I3 Verticals (IIIV)
NASDAQ:IIIV
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I3 Verticals
(NASDAQ:IIIV)
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Rating:65Neutral
Price Target:
$22.50
▲(6.18% Upside)
Action:Reiterated
Date:06/03/26
The score is driven primarily by improving financial quality (positive profitability, strong free cash flow, and low leverage) and a generally constructive earnings update around recurring revenue momentum. It is held back by slowing/flat top-line trends and thin operating leverage, while technicals remain mixed with the stock below key longer-term moving averages and valuation not clearly cheap at a ~25.6 P/E without re-acceleration.
Positive Factors
High recurring revenue mix
A high recurring mix and double-digit ARR growth materially improve revenue visibility and retention, lowering churn-driven volatility. This supports predictable cash flow, easier forecasting, and creates a stronger base to cross-sell payments and SaaS, enabling durable topline resilience.
Negative Factors
Flat organic revenue
Stagnant organic growth and declining nonrecurring revenue indicate limited near-term expansion from existing customers and project-dependent income. If ARR growth doesn't accelerate to offset this, sustained top-line pressure could constrain reinvestment and slow long-term revenue momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring revenue mix
A high recurring mix and double-digit ARR growth materially improve revenue visibility and retention, lowering churn-driven volatility. This supports predictable cash flow, easier forecasting, and creates a stronger base to cross-sell payments and SaaS, enabling durable topline resilience.
Read all positive factors
I3 Verticals Key Performance Indicators (KPIs)
I3 Verticals (IIIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$553.60M
Dividend YieldN/A
Average Volume (3M)333.41K
Price to Earnings (P/E)24.1
Beta (1Y)0.66
Revenue Growth-10.20%
EPS Growth-95.64%
CountryUS
Employees1,480
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.75
Shares Outstanding19,549,833
10 Day Avg. Volume386,400
30 Day Avg. Volume333,408
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)1.99
Price to Sales (P/S)3.64
P/FCF Ratio206.81
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.56
Enterprise Value/Gross Profit4.40
Enterprise Value/Ebitda14.42
Forecast
1Y Price Target
$29.00Price Target Upside36.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.13
Revenue Forecast (FY)$224.44M
I3 Verticals Business Overview & Revenue Model
Company Description
i3 Verticals, Inc. (IIIV) delivers comprehensive payment and software solutions, catering to the operational needs of small and medium-sized businesses, as well as various organizations within the education, non-profit, public sector, and healthca...
How the Company Makes Money
I3 Verticals primarily makes money through recurring and transaction-based revenue tied to payment processing and related software/services. Key revenue streams include: (1) Payment processing fees: The company earns revenue when its customers acc...
I3 Verticals Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
Overall the call skewed positive: the company reported solid recurring revenue momentum (ARR +12%, SaaS +37%), improved adjusted EBITDA and EPS, meaningful strategic progress on AI, and an acquisition that expands TAM and near-term deployments. Offsetting items include a notable decline in nonrecurring/professional services revenue (organic revenue flat), a modest contraction in adjusted EBITDA margin (~50 bps), and a lowered revenue midpoint driven by professional services weakness. Management emphasized margin improvement in the back half of FY2026 and continued double-digit recurring revenue growth, indicating confidence that operating efficiencies and product-driven ARR will outweigh near-term nonrecurring headwinds.Positive Updates
Revenue Growth and Mix
Total revenue from continuing operations increased 6% year-over-year to $57.5M (Q2 FY2026 vs $54.1M prior-year). 80% of Q2 revenue was recurring, with annual recurring revenue (ARR) up 12% to $183.5M (from $164.5M).
Negative Updates
Flat Organic Revenue and Professional Services Weakness
Organic revenue was flat for the quarter; professional services revenue declined by $2.2M in Q2 and management said the weakness is concentrated in the utilities market and is expected to persist through the remainder of FY2026. Professional services has declined from about $39M previously to a guided 'high-20s' level on an organic basis.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Mix
Total revenue from continuing operations increased 6% year-over-year to $57.5M (Q2 FY2026 vs $54.1M prior-year). 80% of Q2 revenue was recurring, with annual recurring revenue (ARR) up 12% to $183.5M (from $164.5M).
