Fintech Usio climbs after positive earnings, buyback expansion

Shares of fintech small cap Usio have jumped nearly 7% in premarket trading today, March 27, after the company reported improved profitability and cash flow in 2024. This will allow Usio to expand and extend for another three years its stock buyback program.  

Usio has surged nearly 7% before the opening bell today to $1.70 per share. Since the beginning of the year, it is up almost 9%.  

Yesterday, shortly after the close, Usio released two important updates within minutes of each other.  

First, the company announced a three-year extension of its share buyback program, until May 15, 2028. The initially allocated $4 million (back in 2022) has already been partially spent. President and CEO Louis Hoch added that Usio has generated positive cash flow in recent years and aims to keep this going in 2025. As of end-2024, Usio had $8.1 million in unrestricted cash. As of March 24, approximately 26.5 million shares were outstanding.

Second, Usio reported fourth-quarter and full-year financials, with improved profitability standing out. Earnings per share stood at $0.02 in the fourth quarter, marking the third consecutive profitable quarter, while full-year earnings were $0.12 per share.  

At the same time, Usio disclosed a 1% revenue decline to $82.9 million in 2024. In 2025, the company guides for revenue growth of 14-16%. “Guidance is conditioned on no appreciable deterioration in economic conditions,” the statement noted.  

Usio operates multiple fintech segments, specializing in cloud-based electronic payment solutions. One segment focuses on payment processing, enabling businesses to convert paper checks into electronic payments and authorize transactions at the point of sale. The company also offers a proprietary prepaid card platform, featuring reloadable, gift, and corporate cards.  

During the COVID-19 pandemic, digital payments surged, significantly boosting Usio’s business. In 2023, the company reported a 19% top-line increase. However, Usio cautioned that pandemic-era government stimulus measures were fading, meaning new growth drivers were needed.  

The company has been integrating its various services and offering additional ones to customers. This strategy has already begun improving profitability, but in 2025, Usio plans to double down on these efforts, according to Hoch.  

According to MarketWatch, Usio stock has three “buys” and one “hold” from coverage analysts. Their average target price of $5.67 per share implies upside of nearly 257% versus the last closing price.