Usio (USIO) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 rose 19% year-over-year to $23.7 million, with strong growth in ACH, credit card, and Output Solutions, while prepaid card services declined.

• Net income for Q2 2026 was $0.3 million ($0.01 per share), reversing a net loss of $0.4 million in Q2 2025, driven by higher revenues and gross profits.

• Adjusted EBITDA for Q2 2026 was $1.1 million (4.8% margin), more than double the prior year, reflecting improved profitability.

• Total payment dollars processed increased 27% to $2.47 billion, with transaction volumes also up 27%.

• Output Solutions achieved record mail volumes, supported by new equipment investments that enhanced scalability and efficiency.

Financial highlights

• Q2 2026 revenues: $23.7M (+19% YoY); six-month revenues: $49.1M (+17% YoY).

• Gross profit for Q2 2026 was $5.7 million (+11% YoY); gross margin was 24.2%, down from 25.8% due to revenue mix shift.

• Operating income reached $0.4 million, compared to an operating loss of $0.4 million a year ago.

• SG&A expenses for Q2 2026 were $5.3 million, down from $5.5 million in Q2 2025.

• Cash and equivalents at June 30, 2026, were $6.4 million, with working capital of $9.7 million.

Outlook and guidance

• Full-year revenue growth guidance for fiscal 2026 was raised to 14%-16%, up from 10%-12%, citing strong performance and outlook.

• Management expects continued revenue growth from ACH, credit card, and Output Solutions, with new client implementations and product launches anticipated to drive further gains in the second half.

• Investments in technology and product expansion, including PostCredit integration and Usio Ion, are expected to enhance cross-selling, retention, and margins.

• Lower interest rates may reduce future interest income.

• Focus remains on margin improvement through product mix and cost control.