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I3 Verticals
(NASDAQ:IIIV)
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Rating:68Neutral
Price Target:
$17.00
▲(3.91% Upside)
Action:Reiterated
Date:10/10/26
IIIV scores highest on fundamentals, led by strong TTM free-cash-flow generation and a materially improved, lower-leverage balance sheet, supported by solid margins and rapid TTM revenue growth. The score is tempered by mixed earnings-call signals (lowered FY2026 guidance and near-term execution headwinds) and weak intermediate/long-term technicals (below key moving averages with negative MACD). Valuation is also a constraint with a high P/E and no dividend yield provided.
Positive Factors
Recurring revenue and SaaS growth
A high recurring-revenue mix and strong SaaS growth improve revenue visibility and customer retention. Embedding payments into vertical software can deepen workflow integration, support durable transaction volumes, and create a stronger foundation for growth than relying primarily on one-time services.
Negative Factors
Lowered FY2026 outlook
The reduced full-year revenue outlook signals that execution challenges are affecting the company’s near-term growth trajectory. Lower guidance can also indicate that go-live timing, customer implementation, or demand assumptions are taking longer to convert into durable revenue and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and SaaS growth
A high recurring-revenue mix and strong SaaS growth improve revenue visibility and customer retention. Embedding payments into vertical software can deepen workflow integration, support durable transaction volumes, and create a stronger foundation for growth than relying primarily on one-time services.
Read all positive factors
I3 Verticals Key Performance Indicators (KPIs)
Any
Revenue by Product
Breaks down revenue by product line—payment processing, software subscriptions, professional services, hardware, and related services—so you can see which offerings drive growth and cash flow. Reveals margin and risk differences (recurring software tends to be steadier and higher-margin than transaction-based payments), shows dependence on transaction volumes, and highlights where I3 Verticals can cross-sell or needs to diversify to sustain long-term profit growth.
Breaks down revenue by product line—payment processing, software subscriptions, professional services, hardware, and related services—so you can see which offerings drive growth and cash flow. Reveals margin and risk differences (recurring software tends to be steadier and higher-margin than transaction-based payments), shows dependence on transaction volumes, and highlights where I3 Verticals can cross-sell or needs to diversify to sustain long-term profit growth.
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The Fly
The FlyI3 Verticals (IIIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$457.21M
Dividend YieldN/A
Average Volume (3M)519.38K
Price to Earnings (P/E)42.6
Beta (1Y)0.52
Revenue Growth-8.15%
EPS Growth-91.81%
CountryUS
Employees1,202
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.41
Shares Outstanding18,019,749
10 Day Avg. Volume292,332
30 Day Avg. Volume519,383
Financial Highlights & Ratios
PEG Ratio-0.51
Price to Book (P/B)1.99
Price to Sales (P/S)3.64
P/FCF Ratio206.81
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue3.00
Enterprise Value/Gross Profit5.11
Enterprise Value/Ebitda13.66
Forecast
1Y Price Target
$24.00Price Target Upside46.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.22
Revenue Forecast (FY)$228.55M
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 makes money primarily by processing electronic payments for its customers and charging fees tied to the volume and value of those transactions. A core revenue stream is payments-related revenue generated when end users pay by credit/d...
I3 Verticals Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: solid recurring revenue growth (ARR +8%), strong SaaS performance (+38%), improved adjusted EBITDA and EPS, and tangible AI-driven efficiency and public sector go-lives. However, these positives were offset by near-term execution challenges: lowered FY2026 guidance (down ~$6.5M), declines in non-recurring and professional services revenue (organic revenue -2%, non-recurring -18%), maintenance timing issues, payment interchange headwinds, and temporary weakness in the Resolve product. Management expects margin improvement and a recovery to mid-single-digit growth in 2027 driven by multiple go-lives and acquisitions, but the near-term outlook is cautious.Positive Updates
Modest Revenue Growth
Total revenue for Q3 FY2026 increased 2% year-over-year to $53.1M from $51.9M.
Negative Updates
Guidance Reduction and Revenue Headwinds
FY2026 revenue guidance was lowered by approximately $6.5M; updated guidance is $216M–$221M, with adjusted EBITDA $57M–$60M and adjusted diluted EPS $1.08–$1.12, materially below prior guidance.
Read all updates
Q3-2026 Updates
Positive
Negative
Modest Revenue Growth
Total revenue for Q3 FY2026 increased 2% year-over-year to $53.1M from $51.9M.
