Usio (USIO) AI Stock Analysis

• Market Cap: $29.13M
• Dividend Yield: N/A
• Average Volume (3M): 38.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 3.24%
• EPS Growth: -115.15%
• Country: US
• Employees: 107
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.05
• Shares Outstanding: 27,746,208
• 10 Day Avg. Volume: 51,787
• 30 Day Avg. Volume: 38,320
• PEG Ratio: 0.08
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 33.95
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: -85.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): $95.33M

• Rating: 51 Neutral
• Price Target: $1.00 ▼(-25.37% Downside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is primarily constrained by uneven profitability and volatile cash generation despite revenue growth and a conservative balance sheet. Technicals are notably weak with the stock trading below key moving averages and negative momentum. Offsetting these risks, the latest earnings commentary points to strong operational volumes, positive cash flow, and continued growth initiatives, but with near-term execution and segment headwinds still evident.

Positive Factors

Scale & Record Volumes

Sustained growth in payment volumes and transactions builds durable scale in payments processing. Higher volumes create operational leverage, deepen customer relationships, and improve bargaining power with networks and partners, supporting long-term fee generation and platform defensibility.

ACH & PayFac Segment Strength

Rapid, repeatable growth in ACH and PayFac reflects structural adoption of electronic and embedded payments. These channels tend to generate recurring, usage-based revenue with platform stickiness, improving predictability and upside as clients scale their payment volumes over time.

Conservative Balance Sheet & Cash Flow

Low leverage and positive operating cash flow provide financial flexibility to invest in product, fund customer implementations, and pursue M&A. A conservative balance sheet reduces refinancing risk and supports sustained investment in technology and go-to-market initiatives over the medium term.

Negative Factors

Inconsistent Profitability

Swinging to a net loss despite revenue growth signals fragile earnings power. Inconsistent profitability undermines the company’s ability to reinvest, deliver steady returns to shareholders, and demonstrates that top-line growth isn't yet translating reliably into sustainable bottom-line performance.

Thin Gross & Operating Margins

Low gross margins and marginal operating profitability leave limited buffer against fee compression, price competition, or client churn. Thin margins increase sensitivity to volume shifts and cost overruns, making durable free cash flow generation and scale economics harder to lock in.

Customer Concentration & Execution Risk

Dependence on large reseller programs and notable prepaid load declines highlight concentration and execution vulnerability. Combined with slower-than-desired customer implementations, this raises the risk that revenue growth may be uneven and that new client wins take longer to monetize.

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 primarily makes money by earning fees tied to the processing, enablement, and facilitation of electronic payments for its customers. Key revenue streams generally include: (1) payment processing fees from handling transactions across payment rails (e.g., card-based payments and ACH), where revenue is driven by transaction volume and the mix of services used; (2) card issuing/program management economics in its card-related business, where Usio can earn per-transaction fees and other program-related fees for powering and managing card programs for businesses and platform clients; and (3) value-added and platform services associated with integrating payments into customer workflows (e.g., API access, software/platform integration, and operational/payment enablement services), which can be structured as usage-based fees and/or recurring service fees depending on customer arrangements. The company’s earnings are therefore sensitive to customer payment volumes, the number and scale of card and embedded-payment programs it supports, and pricing/fee structures negotiated with customers and payment-network/processing partners. Specific partnership terms, take rates, or customer-level economics: null.

Usio Financial Statement Overview

Summary

Revenue growth is a clear positive, and leverage appears manageable with low debt-to-equity. However, profitability is inconsistent (return to net loss in 2025) and margins remain thin, while free cash flow—though positive—has been volatile and fell sharply versus 2024.

Income Statement

Revenue has grown over the period, reaching about $85.4M in 2025 (annual) with strong growth that year, but profitability is inconsistent. After a profitable 2024 (positive net margin), the company reverted to a net loss in 2025 and remains pressured at the operating level, with low gross margins in the low-20% range and negative/near-breakeven operating profitability in multiple years. Overall, top-line momentum is a positive, but the return to losses and thin margin structure weigh on the score.

