Usio (USIO) AI Stock Analysis

• Market Cap: $38.95M
• Dividend Yield: N/A
• Average Volume (3M): 87.97K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.12
• Revenue Growth: 4.44%
• EPS Growth: N/A
• Country: US
• Employees: 107
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.01
• Shares Outstanding: 26,495,783
• 10 Day Avg. Volume: 111,166
• 30 Day Avg. Volume: 87,974
• PEG Ratio: -0.02
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 20.59
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: 15.24
• 1Y Price Target: $4.00
• Price Target Upside: 172.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: $1.50 ▲(2.04% Upside)

Usio's overall stock score reflects a mixed financial performance with strengths in cash flow and profitability, but challenges in revenue growth and operational efficiency. Technical indicators are neutral, and valuation is reasonable. The earnings call provided positive insights into ACH growth and margin improvements, but highlighted challenges with revenue declines and implementation delays.

Positive Factors

ACH Revenue Growth

The consistent growth in ACH revenue indicates strong demand for Usio's electronic payment processing services, which could drive long-term profitability and market share expansion.

Gross Margin Improvement

Improved gross margins reflect enhanced operational efficiency and cost management, which can lead to sustained profitability and competitive advantage in the payment processing industry.

Strong Cash Generation

Robust cash generation provides financial flexibility, allowing Usio to invest in growth opportunities, manage debt, and weather economic fluctuations, supporting long-term business stability.

Negative Factors

Revenue Decline

A decline in total revenues, particularly from card issuing, suggests challenges in maintaining growth across all business segments, potentially impacting overall financial performance.

Prolonged Implementation Delays

Implementation delays at major accounts can hinder revenue realization and customer satisfaction, affecting Usio's ability to meet growth targets and maintain competitive positioning.

Card Issuing Revenue Impact

The decline in card issuing revenue, due to the loss of a large customer, highlights vulnerability to client concentration risk, which can impact revenue stability and growth potential.

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: Neutral
• Last Price: 1.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USIO, the sentiment is Neutral. The current price of 1.47 is above the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.56, and below the 200-day MA of 1.60, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 34.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for USIO.

Usio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAY	73 Outperform	3.91B	71.59	10.86%	―	49.35%	72.05%
USIO	61 Neutral	$38.95M	14.03	16.71%	―	4.44%	―
PSFE	57 Neutral	759.71M	-15.29	2.52%	―	0.47%	-292.07%
WYY	55 Neutral	48.88M	-22.45	-16.91%	―	16.25%	41.38%
CLPS	49 Neutral	27.28M	-20.65	―	―	5.81%	55.03%
NOTE	43 Neutral	65.37M	-1.19	-48.20%	―	-15.39%	-50.65%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Usio Corporate Events

Usio Updates Director Compensation and Bonus Structure

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.

Usio Approves New Restricted Stock Unit Agreement

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.

Usio Appoints New Senior VP and CAO

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.