USIO — Usio, Inc.

Usio Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Q4 2025 revenues increased by 8% year-over-year, contributing to a 3% annual revenue growth. Excluding interest-related revenue, product and service revenues rose by 4%.
• Total dollars processed reached a record high, up 19%, with transactions processed increasing by 30%.
• ACH revenues surged over 30% for both the quarter and the year, with PINless debit processing volume up 81%.
• Card revenue grew by 7% in Q4 and 3% for the year, driven by PayFac growth.
• Output Solutions saw a 6% revenue increase in Q4, while card issuing revenues declined but showed improvement compared to Q3.
• Operating cash flow for the year was $1.5 million, with $7.5 million in cash available for investments.
• Usio reported positive adjusted EBITDA for the third consecutive year.

2. Strategic Updates and Business Highlights:

• The company is focusing on increasing its share of customer wallets and building a portfolio of recurring revenues through new product offerings and cross-selling initiatives under the Usio ONE strategy.
• The acquisition of PostCredit is expected to enhance Usio's business banking solutions and improve customer risk management.
• The ACH segment continues to be a standout performer, with expectations for further growth in Q1 2026.
• Usio is implementing a consolidated sales outreach strategy and has made changes to its sales structure to improve accountability and throughput.

3. Forward Guidance and Outlook:

• Usio anticipates 10% to 12% revenue growth for fiscal 2026, with continued positive adjusted EBITDA expected.
• The company has a strong pipeline of deals in implementation, although the timing of revenue recognition is uncertain and dependent on customer onboarding.

4. Bad News, Challenges, or Points of Concern:

• Card issuing revenues were down 22% in 2025 due to the indirect acquisition of a reseller's amusement card program, which impacted overall performance.
• The company is cautious about potential surprises, such as customer losses due to mergers and acquisitions, which could affect revenue.
• SG&A expenses increased by 10% year-over-year, raising concerns about ongoing investment needs, although the company aims to keep these expenses flat in 2026.

5. Notable Q&A Insights:

• Management indicated that the loss of a significant customer in card issuing could have resulted in an additional $3 million to $5 million in revenue for 2025.
• The Usio ONE initiative is progressing well, with cross-selling successes already evident; however, the team is still adjusting to the new sales structure.
• New large customers are expected to onboard in Q3 2026, suggesting that growth may be back-end weighted for the year.
• Management expressed confidence in the ACH segment's continued performance, with expectations for record-setting results in Q1 2026.