SAN ANTONIO, April 23, 2025 (GLOBE NEWSWIRE) -- Usio, Inc. (Nasdaq:USIO), a leading provider of integrated, cloud-based electronic payment and embedded financial solutions, today announced it will release first quarter 2025 financial results for the period ended March 31, 2025, after the market closes on Wednesday, May 14, 2025. Usio’s management will host a conference call the same day, May 14, 2025, beginning at 4:30 p.m. Eastern time to review financial results and provide a business update. Following ma ...

Usio, Inc. (NASDAQ: USIO ) , with a market cap of about $43 million, so, more or less straddling the line between nano-cap and micro-cap, is a U.S.-based financial technology company. It focuses on electronicThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap companies, offering the Seeking Alpha investor compelling ...

Usio (USIO) Q4 2024 Earnings Call March 26, 2025 09:48 PM ET Company Participants Paul Manley - SVP, IRLouis Hoch - Chairman and CEOGreg Carter - EVP, Payment Acceptance Conference Call Participants Scott Buck - Managing Director & Senior Technology Analyst Operator Hello, and welcome to the UCO's Fourth Quarter and Fiscal Year End twenty twenty four Earnings Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. Please als ...

分组1 - Usio Inc reported quarterly earnings of $0.02 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, representing an earnings surprise of 300% [1] - The company posted revenues of $20.56 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.50%, compared to year-ago revenues of $19.36 million [2] - Usio shares have increased approximately 13% since the beginning of the year, while the S&P 500 has declined by 1.8% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.04 on revenues of $21.84 million, and for the current fiscal year, it is $0.14 on revenues of $94.02 million [7] - The Zacks Industry Rank indicates that the Financial Transaction Services sector is in the bottom 49% of over 250 Zacks industries, which may impact stock performance [8]

