| 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
The Output Solutions 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
The Merchant Services 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, 2026 and 2025:
| For the Three Months Ended June 30, 2026 | | Output Solutions | | | Merchant Services | | | Total | |
| | | | | | | | | | | | | |
| Revenues | | $ | 5,716,029 | | | $ | 17,962,607 | | | $ | 23,678,636 | |
| Cost of services | | | | | | | | | | | | |
| Processing expense | | | — | | | | 13,335,991 | | | | 13,335,991 | |
| Services expense | | | 783,939 | | | | — | | | | 783,939 | |
| Postage expense | | | 3,832,719 | | | | — | | | | 3,832,719 | |
| Cost of services | | | 4,616,658 | | | | 13,335,991 | | | | 17,952,649 | |
| Gross profit | | $ | 1,099,371 | | | $ | 4,626,616 | | | $ | 5,725,987 | |
| | | | | | | | | | | | | |
| Depreciation and amortization | | $ | 36,789 | | | $ | 249,229 | | | $ | 286,018 | |
| Capital expenditures | | $ | 38,607 | | | $ | 95,445 | | | $ | 134,052 | |
| Identifiable assets1 | | $ | 4,742,853 | | | $ | 10,024,618 | | | $ | 14,767,471 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| 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 | | | | | | | | | | | | |
| Processing expense | | | — | | | | 10,974,067 | | | | 10,974,067 | |
| Services expense | | | 567,727 | | | | — | | | | 567,727 | |
| Postage expense | | | 3,279,127 | | | | — | | | | 3,279,127 | |
| 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 | |
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, 2026 and 2025:
| For the Six Months Ended June 30, 2026 | | Output Solutions | | | Merchant Services | | | Total | |
| | | | | | | | | | | | | |
| Revenues | | $ | 12,564,982 | | | $ | 36,579,428 | | | $ | 49,144,410 | |
| Cost of services | | | | | | | | | | | | |
| Processing expense | | | — | | | | 28,074,400 | | | | 28,074,400 | |
| Services expense | | | 1,542,154 | | | | — | | | | 1,542,154 | |
| Postage expense | | | 8,664,986 | | | | — | | | | 8,664,986 | |
| Cost of services | | | 10,207,140 | | | | 28,074,400 | | | | 38,281,540 | |
| Gross profit | | $ | 2,357,842 | | | $ | 8,505,028 | | | $ | 10,862,870 | |
| | | | | | | | | | | | | |
| Depreciation and amortization | | $ | 45,452 | | | $ | 466,311 | | | $ | 511,763 | |
| Capital expenditures | | $ | 386,591 | | | $ | 145,533 | | | $ | 532,124 | |
| Identifiable assets1 | | $ | 4,742,853 | | | $ | 10,024,618 | | | $ | 14,767,471 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| 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 | | | | | | | | | | | | |
| Processing expense | | | — | | | | 23,648,164 | | | | 23,648,164 | |
| Services expense | | | 1,699,602 | | | | — | | | | 1,699,602 | |
| Postage expense | | | 6,673,062 | | | | — | | | | 6,673,062 | |
| 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 | |
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 reconcile total gross profit reported above to the income (loss) from operations reported in the consolidated statements of operations for the three and six months ended June 30, 2026 and 2025:
| | | Three Months Ended June 30, | |
| | | 2026 | | | 2025 | |
| Total Gross Profit | | $ | 5,725,987 | | | $ | 5,140,069 | |
| Stock-based compensation | | | (482,508 | ) | | | (434,255 | ) |
| SG&A | | | (4,580,548 | ) | | | (4,638,185 | ) |
| Depreciation and amortization | | | (286,018 | ) | | | (464,599 | ) |
| Operating income (loss) | | $ | 376,913 | | | $ | (396,970 | ) |
| | | Six Months Ended June 30, | |
| | | 2026 | | | 2025 | |
| Total Gross Profit | | $ | 10,862,870 | | | $ | 9,949,212 | |
| Stock-based compensation | | | (811,792 | ) | | | (844,317 | ) |
| SG&A | | | (8,936,690 | ) | | | (8,781,080 | ) |
| Depreciation and amortization | | | (511,763 | ) | | | (960,369 | ) |
| Operating income (loss) | | $ | 602,625 | | | $ | (636,554 | ) |
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