• Total Revenue Growth: Up 3% for the quarter, with growth in Card, ACH, and Output Solutions.
• GAAP Net Income: $600,000 or $0.02 per share, including a $1.5 million ERC benefit.
• Total Dollars Processed: Exceeded $1.9 billion in Q4, a 36% increase year-over-year; $7.1 billion for the full year, up 33%.
• Operating Cash Flow: $2.9 million for 2024, with over $900,000 in Q4.
• Cash Position: Over $8 million at year-end, with expectations for further increase.
• Card Processing Volume: Over $1.5 billion for the year, a 10% increase from fiscal 2023.
• PayFac Revenue Growth: Up 29% in the quarter; PayFac volume up 28% for the year.
• ACH Transaction Volume: Up 34% in Q4; electronic check dollars processed up 44%.
• Output Solutions Growth: Electronic documents processed up 86%; total pieces mailed exceeded 5.4 million in Q4.
• Prepaid Card Load Volume: Over $100 million for the sixth consecutive quarter; up 35% for the year.
• Share Repurchase Program: New $4 million authorization approved by the Board.

• Warning! GuruFocus has detected 5 Warning Signs with USIO.

Release Date: March 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Usio Inc (NASDAQ:USIO) reported a 36% increase in total dollars processed in the fourth quarter, reaching over $1.9 billion.
• The company achieved its third consecutive quarter of positive GAAP net income, reporting $600,000 or $0.02 per share.
• Usio Inc (NASDAQ:USIO) generated $2.9 million in operating cash flow for 2024, with $900,000 in the fourth quarter alone.
• The new Usio One initiative aims to integrate all products and services under one brand, enhancing cross-selling opportunities.
• The company has a strong cash position, rising to over $8 million at year-end, and expects further increases in 2025.

Negative Points

• Usio Inc (NASDAQ:USIO) faced the challenge of replacing $12.1 million in annualized revenue lost from an expired COVID incentive program.
• The company's growth is partially dependent on the successful implementation of new ISV programs, which can be delayed.
• Despite positive cash flow, Usio Inc (NASDAQ:USIO) had to use cash for stock repurchases, which could limit other investment opportunities.
• The company is still in the early stages of implementing its Usio One initiative, which may take time to fully realize benefits.
• Usio Inc (NASDAQ:USIO) is cautious about M&A opportunities, indicating potential challenges in finding suitable acquisition targets.

Q & A Highlights

Q: What is the visibility for Usio's growth in 2025, and how should revenue cadence be expected throughout the year? A: Louis Hoch, Chairman and CEO, stated that growth is expected to be back-end loaded as implementations come live. The visibility for 2025 remains positive, with expectations for great growth.

Q: Is Usio relying on a single or a few large customers to achieve the projected 14% to 16% growth? A: Louis Hoch confirmed that the growth is widespread and not reliant on a single or a few large customers.

Q: How is Usio prioritizing share repurchases versus reinvestment in the business or potential M&A? A: Louis Hoch explained that Usio is authorized to repurchase up to $4 million in shares, and they will make purchases if market conditions allow. The company is also open to M&A opportunities but remains selective in acquisitions.

Q: Are there any changes in sales conversations with local or state governments due to the change in federal administration? A: Greg Carter, Executive Vice President of Payment Acceptance, noted that while the PayFac side is not affected, there might be potential opportunities in the disbursement space, although nothing specific can be commented on at this time.

Q: What are the key initiatives under the new Usio One strategy? A: Louis Hoch highlighted that Usio One will integrate all products and services under one brand, enhancing cross-selling opportunities and improving client onboarding with a universal application. The initiative also includes AI adoption for fraud protection and marketing efficiency.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.