Record volumes lift Usio (NASDAQ: USIO) Q1 2026 revenue and profit

Rhea-AI Filing Summary

Usio, Inc. reported a record first quarter for 2026, with revenue of $25.5 million, up 16% from $22.0 million a year earlier, driven by growth across most business lines except prepaid and interest income. Total payment dollars processed reached $2.50 billion, up 28%, and transactions climbed to 16.8 million, up 22%.

ACH and complementary services revenue rose 25% to $6.3 million, credit card revenue grew 23% to $9.7 million, and Output Solutions revenue increased 19% to $6.8 million, while prepaid card services declined 18%. Gross profit increased to $5.1 million, though gross margin eased to 20.2% from 21.9% on lower high-margin interest income and mix.

Usio generated operating income of $0.2 million, compared with a ($0.2) million operating loss in the prior-year quarter, and reported net income of $0.1 million, or $0.00 per share, versus a net loss of ($0.2) million, or ($0.01) per share. Adjusted EBITDA improved to $0.8 million from $0.7 million, and operating cash flow was $0.9 million. Cash and cash equivalents were $7.7 million at March 31, 2026, up $0.3 million after repurchasing 182,000 shares of common stock.

Positive

• Record growth and profitability: Q1 2026 revenue rose 16% to $25.5 million, total payment volume grew 28% to $2.50 billion, transactions increased 22% to 16.8 million, and net income improved to $0.1 million from a $0.2 million loss a year earlier.
• Strong segment performance and cash position: ACH revenue grew 25%, credit card 23%, and Output Solutions 19%, while Adjusted EBITDA increased to $0.8 million and cash reached $7.7 million despite $235,000 of share repurchases.

Negative

• Margin and prepaid softness: Gross margin declined to 20.2% from 21.9% due to lower high-margin interest income and mix, and prepaid card services revenue fell 18%, indicating pressure in that part of the business.

Insights

Fintech equity analyst

Usio posts record volumes, double-digit growth and returns to modest profitability.

Usio delivered a strong Q1 2026 with revenue of $25.5M, up 16% year over year, and all-time record processing volumes. Total payment dollars processed rose to $2.50B, up 28%, and transactions increased 22% to 16.8 million, showing broad-based demand.

Segment performance was led by ACH revenue up 25% and credit card revenue up 23%, while Output Solutions grew 19% and prepaid card services declined 18%. Gross profit improved to $5.1M, but gross margin slipped to 20.2% from 21.9% due to lower high-margin interest income and mix effects.

Operating income of $0.23M marked a turnaround from a prior-year operating loss, and net income of $0.12M contrasted with a ($0.23M) loss. Adjusted EBITDA increased to $0.78M, with a 3.1% margin. Cash ended at $7.73M after using about $0.23M for share repurchases, indicating the company is balancing growth investments, cost control and capital returns.

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

Q1 2026 Revenue: $25.47M Total payment dollars processed: $2.50B Total payment transactions: 16.8 million +5 more

8 metrics

Q1 2026 Revenue $25.47M Three months ended March 31, 2026; up 16% year over year

Total payment dollars processed $2.50B Q1 2026; up 28% versus $1.96B in prior-year quarter

Total payment transactions 16.8 million Q1 2026; 22% increase over same quarter of 2025

Net income $0.12M Q1 2026; versus net loss of ($0.23M) in Q1 2025

Adjusted EBITDA $0.78M Three months ended March 31, 2026; up from $0.67M a year earlier

Gross margin 20.2% Q1 2026; down from 21.9% in Q1 2025

Cash and cash equivalents $7.73M Balance at March 31, 2026; $0.3M higher than December 31, 2025

ACH revenue $6.29M Q1 2026 ACH and complementary services revenue; 25% year-over-year growth

Key Terms

Adjusted EBITDA, PayFac, PINLess debit, merchant reserves, +1 more

5 terms

Adjusted EBITDA financial

"Adjusted EBITDA1 was $0.8 million for the first quarter of 2026, up compared to $0.7 million in the same quarter a year ago."

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

PayFac financial

"Credit card results increasingly reflect the strength of our PayFac business, which now accounts for nearly 80% of total credit card segment 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.

PINLess debit financial

"PINless debit also set quarterly all-time records as transactions and dollars processed were up 23% and 36%, respectively, from the same period a year ago."

