Usio, Inc. Reports 16% Revenue Growth to $25.5 Million in Q1 2026

Usio, Inc. reported a 16% increase in revenue for the first quarter of 2026, reaching $25.5 million compared to $22.0 million in the same period of 2025. This growth was primarily driven by a 25% rise in revenues from Automated Clearing House (ACH) and complementary services, alongside a 23% increase in credit card processing revenues. The Output Solutions segment also contributed to the revenue growth with a 19% increase, attributed to strong organic growth and seasonal business related to tax statements and voter registration cards. However, the prepaid card services segment experienced an 18% decline in revenue, largely due to the loss of a key customer.

The company's gross profit for the quarter was $5.1 million, up from $4.8 million year-over-year, although the gross profit margin decreased to 20.2% from 21.9%. This decline was influenced by a revenue mix favoring lower-margin business lines, such as PINless debit and credit card processing, while higher-margin prepaid services and interest revenues saw declines. Operating income improved to $225,712 from a loss of $239,584 in the prior year, reflecting the overall revenue growth and reduced stock-based compensation and depreciation expenses.

In terms of operational metrics, Usio reported a significant increase in transaction volumes, with credit card transactions processed rising by 22% and ACH transaction counts increasing by 34% compared to the first quarter of 2025. The total dollar volume processed across all business lines reached $2.5 billion, a 28% increase from the previous year. The company also noted a 31% increase in the number of mail pieces processed through its Output Solutions segment, indicating strong demand for its services.

Usio's balance sheet showed total assets of $120.2 million as of March 31, 2026, down from $134.9 million at the end of 2025. Current liabilities also decreased to $98.3 million from $114.0 million, contributing to a reduction in total liabilities. The company reported a net income of $122,503 for the quarter, a significant turnaround from a net loss of $234,970 in the same quarter last year. Looking ahead, Usio plans to continue investing in technology and expanding its product offerings, particularly in the ACH and prepaid card segments, while also pursuing strategic acquisitions to enhance its market position.