Usio Reports Slight Revenue Decline in Q3 2025, Net Loss of $0.4 Million

Usio, Inc. reported a slight decline in revenue for the third quarter of 2025, generating $21.2 million compared to $21.3 million in the same period last year. The decrease was primarily attributed to a 30% drop in revenue from its prepaid card services, which was impacted by the loss of key customers. Additionally, the Output Solutions segment experienced an 8% decline due to the absence of one-time revenues recorded in the previous year. However, the company saw a 36% increase in its ACH and complementary services, driven by organic growth and new client implementations.

For the nine months ending September 30, 2025, Usio's total revenue increased by 1% to $63.2 million, up from $62.4 million in the prior year. This growth was largely due to a 33% increase in the ACH and complementary services segment, which offset declines in prepaid card services and Output Solutions. The company reported a net loss of $0.4 million for the quarter, a significant decrease from the net income of $2.9 million in the same quarter of 2024, primarily due to increased selling, general, and administrative (SG&A) expenses and the absence of a federal income tax benefit recognized in the prior year.

Usio's total assets decreased to $99.4 million as of September 30, 2025, down from $107.2 million at the end of 2024. The decline in assets was driven by a reduction in cash and cash equivalents, which fell to $7.7 million from $8.1 million. The company also reported a decrease in total stockholders' equity to $18.7 million, down from $19.2 million at the end of the previous fiscal year. The company’s accumulated deficit increased to $69.0 million, reflecting ongoing operational challenges.

Operationally, Usio has focused on enhancing its product offerings and expanding its market reach. The company has adopted a "One Usio" strategy aimed at unifying its brand and improving customer management and reporting. This strategy includes the development of a new electronic bill presentment product, which is expected to enhance its service offerings. The company also reported a 75% increase in credit card transactions processed compared to the same quarter last year, although this was offset by competitive pricing pressures in the market.

Looking ahead, Usio aims to continue its growth trajectory by investing in technology and expanding its customer base. The company remains focused on managing its SG&A expenses while seeking to enhance its revenue streams through both organic growth and potential acquisitions. Despite the challenges faced in the current economic environment, Usio believes it has sufficient liquidity to support its operations and strategic initiatives in the coming year.