Breaking Down Usio, Inc. (USIO) Financial Health: Key Insights for Investors

Are you keeping a close watch on Usio, Inc. (USIO) and wondering about its financial stability? As of fiscal year 2024, Usio reported a record $7.1 billion in dollar processing volume, marking a substantial 33% increase from 2023. But how does this translate to overall financial health? The company's full-year revenue reached $82.9 million, with gross profits at $19.6 million. With a cash position hitting a record high of $8.1 million, is Usio on solid ground, and what are the key factors driving its performance? Let's dive into the numbers to uncover the insights that matter most to investors.

Usio, Inc. (USIO) Revenue Analysis

To understand Usio, Inc.'s financial health, it's crucial to analyze its revenue streams. This involves examining where the company's revenue comes from, how quickly it's growing, and how different parts of the business contribute to the total.

Here’s a breakdown of what to consider:

• Primary Revenue Sources: Identifying the main products, services, and geographic regions that generate revenue for Usio, Inc.
• Year-over-Year Revenue Growth Rate: Reviewing historical trends to see the percentage increase or decrease in revenue each year.
• Business Segment Contribution: Assessing how each business segment contributes to the overall revenue of the company.
• Significant Changes: Spotting any major shifts or changes in Usio, Inc.’s revenue streams over time.

Usio, Inc. reported total revenues of $73.1 million for the year ended December 31, 2024, compared to $51.6 million for the year ended December 31, 2023. This represents an increase of $21.5 million, or 41.7%.

The increase in revenue can be attributed to:

• A $14.9 million, or 64.2%, increase in payment processing revenue.
• A $6.6 million, or 26.9%, increase in Output Solutions revenue.

Here's a more detailed look at Usio, Inc.'s revenue streams:

For more insights into Usio, Inc.'s mission, vision, and core values, check out Mission Statement, Vision, & Core Values of Usio, Inc. (USIO).

Usio, Inc. (USIO) Profitability Metrics

Analyzing Usio, Inc.'s (USIO) profitability involves examining several key metrics to gauge its financial health and operational efficiency. These include gross profit, operating profit, and net profit margins, as well as trends in these metrics over time.

For the year ended December 31, 2024:

• Gross Profit: $19.6 million, a decrease of 2% from $20.1 million in fiscal year 2023.
• Gross Margin: 23.7% compared to 23.9% in fiscal year 2023, reflecting a shift in business mix.

The company's profitability is further detailed by:

• Net Income: A significant improvement of $3.8 million, reaching $3.3 million, compared to a loss of $0.5 million in fiscal year 2023, primarily due to a $3.1 million federal tax benefit.
• Earnings Per Share (EPS): $0.12, a notable increase from a loss of $(0.02) per share in fiscal year 2023.

However, there are some challenges:

• Operating Loss: $0.6 million, compared to an operating loss of $0.0 million in the same period in 2023.
• Adjusted EBITDA: $2.9 million, a $1.0 million decrease compared to $3.9 million in 2023, due to slightly lower revenues and gross margin, alongside a 3% increase in SG&A expense.

Here's a summary of Usio, Inc.'s (USIO) financial performance for the year 2024:

• Revenues: $82.9 million, a 1% decrease from $84.1 million in 2023.
• Total Dollar Processing Volume: Increased by 33% to a record $7.1 billion.
• Transactions Processed: Increased by 26% year-over-year.
• Cash Position: Increased to a record high of $8.1 million.

A comparison of revenue streams highlights the variations in performance across different segments:

The company is focused on managing costs, as reflected in the 3% increase in selling, general, and administrative expenses. Additionally, Usio, Inc. repurchased 331,222 shares of its stock at an average price of $1.46, totaling $482,426, as part of its share buyback program.

For more insights into Usio, Inc.'s strategic direction, see Mission Statement, Vision, & Core Values of Usio, Inc. (USIO).

Usio, Inc. (USIO) Debt vs. Equity Structure

Understanding how Usio, Inc. (USIO) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and recent financing activities to assess its financial health and risk profile.

As of December 31, 2024, Usio, Inc. (USIO) reported the following debt metrics:

• Total current liabilities: $7.97 million
• Total long-term debt: $4.56 million

These figures provide a snapshot of Usio, Inc.'s (USIO) obligations due within the next year and those extending beyond, respectively.

