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i3 Verticals (IIIV) investor relations material
i3 Verticals Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Completed divestitures of Healthcare RCM and Merchant Services, now focused solely on public sector software as a single segment.
Q3 revenue from continuing operations grew 12.4% year-over-year to $51.9M, with SaaS revenue up 24% and payments up 11%.
Adjusted EBITDA from continuing operations rose 18% to $12.7M, with margin improving to 24.5–25%.
Net loss from continuing operations narrowed to $1.0M in Q3 from $14.4M a year ago; net income boosted by gains from discontinued operations.
Repurchased $26M in stock during Q3; $38M spent YTD, with a new $50M repurchase program authorized.
Financial highlights
Q3 revenue was $51.9M, up from $46.2M a year ago, with $2.2M from acquisitions and $2.9M from recurring sources.
Annualized recurring revenue (ARR) reached $160.8M, up 12% year-over-year.
Adjusted diluted EPS from continuing operations was $0.23; non-GAAP adjusted EPS up from $0.02 last year.
77% of Q3 revenue from recurring sources; transaction-based revenue up 9%.
Operating expenses rose 19% year-over-year to $56.7M, mainly due to M&A and personnel costs.
Outlook and guidance
FY25 guidance reaffirmed: revenue $207M–$217M, adjusted EBITDA $55M–$61M, adjusted EPS $0.96–$1.06.
High single-digit organic revenue growth and 50–100 bps annual EBITDA margin improvement expected.
Guidance excludes future acquisitions and transaction-related costs.
Management expects sufficient liquidity for at least the next twelve months, with $55.5M cash and $400M undrawn credit.
Incremental investments in Justice Tech to impact Q4 margins, with revenue benefits anticipated in FY26.
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