Usio, Inc. Common Stock Lytham Partners 2026 Consumer & Technology Investor Summit

Hello, everyone, and welcome to the Usio Fireside Chat. My name is Robert Blum, managing partner here at Lytham Partners, and up next here, I will be moderating a Q&A discussion with Michael White, Chief Accounting Officer at Usio. Quick reminder, Usio trades on the ticker symbol USIO on the Nasdaq. All right, let's get started.

Michael, welcome. Appreciate it. Excited to be here.

Thank you, Robert. Fantastic. For investors new to Usio, could you provide an overview of the company, how it makes money, and how your experience at Usio has shaped your perspective on the business?

Absolutely. For investors who are new to Usio, we are a payments technology company with really three core businesses. The first is our acquiring business, which helps businesses accept and move money. That includes ACH, real-time payment options, and PayFac, which allows software companies, integrated software vendors, to embed payments directly into their applications. As those software platforms grow, we grow with them. Second is our Card Issuing business, where we issue prepaid Mastercard that help businesses, nonprofits, government entities disperse funds quickly, securely, and efficiently. Third is our Output Solutions, which provides both physical and electronic document presentment and delivery. Across these businesses, our revenue is driven by activity, and depending on the product, we earn either a fee per transaction, a percentage of dollars processed, or for Output Solutions, fees based on the communications we deliver.

I have been at Usio for around six years, and what has really shaped my perspective is seeing how payment preferences continue to evolve, whether it is ACH, cards, pinless debit, or real-time payments. Our strategy has always been to provide all payment methods and support our customers by providing which option best fits the needs and also continuing to innovate as the market evolves.

On that point there, the company evolved from a traditional payment processor into this broader payments and financial technology platform. How should investors think about that evolution and as it relates to the company's longer-term vision?

Yeah. So like you said, we have gone from offering really individual payment products to building a full set of integrated payments into one single platform. That evolution has really been driven by customer demand. Our customers want one partner who can support multiple, really all payment types rather than managing a patchwork of providers. Our long-term vision is to continue expanding the platform so that customers can access more payment capabilities through our single platform. That really creates a better customer experience, opens more opportunities to deepen the relationships that we have with our customers, and builds a more scalable business over time. Because really ultimately, we want to continue to be the trusted payments infrastructure that our customers rely on as they grow and the payment landscape continues to evolve.

Maybe walk us through the economics of a typical customer relationship, how you generate the revenues. You talked a little bit about that. What really drives the value of the relationship over time with customers?

Yeah. One thing that's cool about our model is that we see that often our customer relationships become even more valuable over time. A customer might start with one solution, and as their needs evolve, we have the opportunity to support them across different Usio solutions. From a revenue standpoint, our business, like I said, is activity-driven. In payments, that's a per transaction fee or a percentage of dollars processed. For context, last year we processed $8.4 billion in payments across 61 million transactions. Depending on the product, like I said, we're charging either a fee per transaction or a percent of the dollars processed. In Output Solutions, it's based on the volume of communication. In 2025, we physically mailed 25 and a half statements, invoices, paper documents, and 88 million electronic documents. All of that activity contributed to us generating $85.5 million in revenue.

What's really driving that is from day one on the customer side, we aim to be a strategic partner. Because as our customer grows, we're growing with them. That alignment, their success being tied to our success, is one of the powerful aspects of the model that keeps these customer relationships very sticky and that's a powerful part of our model.

Let's dive a little bit deeper into some of the items that you mentioned there. Let's start with Usio One, the Usio One strategy. How does it improve that customer experience while also supporting the cross-selling, the retention, and really the operating leverage?

Yeah. For those who are new, UCO ONE was an initiative we launched about a year ago, a little more than a year ago. It's about presenting Usio as a unified platform to our customers. It allows us to go to market with a more coordinated way and provide customers with a consistent experience across our product set. That approach has really already created meaningful cross-selling opportunities, as you mentioned. For example, one of our larger Card Issuing customers has since become one of our larger ACH customers, and that's exactly what this strategy has designed to do, deepen those relationships as our customer needs evolve. Internally, the strategy is helping us drive deeper efficiency by reducing duplication, better leveraging our existing resources. Essentially, we're improving both the way we serve customers, but also as we operate as a business.

PayFac, I want to maybe touch on that here for a moment. We haven't touched on it much, but it's sort of become an important growth engine. What makes that model attractive to software companies and why is it strategically important here to the company?

Yeah. For software companies, PayFac essentially turns payments from a call center into a monetized feature. Instead of an integrated software vendor sending their payments elsewhere, we help them embed payments directly into their software, and then we also share in the transaction economics. This creates a new recurring revenue stream for them, the ISV, while also improving the experience for their customers. For us, we provide the payment infrastructure underneath that experience, whatever software they're providing, and that creates long-term relationships and transaction growth that's directly tied to our customer success.