Usio, Inc. (USIO) Earnings
Usio, Inc. is expected to report next earnings on August 5, 2026 (in NaN days), with a consensus EPS estimate of $-0.01. USIO has beaten EPS estimates in 4 of its last 12 reported quarters (average surprise -689.0% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 13, 2026 | $-0.01 | $0.00 | +144.0% | $25M | +9.8% |
| Mar 18, 2026 | $0.00 | $-0.05 | -2600.0% | $22M | -4.4% |
| Nov 12, 2025 | $0.01 | $-0.02 | -300.0% | $21M | -8.2% |
| Aug 6, 2025 | $-0.01 | $-0.01 | +0.0% | $20M | -10.6% |
| May 14, 2025 | $0.04 | $-0.01 | -125.0% | $22M | -0.2% |
| Mar 26, 2025 | $0.01 | $0.02 | +100.0% | $21M | -2.5% |
| Aug 14, 2024 | $0.00 | $0.00 | +100.7% | $20M | +0.9% |
| May 15, 2024 | $-0.00 | $-0.01 | -200.3% | $20M | -5.8% |
| Aug 14, 2023 | $0.01 | $0.01 | -23.1% | $21M | +4.3% |
| May 3, 2023 | $0.00 | $0.00 | +100.0% | $21M | +2.2% |
| Mar 8, 2023 | $-0.01 | $-0.01 | -33.3% | $19M | -0.4% |
| Aug 11, 2022 | $-0.03 | $-0.10 | -263.6% | $16M | -6.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 13, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Quarterly Results * Q1 FY2026 was a record quarter for UCO, with all-time high transaction processing volumes, revenue, positive adjusted EBITDA, positive GAAP net income, and positive operating cash flow * Sequential quarterly overhead decreased by nearly $700,000 to $4.4 million, with a 2026 full-year goal of keeping overhead relatively flat * Depreciation and amortization declined following full amortization of intangibles from the Output Solutions acquisition * UCO ended the quarter with over $7.7 million in operating cash, sufficient liquidity for organic and strategic growth * No single client accounts for more than 10% of total revenue, and the majority of revenue is recurring with high client retention - Strategic and Operational Progress * The UCO1 cross-selling initiative, launched one year prior, is already delivering results by shifting to a customer needs-based selling approach that identifies multiple product opportunities instead of siloed single-product sales; over 50% of the existing customer base has now been informed of all UCO offerings * The filtered spend program for card acceptance is seeing strong viral growth, with new merchant activations daily and geographic expansion beyond the Northeast U.S. targeting 10,000 total locations * Card Issuing signed a strategic partnership with a large regional bank as a new sponsor, and is on track to launch two state-sponsored school choice voucher programs with expected total disbursements exceeding $1 billion * Output Solutions will install a new technologically advanced printer in June 2026 that is 4x faster, lower-cost to operate, and will significantly increase production capacity; a company-wide marketing campaign and new SEO strategy have driven increased new opportunity generation * PostCredit, a new platform that eliminates multiple depository accounts and enables faster, more efficient fund settlement, is on track for market launch in the coming months; all new clients will automatically receive a PostCredit account, with a longer-term goal of rolling out to all existing clients
Guidance
- Management is reiterating its full-year FY2026 guidance, maintaining the target of 10% to 12% total revenue growth - Management expects continued positive adjusted EBITDA for full-year FY2026 - Card issuing revenue is expected to return to full-year growth, with growth potentially starting as early as Q2 FY2026 - Gross margins hit a bottom in Q1 FY2026, and management expects margins to improve to a range of 23% to 25% in the short term, continuing to improve over the remainder of the year - Overhead (SG&A) is expected to remain roughly flat for the remainder of full-year FY2026
Segment performance
UCO achieved record total revenue in Q1 FY2026, growing 16% year-over-year. Performance across product segments is as follows: 1. Payment Acceptance (CARD): Total card segment revenue grew 23% year-over-year to a record $9.7 million. Payback accounts for 78% of total card segment revenue, and Payback has maintained growth above 20% for an extended period. Two large new enterprise accounts contributed meaningful recurring revenue in their first full quarter of processing. 2. ACH and Complementary Services: Revenue grew 25% year-over-year, with record transaction and dollar processing volumes. Pennless debit grew at a rate above 50% year-over-year. Real-time payments (RTP) grew from 2,000 transactions in January 2026 to over 200,000 transactions in April 2026. 3. Output Solutions: Revenue growth accelerated to 19% year-over-year in Q1, up from 8% in the prior quarter. Pieces processed/mailed grew 31% year-over-year, while electronic documents processed/delivered grew 41% year-over-year. The segment added 12 new customer accounts (10 of which generate recurring revenue). 4. Card Issuing (Prepaid): Revenue was down quarter-over-year in Q1, but management expects full-year growth. The segment processed over $80 million in card loads and implemented 27 new scalable accounts in the quarter.
Risks & headwinds
- Gross margins were lower year-over-year in Q1 FY2026, driven primarily by a decline in 100% margin interest income due to lower interest rates, and shifts in product revenue mix - Legacy card issuing portfolio attrition has historically been a drag on card segment growth, though management believes the majority of this drag is now in the past - The company has faced historical challenges with implementation timelines for new client pipeline, though management notes these challenges have recently been resolved
Analyst Q&A
Q: Barry Sine asked for an overview of the sales funnel across business lines, whether any products lead the funnel, and how activation of new PayFac merchants is progressing. /
A: Management reported the sales pipeline is robust and evenly balanced across all business lines. Increased initial inquiries for specific products now regularly lead to cross-selling other UCO products, a dynamic from the UCO1 initiative. Strong PayFac growth drove Q1 card results, from a combination of existing independent sales vendors adding new merchants, new ISVs coming on board, and newly implemented large enterprise accounts that contribute volume immediately. Legacy implementation bottlenecks have been resolved, and management is optimistic for all segments in 2026.
Q: Sine asked how much cross-selling opportunity remains, by asking what share of customers only take one product and what share use all four product lines. /
A: Very few customers currently use all four UCO products. Management has now informed more than 50% of the existing customer base of all UCO offerings, and is running focused surgical cross-selling campaigns by business line (the next campaign will focus on prepaid/card issuing) instead of siloed sales. A recent targeted campaign for Output Solutions to Texas tax assessors generated new proposal opportunities that would have otherwise been delayed.
Q: Sine asked for the margin outlook, noting that higher-margin digital growth at Output and fixed costs should drive margin expansion as revenue grows. /
A: Management confirmed product mix shifts will drive margin improvement: real-time payments have higher margins than pinless debit, so shifting customer volume to RTP will increase overall margins. Electronic documents at Output have near-100% margins, so continued growth in digital will also boost gross margins. Management noted Q1 gross margins were depressed by lost 100% margin interest income, and believes gross margins hit bottom in Q1, expecting a recovery to 23-25% in the short term.
Q: John Hickman asked what gives management confidence that card issuing will return to growth this year, and if the legacy growth drag on the card segment is over. /
A: The large upcoming $1 billion+ school voucher program (partially on cards), a large regional bank strategic partnership launching in Q3, multiple material fintech deals launching by June, and 27 new Q1 accounts all support expected card issuing growth. Management confirmed the majority of legacy card portfolio attrition is now in the past, so Payback's >20% growth will drive overall card segment growth going forward.