Usio (USIO) AI Stock Analysis

• Market Cap: $37.62M
• Dividend Yield: N/A
• Average Volume (3M): 91.80K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.14
• Revenue Growth: 4.44%
• EPS Growth: N/A
• Country: US
• Employees: 107
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): -0.01
• Shares Outstanding: 26,495,783
• 10 Day Avg. Volume: 77,042
• 30 Day Avg. Volume: 91,804
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: 15.24
• 1Y Price Target: $4.00
• Price Target Upside: 183.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $1.50 ▲(6.38% Upside)

Usio's overall stock score reflects a balance of mixed financial performance and moderate valuation, with technical indicators suggesting a neutral trend. The earnings call provided some optimism with strong ACH growth and positive cash flow, but challenges in card issuing and revenue declines temper the outlook.

Positive Factors

ACH Segment Growth

ACH segment sales increased by 33% due to an increase in ACH volume from new business and organic growth.

Financial Stability

USIO's balance sheet is considered solid, with a good cash position, no debt, and positive cash flow, indicating no immediate need for capital raising.

Future Revenue Growth

Management remains optimistic about strong revenue growth in the latter half of 2025 and 2026, supported by a strong backlog and new deals.

Negative Factors

Adjusted EBITDA Decline

Adjusted EBITDA declined 37% year-over-year, impacted by several one-time expenses.

Customer Loss Impact

USIO's 2Q25 results missed expectations due to a large downstream customer switching payment services, causing a significant revenue drop.

Revenue Decline

Revenues for Q2/25 declined 1% year-over-year due primarily to a decrease in the Prepaid Card segment.

Usio Business Overview & Revenue Model

Company Description

Usio, Inc., together with its subsidiaries, provides integrated electronic payment processing services to merchants and businesses in the United States. The company offers various types of automated clearing house (ACH) processing; and credit, prepaid card, and debit card-based processing services. Its ACH transaction processing services include Represented Check, a consumer non-sufficient funds check that is presented for payment electronically rather than through the paper check collection system; and Accounts Receivable Check Conversion, a consumer paper check payment that is converted into an e-check. The company also offers merchant account services for the processing of card-based transactions through the VISA, MasterCard, American Express, Discover, and JCB networks, including online terminal services accessed through a website or retail services accessed through a physical terminal. In addition, it provides a proprietary web-based customer service application that allows companies to process one-time and recurring payments through e-checks or credit cards; and an interactive voice response telephone system to companies, which accept payments directly from consumers over the telephone using e-checks or credit cards. Further, the company offers prepaid and incentive card issuance services; and operates a prepaid core processing platform, as well as provides additional services, such as electronic bill presentment, document composition, document decomposition, and printing and mailing services for various industry verticals, including utilities and financial institutions. It markets and sells ACH products and services primarily through resellers; and prepaid card program directly to government entities, corporations, and to consumers through the internet. The company was formerly known as Payment Data Systems, Inc. and changed its name to Usio, Inc. in June 2019. Usio, Inc. was incorporated in 1998 and is headquartered in San Antonio, Texas.

How the Company Makes Money

Usio generates revenue through multiple key streams. The primary source of income comes from transaction fees charged for processing electronic payments across its platforms. Additionally, the company earns revenue from card issuance fees as it provides customized prepaid and debit cards for businesses and consumers. Usio also monetizes its payment gateway services, which facilitate secure online transactions for merchants. Partnerships with banks, financial institutions, and technology providers further enhance its offerings and revenue potential, as they can expand the range of services Usio provides to its clients.

Usio Financial Statement Overview

Summary

Usio's financial performance is mixed. While there are improvements in profitability and cash flow generation, revenue growth has declined, and operational efficiency remains a challenge. The balance sheet shows moderate leverage, providing some financial stability.

Income Statement

Usio's income statement shows mixed performance. The TTM data indicates a decline in revenue growth rate by 14.2%, which is concerning. However, the company has managed to maintain a positive net profit margin of 3.43% in the TTM, recovering from negative margins in previous years. Gross profit margin remains stable around 23%, but EBIT margin is weak at 0.35%, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is relatively low at 0.19, suggesting manageable leverage. Return on equity has improved to 15.19% in the TTM, indicating better profitability for shareholders. However, the equity ratio is not provided, limiting a full assessment of asset financing.

Cash Flow

Cash flow analysis shows positive trends, with a free cash flow growth rate of 8.88% in the TTM. The operating cash flow to net income ratio is 0.08, indicating some challenges in converting income to cash. However, the free cash flow to net income ratio is strong at 91.36%, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.85M	82.93M	82.59M	69.43M	61.94M	32.25M
Gross Profit	19.45M	19.61M	18.60M	14.59M	15.63M	7.38M
EBITDA	2.39M	3.00M	1.90M	-2.46M	2.50M	-2.24M
Net Income	2.88M	3.31M	-475.10K	-5.48M	-321.63K	-2.91M
Balance Sheet
Total Assets	108.35M	107.21M	106.93M	97.91M	133.68M	82.67M
Cash, Cash Equivalents and Short-Term Investments	7.51M	8.06M	7.16M	5.71M	7.26M	5.01M
Total Debt	3.48M	3.87M	3.38M	3.03M	3.11M	2.84M
Total Liabilities	89.62M	88.05M	91.87M	83.98M	115.01M	65.96M
Stockholders Equity	18.73M	19.16M	15.07M	13.93M	18.67M	16.70M
Cash Flow
Free Cash Flow	6.46M	1.90M	14.08M	-17.85M	28.51M	5.44M
Operating Cash Flow	7.07M	2.90M	14.92M	-17.04M	29.78M	6.29M
Investing Cash Flow	-1.24M	-944.38K	-834.96K	-812.24K	-1.27M	-6.76M
Financing Cash Flow	-2.50M	-5.14M	6.06M	-1.40M	887.46K	9.98M

Usio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.48, below the 50-day MA of 1.61, and below the 200-day MA of 1.60, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 19.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for USIO.

Usio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAY	78 Outperform	$4.64B	84.49	11.59%	―	49.35%	72.05%
USIO	61 Neutral	$37.62M	13.55	16.71%	―	4.44%	―
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
PSFE	61 Neutral	$798.03M	39.11	-5.88%	―	0.47%	-292.07%
WYY	55 Neutral	$48.79M	―	-15.98%	―	16.25%	41.38%
CLPS	49 Neutral	$28.95M	―	-1.97%	―	5.81%	55.03%
NOTE	43 Neutral	$57.46M	14.84	-45.59%	―	-15.06%	-50.98%

Usio Corporate Events

Usio’s Annual Meeting Approves Key Proposals

On June 10, 2025, Usio held its Annual Meeting of Stockholders, where several key proposals were voted on. Elizabeth Michelle Miller was elected as a Class II director, and the stockholders approved the executive compensation for 2024, the 2025 Comprehensive Equity Incentive Plan, and the appointment of PKF of Texas, P.C. as the independent registered public accounting firm for 2025. These decisions reflect the company’s ongoing governance and strategic planning efforts.

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.