Usio Reports Q2 2025 Revenue Decline and Net Loss Amid Mixed Operational Results

Usio, Inc. reported its financial results for the second quarter of 2025, revealing a slight decline in revenue and a net loss compared to the same period last year. The company generated $19.96 million in revenue for the quarter, a decrease of 1% from $20.08 million in the second quarter of 2024. For the first half of 2025, Usio's revenue increased by 2% to $41.97 million, up from $41.05 million in the prior year. The decline in quarterly revenue was primarily attributed to a 26% drop in prepaid card services, driven by the loss of a key client, while the ACH and complementary services segment saw a notable 33% increase in revenue.

The company's net loss for the second quarter was $366,654, compared to a net income of $75,492 in the same quarter of 2024. For the first half of 2025, Usio reported a net loss of $601,624, worsening from a loss of $174,696 in the prior year. The increase in losses was largely due to higher selling, general, and administrative (SG&A) expenses, which rose to $4.64 million in the second quarter from $4.00 million a year earlier. The company also noted a decrease in other income, which included a prior year tax credit that was not repeated in 2025.

Operationally, Usio's customer base and transaction volumes showed mixed results. The number of credit card transactions processed increased by 69% year-over-year, while ACH transaction counts rose by 33%. However, prepaid card load volumes fell by 51%, reflecting challenges in retaining key clients. The company processed a total of $1.94 billion across all business lines in the second quarter, a 15% increase from the previous year, indicating growth in transaction volume despite revenue declines in certain segments.

In terms of strategic developments, Usio has been focusing on enhancing its product offerings and expanding its market presence. The company recently completed the development of a new electronic bill presentment product, which allows merchants to create and distribute bills online. Additionally, Usio is pursuing a "One Usio" strategy aimed at unifying its brand and sales approach, which includes improving client onboarding and customer management. The company continues to explore opportunities for growth through both organic means and potential acquisitions.

Looking ahead, Usio's management expressed optimism about future revenue growth, particularly from the ACH and complementary services segment, which has shown strong performance. The company believes that the onboarding of new clients will help offset recent revenue losses. However, it remains cautious about external economic factors, including inflation and geopolitical uncertainties, which could impact consumer spending and overall business performance.