The debt-to-equity ratio is a key metric to evaluate a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. Unfortunately, the exact debt-to-equity ratio for Usio, Inc. (USIO) as of December 31, 2024, isn't available in provided search results. However, the most recent data indicates:

• For the quarter ended September 30, 2023, the debt-to-equity ratio was reported as 2.14.

It is important to note that this ratio can fluctuate depending on the company's financial activities and should be monitored regularly.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact Usio, Inc.'s (USIO) financial structure. Recent news indicates:

• On March 14, 2024, Usio, Inc. (USIO) announced that its majority-owned subsidiary, পরিশোধ Technologies LLC, has obtained a line of credit of up to $3 million from Texas Capital Bank.

This line of credit is intended for general working capital purposes, which may include funding business development and supporting transaction processing volumes. Such financial maneuvers can provide liquidity but also increase debt obligations.

Balancing debt and equity is vital for sustainable growth. While debt can provide capital for expansion, excessive debt can increase financial risk. Equity financing, on the other hand, dilutes ownership but strengthens the balance sheet. Usio, Inc. (USIO) seems to be strategically utilizing debt financing to support its working capital needs and growth initiatives. The company's ability to manage its debt effectively while pursuing growth opportunities will be a key factor in its long-term success.

For further insights into Usio, Inc. (USIO) and its investors, consider reading: Exploring Usio, Inc. (USIO) Investor Profile: Who’s Buying and Why?

Usio, Inc. (USIO) Liquidity and Solvency

Understanding Usio, Inc.'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations. Key metrics like current and quick ratios, working capital trends, and cash flow statements provide valuable insights into Usio's financial stability.

Liquidity Ratios:

The current and quick ratios are essential indicators of a company's liquidity position. These ratios measure a company's ability to cover its short-term liabilities with its short-term assets.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. A higher current ratio generally indicates better liquidity.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, is a more conservative measure of liquidity. It excludes inventory from current assets, as inventory may not be easily convertible to cash.

Working Capital Trends:

Analyzing working capital trends provides insights into Usio's operational efficiency and short-term financial health. Working capital is the difference between a company's current assets and current liabilities. Effective management of working capital is crucial for maintaining liquidity and ensuring smooth business operations.

Cash Flow Statements Overview:

Cash flow statements offer a comprehensive view of Usio's cash inflows and outflows, categorized into operating, investing, and financing activities. Analyzing these trends helps in understanding the company's ability to generate cash, manage investments, and fund its operations.

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash used for investments in assets like property, plant, and equipment.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Potential Liquidity Concerns or Strengths:

By evaluating the aforementioned metrics, investors can identify potential liquidity concerns or strengths within Usio, Inc. Consistent positive cash flow from operations, healthy current and quick ratios, and efficient working capital management are indicators of financial strength. Conversely, declining cash reserves, low liquidity ratios, or negative working capital trends may signal potential financial distress.

For more in-depth information, check out: Exploring Usio, Inc. (USIO) Investor Profile: Who’s Buying and Why?

Usio, Inc. (USIO) Valuation Analysis

Determining whether Usio, Inc. (USIO) is overvalued or undervalued requires analyzing several key financial ratios and indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios (if applicable), and analyst consensus.

Here's a breakdown of these elements based on the most recent data:

• Price-to-Earnings (P/E) Ratio: As of 2024, Usio's trailing P/E ratio is 12.67. The estimated P/E ratio for 2025 is 15.20 and for 2026 is 10.60. A lower P/E ratio typically suggests that a stock is undervalued, while a higher P/E ratio may indicate that it is overvalued.
• Price-to-Book (P/B) Ratio: The P/B ratio for Usio as of December 31, 2024, is 2.10. This ratio compares a company's market capitalization to its book value, with a lower ratio potentially indicating undervaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA ratio as of December 31, 2024, is 12.06. This metric is used to assess the fair value of a company, considering both its debt and equity.

Usio Inc.'s market capitalization currently stands at $40.30 million.

Analyzing stock price trends provides insight into market sentiment and company performance:

• Recent Performance: Usio's stock price has increased by 10.95% compared to the previous week and by 2.70% over the last month.
• One-Year Change: Over the past year, Usio, Inc. has shown a decrease of 1.29%.
• Volatility: USIO stock is 6.48% volatile and has a beta coefficient of 0.26.
• 52-Week Range: The 52-week high is $2.92, and the low is $1.24.
• Current Price: The current price of USIO is $1.52 (as of April 17, 2025), which has increased by 0.66% in the past 24 hours.

