AG真人官方

Usio Announces Second Quarter 2025 Financial Results

Total payment dollars processed through all payment channels up 15%听versus the prior year period听

Gross margin听expands, and seventh consecutive quarter of positive Adjusted EBITDA¹

SAN ANTONIO, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Usio, Inc., "Usio" or the "Company": (Nasdaq: USIO), a leading FinTech company听that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the second听quarter, which ended June 30, 2025.

Louis Hoch, President and Chief Executive Officer of Usio, said,听鈥淩esults in the second quarter continue to reflect improvements across key strategic objectives including another quarter of strong processing growth,听positive operating cash flow, expanded margins and positive Adjusted EBITDA¹.听These results were achieved while we were effecting fundamental changes across the organization, implementing our new Usio One go-to-market strategy, reducing costs, improving efficiency while investing in, and implementing, new technologies such as wearables and biometric payment systems. We believe the impact of these changes is durable.听There are now more new programs in implementation across all our businesses than at any time in our history while the organization has never been better structured to leverage this anticipated growth into attractive returns."

Total payment dollar processing volume growth was 15%听in the second quarter of 2025, led for the second consecutive quarter by the strong recovery of our highest margin听line of business, ACH, where electronic check dollar听volume increased听19%, transactions grew听33% and returned check transactions grew听32%, all as compared to the same period last year. One of Usio's real-time payment methods, PINless debit, experienced its eighth consecutive quarter of growth, where transactions grew 144% and dollars processed grew 93% as compared to the same period last year, further accelerating the growth of our ACH and complementary services.

Consolidated revenues in the quarter were down slightly due to declines in our prepaid card services business unit, where revenues declined 26% in the second quarter of 2025 compared to the second quarter of 2024. This decline was due to a significant client of ours losing, in the second quarter of 2025, a downstream customer听who contributed significant revenues to the organization in 2024. However, this听decline was largely offset by continued strong growth in our ACH & complementary services business line where revenues were up over 30% for the second consecutive quarter compared to听the same quarter of the prior year primarily attributable to an increase in ACH volume from net, new business and organic growth. Within our credit card business PayFac revenues continue their double-digit year-over-year growth as a result of net, new client implementations helping offset anticipated legacy card volume attrition. Credit card revenues were up for the first six months of the year compared to the same period of the prior year.听Volumes are expected to benefit in the second half of the year from the steady ramp up of new implementations and a rebound in existing customer processing activity. Output Solutions total mail pieces processed and delivered were up 3% for the second quarter of 2025 compared to the second quarter of 2024,听exceeding 5.4 million, and electronic only documents delivered exceeded 20 million for the second quarter of 2025.听This strong processing activity is not reflected in revenues as the ongoing transition to a more electronic only document delivery model has the effect of reducing the price per unit processed compared to print and mail while at the same time improving profitability. Nevertheless, Output Solutions revenues are up for the first half of fiscal 2025 compared to the same period of 2024.

For the quarter ended June 30, 2025, margins expanded 185 basis points compared to the quarter ended June 30, 2024听due to both mix as well as efficiency and productivity enhancements across the organization. Selling, general and administrative ("SG&A") expenses increased听$0.6听尘颈濒濒颈辞苍 from the same period last year, of which nearly all of the increase was related to several one-time expenses related to sponsorship and marketing events, insurance renewals,听professional fees, and other听one-time expense accruals. We believe our SG&A expenses will be significantly lower in the second half of the year such that total SG&A expenses in 2025听will be up only nominally compared to full year 2024.听The Company reported a net loss of approximately听$0.4听尘颈濒濒颈辞苍, or ($0.01) per share for the second quarter of 2025, compared to听net income of $0.1听尘颈濒濒颈辞苍, or $0.00听per share, for the second quarter of 2024.听Adjusted EBITDA¹听飞补蝉听$0.5 million for the second quarter of 2025, down incrementally听compared to $0.8 million in the same quarter a year ago. Operating cash flow for the quarter was $1.1听尘颈濒濒颈辞苍, which is net of over $1 million of non-recurring cash outlays, including $350,000 for share repurchases.听The Company expects to see its cash position increase over the second half of fiscal 2025.

