This article first appeared on GuruFocus .
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Revenue Growth:Increased 16% year over year, achieving the highest quarterly revenue in the company's history.
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ACH and Complementary Services Revenue:Up 25% year over year.
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Card Revenue:Increased 23% year over year to a record $9.7 million.
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Output Solutions Revenue Growth:Accelerated to 19% in the quarter.
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Total Payment Dollars Processed:Up 28% year over year.
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Total Payment Transactions Processed:Increased 22% year over year.
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Net Income:Approximately $130,000 for the quarter ended March 31, 2026.
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Operating Cash:Ended the quarter with over $7.7 million, up about $300,000 since the end of 2025.
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Operating Income, Adjusted EBITDA, and Earnings Per Share:All reported positive and up from the comparable year-ago quarter.
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Prepaid Card Loads:Processed over $80 million in the first quarter.
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Output Solutions Pieces Processed and Mailed:Up 31% in the first quarter.
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Electronic Documents Processed and Delivered:Up 41% in the first quarter.
Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Usio Inc ( NASDAQ:USIO ) reported a record quarter with strong growth leading to record processing volumes and quarterly revenues.
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Revenue increased 16% year over year, marking the highest quarterly revenue in the company's history.
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The company achieved positive adjusted EBITDA and GAAP net income, along with positive operating cash flow.
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Card revenue was up 23% year-over-year to a record $9.7 million, driven by the rapid growth of PayFac.
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Output Solutions saw a 31% increase in pieces processed and mailed, and a 41% increase in electronic documents processed and delivered.
Negative Points
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Margins were somewhat lower compared to the prior-year quarter, partly due to a decrease in top-line interest income.
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The company experienced a decline in interest revenue, which has 100% gross margins, affecting overall margins.
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Overhead costs were modestly higher compared to the prior-year quarter.
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Card issuing revenues were down this quarter, although growth is expected later in the year.
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The company remains cautious about potential economic challenges such as inflation and higher interest rates.
Q & A Highlights
Q: Can you confirm the guidance for the year, including revenue growth and profitability expectations? A: Yes, we expect double-digit revenue growth of 10% to 12%, profitability, and positive EBITDA. Cash SG&A is expected to remain roughly flat for the rest of the year, and prepaid should return to growth for the full year. - Louis Hoch, Chairman and CEO
Q: Can you provide an overview of the sales funnel and which products are leading in it? A: Our pipeline is robust across all business lines, with billions in total processing volume. The focus is on implementation and processing. We are optimistic about all business lines for the rest of 2026. - Greg Carter, EVP, Chief Revenue Officer
Q: How is the PayFac segment performing, and did it impact the positive Card results? A: PayFac is performing well, with a combination of enterprise and new additions to existing ISV customers. Legacy ISVs continue to add merchants, and larger enterprise accounts have been implemented, contributing to the positive Card results. - Greg Carter, EVP, Chief Revenue Officer
Q: What is the outlook for margins, particularly gross and operating margins? A: We expect margins to improve as we move traffic from pinless to real-time payments, which has higher margins. Electronic presentments through Output also have high margins. We anticipate gross margins to return to 23% to 25% in the short term. - Louis Hoch, Chairman and CEO
Q: Can you elaborate on the expected growth in the Prepaid segment? A: Growth is expected from a school voucher program distributing up to $1 billion, mostly on cards, and new strategic partnerships and fintech deals. We implemented 27 new accounts in Q1, contributing to growth. - Louis Hoch, Chairman and CEO and Jerry Uffner, SVP, Card Issuing
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
