Usio (USIO) returns to profit in Q2 2026 and lifts full-year revenue guidance

Rhea-AI Filing Summary

Usio, Inc. reported strong second quarter 2026 results, with revenue of $23.7 million, up 19% from the prior-year quarter, led by growth in Card, ACH and Output Solutions. GAAP net income was approximately $0.3 million, or $0.01 per share, compared to a net loss of ($0.4) million, or ($0.01) per share, a year earlier.

Adjusted EBITDA rose to $1.1 million, up 128% year over year, and Adjusted EBITDA margin improved to 4.8%. Total payment dollars processed reached $2.47 billion, up 27%, with total transactions up 27%. Management raised full-year 2026 revenue guidance, now expecting revenues to be up 14–16% versus the prior year, compared with previous guidance of 10–12%. Operating cash flow for the first half declined to $0.3 million, and cash and cash equivalents were $6.4 million at June 30, 2026 after share repurchases and one-time cash outlays.

Positive

• Revenue growth accelerated, with Q2 2026 revenue of $23.7 million, up 19% year over year, and first-half 2026 revenue of $49.1 million, up 17% from $42.0 million.
• Profitability improved: Q2 2026 net income was approximately $0.3 million vs a net loss of ($0.4) million in Q2 2025; operating income was $0.4 million vs an operating loss of ($0.4) million.
• Adjusted EBITDA strengthened to $1.1 million in Q2 2026, more than double the $0.5 million a year ago, with Adjusted EBITDA margins increasing to 4.8% from 2.5%.
• Raised guidance: full-year 2026 revenues are now expected to be up 14–16% compared to the prior year, increased from the previous expectation of 10–12%.
• Processing metrics were robust: total payment dollars processed reached $2.47 billion, up 27%, and total payment transactions were 17.9 million, also up 27% year over year.

Negative

• Gross margins compressed: Q2 2026 gross margin was 24.2% vs 25.8% a year earlier, and first-half 2026 gross margin was 22.1% vs 23.7%, primarily due to lower high-margin interest revenues and revenue mix.
• Operating cash flow declined: net cash provided by operating activities for the six months ended June 30, 2026 fell to $0.3 million from $1.1 million in the prior-year period.
• Cash levels decreased: cash and cash equivalents were $6.4 million at June 30, 2026, a $1.0 million decrease from December 31, 2025, reflecting annual tax and insurance payments, capital spending, printer integration, and $371,000 of share repurchases.

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, and exhibit attachments filed with this report.

Key Figures

Q2 2026 Revenue: $23.7 million Q2 2026 Net Income: $0.3 million Q2 2026 Adjusted EBITDA: $1.1 million +5 more

8 metrics

Q2 2026 Revenue $23.7 million Revenues for the quarter ended June 30, 2026 were $23.7 million, up 19% year over year

Q2 2026 Net Income $0.3 million GAAP net income was approximately $0.3 million, or $0.01 per share, vs a prior-year net loss

Q2 2026 Adjusted EBITDA $1.1 million Adjusted EBITDA1 was $1.1 million for the second quarter of 2026, more than double the prior year

Adjusted EBITDA Margin Q2 2026 4.8% Adjusted EBITDA margins were 4.8% in Q2 2026 vs 2.5% in Q2 2025

Full-Year 2026 Revenue Guidance 14–16% growth Full year revenues now expected to be up 14 to 16% compared to the prior year

Total Payment Dollars Processed Q2 2026 $2.47 billion Total payment dollars processed in Q2 2026 were $2.47 billion, an increase of 27% year over year

Operating Cash Flow H1 2026 $0.3 million Operating Cash Flows declined to $0.3 million for the six months ended June 30, 2026

Cash and Cash Equivalents $6.4 million Cash and cash equivalents as of June 30, 2026 were $6.4 million, a $1.0 million decrease from year-end 2025

Key Terms

Adjusted EBITDA, Adjusted EBITDA margins, settlement processing assets, merchant reserves, +2 more

6 terms

Adjusted EBITDA financial

"Adjusted EBITDA1 was $1.1 million for the second quarter of 2026, more than double"

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.

Adjusted EBITDA margins financial

"The Company defines Adjusted EBITDA margins as Adjusted EBITDA, as defined above, divided by total revenues."

