Usio, Inc.

Revenue increased 19% year over year in the second quarter. Gross profit dollars rose 12%, with margins improving sequentially from the first quarter, and adjusted EBITDA was $1.1 million versus the year-ago quarter’s level that management said was less than half that. The company reported positive GAAP net income of $280,000, or $0.01 per share, marking its second consecutive quarter of positive GAAP earnings. For the first half, adjusted EBITDA was $1.9 million, and cash and cash equivalents ended the quarter at $6.4 million. Looking ahead, management raised fiscal 2026 revenue growth guidance to 14% to 16% from 10% to 12% and expects to continue generating positive adjusted EBITDA.

Louis Hoch emphasized that the quarter showed Usio’s strategy is working across multiple channels, with strong growth in ACH, Card, and Output Solutions and improving profitability. He repeatedly pointed to Ion as a major future catalyst, saying it could lift both growth and margins through float, card spend, faster settlement, and broader use across the company’s businesses. His tone was upbeat and confident, but he also stressed disciplined cost control and operating leverage.

Michael White said the company met or beat analyst expectations on both the top and bottom line and delivered its second consecutive quarter of positive GAAP net income. He highlighted revenue up 19%, gross profit dollars up 12%, SG&A down about $190,000 year over year, and adjusted EBITDA of $1.1 million for the quarter and $1.9 million for the first half. He also noted cash and cash equivalents of $6.4 million at quarter-end, share repurchases of $371,000 over six months, and continued investment in Usio Ion development.

Analysts focused on the mechanics behind the improved growth and margins, especially PayFac, gross margin expansion, and the impact of Ion. Management said PayFac’s growth is the result of a multi-year flywheel: adding ISVs, onboarding their merchants over time, and letting merchant counts compound, with PayFac revenue up 43% in the quarter. On margins and interest income, Louis Hoch said Ion should be a major catalyst because float is a key profit driver, while Michael White added that interest income depends on how much customer prefunding balance is on hand; both said Ion should increase funds held and support margin improvement.