Balance Sheet

Leverage looks manageable with low debt relative to equity (debt-to-equity around 0.14 in 2025, improving versus prior years), which provides financial flexibility. However, returns to shareholders are volatile, swinging from positive in 2024 to negative in 2025 alongside the earnings decline. Asset growth is notable, but the key weakness is that profitability is not yet stable enough to consistently earn an attractive return on the equity base.

Cash Flow

Cash generation improved meaningfully from the 2022 cash burn to positive operating and free cash flow in 2023–2025, which is a constructive trend. That said, free cash flow fell sharply in 2025 versus 2024, indicating volatility and weaker cash conversion year-over-year. Free cash flow remains positive and covers a meaningful portion of the net loss in 2025, but the magnitude and consistency of cash generation are still developing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	85.39M	82.93M	82.59M	69.43M	61.94M
Gross Profit	19.69M	19.61M	18.60M	14.59M	15.63M
EBITDA	-298.38K	3.00M	1.90M	-2.46M	2.50M
Net Income	-2.51M	3.31M	-475.10K	-5.48M	-321.63K
Balance Sheet
Total Assets	134.89M	107.21M	106.93M	97.91M	133.68M
Cash, Cash Equivalents and Short-Term Investments	7.43M	8.06M	7.16M	5.71M	7.26M
Total Debt	2.53M	3.87M	3.38M	3.03M	3.11M
Total Liabilities	116.98M	88.05M	91.87M	83.98M	115.01M
Stockholders Equity	17.91M	19.16M	15.07M	13.93M	18.67M
Cash Flow
Free Cash Flow	1.08M	1.90M	2.67M	-17.85M	28.51M
Operating Cash Flow	1.51M	2.90M	3.51M	-17.04M	29.78M
Investing Cash Flow	-1.54M	-944.38K	-834.96K	-812.24K	-1.27M
Financing Cash Flow	28.72M	-5.14M	6.06M	-1.40M	887.46K

Usio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1.34 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.33, and below the 200-day MA of 1.45, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 21.04 is Positive, neither overbought nor oversold. The STOCH value of 8.65 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	70 Outperform	$3.06B	61.03	12.67%	―	44.34%	45.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WYY	59 Neutral	$50.44M	-21.37	-17.62%	―	9.62%	26.59%
USIO	51 Neutral	$29.13M	-14.58	―	―	3.24%	-115.15%
CLPS	51 Neutral	$29.74M	70.02	-11.94%	―	15.17%	-172.09%
PSFE	50 Neutral	$274.16M	-2.58	-24.06%	―	-0.95%	-456.64%
NOTE	42 Neutral	$12.35M	―	-64.09%	―	-17.90%	-67.81%

Usio Corporate Events

Usio Reports Record 2025 Payment Volumes, Eyes 2026 Growth

On January 21, 2026, Usio published its 2025 annual shareholder letter, highlighting a year of record operational metrics driven by its diversified payments platform despite certain business headwinds. Preliminary 2025 data showed payment volume rising 19% year over year to more than $8.4 billion and total payment transactions increasing 29% to over 60.4 million, with all-time records across ACH, PINless debit and card processing, even as revenue growth lagged prior double‑digit rates due largely to the loss of a significant reseller account and lower interest rates. The company reported that its Output Solutions business was flat but shifted toward higher-margin electronic document services, while its Card Issuing division saw prepaid load volume fall from about $500 million in 2024 to $300 million in 2025 after the loss of a reseller’s amusement park program, though a more profitable transaction mix and a pipeline of new high-volume programs position that segment for a potential rebound in 2026. Management emphasized continued positive adjusted EBITDA, solid operating cash flow, a strong balance sheet and disciplined cost controls, alongside strategic initiatives such as the Usio One unified go-to-market approach, the integration of the PostCredit acquisition, and investments in emerging payment technologies, framing 2025’s record volumes and cultural recognition as a foundation for accelerating growth and enhanced shareholder value in 2026 and beyond.

The most recent analyst rating on (USIO) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Usio stock, see the USIO Stock Forecast page.