i3 Verticals, Inc. (IIIV) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

i3 Verticals, Inc. (IIIV) Technology Profile & Competitive Position

i3 Verticals, Inc. delivers integrated payment and software solutions across diverse sectors like education, non-profit, and healthcare. With a focus on SMBs, the company facilitates electronic payments and offers proprietary software, positioning itself as a key player in the infrastructure software space, marked by a P/E ratio of 26.0.

What Is the Investment Thesis for IIIV?

i3 Verticals, Inc. presents a compelling investment case based on its strategic positioning in the integrated payment and software solutions market. With a market capitalization of $399M and a P/E ratio of 26.0, the company demonstrates a solid financial foundation. Key value drivers include its diversified market segments (education, non-profit, public sector, and healthcare) and its multi-channel distribution strategy. The company’s ability to generate a profit margin of 8.3% and a gross margin of 58.2% indicates efficient operations and pricing power. Upcoming growth catalysts include expanding its software licensing and support services, as well as penetrating deeper into existing markets. Potential risks include increasing competition in the payment processing sector and the need to continually innovate to meet evolving customer demands. The company's beta of 0.96 suggests relatively stable performance compared to the broader market.

Based on FMP financials and quantitative analysis

IIIV Key Highlights

Market Cap of $399M indicates a substantial presence in the integrated payment and software solutions market.

• P/E Ratio of 26.0 reflects investor confidence in the company's earnings potential.
• Profit Margin of 8.3% demonstrates the company's ability to generate profits from its revenue streams.
• Gross Margin of 58.2% highlights efficient cost management and strong pricing power.
• Beta of 0.96 suggests the stock's volatility is slightly less than the overall market.

Who Are IIIV's Competitors?

IIIV is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are IIIV's Key Strengths?

Strong presence in niche markets (education, non-profit, healthcare).

• Integrated payment and software solutions offering.
• Multi-channel distribution network.
• Recurring revenue from software licensing and support.

What Are IIIV's Weaknesses?

Smaller scale compared to larger competitors.

• Reliance on distribution partners for market reach.
• Potential for slower growth in mature markets.
• Limited international presence.

What Could Drive IIIV Stock Higher?

Expansion of software licensing and support services to drive recurring revenue.

• Penetration deeper into existing markets (education, non-profit, healthcare) to increase market share.
• Potential strategic acquisitions to broaden product offerings and enter new markets.
• Strengthening distribution partnerships to reach a wider audience.
• Enhancement of data analytics capabilities to provide more valuable insights to customers.

What Are the Key Risks for IIIV?

Financial-distress signal — its Altman Z-Score of 1.79 sits in the distress zone (elevated bankruptcy risk).

• Increasing competition from larger payment processors could erode market share.
• Evolving regulatory landscape and compliance requirements could increase operating costs.
• Cybersecurity threats and data breaches could damage reputation and customer trust.
• Economic downturn impacting SMB spending could reduce transaction volumes.
• Integration risks associated with potential acquisitions.

What Are the Growth Opportunities for IIIV?

• Expanding Software Licensing and Support Services: i3 Verticals has a significant opportunity to grow its revenue by expanding its software licensing and support services. The market for integrated software solutions in the education, non-profit, public sector, and healthcare markets is substantial, with increasing demand for solutions that streamline operations and improve efficiency. By focusing on developing and marketing innovative software solutions, i3 Verticals can attract new customers and increase recurring revenue streams. The timeline for realizing this growth opportunity is ongoing, with continuous product development and market penetration efforts.
• Penetrating Deeper into Existing Markets: i3 Verticals can drive growth by deepening its penetration into its existing target markets. The education, non-profit, public sector, and healthcare sectors represent significant opportunities for expansion, with many organizations still relying on outdated payment and software systems. By leveraging its existing customer relationships and industry expertise, i3 Verticals can increase its market share and drive revenue growth. This growth opportunity is ongoing, with continuous sales and marketing efforts targeting key decision-makers in these sectors.
• Strategic Acquisitions: i3 Verticals can pursue strategic acquisitions to expand its product offerings, enter new markets, and gain access to new technologies. The market for payment and software solutions is highly fragmented, with many small- and medium-sized companies offering specialized products and services. By acquiring complementary businesses, i3 Verticals can enhance its competitive position and accelerate its growth. The timeline for realizing this growth opportunity is event-driven, with potential acquisitions being evaluated on an ongoing basis.
• Leveraging Distribution Partnerships: i3 Verticals can further leverage its distribution partnerships to reach a wider audience and increase sales. The company's distribution partners, including independent software vendors, value-added resellers, and independent sales organizations, play a crucial role in reaching small- and medium-sized businesses. By strengthening these partnerships and expanding its distribution network, i3 Verticals can increase its market reach and drive revenue growth. This growth opportunity is ongoing, with continuous efforts to recruit and support new distribution partners.
• Enhancing Data Analytics Capabilities: i3 Verticals can enhance its data analytics capabilities to provide more valuable insights to its customers and improve its own operations. By leveraging data analytics, the company can help its customers optimize their payment processes, identify fraud, and improve their overall business performance. This can lead to increased customer satisfaction and retention, as well as new revenue opportunities. The timeline for realizing this growth opportunity is ongoing, with continuous investment in data analytics infrastructure and expertise.

