v3.26.1
Note 10 - Segment Reporting
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [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  March 31, 2026 and 2025:

 

For the Three Months Ended March 31, 2026

 

Output Solutions

  

Merchant Services

  

Total

 
             

Revenues

 $6,848,953  $18,616,821  $25,465,774 

Cost of services

            

Processing expense

  —   14,738,409   14,738,409 

Services expense

  758,215   —   758,215 

Postage expense

  4,832,267   —   4,832,267 

Cost of services

  5,590,482   14,738,409   20,328,891 

Gross profit

 $1,258,471  $3,878,412  $5,136,883 
             

Depreciation and amortization

 $8,663  $217,082  $225,745 

Capital expenditures

 $347,984  $50,089  $398,073 

Identifiable assets1

 $4,805,488  $9,085,699  $13,891,187 
             
             

For the Three Months Ended March 31, 2025

 

Output Solutions

  

Merchant Services

  

Total

 
             

Revenues

 $5,771,598  $16,237,452  $22,009,050 

Cost of services

            

Processing expense

  —   12,674,097   12,674,097 

Services expense

  671,550   —   671,550 

Postage expense

  3,854,260   —   3,854,260 

Cost of services

  4,525,810   12,674,097   17,199,907 

Gross profit

 $1,245,788  $3,563,355  $4,809,143 
             

Depreciation and amortization

 $242,628  $253,142  $495,770 

Capital expenditures

 $—  $19,176  $19,176 

Identifiable assets1

 $4,263,797  $7,432,652  $11,696,449 

 

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 table reconciles segment profit reported above to the loss from operations reported in the consolidated statements of operations for the three months ended March 31, 2026 and 2025:

 

  

Three Months Ended March 31,

 
  

2026

  

2025

 

Segment Profit

 $5,136,883  $4,809,143 

Stock-based compensation

  (329,284)  (410,062)

SG&A

  (4,356,142)  (4,142,895)

Depreciation and amortization

  (225,745)  (495,770)

Operating income (loss)

 $225,712  $(239,584)