i3 Verticals (IIIV) Q4 2025 Earnings Transcript

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]