Education
About Us
Working with TipRanks
Follow Us
Usio Inc (USIO)
NASDAQ:USIO
Top Page
Usio
(NASDAQ:USIO)
Rating:67Neutral
Price Target:
$1.50
▲( 6.38% Upside)
Positive Factors
Financial Performance
The company reaffirmed its current 14.0% to 16.0% revenue growth guidance for 2025, which would represent a meaningful acceleration in growth following flat revenue in 2024.
Market Valuation
Shares currently trade at a very low EV/revenue multiple of 0.4x using the 2025 revenue estimate, with a price target equating to a 2025 EV/revenue multiple of 1.7x vs. the average 2.2x of relevant payment company peers.
Strategic Initiatives
Usio's new One Usio marketing strategy integrates all of its products into its marketing efforts, which could drive growth.
Negative Factors
Customer Loss
Shares of Usio, Inc. declined 12.2% in trading following a release that the business had lost a large ERP ISV customer to a business sale.
Financial Results
USIO’s Q4/24 financial results came in at less than expectations with sales of $20.6 million and adjusted EBITDA of $517,084.
Implementation Delays
4Q24 results missed consensus on revenue due to delays in the implementation of a PayFac mega-deal.
Usio (USIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$37.78M
Dividend YieldN/A
Average Volume (3M)65.69K
Price to Earnings (P/E)11.7
Beta (1Y)0.21
Revenue Growth3.07%
EPS GrowthN/A
CountryUS
Employees107
SectorTechnology
Sector Strength77
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding26,605,906
10 Day Avg. Volume92,108
30 Day Avg. Volume65,687
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)2.03
Price to Sales (P/S)0.00
P/FCF Ratio6.50
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit1.73
Enterprise Value/Ebitda4.26
Forecast
1Y Price Target
$5.00Price Target Upside254.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Usio Business Overview & Revenue Model
Company DescriptionUsio, Inc. is a technology-driven payment solutions provider headquartered in the United States. The company operates primarily in the electronic payment processing industry, offering a suite of services including payment facilitation, payment processing, and card issuance. Usio serves a diverse range of sectors, including retail, healthcare, utilities, and non-profit organizations, providing them with tailored solutions to manage transactions efficiently and securely.
How the Company Makes MoneyUsio generates revenue through a multi-faceted business model centered around transaction fees, subscription services, and value-added services. Key revenue streams include payment processing fees, which are charged per transaction to merchants utilizing Usio's electronic payment solutions. Additionally, the company earns money from its card issuance services, where fees are collected for card activation and usage. Usio also partners with various software vendors to integrate its payment solutions, expanding its reach and enhancing its service offerings. These partnerships and its diversified service portfolio significantly contribute to its earnings.
Usio Financial Statement Overview
Summary
Usio has shown strong revenue growth and improved cash flow management. The balance sheet is stable with low leverage, but challenges persist with profitability at the EBIT level.Income Statement
Usio has shown a consistent revenue growth trajectory over recent years with a notable increase from $32.25M in 2020 to $83.97M in TTM. The gross profit margin improved to 22.65% in TTM, reflecting efficient cost management. However, the net profit margin remains a concern, though slightly positive at 3.95% in TTM, indicating a recent recovery from prior losses. EBIT margins are still negative, which suggests challenges in operating efficiency.70
Positive
Balance Sheet
The balance sheet reflects a solid equity base with a positive equity ratio of 17.33% in TTM. The debt-to-equity ratio is low at 0.16, indicating prudent leverage management. However, the return on equity is modest at 17.49% in TTM, suggesting room for improvement in generating returns on shareholders' equity.65
Positive
Cash Flow
Usio's cash flow from operations has rebounded significantly, with free cash flow growing to $5.93M in TTM from previous lows. The operating cash flow to net income ratio is healthy, indicating solid cash generation relative to net income. The company has effectively managed capital expenditures, leading to improved free cash flow.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 83.97M | 82.93M | 82.59M | 69.43M | 61.94M | 32.25M | Gross Profit |
| 19.02M | 19.61M | 18.60M | 14.59M | 15.63M | 7.38M | EBIT |
| -1.43M | -1.47M | -1.92M | -5.21M | -147.46K | -3.76M | EBITDA |
| 2.40M | 3.00M | 1.90M | -2.46M | 2.50M | -2.24M | Net Income Common Stockholders |
| 3.32M | 3.31M | -475.10K | -5.48M | -321.63K | -2.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.72M | 8.06M | 7.16M | 5.71M | 7.26M | 5.01M | Total Assets |
| 109.62M | 107.21M | 106.93M | 97.91M | 133.68M | 82.67M | Total Debt |
| 2.99M | 3.87M | 3.38M | 3.03M | 3.11M | 2.84M | Net Debt |
| -5.73M | -4.19M | -3.78M | -2.68M | -4.15M | -2.17M | Total Liabilities |
| 90.63M | 88.05M | 91.87M | 83.98M | 115.01M | 65.96M | Stockholders Equity |
| 18.99M | 19.16M | 15.07M | 13.93M | 18.67M | 16.70M |
| Cash Flow | Free Cash Flow | ||||
| 5.93M | 1.90M | 14.08M | -17.85M | 28.51M | 5.44M | Operating Cash Flow |
| 7.06M | 2.90M | 14.92M | -17.04M | 29.78M | 6.29M | Investing Cash Flow |
| -1.08M | -944.38K | -834.96K | -812.24K | -1.27M | -6.76M | Financing Cash Flow |
| -1.51M | -5.14M | -513.95K | -1.40M | 887.46K | 9.98M |
Usio Technical Analysis
Negative
1.41
Price Trends
1.50
Negative
1.68
Negative
1.56
Negative
Market Momentum
-0.03
Positive
39.87
Neutral
20.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USIO, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.50, and below the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 20.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USIO.
