i3 Verticals boosts outlook after acquisition and buyback

I3 Verticals ( (IIIV) ) has shared an update.

For its fiscal first quarter ended December 31, 2025, i3 Verticals reported modest top-line growth, with revenue from continuing operations rising 0.9% year on year to $52.7 million, while profitability softened as net income from continuing operations declined to $1.1 million and adjusted EBITDA fell to $13.6 million, or 25.8% of revenue. Recurring revenue remained a bright spot, with annualized recurring revenue climbing 8.4% to $169.6 million and SaaS revenue growing 24%, underscoring the company’s strategic shift toward subscription and transaction-based models. Effective January 1, 2026, i3 Verticals completed the $60 million cash acquisition of a driver and motor vehicle insurance verification software provider, with up to $20 million in contingent consideration, bolstering its transportation-market footprint with a business management describes as having a strong competitive moat and perfect customer retention. The company’s board also authorized a new share repurchase program for up to $60 million of Class A common stock to replace an exhausted prior authorization, providing additional capital-return flexibility through early 2027 while remaining subject to market conditions and credit facility constraints. Reflecting these moves and first-quarter performance, i3 Verticals slightly raised its full-year 2026 outlook for revenue and adjusted EBITDA and tightened its adjusted EPS range, signaling confidence in the earnings contribution from its higher-margin, recurring software strategy and recent acquisition.

The most recent analyst rating on (IIIV) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on I3 Verticals stock, see the IIIV Stock Forecast page.

Spark’s Take on IIIV Stock

According to Spark, TipRanks’ AI Analyst, IIIV is a Neutral.

The score is held back mainly by elevated valuation (very high P/E) and weak technicals (below key moving averages with negative MACD). Financially, the company is safer due to a much stronger, low-leverage balance sheet, but this is tempered by softer recent operating momentum and weaker cash generation. Earnings-call commentary is moderately supportive due to recurring-revenue strategy and public-sector growth initiatives despite a cautious near-term outlook in select markets.

To see Spark’s full report on IIIV stock, click here.

More about I3 Verticals

i3 Verticals, Inc., based in Nashville and listed on Nasdaq as IIIV, operates in the software and integrated payments space, focusing on vertical market software with a strong emphasis on recurring, SaaS and transaction-based revenue streams. The company has reshaped its portfolio by divesting its merchant services and healthcare revenue cycle management businesses in 2024 and 2025, respectively, and is increasingly centered on software-driven, recurring revenue solutions, including offerings in the transportation sector.

Average Trading Volume: 311,383

Technical Sentiment Signal: Sell

Current Market Cap: $642.1M

See more data about IIIV stock on TipRanks’ Stock Analysis page.