Adjusted EBITDA margins measure the share of a company's revenue that remains after removing routine operating costs and then excluding interest, taxes, depreciation, amortization and one‑time items; it’s expressed as a percentage (adjusted EBITDA divided by revenue). Investors use it to see the business’s core cash‑generating efficiency and to compare performance across companies, like judging a car’s fuel efficiency after ignoring temporary cargo and unusual detours.

settlement processing assets financial

"Settlement processing assets were 72,172,358 at June 30, 2026"

merchant reserves financial

"Merchant reserves were 4,568,537 at June 30, 2026"

payment facilitation platform as a service technical

"through its unique payment facilitation platform as a service."

Non-GAAP financial measures financial

"This press release includes the non-GAAP financial measures, as defined in Regulation G"

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.

Earnings Snapshot

Revenue: $23.7 million (Q2 2026) · Guidance included

quarter and six months ended June 30, 2026

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

Net income $0.3 million (Q2 2026) vs net loss of ($0.4) million in Q2 2025

Adjusted EBITDA $1.1 million (Q2 2026) up 128% from $0.5 million in Q2 2025

Total payment volume $2.47 billion (Q2 2026) up 27% from $1.94 billion in Q2 2025

Guidance

Full year 2026 revenues now expected to be up 14–16% compared to the prior year, increased from previously expected 10–12%.

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

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Available on EDGAR 08/12/2026 - 04:00 PM Accepted by SEC EDGAR 08/12/2026 - 04:00 PM Learn about SEC filing dates

FAQ

How did USIO (USIO) perform financially in Q2 2026?

Usio reported Q2 2026 revenue of $23.7 million, up 19% year over year, and GAAP net income of about $0.3 million, or $0.01 per share, compared to a net loss of ($0.4) million, or ($0.01) per share, in Q2 2025.

What were USIO (USIO)’s Adjusted EBITDA results for Q2 2026?

Adjusted EBITDA in Q2 2026 was $1.1 million, more than double the $0.5 million recorded a year earlier. Adjusted EBITDA margins improved to 4.8% from 2.5%, reflecting higher revenues and controlled Total SG&A Expenses.

Did USIO (USIO) raise its 2026 revenue guidance?

Yes. Usio now expects full-year 2026 revenues to be up 14–16% versus the prior year. This is an increase from its previous guidance of 10–12% revenue growth, citing strong first-half performance and confidence in new business opportunities.

How did USIO (USIO)’s payment volumes trend in Q2 2026?

Total payment dollars processed reached $2.47 billion in Q2 2026, up 27% from $1.94 billion a year earlier. Total payment transactions were 17.9 million, also up 27%, with ACH electronic check transaction volume up 34% year over year.

What is the cash position and cash flow trend for USIO (USIO)?

Cash and cash equivalents were $6.4 million at June 30, 2026, down $1.0 million from year-end 2025. Operating cash flow for the first half was $0.3 million, down from $1.1 million, impacted by prior-year tax refunds and higher accounts receivable.

How are USIO (USIO)’s key segments performing?

In Q2 2026, ACH revenues rose 21%, credit card revenues 28%, and Output Solutions revenues 22% year over year, while prepaid card services revenues declined 10%. Output Solutions volumes were strong, with mailed pieces up 43% and electronic documents up 49%.

What margins did USIO (USIO) report in Q2 2026?

Gross profit was $5.7 million in Q2 2026, with a 24.2% gross margin versus 25.8% a year earlier. For the first half of 2026, gross margin was 22.1%, compared to 23.7% in the first half of 2025, mainly due to lower high-margin interest revenue and mix.

false 0001088034 0001088034 2026-08-12 2026-08-12

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): August 12, 2026

USIO, INC.

(Exact name of registrant as specified in its charter)

Nevada		000-30152		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 August 12, 2026, Usio, Inc. issued a press release announcing financial results for its quarter ended June 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 August 12, 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: August 12, 2026	/s/ Louis A. Hoch
	Name: Louis A. Hoch
	Title: Chief Executive Officer

Exhibit 99.1

Usio Announces Second Quarter 2026 Financial Results

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, August 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	%

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