Pinless debit is a way to pay with a bank debit card where the cardholder does not enter a personal identification number; the purchase is authorized through the card network and the money is taken directly from the bank account. For investors it matters because these transactions tend to carry different fees, fraud risk and processing paths than PIN-based debit or credit sales, which can affect revenue and loss exposure for banks, payment processors and merchants—think of it as swiping a card without a second layer of verification.

merchant reserves financial

"Merchant reserves | $ 4,617,537 | | | $ 4,795,537 |"

treasury stock financial

"Treasury stock, at cost; 3,995,137 and 3,832,474 shares at March 31, 2026 (unaudited) and December 31, 2025, respectively"

Treasury stock is shares that a company has bought back from the public and kept in its own control rather than retiring them. Think of it like a company holding its own tickets in a drawer: those shares no longer vote or receive dividends while held, but the company can reissue or retire them later; this reduces the number of shares available to outside investors and can boost per‑share earnings and influence ownership and stock price.

Earnings Snapshot

Revenue: $25.47M · Guidance included

Q1 2026

Revenue $25.47M +16% YoY

Gross profit $5.14M +$0.33M YoY

Operating income $0.23M from ($0.24M) loss YoY

Net income $0.12M from ($0.23M) loss YoY

Adjusted EBITDA $0.78M +$0.11M YoY

Adjusted EBITDA margin 3.1% vs. 3.0% YoY

Guidance

Management expressed confidence in achieving another year of profitable, double-digit growth in fiscal 2026.

Understanding 8-K Material Events →

false 0001088034 0001088034 2026-05-13 2026-05-13

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): May 13, 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 May 13, 2026, Usio, Inc. issued a press release announcing financial results for its quarter ended March 31, 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, 2024. 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 May 13, 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: May 13, 2026	/s/ Louis A. Hoch
	Name: Louis A. Hoch
	Title: Chief Executive Officer

Exhibit 99.1

Usio Announces First Quarter 2026 Financial Results

Revenue Up 16%, Beats Consensus by 9%

Adjusted EBITDA¹ of $0.8 Million Beats Consensus by 12%

All-time Record Quarterly Revenue, Processing Volume and Transactions

Total payment dollars processed through all payment channels up 28% versus the prior year period 

SAN ANTONIO, May 13, 2026 (GLOBE NEWSWIRE) – Usio, Inc., "Usio" or the "Company" (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the first quarter ended March 31, 2026.

Louis Hoch, President and Chief Executive Officer of Usio, said, “It was a record start to the new year, affirming our belief that the momentum coming out of our record 2025 would provide a strong tailwind for continued growth and profitability. All of our key performance metrics were at record levels in the first quarter, with revenues up 16%, the fastest rate of revenue growth in nine quarters. Total processing volume and transactions also set new records, which is an impressive encore to the prior quarter where we set many of the previous all-time records. The strength of our business is broad based, with better than 20% growth in ACH and credit card, and nearly the same in Output Solutions, which was up 19%. This strong growth, coupled with our fiscal discipline, led to a significant year-over-year improvement in the bottom line as well as positive operating cash flow, and a further improvement in our balance sheet and liquidity. The implementation of our Usio One strategy, our growing reputation in the payments industry, and the innovative technologies integrated into our diversified businesses are increasingly taking hold, providing us with confidence in our expectation of achieving another year of profitable, double-digit growth in fiscal 2026.”

Results in the first quarter were led by a $1.8 million, or 23%, increase in credit card revenues. Volumes were up strongly, with dollars processed up 16% and transactions processed up 22% from a year ago. Credit card results increasingly reflect the strength of our PayFac business, which now accounts for nearly 80% of total credit card segment revenues, and has consistently grown revenues at double digit rates. We expect this to be the new growth trajectory of our credit card business. ACH, our highest margin business, had another record quarter with strong volumes driving revenues up 25%. ACH revenue growth was primarily attributable to an increase in ACH and PINLess debit volume from net, new business and organic growth. ACH set new processing volume records with electronic check dollar volume increasing 31%, transactions growing 34% and returned check transactions up 54%, all as compared to the same period last year. PINless debit also set quarterly all-time records as transactions and dollars processed were up 23% and 36%, respectively, from the same period a year ago, driven by growth in the mortgage servicing and fintech industries.

Output Solutions generated accelerating revenue growth, with revenues up 19% in the quarter, a strong sequential improvement from the previous quarter’s 8% growth. Volumes were at record levels with highly profitable electronic documents processed and delivered up 41% for the first quarter of 2026 compared to the same quarter of 2025.

