Summary of i3 Verticals (IIIV) 2025 Conference Call Company Overview - i3 Verticals was founded by Greg Daily, who has taken three companies public, with the current CFO being Jeff Smith [2] - The company went public in 2018, initially comprising 95% payments and 5% software [2] - The company has shifted focus towards software, now consisting of 26 software acquisitions primarily in the public sector, with payments now representing 26% of revenues [3] Financial Performance - i3 Verticals reported over $200 million in revenues with an adjusted EBITDA margin in the high 20s [4] - The company targets high single-digit revenue growth and aims for 50 to 100 basis points margin improvement annually [4] - The company is currently debt-free with approximately $64 million in cash and 75% of revenues being recurring, growing at 9% [5] Strategic Focus - The company divested its merchant services and healthcare RCM businesses to narrow its focus and improve leverage [3][11] - i3 Verticals aims to integrate payments capabilities into its vertical market software acquisitions, enhancing monetization opportunities [8][10] - The public sector is identified as a vast and fragmented market with significant transactional revenue opportunities [12][40] Competitive Landscape - Tyler Technologies is identified as a major competitor, but i3 Verticals believes the public sector is highly fragmented, with many niche players [13][46] - The company competes against founder-controlled and private equity-controlled businesses, which often have aggressive pricing strategies [46][47] Market Opportunities - The company sees significant growth potential in various public sector verticals, including Justice Tech, Transportation, Utilities, ERP, and Education [15][20][24][30][35] - i3 Verticals is focused on cloud-based solutions, with a majority of new sales being cloud solutions [51] - The company is exploring AI integration into its software solutions, enhancing efficiency and customer service [56][58] M&A Strategy - i3 Verticals plans to continue making acquisitions, primarily in the $10 million to $30 million range, focusing on founder-owned businesses [54][55] - The company has a $400 million untapped credit facility, providing flexibility for future acquisitions [41] Investor Perspective - The company believes it is undervalued compared to larger competitors like Tyler Technologies, despite having similar growth profiles and margins [60][61] - i3 Verticals is working to clarify its story to investors, moving away from its previous perception as primarily a payments company [62][64] Conclusion - i3 Verticals is positioned for growth in the public sector software market, leveraging its software acquisitions and payments integration strategy while maintaining a strong financial position and exploring new technologies like AI. The company is focused on disciplined capital allocation and strategic acquisitions to enhance its market presence and shareholder value.