Usio Sees 10–12% Revenue Growth, Q1 Card Revenue Hits $9.7M
Usio projects 10–12% revenue growth with positive EBITDA and flat SG&A, expecting prepaid to return to growth from partnerships and a school voucher program distributing up to $1 billion. In Q1, card revenue rose 23% YoY to $9.7 million and Output Solutions volumes jumped 31% for mail and 41% for electronic deliverables.
1. Guidance and Strategic Outlook
Usio forecasts 10–12% full-year revenue growth with positive EBITDA and flat SG&A, expecting prepaid volumes to rebound through new partnerships and a school voucher program distributing up to $1 billion. The sales pipeline spans billions in processing volume across PayFac, card issuing, and output solutions, underpinning confidence for 2026 expansions.
2. Q1 Segment Results
In Q1, card revenue climbed 23% year-over-year to a record $9.7 million driven by rapid PayFac adoption among enterprise and ISV customers. Output Solutions processed and mailed 31% more pieces and delivered 41% more electronic documents, lifting operating income, adjusted EBITDA, and EPS above year-ago levels.
3. Margin Improvement and Cash Strength
Gross margins dipped due to lower interest income but are expected to recover to 23–25% as traffic shifts from pinless to real-time payments and electronic presentments. The company ended the quarter with over $7.7 million in operating cash, up $300,000 since year-end 2025, maintaining financial flexibility.