Mr. Hoch concluded, 鈥淭he first half of the year was in line with our expectations as we not only continue to drive current results, but invest a significant amount of time and energy in achieving our strategic objectives to better leverage our extensive technology and other resources to accelerate profitability.听We believe we are set up for a better back half of the year with numerous new accounts in various stages of implementation, including a new enterprise customer in our card business that we believe has听the potential to consistently generate over $100 million in annual recurring听processing volume.听Our financial position is strong, and we continue to strategically deploy our capital with over $700,000 expended on share repurchases so far this year while maintaining sufficient liquidity to opportunistically capitalize on what has become a more active merger and acquisition market, which provides us potential opportunities to utilize our cash to further accelerate our growth through acquisition. However, due to prolonged customer caused implementation delays with two large national accounts, we are adjusting our revenue guidance expectations to 5鈥� 12% growth this year with continued positive adjusted EBITDA¹.鈥�

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

Quarterly Processing and Transaction Volumes

Total payment transactions processed in the听second quarter of 2025听were 14.1 million, an increase听of 26% over the same quarter of last year.听Total payment dollars processed through all payment channels in the second quarter of 2025 were听$1.94 billion, an improvement of听15% over听last year's second quarter听$1.68 billion in volume.听

Our credit card segment continues to grow, where dollars processed were up听9% and transactions processed were up听69% from a year ago. In the second quarter of 2025, ACH electronic check transaction volume was听up听33%, electronic check dollars processed were up听19% and return check transactions processed were up听32%, in each case, compared to the same quarter of 2024. In our听Prepaid business unit,听card load volume was down听51%, transactions processed听down听37% and purchase volume听down听23%听for the second quarter of 2025 compared to the same quarter of 2024.听Output Solutions pieces processed and mailed was up 3% while electronic documents processed and delivered were down 3% for the second quarter of 2025 compared to the same quarter of 2024.

Second听Quarter听2025听Revenue Detail

Revenues for the quarter ended听June 30, 2025听were听$20.0听尘颈濒濒颈辞苍, down听1%听compared to the prior year quarter, due primarily to declines in our prepaid card services business line, partially offset by strong growth in our ACH and complementary services revenues.

Gross profit听for the second quarter of 2025 was听$5.1听million compared to听$4.8听million for the second quarter of 2024, while gross margins (defined as gross profit as a percentage of revenues)听were 25.8%, increasing听from听23.9% in the same period a year ago. This was听primarily due to growth from our high margin line of business, ACH and complementary services, as well as improving margins across our听business.

Selling, general and administrative expenses, "SG&A",听were听$4.6听million for the quarter ended June 30, 2025,听compared to听$4.0听million in the prior year period. This was primarily related to several one-time expenses related to sponsorship and marketing events, alongside annual insurance renewals,听professional fees, and other听one-time expense accruals incurred during the period, including franchise taxes paid to听the State of Texas. We believe that these expenses will decline in future quarters or, in the case of the franchise tax,听are annual expenses, and that total SG&A expenses in the remainder of the year听will only be nominally increased.听

For the quarter, we reported an听operating loss of听$0.4听尘颈濒濒颈辞苍听compared to an operating loss of听$0.2听million for the same quarter a year ago primarily due to increased SG&A expenses. Adjusted EBITDA¹听飞补蝉听$0.5听million for the quarter, compared to听Adjusted EBITDA¹听of听$0.8听million for the same quarter a year ago. Net loss in听the quarter ended听June 30, 2025听was approximately听$0.4听尘颈濒濒颈辞苍, or ($0.01) per share, compared to net income of听$0.1 million, or $0.00听per share,听for the same period in the prior year. The second quarter of 2024 included听$0.3 million in other income related to the employee retention tax credit under the CARES Act.听

Revenues for the听six听months ended听June 30, 2025听were听$42.0听million, up听2%听compared to the prior year period, with revenues increasing in all business lines except our prepaid card services business line.

