Usio, Inc. Common Stock Planet MicroCap Showcase: Toronto 2026

Mm-hmm. Hi. I'm Louis Hoak, and I'm the CEO of Usio.

Usio is traded on a NASDAQ under symbol USIO. We're a fintech payment processor, and our tech stack allows for every payment channel. It's very important. It's a distinction between us and a lot of people in the payments industry. We believe it's very important for consumers to be able to choose how they want to pay or get paid, and same for the merchants, how they want to accept payments from the consumers or other businesses. So we support all payment channels, including legacy payment channels like checks. We actually printed 8 million checks last year, US government printed 24 million. We printed 8. 8 million and we have the latest and greatest in payment channels, including FedNow, the Clearinghouse, the Clearinghouse is what Zelle is run on. We do quite a bit of penless debit, which is how Venmo works. It's debit card to debit card without a PIN. We have four operating divisions of our company. With the first being payment facilitation, has very unique go-to-market strategy. ACH is direct debits, and credits off your check and your savings account. And we'll talk more detail about each one of these.

Card issuing, we're a card issuer program manager processor. We issue cards for many different use cases. And then we have our division output solutions that does traditional print and mail, but it's only first-class mail. It's statements, invoicing, primarily for financial institutions and utilities and cities and counties, taxing authorities. Output solutions also does a lot of electronic document delivery, so when you click on your statement at a bank or utility it's likely us. We have the who's who of clients. Including companies like Verizon, T-Mobile, top four drug companies in the United States, we provide clinical trial cards for. We have 200 cities in the United States that we do processing for, including 7 out of the top 10 in the United States are our customers. City of New York and LA County big ones, Miami, so PayFac is card processing. It's credit and debit card processing. And we have unique technology that we is very valuable to software integrated software vendors. So on a daily basis, we're not spending our time trying to sell to individual merchants. We sell to integrated software vendors. So we make one sell and we get access to thousands of downstream merchants.

One of our customers or ISVs that we like to talk about is a company called Practice Suite. And Practice Suite writes software that controls all the functions of a doctor's office. Including all the medical aspects, employee management, and then, of course, it has a section that's collections and billing. So they've chosen to partner with us and integrate and embed our payments so that they can control the workflow and branding that best fits their customer base. And PayFac, we share revenue with the software companies. So we've become a meaningful source of new income for these software companies and the integration and the revenue sharing makes these relationships very, very sticky and hard to uncouple. You'll see a lot of these slides when we talk through our divisions. Card issuing, I mean, PayFac is doing really well. And a lot of our operating metrics are up. And so ACH processing, again, this is credit and debit off your check and your savings account. ACH is we have tremendous amount of volume in ACH. So much so that if we were a bank, we'd be the 50th largest bank in the United States, based upon our volume that we process through the Federal Reserve in a given year.

We kind of pre-announced for Q3 what our metrics were for ACH. And you'll see that on the next slide. But ACH, our highest margin business, 70% gross margin, continues to grow. And it's been every quarter has been the new record high for us for the last six quarters. This chart you're seeing here is six months' worth of data. And you can see that it's growing 34% year over year. The metrics that we pre-announced this last quarter, Q3, which we'll be announcing the financials in November 10th or 11th. 10th. You'll see ACH in there has grown 30%, 39% year over year. The dollars associated with those transactions grew 26%. In return checks, those are NSFs, account closed, they're higher revenue transactions for us. Those grew at 44%. So we're really excited about the growth that we're continuing to see all year. And it's been very exciting year for us. So we're going to let Michael White, our Chief Accounting Officer, take over from here.

So I'm Michael White. Like Louis said, our Chief Accounting Officer. I'm going to talk about the remaining business lines and our financials also. So card issuing, this is where we issue prepaid MasterCards. We partner with MasterCard. We primarily issue cards for government and nonprofit. Entities. You can see here over the past several quarters, we've had some tough comps. But we're really positioning ourselves to rebound. For the first half of the year, transactions purchases on our cards were up 9% over 2025. In previous 2024, going into 2025, we had we lost a customer through a reseller. It wasn't a direct customer to us, but it was a customer of one of our customers. But as you can see, our volume is improving. And we're really excited about this business line. In the next slide, you'll see some of our exciting opportunities that we have. But here, we're earning funds on earning revenue on interchange, wherever a card is swiped, whether that's at an ATM or a store. And we have some cool technology that's allowing us to bring this product to things like state school vouchers in the United States. We process for 37 states. It's essentially school choice programs where parents can choose which school their kids go to.

It's not determined just by where they live. So we're currently processing through a partner, 37 states. In the past 12 months, that was 1.3 billion dollars that we disbursed for states in the United States. Five of those were active card programs. And so in the rest, we're ACH. We're excited. Obviously, about any of these programs, but especially the card programs, because when the funds are going onto cards, we're earning higher revenue through interchange. So the 1.3 billion, over 37 states, we're super excited about. That's recurring. So as these programs continue to grow, we're excited as these larger state opportunities continue. There's one additional state, not included, and what we processed in the last 12 months that alone is 1 billion dollars. And just to kind of put into scale, how big these deals are, in 2025 alone, Usio processed just over 8 billion in total payments across all of our products. So as we're continue to onboard some of these larger deals, the it's substantial growth. Additionally, in the education space, we're partnering with universities to do their Title IV refunds, which in the United States is essentially refunds back to the students through federal funds like could be like a federal loan that covers both housing and tuition.

