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

Usio (NASDAQ:USIO) announced its quarterly earnings data on Tuesday. The company reported $0.01 earnings per share for the quarter, meeting the consensus estimate of $0.01, FiscalAI reports. Usio had a negative return on equity of 4.79% and a negative net margin of 0.92%. The company had revenue of $23.76 million during the quarter, compared to analysts’ expectations of $23.98 million.

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 Trading Down 3.7%

Shares of USIO traded down $0.08 during mid-day trading on Thursday, reaching $2.11. 88,237 shares of the company were exchanged, compared to its average volume of 167,545. Usio has a 52 week low of $1.03 and a 52 week high of $3.29. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.09 and a current ratio of 1.10. The stock has a market capitalization of $60.13 million, a PE ratio of -69.98 and a beta of 1.34. The business has a 50 day simple moving average of $2.73 and a two-hundred day simple moving average of $1.95.

Analyst Upgrades and Downgrades

USIO has been the subject of a number of research analyst reports. Ladenburg Thalmann & Co. Inc. lifted their price objective on shares of Usio from $6.25 to $6.75 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Wall Street Zen upgraded Usio to a “hold” rating in a research note on Saturday, July 25th. Finally, Weiss Ratings upgraded shares of Usio from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, October 8th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target 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.