For the quarter, gross profits were up over 6%, although gross margins were somewhat softer in the quarter, primarily attributable to a decrease in interest revenue (which has a 100% margin) and revenue mix. Margins are expected to improve over the balance of the year. Total selling, general and administrative expenses, inclusive of depreciation and amortization and stock-based compensation ("Total SG&A Expenses"), were down over $130,000 from the year ago period, although the line item "SG&A," consisting of selling, general and administrative expenses only, was up modestly from the year ago quarter. On a sequential basis, SG&A was reduced by $700,000 and is now at a level that is not expected to materially increase this year. For the quarter ended March 31, 2026, the Company reported net income of approximately $0.1 million, or $0.00 per share, compared to a net loss of ($0.2) million, or ($0.01) per share, for the first quarter of 2025. Note that there were no extraordinary items that contributed to the first quarter 2026 net income as calculated in accordance with the United States generally accepted accounting principles ("GAAP"). Adjusted EBITDA¹ was $0.8 million for the first quarter of 2026, up compared to $0.7 million in the same quarter a year ago. Operating cash flow for the quarter was $0.9 million, representing the continued strength of our business. The Company used approximately $235,000 to repurchase 182,000 shares of its common stock. Cash increased $0.3 million over the quarter and was in excess of $7.7 million at March 31, 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 first quarter of 2026 were $2.50 billion, an improvement of 28% over the $1.96 billion processed in last year's first quarter. Total payment transactions processed in the first quarter of 2026 were 16.8 million, an increase of 22% over the same quarter of last year. 

Our credit card segment continues to grow, where dollars processed were up 16% and transactions processed were up 22% from a year ago. In the first quarter of 2026, ACH electronic check transaction volume was up 34%, electronic check dollars processed were up 31% and return check transactions processed were up 54%, in each case, compared to the same quarter of 2025. In our prepaid card services business unit, card load volume was down 19%, transactions processed down 16% and purchase volume down 7% for the first quarter of 2026, in each case, compared to the same quarter of 2025. Output Solutions pieces processed and mailed were up 31% while electronic documents processed and delivered were up 41% for the first quarter of 2026, in each case, compared to the same quarter of 2025.

First Quarter 2026 Revenue Detail

Revenues for the quarter ended March 31, 2026 were $25.5 million, up 16% from $22.0 million in the prior year quarter, due primarily to increases in all of our business lines, excluding prepaid card services and interest revenues.

		Three Months Ended March 31,
		2026				2025				$ Change				% Change
ACH and complementary services		$	6,293,066			$	5,044,517			$	1,248,549				25	%
Credit card			9,710,324				7,878,694				1,831,630				23	%
Prepaid card services			2,373,201				2,907,451				(534,250	)			(18	)%
Output Solutions			6,805,314				5,732,867				1,072,447				19	%
Interest - ACH and complementary services			122,201				224,129				(101,928	)			(45	)%
Interest - Prepaid card services			118,029				182,661				(64,632	)			(35	)%
Interest - Output Solutions			43,639				38,731				4,908				13	%
Total Revenue		$	25,465,774			$	22,009,050			$	3,456,724				16	%

Gross profit for the first quarter of 2026 was $5.1 million, up versus $4.8 million in the first quarter of 2025. Gross margins (defined as gross profit as a percentage of revenues) were 20.2% in the first quarter of 2026, down versus 21.9% in 2025. This was primarily due to lower interest revenues, a high margin revenue source, and revenue mix.

Total SG&A Expenses for the first quarter of 2026, were $4.9 million, down from over $5.0 million in the year ago quarter primarily due to lower depreciation and amortization and stock-based compensation expense. SG&A was $4.4 million for the quarter ended March 31, 2026, compared to $4.1 million in the prior year period. This increase was primarily related to increases in salary alongside increases in network infrastructure and professional fees.

For the first quarter of 2026, we reported operating income of $0.2 million compared to an operating loss of ($0.2) 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 $0.8 million for the first quarter of 2026, compared to Adjusted EBITDA¹ of $0.7 million for the same quarter a year ago. Net income in the quarter ended March 31, 2026 was approximately $0.1 million, or $0.00 per share, compared to a net loss of ($0.2) million, or ($0.01) per share, for the same period in the prior year.

Operating Cash Flows declined to $0.9 million for the three months ended March 31, 2026, as compared to $1.4 million in the same period a year ago. The year ago period benefited from an approximately $1.5 million tax refund. Additionally, prepaid expenses and accounts receivable March 31, 2026 were up as compared to December 31, 2025.

