A few quotes from yday’s $USIO LD Micro presentation that dissect the full thesis: 1. ACH tailwinds and the growth flywheel “Q3 for our ACH division set all-time records for us in volume. That is something really to say because we do a huge amount of volume in ACH. For us to grow that much, it is growing off a big number. Last quarter, third quarter, was the best ever, which beat the previous best, which was Q2 of this year. Q2 beat the previous best, which was Q1. I guess you’re kind of getting the story. The last six quarters have all record volumes for ACH. All-time records. Really excited about seeing that trend continue, but not only continue, continue in a big way for the third quarter.” In fact, each business line is growing fast, even exponentially, w/ the exception of card issuing that has some meaningful programs launching soon. 2. Operating leverage “We are really excited about the operating leverage that we are seeing... As we are making those new sales and our existing customer base is growing, we are not having to add incremental expenses, hire new people. We have the technology. You can see that those results are showing… Our tech stack is built. We just continue to evolve it. We do not really need to add SG&A to continue to add all this volume that we are doing. We might add some customer service positions because we have more accounts to support. That is not a huge SG&A hit.” 3. Catalyst #1: School voucher programs “We currently, through a partner, process 37 state school voucher programs. In the past 12 months, that equates to $1.3 billion in payments. The great thing about these programs is they are recurring. Of those 37 states, five are active card programs… There is one additional state that is over a billion dollars that is in implementation, so really excited about this. Like I said, it is recurring payments. Just to give you an idea of the scale of a billion-dollar state, last year, Usio processed around $8 billion payments total. Therefore, the volume of these deals is significant.” 4. Catalyst #2: Usio Ion “At any given time, we have between 80 and 100 million dollars of funds in our ecosystem. We believe that with Ion, there is access to another 300 million dollars in deposits. Why that is meaningful to us is when those funds are in our ecosystem, we are earning interest on that… It is a game changer for Usio as we increase our float, and that revenue goes straight to the bottom line.” At the fed funds rate, that equates to $11-12M in 100% margin inflows. The CEO was even more optimistic later in the presentation: “You know, we have today, every day, $80 million to $100 million that we’re earning interest off, that’s not our money. All of a sudden, that goes to $500 million. That is a new payment stream for us, income stream. It is 100% margin, so that will increase our margins quite a bit.” 5. Catalyst #3: Harris Computer “Just a couple weeks ago, we announced a very exciting partnership with Harris Computer. Harris Computer is a massive organization under Constellation Software, which is a $60 billion company out of Canada. Harris Computer provides operating platforms for utilities and government entities. We partnered with Harris to be their preferred payments provider… This really is exciting for us. As you know, a single utility in San Antonio, for example, processes over a billion dollars in payments a year. When we are talking about the scale, it kind of blows what Usio in its current state out of the water. We are really excited about this.” 6. Catalyst #4: Guidance raise “Looking forward, our guidance for the remainder of the year, which we raised after releasing Q2, is 14% to 16% revenue growth. We started the year with a 10% to 12% revenue growth. As you can see, the first half was at 17%. We remain conservative in our guidance and will continue to evaluate that as the remainder of the year progresses.” The only chance to raise guidance is on Nov 10. Save the date.