Usio (NASDAQ:USIO – Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $0.01 earnings per share for the quarter, meeting the consensus estimate of $0.01, FiscalAI reports. The business had revenue of $23.76 million during the quarter, compared to analysts’ expectations 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 Stock Down 5.2%
Shares of NASDAQ USIO opened at $2.91 on Wednesday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.09 and a current ratio of 1.10. Usio has a 12 month low of $1.03 and a 12 month high of $3.29. The firm has a fifty day simple moving average of $2.75 and a two-hundred day simple moving average of $1.94.
Wall Street Analysts Forecast Growth
Several equities analysts have recently commented on USIO shares. LADENBURG THALM/SH SH upped their price objective on shares of Usio from $6.25 to $6.75 and gave the company a “buy” rating in a research note on Thursday, August 13th. Weiss Ratings raised Usio from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, October 8th. Finally, Wall Street Zen upgraded Usio to a “hold” rating in a report on Saturday, July 25th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $5.38.
Get Our Latest Stock Analysis on Usio
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.
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