I3 Verticals (IIIV)
NASDAQ:IIIV
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I3 Verticals
(NASDAQ:IIIV)
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Rating:60Neutral
Price Target:
$23.50
▲(5.81% Upside)
Action:ReiteratedDate:03/04/26
The score is supported most by improving fundamentals and balance sheet strength (low leverage, positive free cash flow) and a generally positive FY26 outlook driven by recurring revenue/ARR and strong SaaS growth. Offsetting this are weak technical trends (below key moving averages with negative MACD) and a demanding valuation (very high P/E) alongside near-term margin pressure and acquisition multiple risk.
Positive Factors
Recurring revenue / ARR growth
A high and growing recurring revenue base and rising ARR materially improve revenue predictability and cash flow stability. With 80% recurring mix and ARR expansion, the business can better plan investments, retain customers via integrated workflows, and drive long-term margin leverage from subscription economics.
Negative Factors
Revenue volatility and thin operating margins
A recent decline in TTM revenue and low operating margins indicate earnings sensitivity to mix shifts and cost swings. Persistent margin thinness limits reinvestment capacity and makes long-term profitability reliant on sustained SaaS mix gains and effective cost control across hosting and R&D investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue / ARR growth
A high and growing recurring revenue base and rising ARR materially improve revenue predictability and cash flow stability. With 80% recurring mix and ARR expansion, the business can better plan investments, retain customers via integrated workflows, and drive long-term margin leverage from subscription economics.
Read all positive factors
I3 Verticals (IIIV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$676.87M
Dividend YieldN/A
Average Volume (3M)333.41K
Price to Earnings (P/E)308.0
Beta (1Y)0.71
Revenue Growth-23.69%
EPS Growth-95.61%
CountryUS
Employees1,480
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.26
Shares Outstanding22,094,170
10 Day Avg. Volume386,400
30 Day Avg. Volume333,408
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)1.99
Price to Sales (P/S)3.64
P/FCF Ratio206.81
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue2.25
Enterprise Value/Gross Profit3.73
Enterprise Value/Ebitda12.72
Forecast
1Y Price Target
$30.50Price Target Upside37.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.13
Revenue Forecast (FY)$227.84M
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, Mercha...
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...
I3 Verticals Key Performance Indicators (KPIs)
I3 Verticals Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call painted a largely positive strategic picture: strong recurring revenue and robust SaaS growth, a strategic acquisition that materially enhances the transportation SaaS footprint, and product/AI momentum across core verticals. These positives are tempered by near-term margin pressure (adjusted EBITDA and margin declines), weaker nonrecurring professional services and maintenance revenues, higher hosting and investment costs, and a higher-than-normal multiple on the recent acquisition. Management reiterated disciplined capital allocation, a healthy balance sheet prior to the acquisition, and constructive FY26 guidance, and expects recurring revenue growth and margin improvement later in the year.Positive Updates
Recurring Revenue Growth and ARR Expansion
Recurring revenue increased 8% year-over-year; Annual Recurring Revenue rose to $169.6 million from $156.4 million for Q1 2026, demonstrating stronger alignment with long-term growth objectives.
Negative Updates
Adjusted EBITDA and Margin Pressure
Adjusted EBITDA declined $1.0 million to $13.6 million for Q1 2026 from $14.6 million a year ago. Adjusted EBITDA margin decreased to 25.8% from 27.9%, driven by investments, higher hosting costs, and lower professional services revenue.
Read all updates
Q1-2026 Updates
Positive
Negative
Recurring Revenue Growth and ARR Expansion
Recurring revenue increased 8% year-over-year; Annual Recurring Revenue rose to $169.6 million from $156.4 million for Q1 2026, demonstrating stronger alignment with long-term growth objectives.
