Should You Hold i3 Verticals (IIIV)?

Group 1: Market Overview - In 2025, US equities experienced solid returns with double-digit gains across all major indices [1] - The Conestoga Micro Cap Composite returned -1.91% net of fees in Q4 2025 and 16.24% net of fees for the full year, trailing the Russell Microcap Growth Index's gains of 2.14% in Q4 and 21.84% for the full year [1] Group 2: Company Focus - I3 Verticals, Inc. - I3 Verticals, Inc. (NASDAQ:IIIV) is an enterprise software and services provider to public sector entities, with a market capitalization of $671.89 million [2] - The stock closed at $21.68 per share on February 19, 2026, with a one-month return of -10.78% and a 52-week decline of 21.76% [2] - The company faced pressure due to a conservative growth forecast for fiscal 2026, attributed to timing delays in project implementations [3] - Despite the near-term outlook disappointment, I3 Verticals, Inc. is believed to be well-positioned for recurring revenue growth through its software-led strategy over the multi-year horizon [3] Group 3: Financial Performance - In Q4 2025, I3 Verticals, Inc.'s revenue grew just 1% year-over-year, while recurring revenue increased over 8% [5] - The number of hedge fund portfolios holding I3 Verticals, Inc. increased from 11 to 12 in the third quarter [5]