We believe we continue to be in solid financial condition. Cash and cash equivalents as of March 31, 2026 were $7.7 million, a $0.3 million increase over cash and cash equivalents as of December 31, 2025, even after the use of over $230,000 to repurchase 182,000 shares of our common stock during the first quarter of 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, May 13, 2026, at 4:30 pm Eastern time to review financial results and provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-833-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the Company’s website at www.usio.com/investors.

A replay of the call will be available approximately one hour after the end of the call through June 13, 2026. The replay can be accessed via the Company’s website or by dialing 1-855-669-9658 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is 4785914.

About Usio, Inc.

Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to clients through its unique payment facilitation platform as a service. The Company, through its Usio Output Solutions division, offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector.

Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas. Websites: www.usio.com and www.akimbocard.com. 

Find us on LinkedIn, Facebook® and Twitter.

Comparisons

Unless otherwise indicated, all comparisons and growth rates represent year-over-year comparisons, with the quarterly period of this year compared to the corresponding quarter of the prior year.

About Non-GAAP Financial Measures

This press release includes the non-GAAP financial measures, as defined in Regulation G adopted by the Securities and Exchange Commission, of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures is useful to investors because it provides them with financial measures the Company uses in the management of its business.

•	The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles.
•	The Company defines Adjusted EBITDA as EBITDA, as defined above, plus non-cash stock-based compensation and certain non-recurring items, such as costs related to acquisitions.
•	The Company defines Adjusted EBITDA margins as Adjusted EBITDA, as defined above, divided by total revenues.

Management believes presenting EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins is helpful to investors in evaluating the Company's operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. 

EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided by (used in) operating activities, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins have limitations as analytical tools and you should not consider these non-GAAP financial measures in isolation or as substitutes for analysis of our operating results as reported under GAAP.

¹ Please see reconciliation of GAAP to Non-GAAP Financial Measures below

FORWARD-LOOKING STATEMENTS DISCLAIMER

Except for the historical information contained herein, this release contains forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding management's intentions, beliefs, expectations, and strategies for the future, including statements regarding the Company’s operating and growth strategies. Forward-looking statements can be identified by words such as "believe," "intend," "look forward," "anticipate," "schedule," "expect," and similar expressions.

These forward-looking statements are subject to risks and uncertainties inherent in the Company's business that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, among others, risk relating to economic conditions; the realization of anticipated benefits from the PostCredit acquisition; the Company’s ability to manage growth; the loss of key resellers; relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers, and merchants; the security of the Company’s software, hardware, and information systems; volatility in the Company’s stock price; the need for additional financing; risks associated with new tax legislation; and compliance with complex federal, state, and local laws and regulations, as well as other risks described from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

One or more of these factors have affected, and in the future, could affect, the Company’s businesses and financial results and could cause actual results to differ materially from management’s plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, undue reliance should not be placed on such statements which speak as of the date hereof. The Company undertakes no obligation to update or revise any forward‑looking statements, except as required by law.

Contact:

Paul Manley

Senior Vice President, Investor Relations

paul.manley@usio.com

612-834-1804

USIO, INC.

CONSOLIDATED BALANCE SHEETS

		March 31, 2026				December 31, 2025
		(Unaudited)
ASSETS
Cash and cash equivalents		$	7,728,795			$	7,434,051
Settlement processing assets			69,522,444				74,180,475
Prepaid card load assets			15,466,828				27,623,728
Customer deposits			2,239,829				2,281,220
Accounts receivable, net			5,418,653				5,274,586
Inventory			392,873				461,675
Prepaid expenses and other			1,903,690				1,359,382
Merchant reserves			4,617,537				4,795,537
Total current assets			107,290,649				123,410,654
Property and equipment, net			4,545,252				4,157,393
Other assets:
Intangibles, net			9,759				9,759
Deferred tax asset, net			4,459,144				4,526,228
Operating lease right-of-use assets			3,524,650				2,423,231
Other assets			362,949				362,949
Total other assets			8,356,502				7,322,167
Total Assets		$	120,192,403			$	134,890,214
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	1,275,061			$	880,590
Accrued expenses			4,052,640				3,326,445
Operating lease liabilities, current portion			756,708				639,805
Equipment loan, current portion			337,544				289,317
Settlement processing obligations			69,522,444				74,180,475
Prepaid card load obligations			15,466,828				27,623,728
Customer deposits			2,239,829				2,281,220
Current liabilities before merchant reserve obligations			93,651,054				109,221,580
Merchant reserve obligations			4,617,537				4,795,537
Total current liabilities			98,268,591				114,017,117
Non-current liabilities:
Equipment loan, net of current portion			987,996				1,074,711
Operating lease liabilities, net of current portion			2,790,905				1,885,983
Total liabilities			102,047,492				116,977,811
Stockholders' equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at March 31, 2026 (unaudited) and December 31, 2025			—				—
Common stock, $0.001 par value, 200,000,000 shares authorized; 31,667,305 and 31,562,178 issued, and 27,672,168 and 27,729,704 outstanding at March 31, 2026 (unaudited) and December 31, 2025, respectively			31,667				31,562
Additional paid-in capital			102,455,703				102,363,590
Treasury stock, at cost; 3,995,137 and 3,832,474 shares at March 31, 2026 (unaudited) and December 31, 2025, respectively			(7,070,640	)			(6,837,181	)
Deferred compensation			(6,849,327	)			(7,100,573	)
Accumulated deficit			(70,422,492	)			(70,544,995	)
Total stockholders' equity			18,144,911				17,912,403
Total Liabilities and Stockholders' Equity		$	120,192,403			$	134,890,214

