.
• Moderate pointNine-month operating cash flow rose 133% to $3,297,841.
• Moderate pointGAAP net income was $217,380, compared with a $415,086 net loss a year earlier.

Negative

• Minor pointNine-month prepaid card services revenue declined 9% to $7,653,003.

Filing Explained

At September 30, 2026, Usio reported $7,335,367 in cash and 28,509,743 common shares outstanding; nine-month treasury-stock purchases were $498,762.

This Form 8-K furnishes Usio's results for the quarter ended September 30, 2026; the balance sheet reports $7,335,367 in cash and cash equivalents at that date.

Usio reports using $498,762 to purchase 327,000 shares of its common stock in the nine months ended September 30, 2026. At September 30, 2026, 28,509,743 common shares were outstanding and 4,139,376 were held as treasury stock, versus 27,729,704 and 3,832,474, respectively, at December 31, 2025.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Quarterly revenue: $23,763,838 Quarterly gross profit: $5,738,345 Quarterly GAAP net income: $217,380 +5 more

8 metrics

Quarterly revenue $23,763,838 Three months ended September 30, 2026; up 12% year over year

Quarterly gross profit $5,738,345 Three months ended September 30, 2026; up 18% year over year

Quarterly GAAP net income $217,380 Three months ended September 30, 2026; compared with a $415,086 net loss in 2025

Quarterly Adjusted EBITDA $1,185,028 Three months ended September 30, 2026; up 222% year over year

Adjusted EBITDA margin 5.0% Three months ended September 30, 2026; compared with 1.7% in 2025

Nine-month operating cash flow $3,297,841 Nine months ended September 30, 2026; up 133% from $1,414,156 in 2025

Prepaid card services revenue $7,653,003 Nine months ended September 30, 2026; down 9% year over year

Payment dollars processed $2.73 billion Third quarter of 2026; up 25% year over year

Key Terms

Adjusted EBITDA, PayFac, ACH, non-GAAP financial measures, +1 more

5 terms

Adjusted EBITDA financial

"The Company defines Adjusted EBITDA as EBITDA"

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.

PayFac technical

"a 29% increase in PayFac revenues"

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.

ACH technical

"ACH electronic check transaction volume was up 39%"

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.

non-GAAP financial measures financial

"includes the non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

employee retention tax credit regulatory

"one-time employee retention tax credit collections"

A government payroll tax credit that lets eligible employers offset or receive refunds for a portion of wages paid to keep employees on the payroll during qualifying disruptions. Think of it like a rebate or coupon on wage costs that improves short‑term cash flow and can show up as a one‑time boost to reported earnings or reduced payroll expenses. Investors watch it because claiming the credit affects company cash, profitability and signals how much government help a business used to retain workers.

Earnings Snapshot

Revenue: $23,763,838 · Guidance included

Third quarter 2026

Revenue $23,763,838 Up 12% year over year from $21,180,333

Gross profit $5,738,345 Up 18% year over year from $4,870,019

GAAP net income $217,380 Compared with a net loss of $415,086 in Q3 2025

Adjusted EBITDA $1,185,028 Up 222% year over year from $368,257

Adjusted EBITDA margin 5.0% Compared with 1.7% in Q3 2025

Guidance

Usio reiterated guidance of 14% to 16% revenue growth versus the prior year, alongside record Adjusted EBITDA.

FAQ

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

How much revenue did USIO report in Q3 2026?

USIO reported revenue of $23,763,838 for the three months ended September 30, 2026, up 12% from $21,180,333 in the prior-year quarter. GAAP net income was $217,380, compared with a $415,086 net loss in Q3 2025.

Which USIO business lines grew in Q3 2026?

Credit-card revenue increased 18%, including a 29% increase in PayFac revenue, which accounted for more than 75% of credit-card revenue. ACH revenue increased 9% as ACH transaction volume rose 39%, and Output Solutions revenue increased 14%. Prepaid card services revenue increased 1%.

What were USIO's gross margins in Q3 and the first nine months of 2026?

USIO's third-quarter gross margin was 24.1%, compared with 23.0% in Q3 2025. For the first nine months, gross margin was 22.8%, compared with 23.5% in the corresponding 2025 period. The company attributed the quarterly increase primarily to revenue mix and the nine-month decrease primarily to revenue mix and lower interest revenues.

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

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false 0001088034 0001088034 2026-11-10 2026-11-10

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 10, 2026

USIO, INC.

(Exact name of registrant as specified in its charter)

Nevada		001-15093		98-0190072
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		File Number)		Identification No.)

3611 Paesanos Parkway, Suite 300, San Antonio, TX		78231
(Address of principal executive offices)		(Zip Code)

(210) 249-4100

(Registrant’s telephone number, including area code)

Not applicable.

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, par value $0.001 per share	USIO	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02        Results of Operations and Financial Condition.

On November 10, 2026, Usio, Inc. issued a press release announcing financial results for its quarter ended September 30, 2026. The full text of the press release is furnished as Exhibit 99.1. The information furnished in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section.

This report contains forward-looking statements. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements related to its future activities or future events or conditions. These forward-looking statements are identified by the use of words such as “believe,” “expect,” “project,” “anticipate,” “target,” and “launch,” or similar expressions including statements about commercial operations, technology progress, growth and future financial performance of the Company. Forward-looking statements in this report are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including such risks that the Company’s security applications may be insufficient; the Company’s ability to adapt to rapid technological change; adverse effects on the Company’s relationships with Automated Clearing House, bank sponsors and credit card associations; the Company’s ability to comply with federal or state regulations; the Company’s exposure to credit risks, data breaches, fraud or software failures, the uncertainty caused by the pandemic and other risks detailed 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 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 plans and projections. Any forward-looking statement speaks only as of the date as of which such statement is made, and, except as required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date as of which such statement was made.

Item 9.01        Financial Statements and Exhibits.

99.1	Press Release issued by Usio, Inc., dated November 10, 2026. (filed herewith)
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Usio, Inc.
	(Registrant)
Date: November 10, 2026	/s/ Louis A. Hoch
	Name: Louis A. Hoch
	Title: Chief Executive Officer

Exhibit 99.1

Usio Reports Strong Third Quarter 2026 Results; Adjusted EBITDA¹ Increases 222%

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, November 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. 

Find us on LinkedIn, Facebook® and X.

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	%

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