I3 Verticals (IIIV) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: N/A
• Average Volume (3M): 306.37K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.79
• Revenue Growth: -29.93%
• EPS Growth: 389400.00%
• Country: US
• Employees: 1,480
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): 0.23
• Shares Outstanding: 23,877,024
• 10 Day Avg. Volume: 322,275
• 30 Day Avg. Volume: 306,372
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 17.05
• 1Y Price Target: $37.33
• Price Target Upside: 16.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $37.00 ▲(15.84% Upside)

I3 Verticals' overall stock score is driven by strong earnings call highlights and positive corporate events, such as the share repurchase program. While technical indicators show bullish momentum, overbought conditions suggest caution. Financial performance is mixed, with strong profitability but challenges in revenue growth and cash flow.

Positive Factors

Acquisition Potential

A debt-free balance sheet and exclusive focus on the Public Sector increase the company's attractiveness for potential takeover interest from strategic and private equity buyers.

Company Transformation

I3 Verticals' transformation showed clean execution and sharpened focus, resulting in exceeding revenue expectations and significant SaaS growth.

Subvertical Innovation

IIIV’s Utilities subvertical, with its eVolve Utilities suite, is positioned as a game-changer by addressing unmet needs and unlocking efficiency in utilities.

Negative Factors

Growth Challenges

A few one-time issues impacting growth likely made it difficult for investors to get comfortable on the go-forward growth profile of the remaining business.

Investor Uncertainty

The valuation gap between IIIV and a similar company, Tyler Technologies, is seen as too wide, suggesting potential for stock price appreciation.

I3 Verticals Business Overview & Revenue Model

Company Description

I3 Verticals, Inc. (IIIV) is a technology company that specializes in providing integrated payment processing solutions and software services to various sectors, including education, healthcare, and non-profit organizations. The company focuses on delivering tailored solutions that enhance operational efficiency and customer experiences, offering products such as payment processing, billing solutions, and software integrations, all designed to facilitate seamless transactions and improve financial management for its clients.

How the Company Makes Money

I3 Verticals generates revenue primarily through its payment processing services, which involve charging fees for each transaction processed through its platform. The company earns money from a mix of fixed and variable fees, including transaction fees, monthly service fees, and setup fees. Additionally, I3 Verticals offers software solutions that provide recurring revenue through subscription models. Key partnerships with financial institutions, technology providers, and industry-specific software companies enhance its revenue streams by broadening its client base and integrating its services into existing systems. The company's focus on specific vertical markets allows it to capture niche segments, further contributing to its earnings through specialized offerings tailored to the unique needs of those industries.

I3 Verticals Financial Statement Overview

Summary

I3 Verticals shows a mixed financial performance. Strong profitability margins are evident despite declining revenue, indicating efficient cost management. The balance sheet reflects low leverage and a robust equity base, although asset shrinkage may pose future risks. Cash flow analysis reveals declining operational cash generation, raising concerns over liquidity and cash management.

Income Statement

The company shows a strong gross profit margin of 78.1% TTM, indicating efficient cost management relative to revenue. Net profit margin improved to 46.5% TTM, reflecting significant net income gains. However, revenue has declined from $370.2 million in 2023 to $241.7 million TTM, indicating a negative growth trajectory. EBIT and EBITDA margins of 3.9% and 17.9% respectively suggest moderate profitability.

Balance Sheet

The debt-to-equity ratio is 0.11 TTM, showing low leverage and financial stability. Return on equity (ROE) stands at 29.1% TTM, indicating effective use of equity to generate profits. The equity ratio of 59.6% TTM suggests a strong equity base. However, the reduction in total assets from $881.5 million in 2023 to $646.4 million TTM indicates potential asset shrinkage.

Cash Flow

Operating cash flow has decreased from $34.5 million in 2023 to $7.6 million TTM, signaling declining operational efficiency. Free cash flow has also dropped significantly from $18.1 million in 2023 to $318,000 TTM, reflecting limited cash available after capital expenditures. The operating cash flow to net income ratio is 0.07 TTM, suggesting limited cash coverage of net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	237.51M	229.92M	370.24M	187.75M	224.12M	150.13M
Gross Profit	165.54M	211.35M	289.69M	244.50M	166.42M	102.90M
EBITDA	43.80M	47.69M	57.73M	30.91M	30.20M	23.37M
Net Income	119.40M	113.34M	-811.00K	-17.10M	-4.46M	-419.00K
Balance Sheet
Total Assets	623.27M	730.67M	881.49M	770.31M	651.80M	403.53M
Cash, Cash Equivalents and Short-Term Investments	55.54M	86.54M	3.11M	3.49M	3.64M	15.57M
Total Debt	40.51M	36.05M	400.02M	305.58M	215.77M	90.76M
Total Liabilities	112.15M	215.32M	553.20M	462.62M	362.21M	163.36M
Stockholders Equity	383.30M	379.74M	236.75M	218.38M	204.76M	155.58M
Cash Flow
Free Cash Flow	3.56M	45.45M	18.13M	33.40M	38.57M	17.77M
Operating Cash Flow	6.87M	48.41M	34.50M	45.85M	46.77M	23.72M
Investing Cash Flow	491.68M	396.15M	-121.52M	-113.05M	-156.31M	-35.43M
Financing Cash Flow	-456.43M	-367.36M	75.65M	73.03M	102.10M	29.11M

I3 Verticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IIIV, the sentiment is Positive. The current price of 31.94 is above the 20-day moving average (MA) of 29.41, above the 50-day MA of 27.66, and above the 200-day MA of 25.51, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 67.20 is Neutral, neither overbought nor oversold. The STOCH value of 86.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IIIV.

I3 Verticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	74 Outperform	$1.29B	26.04	24.39%	1.38%	11.04%	18.70%
IIIV	73 Outperform	$1.03B	6.44	4.11%	―	-29.93%	389400.00%
VRNT	69 Neutral	$1.19B	25.47	5.32%	―	-2.09%	76.96%
BASE	68 Neutral	$1.34B	―	-55.90%	―	12.76%	16.97%
RDWR	64 Neutral	$1.03B	75.42	4.46%	―	11.51%	―
DAVA	64 Neutral	$791.61M	34.37	2.85%	―	7.58%	-57.13%
Sector *	61 Neutral	$36.28B	7.09	-7.27%	1.97%	7.76%	-8.56%

I3 Verticals Corporate Events

i3 Verticals Announces New Share Repurchase Program

On August 7, 2025, i3 Verticals announced a new share repurchase program for its Class A common stock, allowing for up to $50 million in repurchases, replacing the previous program set to end on August 8, 2025. The company reported a 12.4% increase in third-quarter revenue for 2025 compared to the previous year, with a significant reduction in net losses from continuing operations, highlighting strong growth in recurring revenue and SaaS contracts.

The most recent analyst rating on (IIIV) stock is a Buy with a $28.00 price target. To see the full list of analyst forecasts on I3 Verticals stock, see the IIIV Stock Forecast page.