USIO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

		Three Months Ended March 31,
		2026				2025
Revenues		$	25,465,774			$	22,009,050
Cost of services			20,328,891				17,199,907
Gross profit			5,136,883				4,809,143
Selling, general and administrative expenses:
Stock-based compensation			329,284				410,062
SG&A			4,356,142				4,142,895
Depreciation and amortization			225,745				495,770
Total selling, general and administrative			4,911,171				5,048,727
Operating income (loss)			225,712				(239,584	)
Other income (expense):
Interest income			91,491				79,011
Interest expense			(22,826	)			(11,843	)
Other income, net			68,665				67,168
Income (loss) before income taxes			294,377				(172,416	)
Federal income tax expense			67,084				—
State income tax expense			104,790				62,554
Income tax expense			171,874				62,554
Net income (loss)		$	122,503			$	(234,970	)
Income (loss) Per Share
Basic income (loss) per common share:		$	0.00			$	(0.01	)
Diluted income (loss) per common share:		$	0.00			$	(0.01	)
Weighted average common shares outstanding
Basic			27,748,037				26,615,947
Diluted			27,748,037				26,615,947

USIO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

		Three Months Ended March 31,
		2026				2025
Operating Activities
Net income (loss)		$	122,503			$	(234,970	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and Amortization			225,745				495,770
Deferred federal income tax			67,084				—
Employee stock-based compensation			329,284				410,062
Reserve for processing losses			18,000				355,595
Changes in operating assets and liabilities:
Accounts receivable			(144,067	)			484,023
Accounts receivable, tax credit			—				1,494,612
Prepaid expenses and other			(544,308	)			(143,539	)
Operating lease right-of-use assets			104,851				153,237
Inventory			68,802				55,303
Accounts payable and accrued expenses			1,102,666				(1,558,994	)
Operating lease liabilities			(184,445	)			(160,253	)
Merchant reserves			(178,000	)			35,000
Customer deposits			(41,391	)			(11,636	)
Net cash provided by operating activities			946,724				1,374,210
Investing Activities
Purchases of property and equipment			(398,072	)			(22,604	)
Capitalized labor for internal use software			(215,532	)			(290,650	)
Net cash (used in) investing activities			(613,604	)			(313,254	)
Financing Activities
Payments on equipment loan			(38,488	)			(36,110	)
Proceeds from issuance of common stock			14,180				11,515
Purchases of treasury stock			(233,459	)			(351,640	)
Assets held for customers			(16,814,931	)			3,953,121
Net cash provided by (used in) financing activities			(17,072,698	)			3,576,886
Change in cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves			(16,739,578	)			4,637,842
Cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves, beginning of year			116,315,011				87,618,491
Cash, Cash Equivalents, Settlement Processing Assets, Prepaid Card Loads, Customer Deposits and Merchant Reserves, End of Period			99,575,433				92,256,333
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest		$	22,826			$	11,843
Income taxes			—				—
Non-cash investing and financing activities:
Right of use assets obtained in exchange for operating lease liabilities			1,206,270				—

USIO, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)

