Usio Inc Q4 revenue misses analyst estimates

Overview

• U.S. fintech firm's Q4 revenue grew 8% yr/yr but missed analyst expectations

• Adjusted EBITDA for Q4 was negative, reflecting lower gross margins and higher SG&A expense

• Company repurchased $0.3 mln shares during Q4 as part of its buyback program

Outlook

• Usio expects 2026 revenue growth of 10-12%

• Company anticipates continued positive Adjusted EBITDA in 2026

Result Drivers

• ACH GROWTH - ACH and complementary services revenue rose 33% yr/yr, driven by increased processing volume and cross-selling into credit card and prepaid accounts

• CREDIT CARD BUSINESS - Credit card revenue grew 7% in Q4

• MARGIN PRESSURE - Gross margins declined due to shift in revenue mix toward lower margin ACH services and reduced interest revenues

Company press release: ID:nGNXbb5x8h

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Usio Inc is $5.25, about 320% above its March 17 closing price of $1.25

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 35 three months ago

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