Business Operations and Growth - The company serves multiple industry verticals with a cloud-based Fintech payment processing ecosystem, facilitating payment acceptance and funds disbursement [23]. - Since 1998, the company has expanded into various payment methods, including ACH, PINless debit, and Remotely Created Checks, enhancing customer access to faster payment options [24]. - The company introduced the Consumer Choice product in 2022, allowing flexible payment distributions through various methods, which enhances cross-selling opportunities [25]. - In 2023, the company began expanding into Real Time Payments (RTP) as an alternative to ACH payments, improving speed and scalability in payment processing [26]. - The company has invested in new equipment to enhance its electronic bill presentment and payment services, aiming to reduce costs and increase efficiency [36]. - The company increased its merchant accounts by 20%, reaching 7,549 customers as of December 31, 2024, up from 6,281 customers a year earlier [65]. - The company has invested in new equipment to enhance capacity and speed, including a new inserter and folder implemented in October 2023, with further enhancements expected throughout 2024 [55]. - The company has launched a "One Usio" strategy to integrate its various product offerings, aiming to provide a unified approach to meet customer needs [64]. - The company has enhanced its electronic billing services following the acquisition of IMS, expanding its capabilities in document management and high-volume printing [55]. - The company has completed four acquisitions since 2014 to expand its product offerings, including the acquisition of IMS for electronic bill presentment services [112]. Financial Performance - The company reported a net income of $3.3 million for the year ended December 31, 2024, but incurred a net loss of $0.5 million for the year ended December 31, 2023, resulting in an accumulated deficit of $68.0 million as of December 31, 2024 [126]. - The company has net deferred tax assets of $4.7 million as of December 31, 2024, but realization of these assets is uncertain and could result in a charge against earnings if not realized [128]. - Fraud losses recorded by the company were $311,306 in 2024 and $573,281 in 2023, indicating a decline in fraudulent accounts due to improved security measures [144]. - The company estimates cash disbursements of $5.9 million for separation payments under the employment agreement with its Chairman and CEO, Louis Hoch, in the event of a change in control or termination without cause [137]. - The company may need to raise additional capital to support product development and market expansion, with potential reliance on public or private equity offerings, debt financing, or corporate collaborations [127]. - The company is exposed to risks from reduced consumer spending, which could adversely affect revenues and earnings derived from processing consumer transactions [143]. - The company has recorded an accumulated deficit of $68.0 million, indicating ongoing financial challenges and uncertainty in future operating results [126]. Regulatory and Compliance Risks - The company is subject to various federal, state, local, and foreign environmental, health, and safety laws, incurring costs to maintain compliance, although these costs have not been material to the company [86]. - The company is governed by the CARD Act and other regulations regarding gift cards, with potential violations leading to fines and suspension of gift card offerings, adversely impacting revenues [81]. - The company is subject to evolving data privacy laws, including the California Consumer Privacy Act (CCPA) and similar laws in other states, which could affect its operations [83]. - The company is under increasing pressure from partner banks to enhance anti-money laundering (AML) and Bank Secrecy Act (BSA) compliance due to regulatory scrutiny [84]. - The company is subject to various U.S. laws and regulations related to privacy, data protection, and information security, with potential for significant penalties for non-compliance [165]. - The California Consumer Privacy Act (CCPA) provides expanded privacy rights and could increase the risk of data breach litigation [168]. - Compliance with anti-money laundering laws and regulations, including the Bank Secrecy Act, is mandatory and could increase operational costs [174]. - The company must adhere to economic and trade sanctions programs administered by the Treasury Department's Office of Foreign Assets Control [175]. - The Financial Crimes Enforcement Network's rules regarding prepaid products impose additional compliance obligations that could increase costs [179]. Cybersecurity and Data Protection - The company faces risks related to cybersecurity threats, including ransomware attacks, which could compromise data integrity and lead to significant costs [96]. - A ransomware attack detected on December 25, 2021, resulted in unauthorized access to non-payment processing data, but the company remained operational and restored its systems without material impact on business [98]. - The company collects and stores personal identifiable information, requiring compliance with various privacy laws, with potential breaches leading to significant fines and operational impacts [100]. - The company has multiple programs in place to detect and respond to data security incidents, but evolving techniques used by unauthorized parties pose ongoing risks [102]. - The company has implemented a comprehensive cybersecurity risk management program, certified to conform to SOC 2 Type 2 and PCI standards as of 2024 [207]. - The CTO, with over 21 years of experience at the company, leads the cybersecurity organization and reports to the CEO and Risk and Cybersecurity Committee [210]. Market Trends and Competition - The electronic payment processing industry is expected to benefit from increased adoption of electronic payment methods by small businesses, driven by competitive pressures [46]. - Estimated retail e-commerce sales for 2024 are projected to reach $1,192.6 billion, an increase of approximately 8.1% from 2023, indicating continued growth in online transactions [47]. - Increased competition in the electronic payment processing market may lead to a loss of market share and increased costs [156]. - The electronic commerce market is evolving, and failure to grow could jeopardize the company's viability [155]. - The company must adapt to rapid technological changes to remain competitive, including developments in AI and machine learning [107]. Employee and Operational Management - The company had 107 full-time employees and four part-time employees as of December 31, 2024 [87]. - The company emphasizes employee training and development, requiring a mandatory online training curriculum that includes annual anti-harassment and anti-discrimination training [88]. - The company relies on its reseller sales channel for revenue growth, and losing key resellers could negatively impact revenues [122]. - The company faces challenges in integrating acquisitions, which could limit growth and profitability if not managed effectively [148]. Real Estate and Lease Obligations - The Company leases approximately 10,535 square feet of office space in San Antonio, TX, with a rental expense of $165,817 and $157,682 for the years ended December 31, 2024 and 2023, respectively [212]. - An additional lease amendment in San Antonio added 2,734 square feet, with incremental annual rent ranging from $57,000 to $60,000, and rental expenses of $49,653 and $48,113 for 2024 and 2023, respectively [213]. - A further lease amendment in San Antonio added 6,628 square feet, with annual rent ranging from $144,000 to $156,000, and rental expenses of $109,355 and $75,269 for 2024 and 2023, respectively [214]. - The Company leased 3,794 square feet in Nashville, TN, with rental expenses of $0 and $36,995 for 2024 and 2023, respectively, and did not renew the lease upon expiration [215]. - A lease assumed from the acquisition of Information Management Solutions, LLC includes 22,400 square feet, with annual rents ranging from $174,000 to $225,000, and rental expenses of $135,489 and $117,836 for 2024 and 2023, respectively [216]. - The Company has a lease in Austin, TX for 1,890 square feet, with rental expenses of $83,610 and $79,467 for 2024 and 2023, respectively [217]. - Total operating lease expense was approximately $660,000 and $674,000 for the years ended December 31, 2024 and 2023, respectively, with $544,000 as fixed operating expense and $116,000 as interest expense in 2024 [219]. - The weighted average remaining lease term is 3.49 years, with a weighted average discount rate of 4.42% [219]. - The Company believes existing and new properties will be adequate to meet its needs through December 31, 2025 [220]. Stock and Shareholder Information - The stock price of the company fluctuated between $1.28 and $1.93 in 2024, indicating high volatility in the market [186]. - As of March 21, 2025, the company had 26,514,356 shares of Common Stock outstanding, with 4,748,457 shares held by affiliates [198]. - The company has not paid any cash dividends to date and does not anticipate issuing cash dividends in the foreseeable future [196]. - The company has reserved 5,000,000 shares of Common Stock under the 2015 Equity Incentive Plan, which automatically increases by 5% annually [190]. - The company has also reserved 2,500,000 shares under the 2023 Employee Stock Purchase Plan, with an automatic increase based on a percentage of outstanding shares [191]. - The company's directors and executive officers beneficially owned approximately 18% of the outstanding Common Stock as of March 21, 2025, allowing them substantial control over operations [199]. - The company has adopted measures that may make it more difficult for a third party to acquire control, including a classified board of directors [200].

