Usio, Inc.

usio.com

What Do They Do?

Processes electronic payments and provides prepaid cards and billing, printing and mailing services for merchants, businesses and consumers.

How Do They Make Money?

Customers pay transaction fees based on transaction value, per transaction or at a flat rate as Usio processes electronic payments; Output Solutions charges for bill preparation, printing and mailing when work is performed and delivered to USPS. Usio also earns interest on customer balances.

revenue

Segment	Share	How money arrives
ACH and Complementary Service Revenue Usage-based	26% FY2022: 21%	Usage-based
Credit Card Revenue Usage-based	35% FY2022: 39%	Usage-based
Prepaid Card Services Revenue Usage-based	13% FY2022: 13%	Usage-based
Output Solutions Sold outright	24% FY2022: 27%	Sold outright
ACH and Complementary Service Interest Revenue	0.9%
Prepaid Card Services Interest Revenue	0.7%
Output Solutions Interest	0.2%

Who Are Their Customers?

Merchants and businesses use Usio's payment processing, often through non-exclusive resellers or directly; prepaid cards are sold directly to government entities and corporations and online to consumers. Utilities, financial institutions and other organizations use Output Solutions for document and mail services.

Do Revenues Turn Into Profits?

Not on paper. It lost $2.5M in FY2025, but brought in more cash than it spent: $1.1M of free cash flow.

Operating income, FY2025

−3% of revenue

▲ +60% (Loss) vs FY2024 (−$1.5M, −2%)

Net income, FY2025

−3% of revenue

▼ Now a loss vs FY2024 ($3.3M, 4%)

Free cash flow, FY2025

1% of revenue

▼ −60% vs FY2024 ($2.7M, 3%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +19%; vs $20M in Q2 FY2025
Net income: ▲ Now profitable; vs −$366.7K in Q2 FY2025

Credit Card Revenue share of revenue vs 35.3% in Q2 FY2025

Growing. Revenue grew 38% in 4 years, from $61.9M in FY2021 to $85.4M in FY2025, about 8% a year.

Real-time payments The offering has expanded beyond the earlier report’s ACH and card processing to include real-time payments as an alternative to ACH.

ERP-linked expense tools Alongside the earlier prepaid and payment disbursement services, the current offering adds technology for companies to manage funds and track expenses through ERP systems.

More payout options The earlier disbursement platform offered prepaid cards, deposits, ACH and checks; the current Consumer Choice product adds methods including PayPal and Venmo and cardless ATM withdrawals.

Revenue over time

ACH and Complementary Service Revenue Credit Card Revenue Prepaid Card Services Revenue Output Solutions ACH and Complementary Service Interest Revenue Prepaid Card Services Interest Revenue Output Solutions Interest

$100M$50M$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Fiserv, Elavon, WorldPay, Global Payments, Stripe, and Block

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