Reasons Behind Today's Decline in i3 Verticals Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 18 2025
0mins
Should l Buy IIIV?
Source: Fool
Stock Performance: i3 Verticals' shares fell over 10% after the company provided a conservative growth forecast for the upcoming year, with a decline of up to 24% earlier in the day.
Revenue Growth: The company reported a 7% year-over-year increase in revenue to $54.9 million for its fiscal fourth quarter, driven by a 23% rise in software-as-a-service (SaaS) revenue.
Profitability Concerns: Despite revenue growth, i3 Verticals experienced a slight decline in profitability, with EBITDA from continuing operations decreasing by 1.5% to $14.4 million due to an increase in lower-margin professional services sales.
Future Outlook: For fiscal 2026, management anticipates revenue between $217 million and $232 million, and adjusted EBITDA of $58.5 million to $65 million, indicating modest growth expectations but a belief in potential recovery in certain markets by fiscal 2027.
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Analyst Views on IIIV
Wall Street analysts forecast IIIV stock price to rise
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 18.690
Low
25.00
Averages
29.80
High
34.00
Current: 18.690
Low
25.00
Averages
29.80
High
34.00
About IIIV
i3 Verticals, Inc. delivers seamless enterprise software to customers in strategic vertical markets. Building on its sophisticated and diverse platform of software and services solutions, the Company creates and acquires software products to serve the specific needs of public and private organizations in the Public Sector. Its Public Sector segment has products and solutions that create an efficient flow of information throughout a variety of public sector entities. There are five sub-verticals within the Public Sector vertical, including JusticeTech and Public Safety, Transportation, Utilities, Enterprise Resource Planning (ERP), and Education. Transportation products include comprehensive solutions for driver license, vehicle title and registration and motor carrier compliance for departments of transportation in the United States and Canada. Its education products include comprehensive solutions for school lunch programs and school event solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
i3 Verticals Reports Q2 FY 2026 Earnings Highlights
- Revenue Growth: i3 Verticals reported a 6% year-over-year revenue increase to $57.5 million in Q2, primarily driven by two acquisitions that have not yet annualized, although overall nonrecurring revenue sources decreased by 11%, indicating ongoing challenges in sustained operations.
- Adjusted EBITDA Performance: Adjusted EBITDA rose by 5% to $16.6 million, and despite the weakness in the professional services market, management remains optimistic about margin improvements in the second half of the year through cost control measures.
- Guidance Adjustment: The company has lowered its FY 2026 revenue guidance to between $221 million and $229 million, primarily due to the continued softness in nonrecurring professional services, although it expects EBITDA to remain in the range of $61 million to $65 million.
- Impact of AI Product Releases: The newly launched AI tool significantly reduced reporting cycles from days to minutes, receiving positive customer feedback, suggesting that the company's strategic direction in technology investment may enhance its competitive position in the market.
See More
i3 Verticals Reports Q2 Earnings with Revised Fiscal Outlook
- Earnings Highlights: i3 Verticals reported a Q2 non-GAAP EPS of $0.32, beating expectations by $0.03, indicating robust profitability, while revenue of $57.52 million, up 6.3% year-over-year, met market expectations.
- Revenue Outlook Adjustment: The company revised its fiscal year 2026 revenue outlook to a range of $221 million to $229 million, slightly lower than the previous range of $223 million to $234 million, reflecting changes in market conditions.
- EBITDA Forecast Changes: The adjusted EBITDA forecast is now set between $61 million and $65 million, down from the prior range of $61 million to $66.5 million, indicating potential pressures on cost control that may impact future profitability.
- Adjusted EPS Revision: The adjusted diluted EPS forecast is now between $1.09 and $1.15, slightly above the previous range of $1.08 to $1.16, demonstrating stability in profitability despite a decline in overall revenue expectations.
See More
i3 Verticals to Release Q2 2026 Financial Results and Host Conference Call
- Earnings Release Schedule: i3 Verticals will announce its financial results for the second quarter ended March 31, 2026, on May 7, 2026, after market close, reflecting the company's ongoing performance in the public sector software solutions space.
- Conference Call Details: The company will host a conference call on May 8, 2026, at 8:30 a.m. ET to discuss financial results and operations, which is expected to attract significant attention from investors and analysts.
