i3 Verticals Reports Q1 Revenue of $52.7M
Reports Q1 revenue $52.7M, consensus $52.18M. 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%."
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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.
i3 Verticals Q1 Earnings Report Analysis
- Earnings Performance: i3 Verticals reported a Q1 GAAP EPS of $0.02, missing expectations by $0.03, indicating challenges in profitability that could affect investor confidence.
- Revenue Decline: The company posted revenues of $52.7 million, a 14.6% year-over-year decline, although it beat market expectations by $0.52 million; however, the ongoing revenue drop may exert pressure on future growth.
- Future Outlook: i3 Verticals anticipates an 8-10% recurring revenue growth for 2026, suggesting a strategic focus on SaaS expansion, although it will take time to realize this transition in the short term.
- Market Reaction: Despite the revenue beat, the earnings miss may lead to a cautious market sentiment regarding the company's future performance, potentially impacting stock price movements and investor confidence.
I3 VERTICALS Q1 ADJUSTED EPS REACHES USD 0.26, BEATING IBES ESTIMATE OF USD 0.25
Economic Indicators: The article discusses the vertical adjustments in economic indicators, specifically focusing on the Q1 adjusted EPS (Earnings Per Share) figures.
Comparison of Estimates: It highlights a comparison between the adjusted EPS of 0.26 USD and the Ibes estimate of 0.25 USD, indicating a slight outperformance.
Are Options Traders Anticipating a Significant Shift in i3 Verticals Stock?
Implied Volatility in Options Market: i3 Verticals, Inc. (IIIV) has seen significant implied volatility in its January 16, 2026 $20.00 Call option, indicating that investors expect a substantial price movement in the stock, potentially due to an upcoming event.
Analyst Sentiment: The company currently holds a Zacks Rank #4 (Sell) in the Internet - Software industry, with no analysts increasing earnings estimates recently, leading to a downward revision of the consensus estimate from 29 cents to 26 cents per share.
Options Trading Strategy: High implied volatility may attract options traders looking to sell premium, as they anticipate that the stock will not move as much as expected by expiration, which is a common strategy to capture decay.
Investment Opportunities: Zacks Investment Research highlights potential high-reward trades, with previous recommendations yielding significant returns, and offers insights into stocks that may be undervalued and poised for growth.
Keybanc Keeps Overweight Rating on i3 Verticals, Reduces Price Target to $32
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders to stay updated on market movements.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing their trading strategies.
Market Winning Tools: The platform provides essential tools and information to help traders succeed in the stock market.
Morgan Stanley Keeps Equal-Weight Rating on i3 Verticals, Reduces Price Target to $28
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders to stay updated on market movements.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing their trading strategies.
Market Winning Tools: The platform provides essential tools and information to help traders succeed in the stock market.
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.
i3 Verticals Q1 Earnings Report Analysis
- Earnings Performance: i3 Verticals reported a Q1 GAAP EPS of $0.02, missing expectations by $0.03, indicating challenges in profitability that could affect investor confidence.
- Revenue Decline: The company posted revenues of $52.7 million, a 14.6% year-over-year decline, although it beat market expectations by $0.52 million; however, the ongoing revenue drop may exert pressure on future growth.
- Future Outlook: i3 Verticals anticipates an 8-10% recurring revenue growth for 2026, suggesting a strategic focus on SaaS expansion, although it will take time to realize this transition in the short term.
- Market Reaction: Despite the revenue beat, the earnings miss may lead to a cautious market sentiment regarding the company's future performance, potentially impacting stock price movements and investor confidence.
I3 VERTICALS Q1 ADJUSTED EPS REACHES USD 0.26, BEATING IBES ESTIMATE OF USD 0.25
Economic Indicators: The article discusses the vertical adjustments in economic indicators, specifically focusing on the Q1 adjusted EPS (Earnings Per Share) figures.
Comparison of Estimates: It highlights a comparison between the adjusted EPS of 0.26 USD and the Ibes estimate of 0.25 USD, indicating a slight outperformance.
Are Options Traders Anticipating a Significant Shift in i3 Verticals Stock?
Implied Volatility in Options Market: i3 Verticals, Inc. (IIIV) has seen significant implied volatility in its January 16, 2026 $20.00 Call option, indicating that investors expect a substantial price movement in the stock, potentially due to an upcoming event.
Analyst Sentiment: The company currently holds a Zacks Rank #4 (Sell) in the Internet - Software industry, with no analysts increasing earnings estimates recently, leading to a downward revision of the consensus estimate from 29 cents to 26 cents per share.
Options Trading Strategy: High implied volatility may attract options traders looking to sell premium, as they anticipate that the stock will not move as much as expected by expiration, which is a common strategy to capture decay.
Investment Opportunities: Zacks Investment Research highlights potential high-reward trades, with previous recommendations yielding significant returns, and offers insights into stocks that may be undervalued and poised for growth.
Keybanc Keeps Overweight Rating on i3 Verticals, Reduces Price Target to $32
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders to stay updated on market movements.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing their trading strategies.
Market Winning Tools: The platform provides essential tools and information to help traders succeed in the stock market.
Morgan Stanley Keeps Equal-Weight Rating on i3 Verticals, Reduces Price Target to $28
Real-time Intelligence: Benzinga Pro offers the fastest news alerts for traders to stay updated on market movements.
Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing their trading strategies.
Market Winning Tools: The platform provides essential tools and information to help traders succeed in the stock market.