Analyst consensus can offer a forward-looking perspective on the stock's valuation:

• Analyst Ratings: The consensus rating for Usio Inc. is a 'Moderate Buy.'
• Price Targets: The average analyst price target is $5.00, with a high forecast of $7.00 and a low forecast of $4.00.

Here's a summary of key valuation measures for Usio, Inc. from Yahoo Finance:

Additionally, analysts provide various price targets and ratings:

• H.C. Wainwright maintains a Buy rating with a $4.00 price target.
• The average price target from analysts is $5.00, representing a potential 228.95% increase from the current price of $1.52.

For more insights into Usio, Inc. (USIO), you might find this resource helpful: Exploring Usio, Inc. (USIO) Investor Profile: Who’s Buying and Why?

Usio, Inc. (USIO) Risk Factors

Understanding the risks facing Usio, Inc. (USIO) is crucial for investors assessing the company's financial health and future prospects. These risks can be both internal and external, impacting operational efficiency, financial stability, and strategic growth.

Here's an overview of key risks that could affect Usio, Inc. (USIO):

• Industry Competition: The payment processing and fintech industries are highly competitive. Usio, Inc. (USIO) faces competition from established players and new entrants, which could pressure pricing and margins.
• Regulatory Changes: Changes in regulations related to payment processing, data security, and financial services can create compliance challenges and increase operational costs.
• Market Conditions: Economic downturns or shifts in consumer spending behavior can reduce transaction volumes and negatively impact revenue.

Operational, financial, and strategic risks are often detailed in Usio, Inc. (USIO)'s earnings reports and filings. These may include:

• Technology and Security Risks: As a payment processor, Usio, Inc. (USIO) is susceptible to cybersecurity threats and data breaches, which could result in financial losses and reputational damage.
• Financial Risks: These include risks related to cash flow management, debt levels, and the ability to raise capital for growth initiatives.
• Strategic Risks: Risks associated with the company's strategic decisions, such as acquisitions, new product launches, and market expansion efforts.

Mitigation strategies are crucial for addressing these risks. While specific strategies can vary, common approaches include:

• Diversification: Expanding into new markets or offering new services to reduce reliance on specific revenue streams.
• Investment in Technology: Enhancing cybersecurity measures and investing in advanced technologies to improve operational efficiency.
• Compliance Programs: Implementing robust compliance programs to navigate regulatory changes and ensure adherence to industry standards.

Understanding these risks and mitigation strategies is essential for investors. For more insights into Usio, Inc. (USIO)'s values, review Mission Statement, Vision, & Core Values of Usio, Inc. (USIO).

Usio, Inc. (USIO) Growth Opportunities

Usio, Inc. (USIO) has several potential growth drivers, including product innovations, market expansion, strategic initiatives, and competitive advantages. These factors collectively influence the company's future revenue growth projections and earnings estimates.

Key growth drivers for Usio, Inc. (USIO):

• Product Innovations: Continued investment in developing new payment solutions and enhancing existing platforms to meet evolving customer needs.
• Market Expansions: Targeting new geographic markets and industries to broaden the customer base and diversify revenue streams.
• Acquisitions: Strategic acquisitions of complementary businesses to expand service offerings and market presence.

Future revenue growth projections and earnings estimates for Usio, Inc. (USIO) will depend on the successful execution of its growth strategies and its ability to capitalize on market opportunities. Investors should monitor the company's progress in these areas to assess its growth potential.

Strategic initiatives and partnerships that may drive future growth:

• Strategic Partnerships: Collaborating with other technology companies and financial institutions to expand its reach and offer integrated solutions.
• Technology Investments: Investing in advanced technologies such as blockchain and AI to enhance its payment processing capabilities and security.

Usio, Inc. (USIO) competitive advantages that position the company for growth:

• Proprietary Technology: Unique and innovative payment solutions that differentiate it from competitors.
• Strong Customer Relationships: Long-standing relationships with key clients that provide recurring revenue and growth opportunities.
• Experienced Management Team: A skilled leadership team with a proven track record of driving growth and innovation.

For insights into the company's guiding principles, refer to Mission Statement, Vision, & Core Values of Usio, Inc. (USIO).