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Usio
(NASDAQ:USIO)
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Rating:60Neutral
Price Target:
$3.00
▲(55.44% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by improving but still mixed fundamentals (low leverage, modest growth, yet thin/negative TTM profitability and negative TTM free cash flow). The latest earnings call meaningfully supports the outlook via raised revenue growth guidance and improving EBITDA/GAAP profitability. Technically, the uptrend is intact but momentum is extended (RSI/Stoch elevated). Valuation is constrained by a negative P/E and no dividend support.
Positive Factors
Accelerating Revenue Growth
Higher guidance and accelerating quarterly growth indicate stronger customer adoption across payment channels. Sustained volume expansion can improve operating leverage and support a larger recurring transaction-based revenue base over the next several quarters.
Negative Factors
Unproven Earnings and Cash Conversion
Recent quarterly profitability has not yet established durable returns because trailing results still show losses and negative free cash flow. Continued investment or weaker cash conversion could limit internally funded growth and require tighter spending control.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating Revenue Growth
Higher guidance and accelerating quarterly growth indicate stronger customer adoption across payment channels. Sustained volume expansion can improve operating leverage and support a larger recurring transaction-based revenue base over the next several quarters.
Read all positive factors
Usio (USIO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$83.78M
Dividend YieldN/A
Average Volume (3M)46.99K
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth10.40%
EPS Growth-152.86%
CountryUS
Employees107
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.06
Shares Outstanding28,495,415
10 Day Avg. Volume22,046
30 Day Avg. Volume46,994
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.04
Price to Sales (P/S)0.43
P/FCF Ratio33.95
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$5.00Price Target Upside159.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.02
Revenue Forecast (FY)$97.30M
Usio Business Overview & Revenue Model
Company Description
Usio, Inc. 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, credit, prepaid card, and debit card-based proce...
How the Company Makes Money
Usio makes money primarily by earning fees tied to payment volume and by charging recurring and usage-based fees for payment-related services it provides to merchants and enterprise customers. Key revenue streams generally include: (1) payment pro...
Usio Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call was overall positive: strong top-line growth (Q2 revenue +19%), record payment and transaction volumes (+27%), notable segment-level outperformance (Card +28%, PayFac +43%, ACH revenue +21%, Output +22%), improved profitability (adjusted EBITDA doubling YoY and second consecutive GAAP net income quarter) and an upward revision to full-year revenue guidance. The primary negatives are timing-related cash/operating-cash-flow dynamics, remaining headwinds in card issuing (flat card loads, slightly lower transactions), concentration of Card revenue in PayFac (>75%), and execution/timing risk related to the rollout of Usio Ion and large new vertical programs. Overall, the positives materially outweigh the lowlights.Positive Updates
Overall Revenue Growth and Guidance Upgrade
Total company revenue grew 19% year-over-year in Q2 (accelerating from 15% in Q1). Management raised full-year fiscal 2026 revenue growth guidance to 14%–16% (up from prior 10%–12%).
Negative Updates
Cash Balance and Operating Cash Flow Timing
Cash and cash equivalents were $6.4 million at quarter end, down from the beginning of the year primarily due to timing of several annual cash outlays. Operating cash flow was lower in the first half compared to the prior year on an unadjusted basis (management noted that adjusting for a prior-year $1.5 million employee retention credit, operating cash flow actually increased).
Read all updates
Q2-2026 Updates
Positive
Negative
Overall Revenue Growth and Guidance Upgrade
Total company revenue grew 19% year-over-year in Q2 (accelerating from 15% in Q1). Management raised full-year fiscal 2026 revenue growth guidance to 14%–16% (up from prior 10%–12%).