Read all positive updates
Company Guidance
The company guided FY2026 continuing operations to revenues of $223M–$234M, adjusted EBITDA of $61M–$66.5M and adjusted diluted EPS of $1.08–$1.16 (excludes unclosed acquisitions/transaction costs), and expects recurring revenues to grow at a double‑digit rate for FY26 (organic recurring ~8–10% as previously noted) with long‑term organic revenue growth in the high single digits and adjusted EBITDA margin improvement of 50–100 bps per year. For Q1 (ended Dec 31, 2025) revenues were $52.7M (vs $52.2M), ARR was $169.6M (vs $156.4M), 80% of revenue was recurring, SaaS +24% (four quarters >20%), transaction revenue +12%, payments +8%, maintenance −8%; adjusted EBITDA was $13.6M (25.8% margin vs 27.9% prior) and adjusted diluted EPS was $0.26; cash was $37M and the company reported no debt. The company completed a $60M cash acquisition priced at ~15x EBITDA of a business growing >20% with >50% EBITDA margin, maintains a $400M revolver with a 5x leverage covenant, expects professional services to decline (now modeled to about $31M) and forecasts FY26 revenue seasonality of Q1 23%, Q2 25%, Q3 25% and Q4 27%.I3 Verticals Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
76
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 222.53M | 213.16M | 229.92M | 189.68M | 187.75M | 224.12M |
| Gross Profit | 134.41M | 118.67M | 211.35M | 134.87M | 174.92M | 166.42M |
| EBITDA | 39.44M | 41.08M | 33.23M | 33.27M | 22.59M | 27.00M |
| Net Income | 16.30M | 17.87M | 113.34M | -811.00K | -17.10M | -4.46M |
Balance Sheet | ||||||
| Total Assets | 595.93M | 638.41M | 730.67M | 884.42M | 770.31M | 651.80M |
| Cash, Cash Equivalents and Short-Term Investments | 37.52M | 66.67M | 86.54M | 3.10M | 3.49M | 3.64M |
| Total Debt | 7.39M | 7.75M | 38.31M | 400.63M | 305.58M | 215.77M |
| Total Liabilities | 112.59M | 120.69M | 215.32M | 556.12M | 462.62M | 362.21M |
| Stockholders Equity | 358.51M | 389.58M | 379.74M | 236.75M | 218.38M | 204.76M |
Cash Flow | ||||||
| Free Cash Flow | 10.46M | 3.75M | 45.45M | 20.80M | 33.40M | 38.57M |
| Operating Cash Flow | 8.32M | 5.69M | 48.41M | 37.17M | 45.85M | 46.77M |
| Investing Cash Flow | 76.04M | 76.46M | 396.15M | -121.52M | -113.05M | -156.31M |
| Financing Cash Flow | -134.40M | -104.41M | -367.36M | 72.98M | 73.03M | 102.10M |
I3 Verticals Technical Analysis
Negative
22.21
Price Trends
22.65
Negative
24.41
Negative
27.16
Negative
Market Momentum
-0.10
Positive
44.63
Neutral
46.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IIIV, the sentiment is Negative. The current price of 22.21 is below the 20-day moving average (MA) of 22.89, below the 50-day MA of 22.65, and below the 200-day MA of 27.16, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 46.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IIIV.
I3 Verticals Risk Analysis
I3 Verticals disclosed 50 risk factors in its most recent earnings report. I3 Verticals reported the most risks in the "Legal & Regulatory" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.60B | 30.33 | 20.61% | 1.33% | 10.27% | 3.52% | |
69 Neutral | $475.86M | 14.08 | 22.07% | ― | -6.57% | -29.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $676.87M | 308.05 | 0.58% | ― | -23.69% | -95.61% | |
58 Neutral | $488.45M | 23.36 | 24.87% | ― | 9.46% | ― | |
49 Neutral | $347.26M | 42.08 | 22.00% | ― | 3.08% | -54.07% |
* Technology Sector Average
IIIV
I3 Verticals
22.21
-2.46
-9.97%
ATEN
A10 Networks
22.34
6.22
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RPD
Rapid7
5.27
-21.24
-80.12%
IMXI
International Money Express
15.79
3.17
25.12%
YEXT
Yext
3.96
-2.20
-35.71%
I3 Verticals Corporate Events
Executive/Board ChangesShareholder Meetings
i3 Verticals Shareholders Back Board, Pay and Auditor
Positive
Mar 3, 2026
At its 2026 Annual Meeting of Stockholders held on March 3, 2026, i3 Verticals reported that 28,382,815 shares, or about 91.6% of its outstanding common stock, were represented in person or by proxy, ensuring a strong quorum for decision-making. S...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
i3 Verticals boosts outlook after acquisition and buyback
Positive
Feb 5, 2026
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 opera...
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.