Usio Inc (USIO)
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
$2.75+0.36%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
Intact: The reason to own it still holds.
Usio aims for double-digit revenue growth in 2026. Revenue rose from $211.8M to $254.7M in recent quarters. Operating income improved from -$1.26M to $0.23M, showing better profits. The company is on track to use its operating leverage well.
Usio is still loss-making with negative free cash flow. Past quarters had several earnings misses. Profit gains may not last if growth slows or costs rise.
The market expects about 12% revenue growth. Our fair value is $15.22, close to consensus. We see the company as cheap versus peers but still risky due to losses.
Breaks if: Operating income remains negative or declines in FY26
Focus on improving profitability and operating income through revenue growth and disciplined expense management.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a medium confidence level. USIO is working to improve its financial performance while managing high risk and recent earnings misses.
The market currently prices USIO as a cheaper option compared to its peers, with a significant expectations gap. This suggests that investors may have low expectations for future performance, which could provide room for improvement.
Management is on track to achieve double-digit revenue growth and capitalize on operating leverage, as indicated by recent financial results. However, the company remains loss-making, and there is a notable probability of missing future earnings expectations.
The long-term thesis hinges on management's ability to maintain revenue growth and profitability while navigating potential risks. Key factors include the Fed's interest rate decisions and the performance of major tech companies that could influence market sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. Recent earnings reports show accelerated revenue growth of 19%. This supports the goal of achieving double-digit revenue growth in 2026. The unified platform is gaining traction, which helps expand revenue streams. There are no new threats identified that could weaken this outlook.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 2 of last 3 quarters. Adjusted EBITDA increased 128% in 2026-Q2 to $1.1M from $0.5M a year ago. Operating income turned positive, improving from a loss of $0.2M in 2025-Q1 to a gain of $0.2M in 2026-Q1. Management's focus on operating leverage is showing delivering results through improved profitability.
“Adjusted EBITDA was up 128% from a year ago and operating income was approximately $0.4 million compared to a loss last year.”
“Operating income of $0.2 million compared to an operating loss of ($0.2) million a year ago, driven by revenue growth and expense control.”
Breaks if: Free cash flow remains negative beyond next 4 quarters
Breaks if: YoY revenue growth falls below 10% in FY26
Continue driving strong revenue growth with full year 2026 revenue expected up 14-16% versus prior year.
Stated as a priority in 3 of last 3 quarters. Revenue grew from $22.0M in 2025-Q1 to $25.5M in 2026-Q1 (+16%) and $20.0M in 2025-Q2 to $23.7M in 2026-Q2 (+19%). Management raised full year 2026 revenue growth guidance to 14-16%, up from prior 10-12%. The trajectory is delivering strong double-digit growth consistent with management's stated expectations.
“We have raised our expectations for our top line growth, with full year revenues now expected to be up 14 to 16% compared to the prior year.”
“Confidence in our expectation of achieving another year of profitable, double-digit growth in fiscal 2026.”
“The Company continues to expect strong 10 - 12% growth in revenue in 2026.”
In the next 1 to 3 years, USIO's success will depend on its execution of growth strategies and external market conditions. Not investment advice.