Executives at Usio (NASDAQ:USIO) highlighted accelerating revenue growth and record operating metrics during the company’s latest earnings call, saying results were consistent with management’s stated goal of delivering a stronger second half of the year. The company also reiterated its expectation for continued growth and positive adjusted EBITDA in fiscal 2026 while emphasizing a strategy centered on cross-selling, recurring revenue, and new product rollouts.
Quarterly and full-year performance highlights
Management said fourth-quarter revenue increased both sequentially and year over year, with “record growth” accelerating to 8% in the quarter. For the full year, revenue rose 3%, and the company noted that excluding revenue associated with interest, revenue from products and services increased 4%.
ACH and Card led growth; Output Solutions showed momentum
Executives repeatedly pointed to ACH and card processing as the primary drivers of growth during the quarter and year. ACH was described as the company’s fastest-growing segment, with revenue increasing more than 30% for both the quarter and the full year. For 2025, the company reported record ACH dollars processed (up 22%) and transactions (up 29%), and said “returns” were up 31%. Pinless debit was a notable contributor, with pinless debit dollars processed up 81% in 2025.
The Card segment delivered record quarterly and annual transactions and dollar volume processed, led by Payment Facilitator (PayFac) growth. Usio said Card revenue increased 7% in the fourth quarter and finished 2025 up 3%. Greg Carter, executive vice president of Payment Acceptance and chief revenue officer, added that revenue growth net of the legacy portfolio was 13% for the quarter and 7% for the year, attributing performance to “steady, predictable, recurring revenue growth” from a base of ISV relationships.
Output Solutions ended the year with what management called strong momentum. In the fourth quarter, pieces mailed increased 11% and electronic documents processed rose 18%, driving a 6% revenue increase for the quarter, though full-year revenue was flat. CEO Louis Hoch said Output Solutions added 37 new clients in 2025, primarily recurring in nature, and noted that early in the new year the business was already setting records for the number of pieces mailed. He also said Output expects to put a new printer into operation this year that will run at more than twice the rate of the existing printer, at better resolution, while using fewer supplies.
Card Issuing: disruption in 2025 and expectations for a rebound
Card Issuing revenue declined in the fourth quarter but improved relative to the third quarter, and management said profitability continued to improve. Hoch attributed the 2025 weakness “almost exclusively” to the indirect acquisition of a reseller’s amusement park card program, which he said disrupted results earlier in the year. Management characterized 2026 comparisons as potentially easier due to the timing of the disruption and said it expects Card Issuing results to better reflect the recovery that occurred over the balance of 2025.
During Q&A, the company quantified the lost revenue tied to the amusement park-related customer change. Management said Card Issuing was down 22% and estimated that if the customer had stayed, it would have represented roughly $3 million to $5 million of revenue; an analyst summarized adding “about $4 million” back as a way to think about normalized growth, and management agreed.
Hoch also discussed upgrades to the company’s Consumer Choice platform, including the addition of Venmo, PayPal, push to debit, and instant withdrawal, which he said is driving increased interest from new and existing clients. He said Card Issuing is now engaged with large commercial and governmental entities that need disbursement platforms with “modern payment rails,” and noted that Mastercard continues to refer business to Usio. Hoch said Card Issuing completed 44 deals and 53 new implementations in 2025.
Strategy: Usio One cross-selling and PostCredit acquisition
Management emphasized a “Usio One” initiative aimed at increasing cross-selling across the company’s product lines and growing share of wallet with existing customers. Carter said Usio is “essentially fully integrated” and described changes to the sales structure intended to improve throughput and accountability. He also cited marketing initiatives, including improving SEO performance and being added to the G2 platform, which he said was already generating leads from software companies searching for payment processing providers.
Carter highlighted several implementations completed in 2025 that are now processing volume, including a national online specialty sports goods retailer (a merchant processing account) and a multi-state building supplies company. He also pointed to a large “Filtered Spend” program that is live with thousands of bodegas and smaller grocery stores able to accept healthcare assistance cards for over-the-counter purchases. Carter said Usio boarded well over 2,000 merchants in 2025 and identified more than 8,000 additional target merchants, with the company hoping to board the remaining locations through mid-summer 2026.
Hoch also detailed how the PostCredit acquisition fits into the broader plan. He said PostCredit supports Usio’s strategy to offer customers a comprehensive business banking solution and provides enhanced visibility into customer risk. Hoch said Usio moves over $100 million every day through clients’ processing agreements and described a goal of effectively becoming clients’ depository institution through the banking solution. When live later this year, management said new clients will be encouraged to use the banking solution to pre-fund Usio accounts and receive daily settlement funds, creating additional cross-selling opportunities for services such as corporate card issuance, ACH disbursements, and accounts payable settlement.
Cash flow, capital allocation, and 2026 outlook
Usio reported operating cash flow of $1.5 million for the year, which management said was used to invest in tangible and intangible assets and to repurchase more than $1.1 million of shares. The company ended the year with nearly $7.5 million in cash on hand, which executives said positions it to invest in organic and other expansion opportunities. In the fourth quarter, the company used stock for the $500,000 purchase of PostCredit.
Usio also said it has now delivered positive adjusted EBITDA for three consecutive years, and its guidance contemplates positive adjusted EBITDA again in fiscal 2026. Hoch said the company expects 10% to 12% revenue growth in 2026.
On the cadence of growth, management indicated some large programs are expected to come online later in the year. In response to questions about previously disclosed large Card Issuing projects, executives said the largest is a state school voucher program scheduled to start in the third quarter and expected to impact both prepaid card revenue and ACH revenue. Management also said a major bank project is expected to go live in the third quarter, and that another partnership involving Consumer Choice for refunds to individuals was discussed but not detailed. Management acknowledged that these items could make growth more back-end weighted in 2026, though it also said there should be growth in the first quarter.
Executives declined to quantify how much of the 2026 guidance is already “booked,” citing variability in implementation timing, but said there are “tons of deals” in implementation and that the company has enough deals to meet its numbers, subject to when customers go live.
On expenses, management said SG&A was up 10% year over year in 2025, but noted headcount is down and suggested it is targeting relatively flat SG&A in 2026, with potentially moderate growth. In discussing quarter-to-quarter fluctuations, management said a jump between the third and fourth quarter included items such as a bad debt expense adjustment and year-end expenses. The company also said depreciation and amortization expense should be relatively flat year over year.
About Usio (NASDAQ:USIO)
Usio, Inc (NASDAQ: USIO) is a financial technology company that delivers integrated payment, transaction processing, and money services solutions. The company’s platform combines merchant acquiring, multi‐rail payment enablement and business management tools to support merchants, financial institutions and business partners in automating and securing electronic and cash‐based transactions.
Through its subsidiaries, Usio provides a broad range of products and services, including point-of-sale terminals, payment gateway services, automated teller machine (ATM) processing, bill payment, money order issuance, domestic and international money transfer and remittance solutions.