- Participation Methods: Participants can listen live by dialing (844) 887-9399 or by visiting the
See More
Long Path Partners Increases Stake in Alkami Technology
- Share Increase: Long Path Partners LP disclosed a purchase of 572,292 shares of Alkami Technology in Q4 2025, bringing its total stake to $72.5 million, an increase of $8.6 million from the previous quarter, indicating strong confidence in the company's long-term value.
- Portfolio Concentration: Following this purchase, Alkami accounted for approximately 25% of Long Path's assets under management, highlighting the fund's focus on Alkami, which is one of only seven U.S.-listed stocks in its concentrated portfolio.
- Market Performance Analysis: As of February 13, 2026, Alkami's stock traded at $16.27, down 50.4% over the past year and underperforming the S&P 500 by 62.2 percentage points, reflecting market concerns over its short-term volatility.
- Long-Term Growth Potential: Despite short-term challenges, Alkami's revenue grew by 33% in 2025, and the company is gaining traction in sales of its AI-powered solutions, indicating significant long-term growth potential in the digital banking transformation.
See More
i3 Verticals to Participate in Four Upcoming Investor Conferences
- Conference Schedule: i3 Verticals plans to participate in four investor conferences, including the Baird Silicon Slopes Technology Summit on February 26, 2026, the Raymond James 47th Annual Institutional Investors Conference on March 2, 2026, the Morgan Stanley Technology, Media & Telecom Conference on March 3, 2026, and the KeyBanc Capital Markets Emerging Technology Summit on the same day, highlighting the company's leadership in public sector software solutions.
- Executive Participation: Company executives, including CFO Geoff Smith and CSO Clay Whitson, will speak at multiple conferences, showcasing how i3 Verticals' cloud-native solutions effectively support government functions and enhance public service efficiency.
- Market Positioning: i3 Verticals provides enterprise software solutions that cover various government functions, including courts, public safety, and public administration, solidifying its market leadership with thousands of software installations across the U.S. and Canada.
- Strategic Goals: By participating in these investor conferences, i3 Verticals aims to strengthen relationships with investors, demonstrate its innovative capabilities in the public sector software market, and further drive the company's influence within the industry.
See More
i3 Verticals Reports Q1 2026 Earnings with Strong SaaS Growth
- Revenue Growth Overview: i3 Verticals reported Q1 2026 revenues of $52.7 million, reflecting a 1% increase year-over-year, with recurring revenue up over 8%, indicating the company's confidence in long-term growth.
- SaaS Revenue Performance: The company's SaaS revenue grew by over 24%, maintaining above 20% growth for four consecutive quarters, and this trend is expected to continue, further solidifying its competitive position in the market.
- Acquisition Strategy: i3 Verticals recently acquired a transportation market company for $60 million, which has strong market positioning in insurance verification products, expected to significantly expand the company's geographic reach.
- Future Outlook: Management anticipates FY 2026 revenues to range from $223 million to $234 million, with adjusted EBITDA between $61 million and $66.5 million, emphasizing that recurring revenue will grow at a double-digit rate, despite a forecasted decline in nonrecurring professional services revenue.
See More
i3 Verticals Reports Q2 FY 2026 Earnings Highlights
- Revenue Growth: i3 Verticals reported a 6% year-over-year revenue increase to $57.5 million in Q2, primarily driven by two acquisitions that have not yet annualized, although overall nonrecurring revenue sources decreased by 11%, indicating ongoing challenges in sustained operations.
- Adjusted EBITDA Performance: Adjusted EBITDA rose by 5% to $16.6 million, and despite the weakness in the professional services market, management remains optimistic about margin improvements in the second half of the year through cost control measures.
- Guidance Adjustment: The company has lowered its FY 2026 revenue guidance to between $221 million and $229 million, primarily due to the continued softness in nonrecurring professional services, although it expects EBITDA to remain in the range of $61 million to $65 million.
- Impact of AI Product Releases: The newly launched AI tool significantly reduced reporting cycles from days to minutes, receiving positive customer feedback, suggesting that the company's strategic direction in technology investment may enhance its competitive position in the market.
See More
i3 Verticals Reports Q2 Earnings with Revised Fiscal Outlook
- Earnings Highlights: i3 Verticals reported a Q2 non-GAAP EPS of $0.32, beating expectations by $0.03, indicating robust profitability, while revenue of $57.52 million, up 6.3% year-over-year, met market expectations.
