i3 Verticals Reports First Quarter 2026 Financial Results
$IIIV--i3 Verticals, Inc. (Nasdaq: IIIV) (“i3 Verticals” or the “Company”) today reported its financial results for the fiscal first quarter ended December 31, 2025. Highlights from continuing...
Completes Acquisition of Motor Vehicle Insurance Verification Software Company
NASHVILLE, Tenn.: $IIIV--i3 Verticals, Inc. (Nasdaq: IIIV) (“i3 Verticals” or the “Company”) today reported its financial results for the fiscal first quarter ended December 31, 2025.
Highlights from continuing operations1 for the three months ended December 31, 2025 vs. 2024
- Revenue from continuing operations was $52.7 million, an increase of 0.9% over the prior year's first quarter.
- Net income from continuing operations1 was $1.1 million, compared to net income from continuing operations1 of $2.8 million in the prior year's first quarter.
- Net income from continuing operations attributable to i3 Verticals, Inc.1 was $0.6 million, compared to net income from continuing operations attributable to i3 Verticals, Inc.1 of $1.9 million in the prior year's first quarter.
- Adjusted EBITDA from continuing operations1,2 was $13.6 million as compared to $14.6 million in the prior year's first quarter.
- Adjusted EBITDA from continuing operations1,2 as a percentage of revenue was 25.8%, compared to 27.9% in the prior year's first quarter.
- Diluted net income per share attributable to Class A common stock from continuing operations1,3 was $0.02, compared to diluted net income per share attributable to Class A common stock from continuing operations1,3 of $0.08 in the prior year's first quarter.
- Adjusted diluted earnings per share from continuing operations1,2,3, which gives effect to the Company's 25% estimated long-term effective tax rate4, was $0.26 compared to $0.27 for the prior year's first quarter.
- Annualized Recurring Revenue ("ARR") from continuing operations1,5 for the three months ended December 31, 2025 and 2024 was $169.6 million and $156.4 million, respectively, representing a period-to-period growth rate of 8.4%.
- Effective January 1, 2026, the Company acquired a driver and motor vehicle insurance verification software company for $60.0 million in cash consideration, and an additional amount of cash contingent consideration in an amount not to exceed $20.0 million based on the performance of the acquired business for a period following the closing.
Greg Daily, Chairman and CEO of i3 Verticals, commented, "We are pleased to report our first quarter of fiscal 2026 results, which were in line with our expectations and market guidance. While total revenue grew modestly at 1% year over year, recurring revenue increased by more than 8%, reflecting our long-term growth strategy. SaaS growth in the first quarter rose to 24%.
"I am very excited to announce our latest acquisition, effective January 1, 2026, which is a perfect fit within our transportation market. We self-sourced this transaction, and our deep relationships within the market made it possible. We believe the product has a unique competitive advantage, and the company has never lost a customer. The team brings an incredible track record, and it has been a pleasure welcoming them to i3. We are excited to do great things together!
"While we’re pleased with our start to the fiscal year, we look forward to sharing more as the year progresses."
See footnotes on the following page.
2026 Outlook
The Company's practice is to provide annual guidance, excluding the impact of future acquisitions and transaction-related costs.
The Company is providing the following revised outlook for the fiscal year ending September 30, 2026:
(in thousands, except share and per share amounts) | Previous Outlook Range |
| Revised Outlook Range | ||||||||
| Fiscal year ending September 30, 2026 | ||||||||||
Revenue | $ | 217,000 | - | $ | 232,000 |
| $ | 223,000 | - | $ | 234,000 |
Adjusted EBITDA (non-GAAP) | $ | 58,500 | - | $ | 65,000 |
| $ | 61,000 | - | $ | 66,500 |
Adjusted diluted earnings per share(1)(non-GAAP) | $ | 1.06 | - | $ | 1.16 |
| $ | 1.08 | - | $ | 1.16 |
_______________________
With respect to the “2026 Outlook” above, reconciliations of adjusted EBITDA from continuing operations and adjusted diluted earnings per share from continuing operations guidance to the closest corresponding GAAP measure on a forward-looking basis are not available without unreasonable efforts. This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliations, including changes in the fair value of contingent consideration, income tax expense of i3 Verticals, Inc. and equity-based compensation expense. The Company expects these adjustments may have a potentially significant impact on future GAAP financial results.
Conference Call
The Company will host a conference call on Friday, February 6, 2026, at 8:30 a.m. EDT, to discuss financial results and operations. To listen to the call live via telephone, participants should dial (844) 887-9399 approximately 10 minutes prior to the start of the call. A telephonic replay will be available from 11:30 a.m. EDT on February 6, 2026, through February 13, 2026, by dialing (855) 669-9658 and entering Confirmation Code 6769466.
To listen to the call live via webcast, participants should visit the “Investors” section of the Company’s website, www.i3verticals.com, and go to the “Events” page approximately 10 minutes prior to the start of the call. The online replay will be available on this page of the Company’s website beginning shortly after the conclusion of the call and will remain available for 30 days.
Non-GAAP Measures
This press release contains information prepared in conformity with GAAP as well as non-GAAP information. It is management’s intent to provide non-GAAP financial information to enhance understanding of the Company's consolidated financial information as prepared in accordance with GAAP. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure and the most directly comparable GAAP financial measure are presented for historical periods so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies.
Additional information about non-GAAP financial measures, and a reconciliation of those measures to the most directly comparable GAAP measures, is included in the financial schedules of this release.