Read all positive updates
Company Guidance
Usio raised its fiscal 2026 revenue growth guidance to 14–16% (up from 10–12%) and reiterated it expects to continue generating positive adjusted EBITDA, reflecting strong Q2/1H momentum: company revenue was up 19% in Q2 (business-unit growth ~20% ex‑interest), Card revenue +28% to $9.0M with PayFac +43% (merchant count +34% YTD), total payment dollars and transactions processed +27% each, ACH revenue +21% with transactions +34% and dollar volume +28%, Output Solutions revenue +22% with pieces mailed +43% and electronic documents +49%; profitability is improving (gross profit dollars +12%, gross margin roughly 24% with management targeting >25% as Ion ramps), adjusted EBITDA $1.1M in Q2 and $1.9M for 1H, GAAP net income $280K ($0.01/sh) in Q2, cash $6.4M, ~$371K used to repurchase 281K shares in the first six months (including $235K in Q2), plus expected upside from increased interest/float via Ion (current third‑party balances ~$80–100M, addressable daily float >$200M–$300M) and improved sponsoring‑bank pricing beginning in Q3 to drive further operating leverage.Usio Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
63
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 92.57M | 85.39M | 82.93M | 82.59M | 69.43M | 61.94M |
| Gross Profit | 20.38M | 19.69M | 19.61M | 18.60M | 14.59M | 15.63M |
| EBITDA | 787.12K | -1.22K | 3.00M | 1.90M | -2.46M | 2.50M |
| Net Income | -1.51M | -2.51M | 3.31M | -475.10K | -5.48M | -321.63K |
Balance Sheet | ||||||
| Total Assets | 123.79M | 134.89M | 107.21M | 106.93M | 97.91M | 133.68M |
| Cash, Cash Equivalents and Short-Term Investments | 6.39M | 7.43M | 8.06M | 7.16M | 5.71M | 7.26M |
| Total Debt | 3.70M | 3.89M | 3.87M | 3.38M | 3.03M | 3.11M |
| Total Liabilities | 104.99M | 116.98M | 88.05M | 91.87M | 83.98M | 115.01M |
| Stockholders Equity | 18.79M | 17.91M | 19.16M | 15.07M | 13.93M | 18.67M |
Cash Flow | ||||||
| Free Cash Flow | -1.34M | 1.08M | 1.90M | 2.67M | -17.85M | 28.51M |
| Operating Cash Flow | 656.03K | 1.51M | 2.90M | 3.51M | -17.04M | 29.78M |
| Investing Cash Flow | -1.80M | -1.54M | -944.38K | -834.96K | -812.24K | -1.27M |
| Financing Cash Flow | 13.13M | 28.72M | -5.14M | 6.06M | -1.40M | 887.46K |
Usio Technical Analysis
Positive
1.93
Price Trends
2.24
Positive
1.81
Positive
1.58
Positive
Market Momentum
0.19
Negative
70.77
Negative
85.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USIO, the sentiment is Positive. The current price of 1.93 is below the 20-day moving average (MA) of 2.43, below the 50-day MA of 2.24, and above the 200-day MA of 1.58, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 85.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USIO.
Usio Risk Analysis
Usio disclosed 42 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.95B | 58.85 | 14.80% | ― | 30.21% | 50.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $83.78M | -52.53 | -8.20% | ― | 10.40% | -152.86% | |
56 Neutral | $94.58M | -70.79 | -10.74% | ― | 8.73% | 41.00% | |
53 Neutral | $356.11M | -1.78 | -32.65% | ― | 5.13% | -359.12% | |
42 Neutral | $31.83M | -4.51 | -11.60% | ― | 8.43% | -395.99% | |
40 Underperform | $1.69M | >-0.01 | -160.90% | ― | -23.20% | -73.44% |
* Technology Sector Average
USIO
Usio
2.91
1.43
96.62%
WYY
Widepoint
9.45
4.76
101.49%
CLPS
Clps
1.07
0.03
2.88%
PSFE
Paysafe
6.78
-7.27
-51.74%
NOTE
FiscalNote Holdings
0.06
-5.11
-98.82%
PAY
Paymentus Holdings
39.43
1.23
3.22%
Usio Corporate Events
Executive/Board Changes
Usio Updates Executive Compensation for Key Leadership Team
Neutral
Jun 17, 2026
On June 11, 2026, Usio’s board compensation committee approved a new annual base salary of $995,000 for Chairman, President and Chief Executive Officer Louis Hoch, effective August 3, 2026. He will also remain eligible for grants under the c...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Usio Tightens Bylaws and Confirms Board, Auditor Votes
Positive
Jun 10, 2026
On June 10, 2026, Usio, Inc. amended and restated its bylaws to introduce stricter advance notice procedures for shareholder proposals and director nominations, aligning its governance framework with the SEC’s universal proxy rules. The chan...
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.