Usio (USIO) AI Stock Analysis

• Market Cap: $43.10M
• Dividend Yield: N/A
• Average Volume (3M): 74.07K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.22
• Revenue Growth: 3.07%
• EPS Growth: N/A
• Country: US
• Employees: 107
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): -0.01
• Shares Outstanding: 26,605,906
• 10 Day Avg. Volume: 118,453
• 30 Day Avg. Volume: 74,071
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.88
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.63
• Enterprise Value/Ebitda: 4.01
• 1Y Price Target: $5.00
• Price Target Upside: 218.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $2.00 ▲(27.39%Upside)

Usio's strong revenue growth and improved cash flow management are significant strengths, contributing to a solid financial performance score. The optimistic outlook from the earnings call and the stock's undervaluation further bolster the overall score. However, challenges in profitability at the EBIT level and slightly softer gross margins are areas to watch.

Positive Factors

Cross-Selling Initiative

The company's Usio ONE initiative is expected to drive improved cross-selling between the company's four complementary business lines.

Revenue Growth

Accelerating revenue growth is expected to begin in the second half of 2025, driven by new and expanding ISV relationships, providing a high level of revenue visibility.

Negative Factors

Financial Performance

USIO’s Q1/25 financial results included sales of $22 million and adjusted EBITDA of $666,248, which were less than expectations.

Prepaid Card Revenue

Prepaid Card revenue declined 13% for the quarter due to the loss of breakage revenues arising from the completion of a large prepaid card program.

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 makes money primarily through transaction fees from its electronic payment processing services. These include fees charged to merchants for processing credit and debit card transactions, ACH payments, and issuing prepaid cards. Additionally, Usio earns revenue from providing value-added services such as data analytics and fraud prevention. The company also benefits from partnerships with financial institutions and businesses, allowing it to extend its reach and enhance service offerings. Revenue is further supported by subscription and usage-based fees for its platform services, contributing to Usio's overall earnings.

Usio Financial Statement Overview

Summary

Usio has shown strong revenue growth and improved cash flow management. The balance sheet is stable with low leverage, but challenges persist with profitability at the EBIT level.

Income Statement

Usio has shown a consistent revenue growth trajectory over recent years with a notable increase from $32.25M in 2020 to $83.97M in TTM. The gross profit margin improved to 22.65% in TTM, reflecting efficient cost management. However, the net profit margin remains a concern, though slightly positive at 3.95% in TTM, indicating a recent recovery from prior losses. EBIT margins are still negative, which suggests challenges in operating efficiency.

Balance Sheet

The balance sheet reflects a solid equity base with a positive equity ratio of 17.33% in TTM. The debt-to-equity ratio is low at 0.16, indicating prudent leverage management. However, the return on equity is modest at 17.49% in TTM, suggesting room for improvement in generating returns on shareholders' equity.

Cash Flow

Usio's cash flow from operations has rebounded significantly, with free cash flow growing to $5.93M in TTM from previous lows. The operating cash flow to net income ratio is healthy, indicating solid cash generation relative to net income. The company has effectively managed capital expenditures, leading to improved free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	83.97M	82.93M	82.59M	69.43M	61.94M	32.25M
Gross Profit	19.02M	19.61M	18.60M	14.59M	15.63M	7.38M
EBITDA	2.40M	3.00M	1.90M	-2.46M	2.50M	-2.24M
Net Income	3.32M	3.31M	-475.10K	-5.48M	-321.63K	-2.91M
Balance Sheet
Total Assets	109.62M	107.21M	106.93M	97.91M	133.68M	82.67M
Cash, Cash Equivalents and Short-Term Investments	8.72M	8.06M	7.16M	5.71M	7.26M	5.01M
Total Debt	2.99M	3.87M	3.38M	3.03M	3.11M	2.84M
Total Liabilities	90.63M	88.05M	91.87M	83.98M	115.01M	65.96M
Stockholders Equity	18.99M	19.16M	15.07M	13.93M	18.67M	16.70M
Cash Flow
Free Cash Flow	5.93M	1.90M	14.08M	-17.85M	28.51M	5.44M
Operating Cash Flow	7.06M	2.90M	14.92M	-17.04M	29.78M	6.29M
Investing Cash Flow	-1.08M	-944.38K	-834.96K	-812.24K	-1.27M	-6.76M
Financing Cash Flow	-1.51M	-5.14M	6.06M	-1.40M	887.46K	9.98M

Usio Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 1.57 is above the 20-day moving average (MA) of 1.44, above the 50-day MA of 1.48, and above the 200-day MA of 1.55, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 70.84 is Negative, neither overbought nor oversold. The STOCH value of 77.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USIO.

Usio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USIO	72 Outperform	$43.10M	13.33	19.38%	―	3.07%	―
PAY	66 Neutral	$3.89B	78.36	10.80%	―	47.78%	74.61%
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
PSFE	53 Neutral	$798.03M	39.11	-0.04%	―	3.50%	95.90%
CLPS	50 Neutral	$25.61M	―	-1.97%	―	5.81%	55.03%
WYY	49 Neutral	$33.35M	―	-14.76%	―	24.03%	49.96%
NOTE	49 Neutral	$118.66M	14.84	-44.27%	―	-13.18%	4.83%

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.