tiprankstipranks
Trending News
More News >
I3 Verticals (IIIV)
:IIIV
Advertisement

I3 Verticals (IIIV) AI Stock Analysis

Compare
173 Followers

Top Page

IIIV

I3 Verticals

(NASDAQ:IIIV)

Select Model
Select Model
Select Model
Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$37.00
▲(15.05% 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
Revenue and SaaS Growth
The strong growth in revenue and SaaS indicates effective market penetration and product adoption, which can lead to sustained long-term growth and profitability.
Strong Financial Position
A strong financial position with significant cash reserves and credit capacity provides stability and flexibility for strategic investments and growth initiatives.
AI Implementation Success
Successful AI implementation enhances operational efficiency and customer satisfaction, potentially leading to increased revenue and competitive advantage.
Negative Factors
Deceleration in Organic Revenue Growth
A slowdown in organic revenue growth could indicate challenges in maintaining momentum, potentially affecting future earnings and market perception.
Increased Operating Costs
Rising operating costs, particularly in talent investment, may compress margins and reduce profitability, impacting financial performance over time.
Declining Cash Flow
Declining cash flow growth suggests potential liquidity issues, which could limit the company's ability to invest in growth opportunities and meet financial obligations.

I3 Verticals (IIIV) vs. SPDR S&P 500 ETF (SPY)

I3 Verticals Business Overview & Revenue Model

Company Descriptioni3 Verticals, Inc. provides integrated payment and software solutions to small- and medium-sized businesses and organizations in education, non-profit, public sector, and healthcare markets in the United States. It operates in two segments, Merchant Services, and Proprietary Software and Payments. The company offers payment processing services that enables clients to accept electronic payments, facilitating the exchange of funds and transaction data between clients, financial institutions, and payment networks. The company also licenses software; and provides ongoing support, and other point of sale-related solutions. It offers its solutions to clients through direct sales force; distribution partners, including independent software vendors, value-added resellers, and independent sales organizations; and referral partners, such as financial institutions, trade associations, chambers of commerce, and card issuers. The company was founded in 2012 and is headquartered in Nashville, Tennessee.
How the Company Makes MoneyI3 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 Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 20, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant revenue growth, successful divestitures, and strong financial positioning. The strategic focus on public sector software and AI implementation were highlighted as key strengths. However, challenges such as variability in license sales and expected deceleration in organic growth due to past high license sales were noted.
Q3-2025 Updates
Positive Updates
Divestiture Success
Successfully completed divestiture of healthcare revenue cycle management business, streamlining focus on public sector software.
Revenue Growth
Revenue grew 12% year-on-year in the third quarter, with SaaS revenue increasing by 24%.
Strong Financial Position
Net cash positive over $50 million and a revolving credit facility with capacity up to $400 million.
Recurring Revenue
77% of revenues came from recurring sources, with SaaS revenue growing 24%, payments revenue 11%, and transaction-based revenue 9%.
Adjusted EBITDA Growth
Adjusted EBITDA increased 18% to $12.7 million, with EBITDA margin improving from 23.3% to 24.5%.
AI Implementation
Implemented AI tools like Agentch AI for data extraction and AI chatbots to enhance customer service.
Justice Tech Market Success
In final contract negotiations for a statewide solution and expanding presence in Ohio.
Strategic Focus
Focused approach in public sector markets like transportation, Justice Tech, ERP, and education showing positive impact in sales.
Negative Updates
License Sales Variability
Nonrecurring software license sales have variable impacts on revenue, affecting seasonality forecasting.
Incremental Expenses
Investment in Justice Tech resulted in about $700,000 incremental expense expected in Q4.
Organic Revenue Growth Deceleration
Expected deceleration in organic revenue growth due to high license sales in the prior year.
Company Guidance
During the i3 Verticals Third Quarter 2025 Earnings Conference Call, the company provided guidance for the fiscal year 2025, projecting revenues between $207 million and $217 million, with adjusted EBITDA ranging from $55 million to $61 million. The guidance also anticipates adjusted diluted earnings per share from continuing operations to be between $0.96 and $1.06. The company reported a 12% increase in revenue for the third quarter compared to the prior year, with SaaS revenue growing at 24%. The balance sheet remains strong, boasting a net cash positive position of over $50 million and a revolving credit facility with a capacity of up to $400 million. The company plans to maintain disciplined investments in government technology and product development, with a focus on long-term growth and value creation.

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
65
Positive
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
72
Positive
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
58
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue237.51M229.92M370.24M187.75M224.12M150.13M
Gross Profit165.54M211.35M289.69M244.50M166.42M102.90M
EBITDA43.80M47.69M57.73M30.91M30.20M23.37M
Net Income119.40M113.34M-811.00K-17.10M-4.46M-419.00K
Balance Sheet
Total Assets623.27M730.67M881.49M770.31M651.80M403.53M
Cash, Cash Equivalents and Short-Term Investments55.54M86.54M3.11M3.49M3.64M15.57M
Total Debt40.51M36.05M400.02M305.58M215.77M90.76M
Total Liabilities112.15M215.32M553.20M462.62M362.21M163.36M
Stockholders Equity383.30M379.74M236.75M218.38M204.76M155.58M
Cash Flow
Free Cash Flow3.56M45.45M18.13M33.40M38.57M17.77M
Operating Cash Flow6.87M48.41M34.50M45.85M46.77M23.72M
Investing Cash Flow491.68M396.15M-121.52M-113.05M-156.31M-35.43M
Financing Cash Flow-456.43M-367.36M75.65M73.03M102.10M29.11M

I3 Verticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.16
Price Trends
50DMA
30.62
Positive
100DMA
28.43
Positive
200DMA
26.68
Positive
Market Momentum
MACD
0.50
Negative
RSI
56.77
Neutral
STOCH
82.55
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 32.16 is above the 20-day moving average (MA) of 31.34, above the 50-day MA of 30.62, and above the 200-day MA of 26.68, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 82.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IIIV.

I3 Verticals Risk Analysis

I3 Verticals disclosed 56 risk factors in its most recent earnings report. I3 Verticals reported the most risks in the "Finance & Corporate" 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$1.32B26.5225.01%1.31%11.04%18.70%
73
Outperform
$1.04B6.484.11%-29.93%389400.00%
66
Neutral
$1.14B82.834.18%11.51%
62
Neutral
$1.23B30.694.61%-2.32%7.70%
60
Neutral
$1.35B-17.38-60.66%10.98%11.62%
51
Neutral
$506.88M20.383.64%7.13%23.63%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IIIV
I3 Verticals
32.16
10.87
51.06%
VRNT
Verint Systems
20.23
-3.48
-14.68%
ATEN
A10 Networks
18.29
4.33
31.02%
RPD
Rapid7
18.64
-18.97
-50.44%
IMXI
International Money Express
13.93
-3.23
-18.82%
YEXT
Yext
8.43
1.91
29.29%

I3 Verticals Corporate Events

Stock BuybackFinancial Disclosures
i3 Verticals Announces New Share Repurchase Program
Positive
Aug 7, 2025

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.

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.Date of analysis: Aug 14, 2025