Reasons Behind Today's Decline in i3 Verticals Stock

Written by Emily J. Thompson, Senior Investment Analyst

IIIV-3.5%

Source: Fool

Updated: Nov 18 2025

0mins

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.

Get Free Real-Time Notifications for Any Stock

Monitor tickers like IIIV with instant alerts to capture every critical market movement.

Sign up for free to build your custom watchlist and receive professional-grade stock notifications.

IIIV

$21.8+Infinity%1D

Analyst Views on IIIV

Wall Street analysts forecast IIIV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IIIV is 29.80 USD with a low forecast of 25.00 USD and a high forecast of 34.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Analyst Rating

3 Buy

2 Hold

0 Sell

Moderate Buy

Current: 22.590

Low

25.00

Averages

29.80

High

34.00

Current: 22.590

Low

25.00

Averages

29.80

High

34.00

DA Davidson

Buy

downgrade

$39 -> $35

2025-11-20

Reason

DA Davidson

Price Target

$39 -> $35

AI Analysis

2025-11-20

downgrade

Buy

Reason

DA Davidson lowered the firm's price target on i3 Verticals to $35 from $39 and keeps a Buy rating on the shares after its Q4 results. The company's management expects two dynamics to weigh on growth and margins in FY26, including plans to increase focus on new recurring revenue contracts, which will likely lead to lower non-recurring professional services revenue in the near term, and the management beginning to ramp their investment spending in their Justice technology solutions late in FY25, the analyst tells investors in a research note.

KeyBanc

Overweight

downgrade

$35 -> $32

2025-11-19

Reason

KeyBanc

Price Target

$35 -> $32

2025-11-19

downgrade

Overweight

Reason

KeyBanc lowered the firm's price target on i3 Verticals to $32 from $35 and keeps an Overweight rating on the shares. The firm notes i3 Verticals' Q4 results were above the Street, driven by outperformance in software and related services revenue. FY26 revenue and adjusted EBITDA guidance, however, were below expectations as the company anticipates a decline in non-recurring professional services revenue and continued investment in product innovation, KeyBanc adds.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for IIIV

Unlock Now

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.