I3 Verticals (IIIV) AI Stock Analysis

• Market Cap: $974.73M
• Dividend Yield: N/A
• Average Volume (3M): 258.70K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.75
• Revenue Growth: -29.93%
• EPS Growth: 389400.00%
• Country: US
• Employees: 1,480
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 0.23
• Shares Outstanding: 23,877,024
• 10 Day Avg. Volume: 220,671
• 30 Day Avg. Volume: 258,699
• 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: 0.77
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 17.05
• 1Y Price Target: $37.33
• Price Target Upside: 23.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $37.00 ▲(22.76% 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

Earnings

I3 Verticals posted a report featuring top- and bottom-line beats versus Street estimates.

Financial Performance

Strong results reassure investors that IIIV's refocused business can sustain growth, driven by momentum across sub-verticals.

Mergers and Acquisitions

M&A remains an important pillar of IIIV's growth algorithm, as recent acquisitions contributed ~4 percentage points of growth in 3Q.

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.

Market Valuation

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 strong profitability margins and effective equity utilization, but faces challenges in revenue growth and cash flow generation. The low debt levels provide financial stability, yet the declining cash flow metrics highlight potential liquidity concerns.

Income Statement

I3 Verticals shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate at -1.71%, which is concerning. However, the company maintains a strong net profit margin of 50.27% and a gross profit margin of 69.70%, reflecting efficient cost management. The EBIT margin is modest at 5.77%, and the EBITDA margin stands at 18.44%, indicating room for improvement in operational efficiency.

Balance Sheet

The balance sheet of I3 Verticals is relatively stable with a low debt-to-equity ratio of 0.11, suggesting prudent financial leverage. The return on equity is strong at 31.36%, indicating effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -173.36% in the TTM period. The operating cash flow to net income ratio is low at 0.12, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is reasonable at 51.90%, suggesting some level of cash generation efficiency.

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: 30.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 30.14 is below the 20-day moving average (MA) of 31.16, above the 50-day MA of 29.50, and above the 200-day MA of 26.01, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 52.03 is Neutral, neither overbought nor oversold. The STOCH value of 30.24 is Neutral, 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	76 Outperform	$1.29B	25.73	24.39%	1.35%	11.04%	18.70%
IIIV	73 Outperform	$974.73M	6.08	4.11%	―	-29.93%	389400.00%
VRNT	72 Outperform	$1.23B	30.89	4.72%	―	-2.32%	7.70%
BASE	68 Neutral	$1.35B	―	-60.03%	―	10.98%	11.62%
RDWR	66 Neutral	$1.06B	77.29	4.46%	―	11.51%	―
DAVA	64 Neutral	$588.54M	25.55	2.85%	―	7.13%	23.63%
Sector *	61 Neutral	$35.51B	8.11	-11.05%	1.89%	8.55%	-8.72%

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.