Read all positive updates
Company Guidance
i3 Verticals updated FY‑2026 guidance calling for revenue of $221–$229 million, adjusted EBITDA of $61–$65 million and adjusted diluted EPS of $1.09–$1.15, while expecting recurring revenues to grow at a double‑digit rate through the rest of the year; Q2 results that informed the guide included revenue of $57.5 million (+6% YoY), annual recurring revenue of $183.5 million (+12%), SaaS growth of 37%, transaction revenue +7%, 80% of Q2 revenue from recurring sources, adjusted EBITDA of $16.6 million (+5%) at a 28.8% margin (vs. 29.3% prior year), adjusted diluted EPS of $0.32 (+10%), cash of $7.1 million, debt of $81 million and $319 million of revolver capacity (5x leverage constraint). Management said professional services weakness pushed them to lower the revenue midpoint (with nonrecurring revenues down 11% YoY and professional services notably weaker), but they expect margins to improve in H2, long‑term organic revenue growth in the high single digits, and annual margin expansion of roughly 50–100 basis points.I3 Verticals Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 216.99M | 213.16M | 229.92M | 189.68M | 187.75M | 224.12M |
| Gross Profit | 126.22M | 118.67M | 211.35M | 134.87M | 174.92M | 166.42M |
| EBITDA | 38.52M | 41.08M | 33.23M | 33.27M | 22.59M | 27.00M |
| Net Income | 17.92M | 17.87M | 113.34M | -811.00K | -17.10M | -4.46M |
Balance Sheet | ||||||
| Total Assets | 636.42M | 638.41M | 730.67M | 884.42M | 770.31M | 651.80M |
| Cash, Cash Equivalents and Short-Term Investments | 7.14M | 66.67M | 86.54M | 3.10M | 3.49M | 3.64M |
| Total Debt | 85.61M | 7.75M | 38.31M | 400.63M | 305.58M | 215.77M |
| Total Liabilities | 198.18M | 120.69M | 215.32M | 556.12M | 462.62M | 362.21M |
| Stockholders Equity | 317.38M | 389.58M | 379.74M | 236.75M | 218.38M | 204.76M |
Cash Flow | ||||||
| Free Cash Flow | 49.50M | 3.75M | 33.45M | 20.80M | 33.40M | 38.57M |
| Operating Cash Flow | 45.47M | 5.69M | 48.41M | 37.17M | 45.85M | 46.77M |
| Investing Cash Flow | 15.47M | 76.46M | 396.15M | -121.52M | -113.05M | -156.31M |
| Financing Cash Flow | -61.09M | -104.41M | -367.36M | 72.98M | 73.03M | 102.10M |
I3 Verticals Technical Analysis
Negative
21.19
Price Trends
20.76
Negative
21.57
Negative
25.02
Negative
Market Momentum
-0.20
Negative
47.65
Neutral
31.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IIIV, the sentiment is Negative. The current price of 21.19 is above the 20-day moving average (MA) of 19.98, above the 50-day MA of 20.76, and below the 200-day MA of 25.02, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 31.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IIIV.
I3 Verticals Risk Analysis
I3 Verticals disclosed 50 risk factors in its most recent earnings report. I3 Verticals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
I3 Verticals Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.39B | 53.41 | 21.19% | 1.33% | 12.08% | -8.14% | |
65 Neutral | $553.60M | 24.11 | 4.95% | ― | -10.20% | -95.64% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $380.94M | 10.69 | 32.32% | ― | 2.43% | ― | |
55 Neutral | $449.77M | 19.88 | 16.38% | ― | 1.19% | -25.24% | |
40 Underperform | $430.95M | 16.83 | 16.51% | ― | -10.94% | -50.17% |
* Technology Sector Average
IIIV
I3 Verticals
19.82
-4.80
-19.50%
ATEN
A10 Networks
33.26
15.30
85.16%
RPD
Rapid7
6.73
-16.66
-71.23%
IMXI
International Money Express
14.32
4.23
41.92%
YEXT
Yext
3.80
-4.21
-52.56%
I3 Verticals Corporate Events
Business Operations and StrategyFinancial Disclosures
i3 Verticals Highlights GovTech Strategy in Investor Presentation
Positive
Jun 2, 2026
I3 Verticals has published an investor presentation on its website to support its participation in the Baird 2026 Global Consumer, Technology Services Conference on June 3, 2026, and the 2026 Davidson Technology Consumer Conference on June 11, 20...
Business Operations and StrategyStock Buyback
I3 Verticals Authorizes New $100 Million Share Repurchase
Positive
May 12, 2026
On May 12, 2026, I3 Verticals’ Board of Directors approved a new share repurchase program for the company’s Class A common stock, authorizing buybacks of up to $100 million and replacing the prior program adopted on February 5, 2026, w...
Business Operations and StrategyFinancial Disclosures
i3 Verticals Reports Q2 Results, Trims 2026 Outlook
Neutral
May 7, 2026
For the fiscal second quarter ended March 31, 2026, i3 Verticals reported revenue from continuing operations of $57.5 million, up 6.2% year over year, and six‑month revenue of $110.2 million, up 3.6% from the prior-year period. Net income fr...
Executive/Board ChangesShareholder Meetings
i3 Verticals Shareholders Back Board, Pay and Auditor
Positive
Mar 3, 2026
At its 2026 Annual Meeting of Stockholders held on March 3, 2026, i3 Verticals reported that 28,382,815 shares, or about 91.6% of its outstanding common stock, were represented in person or by proxy, ensuring a strong quorum for decision-making. S...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.