Usio (USIO) investor relations material

Executive summary

• Achieved record quarterly revenue of $25.5 million in Q1 2026, up 16% year-over-year, surpassing consensus by 9%, with strong growth in ACH, credit card, and Output Solutions, offset by prepaid card declines and lower interest revenues.

• Net income was $0.1 million, reversing a net loss of $0.2 million in the prior year quarter, driven by higher revenues and lower stock-based compensation and depreciation expenses.

• Adjusted EBITDA reached $0.8 million (3.1% margin), up from $0.7 million (3.0%) last year, beating consensus by 12%.

• All-time records set for processing volume and transactions, with broad-based growth across business lines.

• Revenue grew 7x since 2016, reaching $85.4M in 2025, with 2026 guidance of 10-12% growth.

Financial highlights

• Total payment dollars processed rose 28% to $2.50 billion; transactions processed increased 22% to 16.8 million year-over-year.

• Segment revenues in Q1 2026: Payment Facilitation $6.2M, ACH $6.3M, Card Issuing $9.7M, Output Solutions $6.8M, Prepaid Card $2.4M.

• Gross profit increased to $5.1 million, but gross margin declined to 20.2% from 21.9% due to revenue mix shift toward lower-margin business lines and reduced interest income.

• Operating cash flow was $0.9 million, down from $1.4 million last year, with cash and equivalents at $7.7 million at quarter-end.

• Overhead down sequentially by nearly $700,000 to $4.4 million; total SG&A expenses declined to $4.9 million from $5.0 million.

Outlook and guidance

• Management reiterated 2026 guidance for 10%-12% revenue growth, continued profitability, and positive adjusted EBITDA, with margins expected to improve and gross margin targeted to return to 23%-25%.

• Prepaid segment expected to return to growth in the second half of 2026 as new contracts are onboarded.

• Overhead expected to remain relatively flat for the year; sufficient liquidity to support operations and capital needs for at least the next 12 months.