- Revenue Outlook Adjustment: The company revised its fiscal year 2026 revenue outlook to a range of $221 million to $229 million, slightly lower than the previous range of $223 million to $234 million, reflecting changes in market conditions.
- EBITDA Forecast Changes: The adjusted EBITDA forecast is now set between $61 million and $65 million, down from the prior range of $61 million to $66.5 million, indicating potential pressures on cost control that may impact future profitability.
- Adjusted EPS Revision: The adjusted diluted EPS forecast is now between $1.09 and $1.15, slightly above the previous range of $1.08 to $1.16, demonstrating stability in profitability despite a decline in overall revenue expectations.
See More
i3 Verticals to Release Q2 2026 Financial Results and Host Conference Call
- Earnings Release Schedule: i3 Verticals will announce its financial results for the second quarter ended March 31, 2026, on May 7, 2026, after market close, reflecting the company's ongoing performance in the public sector software solutions space.
- Conference Call Details: The company will host a conference call on May 8, 2026, at 8:30 a.m. ET to discuss financial results and operations, which is expected to attract significant attention from investors and analysts.
- Participation Methods: Participants can listen live by dialing (844) 887-9399 or by visiting the
See More
Long Path Partners Increases Stake in Alkami Technology
- Share Increase: Long Path Partners LP disclosed a purchase of 572,292 shares of Alkami Technology in Q4 2025, bringing its total stake to $72.5 million, an increase of $8.6 million from the previous quarter, indicating strong confidence in the company's long-term value.
- Portfolio Concentration: Following this purchase, Alkami accounted for approximately 25% of Long Path's assets under management, highlighting the fund's focus on Alkami, which is one of only seven U.S.-listed stocks in its concentrated portfolio.
- Market Performance Analysis: As of February 13, 2026, Alkami's stock traded at $16.27, down 50.4% over the past year and underperforming the S&P 500 by 62.2 percentage points, reflecting market concerns over its short-term volatility.
- Long-Term Growth Potential: Despite short-term challenges, Alkami's revenue grew by 33% in 2025, and the company is gaining traction in sales of its AI-powered solutions, indicating significant long-term growth potential in the digital banking transformation.
See More
i3 Verticals to Participate in Four Upcoming Investor Conferences
- Conference Schedule: i3 Verticals plans to participate in four investor conferences, including the Baird Silicon Slopes Technology Summit on February 26, 2026, the Raymond James 47th Annual Institutional Investors Conference on March 2, 2026, the Morgan Stanley Technology, Media & Telecom Conference on March 3, 2026, and the KeyBanc Capital Markets Emerging Technology Summit on the same day, highlighting the company's leadership in public sector software solutions.
- Executive Participation: Company executives, including CFO Geoff Smith and CSO Clay Whitson, will speak at multiple conferences, showcasing how i3 Verticals' cloud-native solutions effectively support government functions and enhance public service efficiency.
- Market Positioning: i3 Verticals provides enterprise software solutions that cover various government functions, including courts, public safety, and public administration, solidifying its market leadership with thousands of software installations across the U.S. and Canada.
- Strategic Goals: By participating in these investor conferences, i3 Verticals aims to strengthen relationships with investors, demonstrate its innovative capabilities in the public sector software market, and further drive the company's influence within the industry.
See More
i3 Verticals Reports Q1 2026 Earnings with Strong SaaS Growth
- Revenue Growth Overview: i3 Verticals reported Q1 2026 revenues of $52.7 million, reflecting a 1% increase year-over-year, with recurring revenue up over 8%, indicating the company's confidence in long-term growth.
- SaaS Revenue Performance: The company's SaaS revenue grew by over 24%, maintaining above 20% growth for four consecutive quarters, and this trend is expected to continue, further solidifying its competitive position in the market.
- Acquisition Strategy: i3 Verticals recently acquired a transportation market company for $60 million, which has strong market positioning in insurance verification products, expected to significantly expand the company's geographic reach.
- Future Outlook: Management anticipates FY 2026 revenues to range from $223 million to $234 million, with adjusted EBITDA between $61 million and $66.5 million, emphasizing that recurring revenue will grow at a double-digit rate, despite a forecasted decline in nonrecurring professional services revenue.
See More
