I3 Verticals (IIIV) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 163.09K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.77
• Revenue Growth: -29.93%
• EPS Growth: 389400.00%
• Country: US
• Employees: 1,480
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.23
• Shares Outstanding: 23,877,024
• 10 Day Avg. Volume: 116,162
• 30 Day Avg. Volume: 163,093
• 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: 0.73
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 17.05
• 1Y Price Target: $37.40
• Price Target Upside: 18.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 71 Outperform
• Price Target: $35.00 ▲(10.51% Upside)

I3 Verticals' overall score reflects strong profitability and an attractive valuation, offset by challenges in cash flow and revenue growth. The positive earnings call sentiment and strategic focus on growth areas provide additional support for the stock's potential.

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 Business Overview & Revenue Model

Company Description

i3 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 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: 31.67
• 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 31.67 is below the 20-day moving average (MA) of 31.94, above the 50-day MA of 31.44, and above the 200-day MA of 27.33, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 54.04 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	$1.30B	26.39	24.39%	1.35%	11.04%	18.70%
IMXI	75 Outperform	$437.25M	9.01	36.15%	―	-4.19%	-3.52%
IIIV	71 Outperform	$1.02B	6.38	4.11%	―	-29.93%	389400.00%
VRNT	63 Neutral	$1.23B	30.73	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RPD	58 Neutral	$1.25B	45.89	155.46%	―	4.67%	―
YEXT	56 Neutral	$1.03B	―	4.72%	―	13.51%	―

I3 Verticals Corporate Events

I3 Verticals Earnings Call: Strong Growth and Strategic Expansion

In the recent earnings call, I3 Verticals expressed a generally positive sentiment, highlighting strong revenue and SaaS growth, a robust financial position, and successful AI implementation. Despite some concerns over deceleration in organic revenue growth and increased costs impacting the fourth quarter, the company remains optimistic about its business outlook, citing strong market expansion and strategic investments.

I3 Verticals’ Financial Clarity Clouded by Discontinued Healthcare RCM Operations

I3 Verticals faces a significant business risk due to the effects of discontinued operations related to its Healthcare RCM Business, which impacts the comparability of its financial statements. The company’s current and future condensed consolidated statements of operations, as reflected in the Quarterly Report on Form 10-Q, include results from both continuing and discontinued operations, unlike previous reports. This discrepancy makes it challenging for investors and analysts to accurately assess the company’s financial performance over time, potentially affecting investment decisions and market perception. As a result, stakeholders may find it difficult to gauge the true financial health and operational efficiency of I3 Verticals.

i3 Verticals Reports Strong Q3 2025 Financial Performance

i3 Verticals, Inc., a company specializing in providing enterprise software solutions for the public sector, reported its financial results for the third quarter of fiscal year 2025, showcasing significant improvements in revenue and profitability metrics.

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.