Usio (USIO) AI Stock Analysis

• Market Cap: $40.27M
• Dividend Yield: N/A
• Average Volume (3M): 108.52K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.14
• Revenue Growth: 4.44%
• EPS Growth: N/A
• Country: US
• Employees: 107
• Sector: Technology
• Sector Strength: 89
• Industry: Information Technology Services
• EPS (TTM): -0.01
• Shares Outstanding: 26,495,783
• 10 Day Avg. Volume: 158,501
• 30 Day Avg. Volume: 108,517
• 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: 0.91
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.87
• Enterprise Value/Ebitda: 15.24
• 1Y Price Target: $3.50
• Price Target Upside: 130.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: $1.50 ▼(-1.32% Downside)

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

Financial Position

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.

Operational Efficiency

The company has been successful in offsetting slower revenue growth with operating efficiencies and gross margin gains.

Revenue Growth Prospects

Stronger revenue growth is expected to be driven by new and expanding ISV relationships, providing a high level of visibility moving forward.

Negative Factors

Customer Loss Impact

The loss of a major customer and slower usage by other clients has led to a reduced revenue growth forecast for 2025.

Revenue Growth Guidance

Disappointing revenue drives reduction in '25 revenue growth guidance.

Revenue Miss

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

Usio Business Overview & Revenue Model

Company Description

Usio, Inc. is a financial technology company specializing in providing innovative payment solutions and services. The company operates primarily in the payments processing sector, offering a range of products including electronic payment processing, card issuing, and payment gateway solutions. Usio serves various industries, including healthcare, education, and government, helping clients streamline their payment processes and enhance operational efficiency.

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 has demonstrated strong revenue growth and improved cash flow management. Despite challenges with profitability at the EBIT level, the company's balance sheet remains stable with low leverage. Continued focus on operational efficiency could enhance future profitability metrics.

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	83.85M	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: 1.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.52 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.59, and below the 200-day MA of 1.59, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 29.73 is Neutral, 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	76 Outperform	$4.69B	85.80	11.59%	―	49.35%	72.05%
Sector *	68 Neutral	¥242.89B	15.13	6.64%	2.45%	9.16%	-0.19%
USIO	61 Neutral	$40.27M	14.50	16.71%	―	4.44%	―
PSFE	58 Neutral	$812.87M	39.11	-5.88%	―	0.47%	-292.07%
CLPS	49 Neutral	$26.03M	―	-1.97%	―	5.81%	55.03%
WYY	48 Neutral	$35.10M	―	-15.98%	―	16.25%	41.38%
NOTE	43 Neutral	$82.59M	14.84	-45.39%	―	-15.39%	-50.66%

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.