Gross profit听for the听six months ended June 30, 2025 was听$9.9听million compared to听$9.7听million for the six months ended June 30, 2024, while gross margins were 23.7%, up from听23.5%听in the same period a year ago. Gross profits听were up听primarily due to increased total revenues, combined with slightly increased overall margins related to growth in our high margin ACH and complementary services revenues.

Selling, general and administrative, "SG&A", expenses听were听$8.8听million for the six months ended June 30, 2025, up听9% compared to听$8.1听million in the prior year period. This was primarily related to several one-time expenses related to sponsorship and marketing events, alongside annual insurance renewals,听professional fees, and other听one-time expense accruals incurred during the six-month period, including franchise taxes paid to the State of Texas. We believe that these expenses will decline in future quarters听and that total SG&A expenses in the remainder of the year听will only be nominally increased.听

For the six months ended June 30, 2025, we reported an听operating loss of听$0.6听尘颈濒濒颈辞苍听compared to an operating loss of听$0.5听million听for the same period a year ago due to听increased SG&A expenses. Adjusted EBITDA¹听飞补蝉听$0.5听million for the quarter, compared to听Adjusted EBITDA¹听of听$0.8听million for the same period a year ago. Net loss in听the听six months ended June 30, 2025 was approximately听$0.6听尘颈濒濒颈辞苍, or ($0.02) per share, compared to a net loss of听$0.2听million, or ($0.0) per share,听for the same period in the prior year, primarily attributable to the presence of $0.3 million in other income related to the employee retention tax credit received in the prior year period, distributed under the CARES Act.听

Operating Cash Flows听were increased to听$1.1听尘颈濒濒颈辞苍 for the听six months ended June 30, 2025, as compared to $0.5听million in the same period a year ago. The difference was听driven primarily by a reduction in accounts receivable.

We continue听to be in solid financial condition with $7.5听million in cash and cash equivalents as of听June 30, 2025,听a听$0.6 million decrease in cash balances over the first听six months of the year while over $700,000 was utilized to repurchase shares in the period.

Upcoming Investor Events

^1听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 6, 2025, at 4:30 pm Eastern time听to review financial results and provide a business update.听To listen to the conference call, interested parties within the听U.S.听should call +1-888-999-6281. International callers should call听+听1-848-280-6550. 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鈥檚 website at听.

A replay of the call will be available approximately one hour after the end of the call through August 20, 2025. The replay can be accessed via the Company鈥檚 website or by dialing听+1-877-344-7529 (U.S.), 1-855-669-9658 (Canada) or听1-412-317-0088听(international). The replay conference playback code is 9584705.

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听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, www.payfacinabox.com, www.akimbocard.com and www.usiooutput.com. Find us on Facebook庐 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听includes the non-GAAP financial measure, as defined in Regulation G adopted by the Securities and Exchange Commission, of Adjusted EBITDA. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures provides investors with financial measures it uses in the management of its business.

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

Management believes presenting Adjusted EBITDA 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.听

Adjusted EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.听It is not a measurement of our financial performance under GAAP and should not be considered as an alternative to revenue,听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. Adjusted EBITDA has limitations as an analytical tool and you should not consider this non-GAAP financial measure听in isolation or as a substitute 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, the matters discussed in this press release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy and any guidance for future periods. These forward-looking statements are identified by the use of words such as "believe," "should,"听"intend," "look forward," "anticipate," "schedule,鈥� and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks related to an economic downturn, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new听legislation, and compliance with complex federal, state and local laws and regulations, 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 fiscal year ended December 31, 2024. One or more of these factors have affected, and in the future could affect, the Company鈥檚 businesses and financial results听and could cause actual results to differ materially from plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements included in this press release are reasonable, the Company can give no assurance such assumptions will prove to be correct. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this press release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.

Contact:

Paul Manley
Senior Vice President, Investor Relations
[email protected]
612-834-1804