		Common Stock								Additional Paid- In				Treasury				Deferred				Accumulated				Total Stockholders'
		Shares				Amount				Capital				Stock				Compensation				Deficit				Equity
Balance at December 31, 2025			31,562,178			$	31,562			$	102,363,590			$	(6,837,181	)		$	(7,100,573	)		$	(70,544,995	)		$	17,912,403
Issuance of common stock under equity incentive plan			94,700				95				77,943				—				—				—				78,038
Issuance of common stock under employee stock purchase plan			10,427				10				14,170				—				—				—				14,180
Deferred compensation amortization			—				—				—				—				251,246				—				251,246
Purchase of treasury stock, at cost			—				—				—				(233,459	)			—				—				(233,459	)
Net income for the period			—				—				—				—				—				122,503				122,503
Balance at March 31, 2026			31,667,305			$	31,667			$	102,455,703			$	(7,070,640	)		$	(6,849,327	)		$	(70,422,492	)		$	18,144,911
Balance at December 31, 2024			29,902,415			$	198,317			$	99,676,457			$	(5,770,592	)		$	(6,914,563	)		$	(68,032,656	)		$	19,156,963
Adjustment to par value of common stock			—				(168,415	)			168,415				—				—				—				-
Issuance of common stock under equity incentive plan			128,053				128				136,276				—				—				—				136,404
Issuance of common stock under employee stock purchase plan			7,887				8				11,507				—				—				—				11,515
Deferred compensation amortization			—				—				—				—				273,658				—				273,658
Purchase of treasury stock, at cost			—				—				—				(351,640	)			—				—				(351,640	)
Net loss for the period			—				—				—				—				—				(234,970	)			(234,970	)
Balance at March 31, 2025			30,038,355			$	30,038			$	99,992,655			$	(6,122,232	)		$	(6,640,905	)		$	(68,267,626	)		$	18,991,930

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

		Three Months Ended March 31,
		2026				2025
Reconciliation from Operating income (loss) to Adjusted EBITDA:
Operating income (loss)		$	225,712			$	(239,584	)
Depreciation and amortization			225,745				495,770
EBITDA			451,457				256,186
Non-cash stock-based compensation expense, net			329,284				410,062
Adjusted EBITDA		$	780,741			$	666,248
Calculation of Adjusted EBITDA margins:
Revenues		$	25,465,774			$	22,009,050
Adjusted EBITDA		$	780,741			$	666,248
Adjusted EBITDA margins			3.1	%			3.0	%

FAQ

How did Usio (USIO) perform financially in Q1 2026?

Usio reported Q1 2026 revenue of $25.5 million, up 16% from $22.0 million a year earlier. Net income was $0.1 million, or $0.00 per share, compared with a net loss of ($0.2) million, or ($0.01) per share, in Q1 2025.

What were Usio (USIO) payment volumes and transactions in Q1 2026?

Total payment dollars processed in Q1 2026 were $2.50 billion, up 28% from $1.96 billion a year earlier. Total payment transactions reached 16.8 million, an increase of 22% versus the same quarter of 2025, reflecting strong activity across the company’s payment channels.

How did Usio’s key business segments perform in Q1 2026?

ACH and complementary services revenue rose 25% to $6.3 million, credit card revenue increased 23% to $9.7 million, and Output Solutions revenue grew 19% to $6.8 million. Prepaid card services revenue declined 18% to $2.4 million compared with the prior-year quarter.

What was Usio (USIO) Adjusted EBITDA and margin in Q1 2026?

Adjusted EBITDA for Q1 2026 was $0.8 million, up from $0.7 million in Q1 2025. Adjusted EBITDA margin was 3.1%, slightly above the 3.0% margin a year earlier, reflecting improved operating performance despite some gross margin compression.

How did Usio’s profitability change year over year in Q1 2026?

Usio generated Q1 2026 operating income of $0.2 million versus an operating loss of ($0.2) million in Q1 2025. Net income was $0.1 million, compared with a net loss of ($0.2) million a year earlier, indicating a return to modest profitability.

What was Usio (USIO) cash position and share repurchase activity in Q1 2026?

Cash and cash equivalents were $7.7 million at March 31, 2026, a $0.3 million increase from December 31, 2025. During the quarter, Usio used approximately $235,000 to repurchase 182,000 shares of its common stock as part of capital allocation efforts.

How did gross margin and operating cash flow trend for Usio in Q1 2026?

Gross profit increased to $5.1 million, but gross margin declined to 20.2% from 21.9% due to lower interest revenue and mix. Operating cash flow was $0.9 million, down from $1.4 million a year earlier, as the prior period benefited from a sizeable tax refund.

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