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Note 10 - Segment Reporting
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 10. Segment Reporting

 

Usio's reportable operating segments are "Output Solutions" and "Merchant Services" and these segments have been selected based on management’s resource allocation and performance assessment in making decisions regarding the Company. Our chief operating decision maker ("CODM") is the Company’s chief executive officer. The CODM has ultimate authority and responsibility over resource allocation decisions and performance assessment.

 

Segment gross profit is the measure of segment profit and loss reviewed by the CODM and is used by the CODM to evaluate segment performance and make decisions about funding our operations and allocating resources.

 

The following is a description of the segments.

 

Output Solutions

 

This segment, which was created in connection with the acquisition of substantially all of the assets of IMS, offers electronic bill presentment, document composition, document decomposition and printing and mailing services serving hundreds of customers representing a wide range of industry verticals, including utilities and financial institutions. Output Solutions, provides an outsourced solution for document design, print, and electronic delivery to potential customers and entities looking to reduce postage costs and increase efficiencies.

 

Merchant Services

 

This segment offers integrated electronic payment processing services to merchants and businesses, including credit and debit card-based processing services and electronic funds transfer via the ACH network. Additionally, as part of our Prepaid card-based processing services, we develop and manage a variety of Mastercard-branded prepaid card program types, including consumer reloadable, consumer gift, incentive, promotional, general and government disbursement and corporate expense cards.

 

The following tables set forth certain financial information with respect to Usio’s reportable segments for the three months ended  September 30, 2025 and 2024:

 

For the Three Months Ended September 30, 2025

 

Output Solutions

  

Merchant Services

  

Total

 
             

Revenues

 $4,889,747  $16,290,586  $21,180,333 

Cost of services

            

Processing expense

  —   12,303,940   12,303,940 

Services expense

  612,439   —   612,439 

Postage expense

  3,393,935   —   3,393,935 

Cost of services

  4,006,374   12,303,940   16,310,314 

Gross profit

 $883,373  $3,986,646  $4,870,019 
             

Depreciation and amortization

 $234,723  $198,123  $432,846 

Capital expenditures

 $22,839  $195,823  $218,662 

Identifiable assets1

 $3,833,520  $8,107,829  $11,941,349 
             
             

For the Three Months Ended September 30, 2024

 

Output Solutions

  

Merchant Services

  

Total

 
             

Revenues

 $5,293,777  $16,027,701  $21,321,478 

Cost of services

            

Processing expense

  —   12,374,709   12,374,709 

Services expense

  807,561   —   807,561 

Postage expense

  3,243,051   —   3,243,051 

Cost of services

  4,050,612   12,374,709   16,425,321 

Gross profit

 $1,243,165  $3,652,992  $4,896,157 
             

Depreciation and amortization

 $348,083  $235,635  $583,718 

Capital expenditures

 $—  $68,497  $68,497 

Identifiable assets1

 $5,114,484  $6,959,293  $12,073,777 

 

Note to tables:

 

(1)

Identifiable assets is calculated by summing the balances of accounts receivable, net; inventory; property and equipment, net; operating lease right-of-use lease assets; and intangibles, net.

 

The following tables set forth certain financial information with respect to Usio’s reportable segments for the nine months ended September 30, 2025 and 2024:

 

For the Nine Months Ended September 30, 2025

 

Output Solutions

  

Merchant Services

  

Total

 
             

Revenues

 $15,347,330  $47,803,043  $63,150,373 

Cost of services

            

Processing expense

  —   35,934,993   35,934,993 

Services expense

  1,868,827   —   1,868,827 

Postage expense

  10,527,322   —   10,527,322 

Cost of services

  12,396,149   35,934,993   48,331,142 

Gross profit

 $2,951,181  $11,868,050  $14,819,231 
             

Depreciation and amortization

 $712,897  $680,318  $1,393,215 

Capital expenditures

 $84,698  $207,892  $292,590 

Identifiable assets1

 $3,833,520  $8,107,829  $11,941,349 
             
             

For the Nine Months Ended September 30, 2024

 

Output Solutions

  

Merchant Services

  

Total

 
             

Revenues

 $15,592,105  $46,779,647  $62,371,752 

Cost of services

            

Processing expense

  —   35,413,986   35,413,986 

Services expense

  2,895,179   —   2,895,179 

Postage expense

  9,512,921   —   9,512,921 

Cost of services

  12,408,100   35,413,986   47,822,086 

Gross profit

 $3,184,005  $11,365,661  $14,549,666 
             

Depreciation and amortization

 $1,031,134  $676,587  $1,707,721 

Capital expenditures

 $21,515  $100,874  $122,389 

Identifiable assets1

 $5,114,484  $6,959,293  $12,073,777 

 

Note to tables:

 

(1)

Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; net right-of-use lease assets; and intangibles.

 

The following table reconciles segment profit reported above to the loss from operations reported in the condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024:

 

  

Three Months Ended September 30,

 
  

2025

  

2024

 

Segment Profit

 $4,870,019  $4,896,157 

Stock-based compensation

  (399,582)  (569,772)

SG&A

  (4,501,762)  (4,119,317)

Depreciation and amortization

  (432,846)  (583,718)

Operating (loss)

 $(464,171) $(376,650)

 

 

  

Nine Months Ended September 30,

 
  

2025

  

2024

 

Segment Profit

 $14,819,231  $14,549,666 

Stock-based compensation

  (1,243,899)  (1,529,105)

SG&A

  (13,282,842)  (12,180,387)

Depreciation and amortization

  (1,393,215)  (1,707,721)

Operating (loss)

 $(1,100,725) $(867,547)