Usio Q2 Earnings Call Highlights

Usio reported accelerating growth and improved profitability: Second-quarter revenue rose 19%, net income reached $280,000 for the second consecutive profitable quarter, and adjusted EBITDA more than doubled to $1.1 million. Payment dollars and transactions processed each increased 27% year over year.

Payment businesses delivered strong operating momentum: Card revenue grew 28%, led by a 43% increase in PayFac revenue, while ACH revenue increased 21% and transactions rose 34%. Output Solutions revenue also grew 22%, with new contracts and increased processing volumes.

Management raised its fiscal 2026 outlook: Usio now expects revenue growth of 14% to 16%, up from 10% to 12%, while continuing to generate positive adjusted EBITDA. The company is also preparing to expand Usio Ion, which could increase float income and help lift gross margins beyond the current 23%–25% range.

Usio reported second-quarter fiscal 2026 revenue growth of 19% and its second consecutive quarter of positive GAAP net income, while raising its full-year revenue growth outlook. Senior Vice President and Chief Accounting Officer Michael White said the company met or exceeded analyst expectations for revenue and earnings. Revenue growth accelerated from 15% in the first quarter, while business-unit growth excluding interest income approached 20%, he said.

Usio reported net income of $280,000, or $0.01 per share, and adjusted EBITDA of $1.1 million, more than double the year-earlier quarter. Gross profit dollars rose 12%, and selling, general and administrative expenses declined by about $190,000 from a year earlier despite the increase in revenue.

“This marks our second consecutive quarter of positive GAAP net income, an important milestone,” White said, adding that the quarter’s net income came from core operations and did not include unusual or one-time items. Total payment dollars processed increased 27% from a year earlier, while payment transactions also rose 27%. White said no customer represented more than 10% of total revenue and that a majority of revenue remained recurring.

Card and ACH businesses post growth Greg Carter, executive vice president of Payment Acceptance and chief revenue officer, said Card revenue increased 28% year over year to $9 million, marking the segment’s best second-quarter revenue performance. Card processing dollars rose 13%, while transactions increased 19%. The performance was led by the company’s payment facilitator, or PayFac, business, where revenue increased 43%. PayFac accounted for more than three-quarters of Card revenue, according to Carter. Merchant count increased 34% during the first six months of the year. Carter described the PayFac model as a “flywheel” in which Usio adds independent software vendors, or ISVs, whose subscriber and merchant bases then grow over time. “New ISVs, ISV growth, and then merchant growth within that community” are the components of that growth model, Carter said during the question-and-answer session.

Chairman and CEO Louis Hoch said revenue in Usio’s ACH business, its most profitable unit, increased 21%. ACH transactions grew 34%, payment dollar volume rose 28%, and return-check processing increased 35%. July set a monthly ACH transaction record, he said. Hoch also said the company had grown its real-time payments, or RTP, customer base to 12 accounts from none a year ago. Some customers have shifted volume from PINless debit to RTP, which produces less revenue per transaction but carries higher margins, according to Hoch.

Card Issuing experienced what Hoch called an “improved quarter” despite continuing revenue headwinds. Purchase volume increased 11%.