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Market Focus and Strategy - The company serves technologically underserved markets with a focus on large and growing total addressable markets, providing ample opportunity for transaction-based revenues[29] - The company has a cloud-first strategy, with the majority of its collocated assets already migrated to the cloud, enhancing efficiency and security[37] - The company has developed a proprietary payment facilitation platform that centralizes payment solutions, improving scale and margins by lowering expenses[39] - The company is committed to incorporating AI capabilities into its platforms to enhance automation and customer experience[35] - The company has a flexible approach to digital delivery, prioritizing rapid development and continuous improvement to meet evolving customer needs[34] Operations and Workforce - The company has approximately 1,202 employees across 49 states and two countries as of November 20, 2025, with no employees represented by unions[53] - The company’s operations team is structured to meet individual customer needs, with a focus on development, quality control, and support for enterprise software solutions[46] - The company has experienced seasonal fluctuations in revenues, particularly in the education sector, with peak transactional revenue in August, September, October, January, and February[55] Regulatory Compliance - The company operates in a complex regulatory environment, subject to various federal, state, and local laws impacting its electronic payment services[56] - The company is subject to extensive federal and state laws regarding the privacy and security of health information, which may increase operational costs and limit activities[64] - Compliance with the Health Insurance Portability and Accountability Act (HIPAA) is required, establishing privacy and security standards for health information[65] - The company is subject to U.S. federal anti-money laundering laws, including the Bank Secrecy Act, which mandates the development of risk-based anti-money laundering programs[67] - The company must comply with various payment network rules and standards, including the PCI DSS, which govern transaction processing and data security[74] - The company has invested significant resources to ensure compliance with the EMV mandate for chip-enabled cards, which was required by payment networks by October 2015[75] - The company is registered with payment networks like Visa and Mastercard through a sponsor bank, which has substantial discretion over business practices[76] - The company is subject to money transmitter regulations across various U.S. states, which require licensing and compliance with anti-money laundering laws[78] - The company must adhere to unclaimed property laws, requiring remittance of unclaimed property to government authorities after a specified period[79] - The regulatory framework governing the company's business is continuously changing, impacting operational and compliance strategies[80] Financial Position and Capital Structure - As of September 30, 2025, the company had no borrowings outstanding under the 2023 Senior Secured Credit Facility[193] - The company expects cash flow from operations, current cash and cash equivalents, and available borrowing capacity to be sufficient to fund operations and service debt obligations for at least the next twelve months[194] - The 2023 Senior Secured Credit Facility contains restrictive covenants that limit the company's ability to incur additional debt and engage in capital-raising activities[196] - The Continuing Equity Owners hold approximately 27% of the combined voting power of the company's common stock as of November 20, 2025[203] - The company may need to borrow funds to meet tax liabilities or operational needs if i3 Verticals, LLC is restricted from making distributions[202] - The 2025 LLC Tax Distribution resulted in the company holding cash in excess of its tax liabilities and obligations under the Tax Receivable Agreement[208] - The company's Board of Directors will determine the appropriate uses for excess cash following future tax distributions, which may include recapitalization transactions or cash dividends[209] Shareholder and Stockholder Matters - The company is subject to Section 404 of the Sarbanes-Oxley Act, requiring an annual review of internal control over financial reporting[210] - As of September 30, 2025, there are 126,016,875 shares of Class A common stock authorized but unissued, including 8,381,681 shares issuable upon redemption of common units[220] - The company may issue shares of preferred stock in the future, which could adversely affect the market price of Class A common stock[217] - Future issuances of Class A common stock or preferred stock could dilute existing stockholders and significantly impact the market price[222] - The company has provisions that may delay or prevent a change of control, potentially affecting stockholder interests[216] - The existence of anti-takeover provisions may discourage future takeover attempts and affect the market price of Class A common stock[216] - The company has opted out of Section 203 of the Delaware General Corporation Law, but similar provisions may still restrict business combinations with interested stockholders[214] - Sales of Class A common stock in connection with the Registration Rights Agreement could materially affect the market price and impair capital raising efforts[225] - The potential issuance of preferred stock with favorable economic terms could make Class A common stock less attractive to investors[224] - The company may incur costs to improve internal control systems, which could negatively affect financial condition and cash flows[211] - The company cannot predict the size of future issuances of Class A common stock, which may lead to a decline in market price[221]

i3 Verticals, Inc. ( IIIV ) has been a challenging stock to hold onto for the past few months as the company has undergone a series of divestitures to narrow its end-market focus towards the public sector. While I believe this mayAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for ...