And some of that fund those funds need to go back to the student. And the way we're able to kind of win these deals is through a technology that we call consumer choice. And that allows the end user, whether it's a student or it's a citizen receiving funds from a state government, it allows the end consumer to choose how they receive their funds. So essentially, they get a notification that funds are available to them. And then as Louis mentioned, we have every payment option so they can choose to get a virtual card to their digital wallet, a physical card mailed to them, a check mailed to them, an ACH to their bank account, a real-time payment. So essentially, it reduces any barriers that, say, a state or a university would have to disburse funds to who they need to get it to. We currently have one university live, with 23 in the pipeline. Again, this is also through a partner that we're working with, but we're excited to see both of these opportunities grow. Next, we'll talk about output solutions. Output solutions is our print and mail division. We acquired this business in 2020. And it's really been a great complementary services to the payment services that we already provide.

As Louis mentioned, we primarily sell this to financial institutions. So we're printing bank statements, recurring statements, also to industries like utilities, where recurring monthly invoices and with that, we're able to sell payments as well. So on that invoice, there's typically a QR code. That takes you directly to the payment page, which we're processing. Another use case here is for cities and counties. Toll roads also, we process for some of the largest toll roads in the United States. Los Angeles County is another great example. We're sending statements for their tickets and fees and fines, and then also processing those payments. You can see year over year, great growth here. 36% growth in the first half for printed and mailed and 45% in electronic document delivery. So in early 2025, we launched what started as an internal initiative called Usio One. And that was really to bring these four business lines all together. So historically, whether a lot of these businesses were acquired and so they kind of ran separately, so we took the initiative to bring everything under one roof, one consolidated sales organization, one customer support organization, one background, one operating platform, and then also took the initiative to cross-sell all of our products.

And really, the goal was to increase revenue through cross-selling, but also take advantage of the operating leverage that we knew we had. Los Angeles County is a great success story of the Usio One initiative. They actually came to us as a disbursement customer. They wanted to disburse funds to their citizens. And then through that relationship, we were able to sell our output solutions and payment processing. So this is just one of many successes that we've had through Usio One. And as we get further along and we talk about the financials, you'll also see the operating leverage that has been attained through this initiative. We're really excited about two catalysts. In the next year, it really is a game changer for Usio. One being Usio Ion. Usio Ion is a business banking platform. We acquired the software in November of last year. Are currently have four beta customers on the program. But essentially, it's a single platform that sits on top of all of Usio products. And we're really taking the square and stripe model and how we settle funds historically, if you're a merchant processing with Usio, we're settling your funds to your outside bank account.

With Ion, all funds will be settled into your Usio wallet from there. You'll have instant access to all of our products. There's also some operating programs in there, like expense report management, accounts payable management. And we expect really some of our customers to use Usio Ion as their operating account. But more importantly, for Usio, this is a game changer really in terms of interest income. At any given time right now, we have between 80 and 100 million dollars in our bank accounts that belongs to our customers. That's in some stage of the settlement process. We do earn interest on that. And it's become a core piece of our business model. So like I said, anytime right now, 80 to 100 million, we believe there's additional 300 to 500 million dollars of deposits available to us with a full launch of Ion. And so that interest revenue goes straight to the bottom line, essentially, and so is a is a huge driver to improving and increasing our profitability. The second catalyst that we're super excited about, we actually launched earlier this month, is our partnership with Harris Computer. Harris is a is a subsidiary of Constellation Software, a Canadian company.

And they primarily service utilities and government agencies. And so Harris Computer has selected Usio as a preferred payments provider. And so essentially, opens up opportunity for Usio to process for up to 70,000 utility customers that Harris currently services. Why this is such a massive opportunity for Usio is just an example we're based in San Antonio, Texas. The utility in San Antonio is run by the software they use is Harris. They process over a billion in payments a year. As I mentioned earlier, that's just one of these 70,000. Last year, Usio processed 8 billion in total. So it's a huge needle mover in the scale of what Usio will process. And this relationship obviously payments, but also print and mail for statements. We're super excited about this. Utilities, can be slow and their adaptation of change and new software and that kind of thing. So we're we're aware that this type of implementation can take some time, but we're really excited about this. Here's a little slide on our revenue by business line for the first half of 2026. We reported 49.1 million in revenue. That was 17% growth over last year. You can see by business line, we reported growth in all business lines except for card issuing.

But like I had mentioned, there's some programs that we're really excited about for that business line as well. Here's a quick highlight slide on our financials. Like I mentioned, 17% growth in revenue over the first half. Adjusted EBITDA we saw 65% swing. Positive net income for the first half of the year, a million dollars swing there. And then net reporting EPS. 3 cent improvement over the first half of last year. Our balance sheet is super clean. We have as of June 6.4 million dollars in cash. You can see here, it's a snapshot in time, but as of June 30th, we had 93.7 million in settlement related funds that we earn interest on. Small amount of it's a bank loan for equipment at output solutions. And so we're really excited for the remainder of the year, but also just the rest the next, say, 18 to 24 months. We started the year with a 10 to 12% revenue growth guidance after Q2. We raised the 14 to 16%. We continue to be conservative in that guidance. As you saw for the first half of the year, we reported 17% growth. But we're really we're really focused on continued improving our profits, improving our adjusted EBITDA, and through that, we're able to do that through our improved operating leverage, the Usio One initiative, as we continue to add these larger deals, these larger clients, whether it's a state or a Harris utilities through Harris Computers.

We've built the product. We have the technology. And we're able to continue to grow without having to add any substantial SG&A. So like I said, we're excited about the rest of the year. We're positioned to execute. And I think at this point, we're going to open up to questions for the last five minutes. Yes, sir. Well, maybe you could talk a little about I'm sorry.