Note 10 - Segment Reporting

6 Months Ended

Jun. 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. The following is a description of the segments.

Output Solutions

This segment 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 through the acquisition of substantially all of the assets of IMS. 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  June 30, 2025 and 2024:

For the Three Months Ended June 30, 2025	Output Solutions		Merchant Services		Total
Revenues	$	4,685,985	$	15,275,005	$	19,960,990
Cost of services		3,846,854		10,974,067		14,820,921
Gross profit	$	839,131	$	4,300,938	$	5,140,069
Depreciation and amortization	$	235,547	$	229,052	$	464,599
Capital expenditures	$	61,859	$	1,731	$	63,590
Identifiable assets1	$	3,816,153	$	8,046,699	$	11,862,852
For the Three Months Ended June 30, 2024	Output Solutions		Merchant Services		Total
Revenues	$	4,726,015	$	15,353,873	$	20,079,888
Cost of services		3,790,529		11,489,545		15,280,074
Gross profit	$	935,486	$	3,864,328	$	4,799,814
Depreciation and amortization	$	342,050	$	205,799	$	547,849
Capital expenditures	$	—	$	3,464	$	3,464
Identifiable assets1	$	4,408,855	$	8,505,229	$	12,914,084

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 six months ended June 30, 2025 and 2024:

For the Six Months Ended June 30, 2025	Output Solutions		Merchant Services		Total
Revenues	$	10,457,583	$	31,512,457	$	41,970,040
Cost of services		8,372,664		23,648,164		32,020,828
Gross profit	$	2,084,919	$	7,864,293	$	9,949,212
Depreciation and amortization	$	478,175	$	482,194	$	960,369
Capital expenditures	$	61,859	$	12,066	$	73,925
Identifiable assets1	$	3,816,153	$	8,046,699	$	11,862,852
For the Six Months Ended June 30, 2024	Output Solutions		Merchant Services		Total
Revenues	$	10,298,328	$	30,751,946	$	41,050,274
Cost of services		8,355,378		23,041,387		31,396,765
Gross profit	$	1,942,950	$	7,710,559	$	9,653,509
Depreciation and amortization	$	683,051	$	440,952	$	1,124,003
Capital expenditures	$	29,350	$	24,542	$	53,892
Identifiable assets1	$	4,408,855	$	8,505,229	$	12,914,084

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 six months ended June 30, 2025 and 2024:

	Three Months Ended June 30,
	2025			2024
Segment Profit	$	5,140,069		$	4,799,814
Stock-based compensation		(434,255	)		(460,061	)
SG&A		(4,638,185	)		(4,000,845	)
Depreciation and amortization		(464,599	)		(547,849	)
Operating (loss)	$	(396,970	)	$	(208,941	)

	Six Months Ended June 30,
	2025			2024
Segment Profit	$	9,949,212		$	9,653,509
Stock-based compensation		(844,317	)		(959,334	)
SG&A		(8,781,080	)		(8,061,070	)
Depreciation and amortization		(960,369	)		(1,124,003	)
Operating (loss)	$	(636,554	)	$	(490,898	)