i3 Verticals(US:IIIV)2025-11-17 22:29Financial Performance - Fourth quarter revenue from continuing operations was $54.9 million, an increase of 7.0% year-over-year; full year revenue was $213.2 million, up 11.5% from the previous year[4] - Fourth quarter net income from continuing operations was $1.5 million, down from $6.3 million in the prior year's fourth quarter; full year net income was $5.6 million, compared to a net loss of $16.0 million for the year ended September 30, 2024[4] - Annualized Recurring Revenue (ARR) for the fourth quarter was $165.3 million, representing a growth rate of 9.2% compared to $151.4 million in the prior year[4] - Adjusted EBITDA from continuing operations for the fourth quarter was $14.4 million, a decrease of 1.5% year-over-year; full year adjusted EBITDA was $57.5 million, an increase of 14.0% from the previous year[4] - Adjusted diluted earnings per share from continuing operations for the fourth quarter was $0.27, compared to $0.12 in the prior year's quarter; full year adjusted diluted earnings per share was $1.05, up from $0.30[4] - Adjusted EBITDA as a percentage of revenue was 26.2% for the fourth quarter, down from 28.5% in the prior year; for the full year, it was 27.0%, compared to 26.4% the previous year[4] - The adjusted net income from continuing operations for the year ended September 30, 2025, was $35,755,000, a significant increase of 255.5% compared to $10,044,000 in 2024[37] - The adjusted EBITDA from continuing operations for the year ended September 30, 2025, was $57,535,000, up 14% from $50,464,000 in 2024[32] - The diluted earnings per share from continuing operations for the three months ended September 30, 2025, was $0.04, down from $0.19 in the same period of 2024[37] - The adjusted diluted earnings per share from continuing operations for the year ended September 30, 2025, was $1.05, compared to $0.30 in 2024, representing a 250% increase[37] Revenue Expectations - The company expects fiscal year 2026 revenue to be in the range of $217 million to $232 million, with adjusted EBITDA projected between $58.5 million and $65 million[9] - SaaS revenue grew 23% compared to the prior year, indicating strong demand for software solutions[6] Cash and Assets - The company has over $65 million in cash on hand, positioning it well for future investments and growth opportunities[8] - Total assets decreased to $638,411 million as of September 30, 2025, from $730,675 million in 2024[24] - Current liabilities decreased significantly to $70,689 million in 2025 from $164,731 million in 2024[24] Operating Expenses and Income - Operating expenses totaled $53,425 million for the three months ended September 30, 2025, up 12% from $47,912 million in 2024[21] - The company reported a net cash provided by operating activities of $5,694 million for the year ended September 30, 2025, down from $48,409 million in 2024[26] - Net income for the three months ended September 30, 2025, was $4,201 million, a significant decrease of 98% compared to $178,544 million in 2024[21] - For the three months ended September 30, 2025, i3 Verticals, Inc. reported a net income from continuing operations of $1,501,000, compared to $6,320,000 for the same period in 2024, reflecting a decrease of approximately 76.3%[32] Business Developments - The company recently secured a contract with the Supreme Court of Appeals of West Virginia to implement new case management software statewide, highlighting its market expansion efforts[7] - The company reclassified certain expenses to align with its new business model after the sale of its Merchant Services Business, impacting the presentation of financial results[22] Non-GAAP Metrics - Adjusted EBITDA from continuing operations is a key metric for evaluating the company's ongoing operational performance[30] - The company has a long-term effective tax rate of 25%, which is used for calculating adjusted net income from continuing operations[30] - Non-GAAP adjustments included $15,232,000 in equity-based compensation from continuing operations for the year ended September 30, 2025, slightly down from $15,396,000 in 2024[32] - M&A-related income for the year ended September 30, 2025, was $6,641,000, while M&A-related expenses totaled $7,792,000, indicating a net impact on operational performance[35] - The company reported a non-cash change in fair value of contingent consideration of $(206,000) for the three months ended September 30, 2025[32] - The provision for income taxes for the three months ended September 30, 2025, was $1,994,000, compared to a benefit of $(8,620,000) in the same period of 2024[32] Shareholder Information - The weighted average shares of Class A common stock outstanding for diluted earnings per share from continuing operations was 34,215,380 for the year ended September 30, 2025[21] - The adjusted weighted average shares of adjusted diluted Class A common stock outstanding for the three months ended September 30, 2025, was 34,215,380, slightly up from 34,169,684 in 2024[37]