Usio Inc's Q2 Earnings Miss Revenue Estimates, Shares Down 29.8% YTD

Usio Inc (USIO) reported a Q2 loss of $0.01 per share, in line with the Zacks Consensus Estimate, and revenue of $19.96 million, missing the estimate by 11.32%. The company has surpassed consensus EPS estimates just once over the last four quarters. Usio shares have added 29.8% since the beginning of the year, but the Zacks Rank #4 (Sell) indicates that the shares are expected to underperform the market in the near future.

Title: Usio Inc Reports Mixed Q2 2025 Financial Results

Usio Inc (USIO), a leading FinTech company, reported mixed financial results for the second quarter of 2025. The company reported a net loss of $0.4 million, or $0.01 per share, in line with the Zacks Consensus Estimate. Revenue for the quarter was $20.0 million, missing the estimate by 11.32%.

Despite the revenue decline, total payment processing volume grew by 15% to $1.94 billion, driven by a 19% increase in ACH volumes and a 144% surge in PINless debit transactions. However, prepaid card services revenues declined by 26%, primarily due to a significant client losing a downstream customer. The company's gross margins expanded by 185 basis points to 25.8%, marking the seventh consecutive quarter of positive Adjusted EBITDA at $0.5 million.

Usio's operating cash flow was $1.1 million, despite over $1 million in non-recurring outlays. The company maintains $7.5 million in cash and continues its share repurchase program, having repurchased $700,000 worth of shares year-to-date. Most concerning is the downward revision to full-year guidance, with revenue growth now expected at 5-12%, attributed to implementation delays with two large national accounts.

While the company reported a net loss, it maintained positive adjusted EBITDA and generated $1.1 million in operating cash flow. Usio continues to invest in growth initiatives while returning capital to shareholders. The company's shares have added 29.8% since the beginning of the year, but the Zacks Rank #4 (Sell) indicates that the shares are expected to underperform the market in the near future.

[1] https://www.stocktitan.net/news/USIO/usio-announces-second-quarter-2025-financial-im09nbqheja3.html