Revenue Performance - Full Year 2024 revenues were $82.9 million, down 1% from $84.1 million in 2023[15] - Fourth Quarter 2024 revenues were $20.6 million, a 2% increase compared to $20.1 million in the same period in 2023[7] - Total revenues for the three months ended December 31, 2024, were $20,560,088, an increase from $20,130,642 in the same period of 2023, representing a growth of 2.1%[33] - Total revenues for the twelve months ended December 31, 2024, were $82,931,840, a slight decrease from $84,066,245 in the previous year[39] Profitability Metrics - Adjusted EBITDA for the year was $2.9 million, a decline of $1.0 million from $3.9 million in 2023[18] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $2,886,363, with an adjusted EBITDA margin of 3.5%, compared to $3,857,138 and 4.6% for the previous year[39] - Net income for Q4 2024 was $0.6 million, or $0.02 per share, compared to $0.03 million or $0.00 per share in Q4 2023[12] - Net income for the twelve months ended December 31, 2024, was $3,305,497, a significant improvement from a net loss of $475,104 in 2023[33] - Operating loss for the three months ended December 31, 2024, was $(602,797), compared to a loss of $(3,788) in the same period of 2023[33] Revenue Sources - ACH and complementary services revenue grew by 12% year-over-year, reaching $16.7 million in 2024[16] - Credit card revenue increased by 3% year-over-year, totaling $29.3 million in 2024[16] Cash and Assets - Cash position increased to a record high of $8.1 million at the end of 2024, up from $7.2 million in 2023[4] - Cash and cash equivalents increased to $8,056,891 as of December 31, 2024, up from $7,155,687 in 2023, reflecting a growth of 12.6%[31] - Total assets as of December 31, 2024, were $107,208,447, slightly up from $106,934,670 in 2023, indicating a growth of 0.3%[31] Liabilities and Equity - Total liabilities decreased to $88,051,484 as of December 31, 2024, down from $91,865,831 in 2023, representing a reduction of 4.4%[31] - As of December 31, 2023, total stockholders' equity increased to $15,068,839 from $13,934,098 as of December 31, 2022, reflecting a growth of approximately 8.1%[37] Stock and Repurchase Activity - The company repurchased $1.4 million of its stock in 2024 and reauthorized a new repurchase agreement of $4 million[3] - The company issued 1,189,050 shares of common stock under the equity incentive plan during the year, raising $634,214 after accounting for compensation expenses[37] - The balance of common stock increased to $99,676,457 as of December 31, 2024, from $94,048,603 as of December 31, 2022, representing an increase of approximately 6.9%[37] - The company purchased treasury stock amounting to $(1,408,442) during the year ended December 31, 2024[37] Future Outlook - The company expects revenue growth of 14-16% in 2025, with Adjusted EBITDA margins projected in the 5-7% range[6]