Usio Risk Analysis
Usio disclosed 41 risk factors in its most recent earnings report. Usio reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Usio Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.65B | 93.81 | 10.80% | ― | 47.78% | 74.61% | |
67 Neutral | $37.78M | 11.69 | 19.38% | ― | 3.07% | ― | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
57 Neutral | $713.19M | 39.11 | -0.04% | ― | 3.50% | 95.90% | |
48 Neutral | $29.54M | ― | -14.76% | ― | 24.03% | 49.96% | |
47 Neutral | $27.56M | ― | -1.97% | ― | 5.81% | 55.03% | |
44 Neutral | $99.08M | 14.84 | -44.27% | ― | -13.18% | 4.83% |
* Technology Sector Average
Performance Comparison
USIO
Usio
1.41
-0.16
-10.19%
WYY
Widepoint
3.02
0.40
15.27%
CLPS
Clps
0.99
0.12
13.79%
PSFE
Paysafe
12.02
-6.45
-34.92%
NOTE
FiscalNote Holdings
0.63
-0.76
-54.68%
PAY
Paymentus Holdings
37.16
18.05
94.45%
Usio Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -9.62%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a mix of significant achievements, such as record revenues and strong growth in specific segments like PayFac and ACH. However, there were also challenges, including a slight decline in gross margins and the phasing out of previous revenue sources like the New York City COVID program. Despite these challenges, the overall tone was optimistic, with initiatives like Usio ONE expected to drive future growth.Q1-2025 Updates
Positive Updates
Record First Quarter Revenues
Usio reported record numbers in first quarter revenues and a significant increase in processing volume. Total processing volume increased by 34%, with a 5% increase in revenues.
Strong Performance in PayFac
PayFac showed outstanding growth with total processing dollars up 17% and transactions processed up 65%. PayFac now accounts for approximately 59% of total card revenues.
Usio ONE Initiative Launch
The Usio ONE initiative was officially launched, aiming to integrate Usio's services across business units. Initial cross-selling efforts have begun, with some early wins reported.
Increase in ACH and Complementary Services
ACH revenues were up 33% with electronic transaction volumes up 36%. This marked the sixth consecutive quarter of growth in this segment.
Improved Cash Position
Usio's cash balance rose to $8.7 million at quarter end, generating $700,000 of cash in the quarter.
Negative Updates
Slight Decline in Gross Margins
Gross profits were little changed from a year ago, with margins somewhat softer due to the revenue mix.
Impact of New York City COVID Program Phase-Out
Revenues were slightly down in comparison to the prior year's quarter due to the previous year's $1 million from the New York City COVID program.
Company Guidance
During Usio's First Quarter Fiscal 2025 Earnings Conference Call, the company reported record revenues, a 34% increase in total processing volume, and a 36% growth in ACH processing volume. This growth contributed to a 5% rise in revenues, despite a dip in net income compared to the previous year. Gross profits remained relatively unchanged, though margins were somewhat softer due to the revenue mix. The company achieved a sequential improvement in profitability, with adjusted EBITDA increasing to $700,000 from $500,000 in the fourth quarter of 2024. Usio also generated $700,000 in cash, ending the quarter with $8.7 million in cash. The company's strategic initiatives, including the Usio ONE implementation, are expected to drive 14% to 16% top-line revenue growth this year, with a significant acceleration anticipated in the second half.Usio Corporate Events
Executive/Board Changes
Usio Announces Executive Compensation Changes for 2025
Neutral
Mar 5, 2025
On February 20, 2025, Usio announced significant executive compensation changes. Greg Carter was promoted to Executive Vice President, Chief Revenue Officer, with a new base salary of $300,000 effective March 3, 2025. Additionally, the Compensation Committee approved new salaries for Louis Hoch, Chairman of the Board, President, and CEO, at $900,000, and Michael White, Senior Vice President and Chief Accounting Officer, at $230,000, both effective on the same date. These changes reflect the company’s strategic focus on leadership stability and incentivization.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.