Usio (NASDAQ:USIO) Announces Quarterly Earnings Results, Meets Estimates

Usio (NASDAQ:USIO) issued its earnings results on Tuesday. The company reported $0.01 earnings per share for the quarter, hitting the consensus estimate of $0.01, FiscalAI reports. The company had revenue of $23.76 million during the quarter, compared to the consensus estimate of $23.98 million. Usio had a negative net margin of 1.63% and a negative return on equity of 8.20%.

Here are the key takeaways from Usio’s conference call:

• Usio reported 12% third-quarter revenue growth and 18% gross-profit growth, while adjusted EBITDA rose 222% to about $1.2 million. It posted its third consecutive quarter of GAAP net income and reiterated 2026 revenue-growth guidance of 14%–16%, with record adjusted EBITDA expected.
• Results showed operating leverage: SG&A increased only about 2% as revenue grew 12%, and adjusted EBITDA margin expanded to 5% from 1.7% a year earlier. Nine-month operating cash flow more than doubled to approximately $3.3 million, and Usio ended September with $7.3 million in cash.
• Revenue grew across all four business lines for the first time this year. Card revenue increased 18% and Output Solutions revenue rose 14%; Card Issuing returned to slight growth, while ACH revenue growth of 9% trailed its transaction and processing-dollar increases, which management attributed to pricing and mix.
• Management highlighted Usio Ion and its Harris Computer relationship as potential growth catalysts, including added interest revenue from customer balances and access to utility and government clients. These opportunities are not yet established contributors: Ion is beginning with a customer pilot, while Harris integrations may take time because of lengthy procurement and implementation cycles.

Usio Price Performance

USIO stock traded down $0.16 during mid-day trading on Tuesday, hitting $2.91. The company had a trading volume of 110,877 shares, compared to its average volume of 164,830. The company has a 50-day moving average price of $2.74 and a 200 day moving average price of $1.93. Usio has a 12-month low of $1.03 and a 12-month high of $3.29. The company has a market capitalization of $82.94 million, a price-to-earnings ratio of -48.50 and a beta of 1.34. The company has a quick ratio of 1.09, a current ratio of 1.10 and a debt-to-equity ratio of 0.05.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on USIO. LADENBURG THALM/SH SH increased their target price on Usio from $6.25 to $6.75 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Weiss Ratings raised Usio from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, October 8th. Finally, Wall Street Zen upgraded Usio to a “hold” rating in a research note on Saturday, July 25th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $5.38.

Usio Company Profile

Usio, Inc. (NASDAQ: USIO) is a financial technology company that provides electronic payment and money-movement services. Its platform supports payment acceptance and processing through methods such as credit cards, debit cards and automated clearing house (ACH) transactions. The company offers services for businesses, financial institutions, government organizations and other entities seeking to collect, disburse or manage payments. Its solutions include electronic bill payment, card processing, ACH payments and prepaid card programs, with an emphasis on integrated payment technology and related processing services.