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Usio Inc (USIO)
NASDAQ:USIO
US Market

Usio (USIO) AI Stock Analysis

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USIO

Usio

(NASDAQ:USIO)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
$1.50
▲(6.38% Upside)
Usio's overall stock score reflects a solid financial position with strong cash flow and a stable balance sheet. The earnings call provided positive insights into operational growth, although technical indicators suggest caution. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Usio (USIO) vs. SPDR S&P 500 ETF (SPY)

Usio Business Overview & Revenue Model

Company DescriptionUsio, Inc. is a financial technology company that specializes in payment processing solutions and services. Operating primarily in the FinTech sector, Usio offers a range of products including electronic payment processing, card issuing, and payment gateway services. The company serves various industries, including e-commerce, healthcare, and government, providing innovative solutions designed to enhance transaction efficiency and security.
How the Company Makes MoneyUsio generates revenue primarily through transaction fees charged to merchants for payment processing services. This includes fees for credit and debit card transactions, ACH (automated clearing house) payments, and other electronic payment methods. Additionally, the company earns income from card issuance services, where it provides branded prepaid and debit cards to businesses and consumers. Usio's revenue model is bolstered by partnerships with banks and financial institutions that allow it to expand its service offerings and reach a broader customer base. The company also benefits from strategic alliances that enhance its technology and service capabilities, contributing to its overall earnings.

Usio Earnings Call Summary

Earnings Call Date:Nov 12, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong operational metrics, including record transaction volumes and significant growth in key segments like ACH and PayFac. The company maintained positive cash flow and continues to invest in future growth and innovation. However, there were challenges in card issuing and a decrease in adjusted EBITDA, as well as slower-than-desired customer implementations.
Q3-2025 Updates
Positive Updates
Record Processing and Transaction Volumes
Seven quarterly processing volume records were set, including a record quarterly overall transaction volume of 16,200,000, up 8% year over year.
Strong Growth in ACH and PayFac Segments
ACH revenues were up 30% from the year-ago quarter, marking the eighth consecutive quarter of growth. PayFac revenues increased by 32% year-over-year, driven by net new client implementations.
Positive Cash Flow and Strong Balance Sheet
Operating cash flow for the quarter was $1,400,000, with cash reserves increasing by over $200,000 to $7,800,000 at quarter end.
Strategic Share Repurchases
Over $750,000 has been used for share repurchases year-to-date, with more than 500,000 shares repurchased.
Investment in Growth and Innovation
Continued investment in technology upgrades, new product launches, and productivity gains with a focus on recurring revenue.
Negative Updates
Weakness in Card Issuing and Interest Income
Total revenues were relatively unchanged from the year-ago quarter due to continued weakness in card issuing and a decline in interest income.
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased to $368,000 from $500,000 in the second quarter and was also down from a year ago.
Implementation Challenges
The pace of customer implementations is slower than desired, affecting the speed of revenue realization from new clients.
Company Guidance
During the Usio Third Quarter Fiscal 2025 Earnings Conference Call, the company reported several positive metrics despite some challenges. Usio set seven quarterly processing volume records, including a record overall transaction volume of 16.2 million, marking an 8% increase year-over-year. ACH was a standout performer with a 30% revenue increase compared to the previous year. Revenue saw a $1.2 million sequential increase, although total revenues remained relatively unchanged from the previous year due to weakness in card issuing and a decline in interest income. Adjusted EBITDA was $368,000, down from $500,000 in the second quarter, while operating cash flow was strong at $1.4 million. Cash reserves increased by over $200,000, reaching over $7.8 million, allowing for potential strategic acquisitions. Usio also repurchased $60,000 worth of shares, bringing total repurchases to $750,000. The company anticipates continued growth, propelled by a strong pipeline of opportunities, new product launches, and technological upgrades.

Usio Financial Statement Overview

Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Usio Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.41
Price Trends
50DMA
1.43
Negative
100DMA
1.46
Negative
200DMA
1.49
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
40.26
Neutral
STOCH
25.88
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 1.42, below the 50-day MA of 1.43, and below the 200-day MA of 1.49, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.26 is Neutral, neither overbought nor oversold. The STOCH value of 25.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USIO.

Usio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$3.78B67.5711.81%44.34%45.96%
67
Neutral
$37.68M-90.67-2.06%3.24%-115.15%
59
Neutral
$60.73M-25.36-17.37%9.62%26.59%
47
Neutral
$461.43M-3.80-15.59%-0.95%-456.64%
43
Neutral
$25.50M-3.46-11.94%15.17%-172.09%
41
Neutral
$28.91M-0.40-64.09%-17.90%-67.81%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
USIO
Usio
1.36
-0.09
-6.21%
WYY
Widepoint
5.98
1.59
36.22%
CLPS
Clps
0.87
-0.24
-21.62%
PSFE
Paysafe
8.17
-9.05
-52.56%
NOTE
FiscalNote Holdings
1.69
-12.71
-88.26%
PAY
Paymentus Holdings
30.10
-3.21
-9.64%

Usio Corporate Events

Usio, Inc. Reports Q3 2025 Financial Results
Nov 13, 2025

Usio, Inc., a company operating in the financial technology sector, provides electronic payment solutions, including processing services for credit, debit, and prepaid cards, as well as ACH and complementary services. In its latest earnings report for the quarter ending September 30, 2025, Usio reported a slight decrease in revenues compared to the same period last year, with total revenues of $21.18 million compared to $21.32 million in 2024. The company also experienced a net loss of $415,086 for the quarter, a significant shift from a net income of $2.85 million in the previous year. Key financial metrics highlighted in the report include a gross profit of $4.87 million and an operating loss of $464,171. The company’s selling, general, and administrative expenses increased slightly, contributing to the operating loss. Despite the challenges, Usio continues to manage its financial position with a focus on maintaining liquidity and supporting its operations through available credit facilities. Looking ahead, Usio’s management remains focused on leveraging its existing resources and strategic initiatives to navigate the current market conditions and drive future growth.

Executive/Board Changes
Usio Updates Director Compensation and Bonus Structure
Neutral
Aug 29, 2025

On August 28, 2025, Usio announced amendments to the Independent Director Agreements for its Board of Directors. The amendments adjust the quarterly compensation for directors Brad Rollins, Blaise Bender, Ernesto R. Beyer de la Garza, and Michelle Miller to $2,000 each. Additionally, Blaise Bender, as the Chair of the Audit Committee, will receive an annual $20,000 bonus upon the timely and compliant filing of the 10K report.

The most recent analyst rating on (USIO) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Usio stock, see the USIO Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Usio Approves New Restricted Stock Unit Agreement
Neutral
Aug 27, 2025

On August 27, 2025, Usio, Inc.’s Compensation Committee approved a new Restricted Stock Unit Agreement under the company’s 2025 Comprehensive Equity Incentive Plan. This agreement is intended for future grants of restricted stock units to eligible employees, officers, and directors, potentially impacting the company’s employee compensation strategy.

The most recent analyst rating on (USIO) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Usio stock, see the USIO Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Usio Appoints New Senior VP and CAO
Neutral
Aug 18, 2025

On August 18, 2025, Usio entered into an employment agreement with Michael White, who serves as the company’s Senior Vice President and Chief Accounting Officer. This agreement marks a significant step in Usio’s leadership structure, potentially impacting its operational strategies and stakeholder relations.

The most recent analyst rating on (USIO) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Usio stock, see the USIO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Nov 13, 2025