Key Points Management has high hopes for i3 Verticals' shift to a primarily software-as-a-service (SaaS) business model. Impatient investors are selling. 10 stocks we like better than I3 Verticals › Shares of i3 Verticals (NASDAQ: IIIV) sank on Monday after the software maker issued a conservative growth forecast for the year ahead. As of 3:30 p.m. EST, i3 Verticals' stock price was down more than 10% after declining as much as 24% earlier in the day. Image source: Getty Images. A shift toward s ...

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i3 Verticals (NasdaqGS:IIIV) Q4 2025 Earnings Call November 18, 2025 08:30 AM ET Company ParticipantsGreg Daily - Chairman, and CEORick Stanford - PresidentGeoff Smith - CFOPaul Christians - CROConference Call ParticipantsJohn Davis - AnalystOperatorWelcome to the i3 Verticals Q4 2025 earnings conference call. Today's call is being recorded, and a replay will be available *ting today through November 25. The number for the replay is 855-669-9658, and the code is 8288708. The replay may also be accessed for ...

i3 Verticals (NasdaqGS:IIIV) Q4 2025 Earnings Call November 18, 2025 08:30 AM ET Company ParticipantsRick Stanford - PresidentGeoffrey C. Smith - CFOPaul Christians - Chief Revenue OfficerClay M. Whitson - Chief Strategy OfficerGregory S. Daily - Chairman and CEOConference Call ParticipantsJohn Kimbrough Davis - AnalystGeoffrey C. SmithWelcome to the i3 Verticals Q4 2025 earnings conference call. Today's call is being recorded, and a replay will be available starting today through November 25. The number fo ...

i3 Verticals (NasdaqGS:IIIV) Q4 2025 Earnings Call November 18, 2025 08:30 AM ET Speaker1Welcome to the i3 Verticals Q4 2025 earnings conference call. Today's call is being recorded, and a replay will be available starting today through November 25. The number for the replay is 855-669-9658, and the code is 8288708. The replay may also be accessed for 30 days at the company's website. At this time, for opening remarks, I would like to turn the call over to Clay Whitson, Chief Strategy Officer. Please go ahe ...

Core Insights - i3 Verticals, Inc. is focusing on modernization and solution bundling across its five primary markets: Justice tech, transportation, public administration, education, and utilities, aiming to enhance customer engagement and revenue growth [1][5][6] - The company is actively pursuing acquisition opportunities that align with its strategic goals, particularly in the public sector, which is seen as a significant area for growth and innovation [2][4] - The revenue distribution for the upcoming quarters is projected to be approximately 23% in Q1, 25.5% in Q2, 24.5% in Q3, and 27% in Q4, indicating a seasonal pattern in revenue recognition [3] Market Position and Strategy - i3 Verticals, Inc. is well-positioned to address the modernization needs of state and local government agencies, offering scalable solutions from single agencies to entire state systems [5][7] - The company is experiencing increased demand for technology-forward platform solutions, which are designed to streamline processes and improve efficiency in public sector operations [6][8] - A shift towards SaaS models is changing budgeting paradigms for government clients, allowing i3 Verticals, Inc. to bundle services and reduce upfront costs while delivering integrated solutions [7] Financial Outlook - The long-term expectation for organic revenue growth remains in the high single digits, with utilities, transportation, education, and public administration contributing roughly equally to revenues [4] - The company anticipates a slight decline in professional services revenue in 2026 due to timing and cadence of project fulfillment, but remains optimistic about future growth opportunities [10][12] - i3 Verticals, Inc. has a cash balance of $85 million and has refreshed its buyback authorization to $50 million, indicating a balanced approach between buybacks and M&A activities [15][17]

Supplemental Information Q4 FISCAL YEAR 2025 1 Revenue Composition(1) | ($ in thousands) | | | | | | | | | Quarter Ended | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | September 30, | | | | | | December 31, | | September 30, | | | | | | December 31, | | | | 2025 | | June 30, 2025 | | March 31, 2025 | | 2024 | | 2024 | | June 30, 2024 | | March 31, 2024 | | 2023 | | Software and related service revenue | | | | | | | | | | | | | | ...