What Are IIIV's Competitive Advantages?

• Specialized Focus: Tailored solutions for specific verticals (education, non-profit, healthcare) create customer stickiness.
• Integrated Solutions: Combining payment processing and software provides a comprehensive offering.
• Distribution Network: Partnerships with ISVs, VARs, and financial institutions expand market reach.
• Recurring Revenue: Software licensing and support services generate stable, predictable income.

What Does IIIV Do?

Founded in 2012 and headquartered in Nashville, Tennessee, i3 Verticals, Inc. has rapidly evolved into a provider of integrated payment and software solutions tailored for small- and medium-sized businesses and organizations. The company operates through two primary segments: Merchant Services, and Proprietary Software and Payments. The Merchant Services segment focuses on enabling clients to accept electronic payments, managing the intricate exchange of funds and transaction data between clients, financial institutions, and payment networks. This includes providing the necessary infrastructure and support for secure and efficient payment processing. The Proprietary Software and Payments segment centers around licensing software and providing ongoing support, along with point-of-sale related solutions. This segment is crucial for clients seeking comprehensive payment and management systems. i3 Verticals serves a diverse range of markets, including education, non-profit, public sector, and healthcare, demonstrating its adaptability and broad market appeal. The company reaches its clients through a multi-faceted approach, utilizing a direct sales force, distribution partners (including independent software vendors, value-added resellers, and independent sales organizations), and referral partners such as financial institutions, trade associations, chambers of commerce, and card issuers. This comprehensive strategy allows i3 Verticals to effectively penetrate various market segments and maintain a strong competitive presence.

What Products and Services Does IIIV Offer?

• Provides integrated payment solutions to small and medium-sized businesses.
• Offers software solutions tailored for education, non-profit, public sector, and healthcare markets.
• Facilitates electronic payment processing, enabling clients to accept various payment methods.
• Licenses proprietary software for payment and management systems.
• Provides ongoing support and point-of-sale related solutions.
• Connects clients with financial institutions and payment networks for seamless transactions.
• Offers solutions through direct sales, distribution partners, and referral partners.

How Does IIIV Make Money?

• Generates revenue through payment processing fees.
• Earns income from software licensing and subscription fees.
• Provides ongoing support and maintenance services for recurring revenue.
• Utilizes a multi-channel distribution strategy to reach diverse customer segments.

What Industry Does IIIV Operate In?

i3 Verticals, Inc. operates within the rapidly evolving software and payment processing industry. The market is characterized by increasing demand for integrated solutions that streamline payment processes and enhance operational efficiency for small- and medium-sized businesses. Key trends include the growing adoption of cloud-based payment solutions, the rise of mobile payments, and the increasing importance of data security and compliance. The competitive landscape includes established players in the payment processing space, as well as specialized software providers targeting specific vertical markets. i3 Verticals differentiates itself through its focus on niche markets such as education, non-profit, public sector, and healthcare, allowing it to tailor its solutions and build strong customer relationships.

Who Are IIIV's Key Customers?

• Small- and medium-sized businesses (SMBs).
• Educational institutions (schools, colleges, universities).
• Non-profit organizations.
• Public sector entities (government agencies).
• Healthcare providers (hospitals, clinics).

Wall Street analysts project i3 Verticals, Inc. revenue of about $217.7M for fiscal 2026, with EPS near $1.07. The estimate reflects 3 contributing analysts.

Quarterly Financial Performance: i3 Verticals, Inc.

Revenue for i3 Verticals, Inc. came in at $53.1M during Q2 2026, a 7.7% contraction versus the preceding quarter. The company recorded net income of $5.7M, with diluted EPS of $0.19. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Technology. Across the four most recent quarters, IIIV averaged $0.09 in diluted EPS.

IIIV Valuation & Market Position

With a $399M market cap, i3 Verticals, Inc. sits in the small-cap segment of the market. Relative to its peer group, IIIV's quantitative score of 54/100 is roughly in line with the peer average of 60/100.

Return on equity for i3 Verticals, Inc. stands at 4.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.8%, showing how much profit it generates from its asset base. IIIV trades at a trailing price-to-earnings ratio of 25.98, below the Technology sector average of ~33x. Its free cash flow yield is 9.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.34 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.8%, the inverse of the P/E and a quick read on earnings relative to price.

i3 Verticals, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.79 places it in the distress zone, a signal of elevated financial risk.

i3 Verticals, Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.7% above estimates on average.

Company Profile

i3 Verticals, Inc. operates in the Software - Infrastructure industry within the Technology sector. It is headquartered in Nashville, US. The company is led by CEO Gregory S. Daily. IIIV has traded publicly since 2018.

IIIV Financials

IIIV Latest News

IIIV Analyst Consensus

IIIV MoonshotScore

i3 Verticals, Inc. Technology Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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