Read all positive updates
Company Guidance
The company updated FY2026 guidance to revenue of $216M–$221M, adjusted EBITDA of $57M–$60M and adjusted diluted EPS of $1.08–$1.12 (guidance lowered by ~$6.5M and excludes unannounced acquisitions/transaction costs); Q3 results included $53.1M revenue (organic down 2%), adjusted EBITDA $13.3M (25% of revenue, up from 24.5%), adjusted diluted EPS $0.25, ARR $174.1M (up 8% YoY), SaaS +38% and transaction-based +5%, with 82% of revenue recurring; balance sheet: $114.3M debt, $2.6M cash and $285.7M revolver capacity; the company now expects mid-single-digit revenue growth in FY2027 with margin expansion of roughly 100–200 basis points if that growth materializes.I3 Verticals Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
76
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 218.16M | 213.16M | 229.92M | 189.68M | 187.75M | 224.12M |
| Gross Profit | 127.81M | 118.67M | 211.35M | 134.87M | 174.92M | 166.42M |
| EBITDA | 47.83M | 43.02M | 46.77M | 33.27M | 30.45M | 27.00M |
| Net Income | 8.52M | 17.87M | 113.34M | -811.00K | -17.10M | -4.46M |
Balance Sheet | ||||||
| Total Assets | 626.98M | 638.41M | 730.67M | 884.42M | 770.31M | 651.80M |
| Cash, Cash Equivalents and Short-Term Investments | 2.65M | 66.67M | 86.54M | 3.10M | 3.49M | 3.64M |
| Total Debt | 118.87M | 7.75M | 38.31M | 400.63M | 305.58M | 215.77M |
| Total Liabilities | 226.65M | 120.69M | 215.32M | 556.12M | 462.62M | 362.21M |
| Stockholders Equity | 280.55M | 389.58M | 379.74M | 236.75M | 218.38M | 204.76M |
Cash Flow | ||||||
| Free Cash Flow | 49.93M | 3.75M | 33.45M | 20.80M | 33.40M | 38.57M |
| Operating Cash Flow | 52.38M | 5.69M | 48.41M | 37.17M | 45.85M | 46.77M |
| Investing Cash Flow | -70.44M | 76.46M | 396.15M | -121.52M | -113.05M | -156.31M |
| Financing Cash Flow | -32.31M | -104.41M | -367.36M | 72.98M | 73.03M | 102.10M |
I3 Verticals Technical Analysis
Neutral
16.36
Price Trends
15.81
Positive
18.06
Negative
20.14
Negative
Market Momentum
0.44
Negative
67.60
Neutral
82.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IIIV, the sentiment is Neutral. The current price of 16.36 is above the 20-day moving average (MA) of 15.73, above the 50-day MA of 15.81, and below the 200-day MA of 20.14, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 67.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.32B | 15.54 | 16.16% | ― | 8.85% | 1015.07% | |
72 Outperform | $4.20B | 49.78 | 14.80% | ― | 30.21% | 50.31% | |
68 Neutral | $457.21M | 42.62 | 2.53% | ― | -8.15% | -91.81% | |
62 Neutral | $644.93M | 11.33 | -59.14% | ― | 8.91% | 162.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $89.48M | -56.68 | -8.20% | ― | 10.40% | -152.86% | |
56 Neutral | $384.48M | -2.14 | -32.64% | ― | 8.84% | -62.58% |
* Technology Sector Average
IIIV
I3 Verticals
17.37
-15.74
-47.54%
RAMP
LiveRamp Holdings
38.24
10.06
35.70%
USIO
Usio
3.14
1.70
118.06%
RPAY
Repay Holdings
4.36
-0.69
-13.66%
PRTH
Priority Technology Holdings
7.82
0.39
5.25%
PAY
Paymentus Holdings
33.35
1.97
6.28%
I3 Verticals Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
i3 Verticals Expands Liquidity with New Credit Facility
Positive
Oct 9, 2026
On October 9, 2026, i3 Verticals, LLC entered into an Amended and Restated Credit Agreement that replaces its May 8, 2023 facility and establishes a $350 million senior secured revolving credit line with JPMorgan Chase Bank as administrative agent...
Business Operations and StrategyStock BuybackFinancial Disclosures
i3 Verticals Reports Q3 2026 Profitability Improvement
Positive
Aug 6, 2026
i3 Verticals, Inc., based in Nashville, Tenn., is a technology company that focuses on software and integrated payments solutions, with a strategic emphasis on recurring revenue from SaaS, transaction-based software, maintenance, and other softwar...
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.