Full Year Revenues up in each of ACH & Complementary Services, Card and Output Solutions Business Units Record Full Year 2024 Dollar Processing Volume of $7.1 Billion, a 33% Increase Compared to Fiscal 2023; Transactions Processed also up a Strong 26% Year-over-Year Cash Position Increases to Record High of $8.1 Million SAN ANTONIO, March 26, 2025 (GLOBE NEWSWIRE) -- Usio, Inc: (NASDAQ:USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded fina ...

Full Year Revenues up in each of ACH & Complementary Services, Card and Output Solutions Business Units Record Full Year 2024 Dollar Processing Volume of $7.1 Billion, a 33% Increase Compared to Fiscal 2023; Transactions Processed also up a Strong 26% Year-over-Year Cash Position Increases to Record High of $8.1 Million SAN ANTONIO, March 26, 2025 (GLOBE NEWSWIRE) -- Usio, Inc: (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded fin ...

Core Viewpoint - Usio, Inc. has renewed its Share Repurchase Program for an additional three years with a total purchase limit of $4 million, extending the expiration date to May 15, 2028, reflecting confidence in the company's intrinsic value and future growth potential [1][2]. Financial Performance - The company has utilized nearly all of the original $4 million authorized for share buybacks, including $1.5 million in stock repurchased in 2024 [2]. - As of December 31, 2024, Usio had approximately $8.1 million in unrestricted cash and about 26.5 million shares of common stock outstanding as of March 24, 2025 [3]. Share Repurchase Program Details - The repurchase program allows for shares to be bought back through open market purchases, block trades, or privately negotiated transactions, with management discretion based on market conditions [4][5]. - Repurchases may be conducted under a Rule 10b5-1 plan, allowing for buybacks even when the company might be restricted under insider trading laws [4]. Company Overview - Usio, Inc. is a leading FinTech company providing integrated, cloud-based electronic payment and embedded financial solutions, serving a diverse range of clients including merchants, banks, and service bureaus [6]. - The company operates various payment processing platforms and offers services related to electronic bill presentment and document management [6].

Core Points - Usio, Inc. will release its fourth quarter and fiscal year end 2024 financial results on March 26, 2025, after market close [1] - A conference call will be held on the same day at 4:30 p.m. Eastern time to discuss the financial results and provide a business update [2] - The conference call will be accessible via phone and live webcast on the company's website [3] Company Overview - Usio, Inc. is a leading provider of integrated, cloud-based electronic payment and embedded financial solutions [5] - The company offers a wide range of payment solutions including credit, debit/prepaid, and ACH payment processing platforms [5] - Usio also provides services related to electronic bill presentment, document composition, and printing and mailing services through its Usio Output Solutions division [5] - The company is headquartered in San Antonio, Texas, with additional offices in Austin, Texas [5]