Usio Records Record Revenues and Transactions in Q4 2025, Sets Stage for Growth in 2026
The company announced a solid quarter in line with its commitment to shareholders to deliver a stronger second half of the year. Revenues were up both sequentially and on a year-over-year basis, with record growth accelerating to 8% in the fourth quarter.
This led to a 3% increase in revenue for the year, but excluding revenue associated with interest, revenues from products and services were up 4%. The company set a record for total dollars processed in the year, which were up 19%, and transactions processed were up 30%.
As has been the case over the course of the year, revenue growth for the quarter was led by the company's ACH and card businesses. ACH was once again the fastest-growing segment, with revenue increasing more than 30% for both the quarter and the full year, driven by new client implementations and strong growth in pinless debit.
The company's Output Solutions finished the year with strong momentum, with pieces mailed up 11% and electronic documents processed up 18% in the fourth quarter. This led to a 6% increase in revenues for the quarter, so that revenues ended up flat for the year.
Although Card Issuing revenues were down in the quarter, they improved relative to the third quarter. Card Issuing also continues to improve its profitability. Weakness in Card Issuing in 2025 was almost exclusively attributable to the indirect acquisition of a reseller's amusement park card program.
The company's CEO noted that "the majority of the revenue in the quarter was generated from ongoing programs, with the primary exception being certain Card Issuing programs with governmental entities." No single client accounted for more than 10% of total revenue, reflecting the diversified nature of its customer base.
From an account perspective, attrition remained very minimal. Operating cash flow for the year was $1.5 million. These proceeds were used over the past year to invest in expanding both tangible and intangible fixed assets, as well as for over $1.1 million in share repurchases.
The company also delivered another year of positive adjusted EBITDA and has now reported positive adjusted EBITDA for three consecutive years. Its guidance contemplates positive adjusted EBITDA in fiscal 2026 as well.
Looking ahead to 2026, the company believes it is the year to take another big step forward with new initiatives to increase its share of customers' wallets, build a portfolio of recurring revenues, and introduce new products and services that only improve on the affinity it already enjoys with all of its clients. This is a strategy that builds value.
