Usio, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, Usio generated revenues of $21.3 million, a 2% increase from $21.0 million in the same period of 2023. However, for the nine months ended September 30, 2024, total revenue decreased to $62.4 million from $63.9 million in the prior year.
The revenue growth in Q3 was primarily driven by a 22% increase in ACH and complementary services, which reached $4.3 million, up from $3.5 million in Q3 2023. Conversely, revenue from prepaid card services declined by 14% to $4.0 million, down from $4.7 million in the prior year. For the nine-month period, ACH and complementary services revenue increased by 10%, while prepaid card services revenue fell by 25%.
Gross profit for the third quarter rose to $4.9 million, a 5% increase from $4.7 million in Q3 2023, resulting in a gross profit margin of 23.0%, up from 22.2%. However, gross profit for the nine months decreased slightly to $14.5 million from $14.8 million. Operating losses narrowed in Q3 to $(376,650) from $(750,289) in the prior year, but increased for the nine months to $(867,548) from $(443,576).
Net income for the third quarter was $2.9 million, a significant turnaround from a net loss of $0.7 million in Q3 2023. For the nine months, net income was $2.7 million compared to a net loss of $0.5 million in the same period last year. Basic and diluted earnings per share for Q3 2024 were $0.10, compared to a loss of $0.03 in Q3 2023.
Usio's cash and cash equivalents increased to $8.4 million as of September 30, 2024, from $7.2 million at the end of 2023. However, net cash used in operating activities for the nine months was $(7.6 million), a stark contrast to net cash provided of $41.5 million in the same period of 2023. The company also reported a significant increase in settlement processing assets, which rose to $59.5 million from $44.9 million at the end of 2023.
Strategically, Usio has focused on technological adaptation and has pursued acquisitions to enhance its service offerings, successfully integrating companies like Akimbo Financial and Singular Payments. The company continues to adapt to changes in the payments ecosystem, aiming to meet evolving customer needs.
About Usio, Inc.
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