About i3 Verticals
The Company provides mission-critical enterprise software solutions to public sector entities. These comprehensive cloud-native solutions address a broad range of government functions, including courts and public safety, public administration, utilities, transportation and schools. The Company’s mission is to enable state and local governments and related agencies to perform their functions and serve their constituents as effectively and efficiently as possible. With thousands of software installations across all 50 states and Canada, i3 Verticals is a leader in the public sector vertical. More information about the Company can be found at www.i3verticals.com.
Forward-Looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this release are forward-looking statements, including any statements regarding the Company's fiscal 2026 financial outlook for continuing operations and statements of a general economic or industry specific nature. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, guidance, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “could have,” “exceed,” “significantly,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
The forward-looking statements contained in this release are based on assumptions that we have made in light of the Company's industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you review and consider information presented herein, you should understand that these statements are not guarantees of future performance or results. They depend upon future events and are subject to risks, uncertainties (many of which are beyond the Company's control) and assumptions. Factors that could cause actual results to differ from those expressed or implied by our forward-looking statements include, among other things: ongoing and future economic and geopolitical conditions, including the impact of inflation, elevated interest rates, and tariff and trade-related developments, competition in our industry and our ability to compete effectively, regulatory developments, the successful integration of acquired businesses, our ability to execute on our strategy and achieve our goals following the completion of the sale of our Merchant Services Business and Healthcare RCM Business, and future decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A - Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may further update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we will file hereafter, and the risks and uncertainties identified in other filings filed with the Securities and Exchange Commission from time to time.
Any forward-looking statement made by us in this release speaks only as of the date of this release and we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
i3 Verticals, Inc. Consolidated Statements of Operations | ||||||||||
| Three Months Ended December 31, | |||||||||
|
| 2025 |
|
|
| 2024 |
|
| % Change | |
|
|
|
|
|
| |||||
Revenue | $ | 52,671 |
|
| $ | 52,221 |
|
| 1 | % |
|
|
|
|
|
| |||||
Operating expenses |
|
|
|
|
| |||||
Other costs of services (excluding depreciation and amortization) |
| 17,582 |
|
|
| 15,576 |
|
| 13 | % |
Selling, general and administrative |
| 26,989 |
|
|
| 26,479 |
|
| 2 | % |
Depreciation and amortization |
| 6,865 |
|
|
| 6,861 |
|
| - | % |
Change in fair value of contingent consideration |
| (374 | ) |
|
| 1,252 |
|
| n/m |
|
Total operating expenses |
| 51,062 |
|
|
| 50,168 |
|
| 2 | % |
|
|
|
|
|
| |||||
Income from operations |
| 1,609 |
|
|
| 2,053 |
|
| (22 | )% |
|
|
|
|
|
| |||||
Other (income) expenses |
|
|
|
|
| |||||
Interest expense |
| 381 |
|
|
| 680 |
|
| (44 | )% |
Other income |
| (561 | ) |
|
| (1,826 | ) |
| (69 | )% |
Total other income |
| (180 | ) |
|
| (1,146 | ) |
| (84 | )% |
|
|
|
|
|
| |||||
Income before income taxes |
| 1,789 |
|
|
| 3,199 |
|
| (44 | )% |
|
|
|
|
|
| |||||
Provision for income taxes |
| 704 |
|
|
| 409 |
|
| 72 | % |
|
|
|
|
|
| |||||
Net income from continuing operations |
| 1,085 |
|
|
| 2,790 |
|
|
| |
Net (loss) income from discontinued operations, net of income taxes |
| (138 | ) |
|
| 318 |
|
|
| |
Net income |
| 947 |
|
|
| 3,108 |
|
| (70 | )% |
|
|
|
|
|
| |||||
Net income from continuing operations attributable to non-controlling interest |
| 509 |
|
|
| 935 |
|
|
| |
Net (loss) income from discontinued operations attributable to non-controlling interest |
| (46 | ) |
|
| 117 |
|
|
| |
Net income attributable to non-controlling interest |
| 463 |
|
|
| 1,052 |
|
| (56 | )% |
|
|
|
|
|
| |||||
Net income from continuing operations attributable to i3 Verticals, Inc. |
| 576 |
|
|
| 1,855 |
|
|
| |
Net (loss) income from discontinued operations attributable to i3 Verticals, Inc. |
| (92 | ) |
|
| 201 |
|
|
| |
Net income attributable to i3 Verticals, Inc. | $ | 484 |
|
| $ | 2,056 |
|
| (76 | )% |
|
|
|
|
|
| |||||
Net income per share attributable to Class A common stockholders from continuing operations: |
|
|
|
|
| |||||
Basic | $ | 0.02 |
|
Related news
Last NewsRSA at Cybertech Europe 2024Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurityG11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem growAlways keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most readEurope Data Center Colocation Market Outlook & Forecast Report 2025-2030…The "Europe Data Center Colocation Market - Industry Outlook & Forecast 2025-2030" report has been added to ResearchAndMarkets.com's offering. The… CCC Intelligent Solutions Appoints Chief Product Officer to Scale AI-Driven…CCC Intelligent Solutions Inc. (CCC), a leading cloud platform provider powering the P&C insurance economy, today announced the appointment of Josh… Synthpop Raises $15 Million Series A to Scale AI That Makes Healthcare…Synthpop, Inc., a healthcare AI company building agentic automation to eliminate administrative bottlenecks in payer, provider, and patient operations,… Ring, Habitat for Humanity, and Paris Johnson Jr. Foundation Team Up to…Ring, whose mission is to make neighborhoods safer, announced a joint initiative with Habitat for Humanity Central Arizona and Paris Johnson Jr. Foundation… G11 Media Networks
InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , 
| ||||||