Start here if you're new
what it is
It sells cloud-based software to courts, utilities, transportation departments, and schools.
how it gets paid
Last year Verticals made $213M in revenue. Courts was the main engine at $69M, or 32% of sales.
why it's growing
Revenue grew 11.5% last year. $53M mattered most because it shows the business is still growing.
what just happened
I3 Verticals posted $53M in quarterly revenue, up 1% vs. prior year.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
114.7x trailing p/e — you're paying up for this one
1.9% return on capital — nothing to write home about
-$0.34 fy2024 eps est
xvary composite: 55/100 — below average
What they do
It sells cloud-based software to courts, utilities, transportation departments, and schools.
They have thousands of installations across all 50 states and Canada. You do not replace software that keeps courts, utilities, and schools moving for fun. The company sold merchant services in 2024 and healthcare revenue cycle management in 2025, so the business is now tighter and more focused on government software.
How they make money
$213M
annual revenue · their business grew +11.5% last year
Courts
$69M
Transportation
$42M
Utilities
$37M
Revenue
$33M
Schools
$32M
The products that matter
software subscriptions and processing fees
SaaS & Recurring Revenue
$181M · 85% of revenue
This is the core business. The page cites 8% growth in the recurring base and 24% growth in a separate company update. The exact pace needs cleaner sourcing. The broader point does not: this is the engine investors care about.
85% recurring
public sector and healthcare workflow software
Public Sector & Healthcare
1% total growth last quarter
These end markets can be sticky because customers do not swap out core systems casually. They can also be slow. If the company only grows 1% at the top line, you still need better conversion from sticky customers into visible consolidated growth.
execution test
implementation and other non-recurring work
Non-Recurring Revenue
$32M · 15% of revenue
It is the smaller bucket, but a 16% drop still matters when the stock trades at 114.7x trailing earnings. Premium multiples do not like offsets. They want acceleration.
-16%
Key numbers
$213M
annual revenue
This is the full-year sales base after the 2024 merchant sale and the 2025 healthcare exit. You are looking at a smaller, cleaner software business.
$53M
latest quarter
One quarter at $53M is about a quarter of the year. That makes timing and contract flow matter more than stories.
1.8%
operating margin
For every $100 of sales, only $1.80 becomes operating profit. That is thin.
1.9%
return on capital
For every $100 tied up in the business, only $1.90 comes back as profit. That is weak payback.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for IIIV right now.
source: institutional data · return history unavailable
What just happened
beat estimates
i3 Verticals posted $53M in quarterly revenue, up 1% vs. prior year.
EDGAR shows latest-quarter revenue of $53M and EPS of $0.02. The filing also shows a gross margin of n/a, which is the kind of number that makes you check the calculator.
$53M
revenue
$0.02
eps
+1%
revenue growth
the number that mattered
$53M mattered most because it shows the business is still growing, but only by 1% vs. prior year.
source: company earnings report, 2026
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What could go wrong
the biggest risk is simple: a company growing revenue 1% does not have much room to absorb cost creep, segment drag, or a guidance reset.
med
margin compression
The latest quarter showed the setup clearly. EPS beat. The stock fell 4%. That is the market telling you it trusts the income statement less than the headline beat when revenue only rises 1%.
If margins keep slipping, a 114.7x trailing p/e has very little protection.
med
the shrinking 15% still matters
Non-recurring revenue is only 15% of sales, but it fell 16%. When the smaller bucket drops that fast, the larger recurring base has to run harder just to keep consolidated growth from looking stalled.
If that drag continues, IIIV can stay trapped near 1% total growth even with decent recurring trends.
med
slow end markets meet an impatient multiple
Public sector and healthcare customers can be sticky because buying cycles are slow and systems are embedded. That same slowness becomes a problem when your stock is priced for cleaner acceleration.
If customer budgets slip or implementations take longer, the raised $223M–$234M guide becomes the next debate.
When 85% of revenue is recurring but total sales rise just 1%, the bull case stops being "great business model" and becomes "prove it in the consolidated numbers."
source: institutional data · regulatory filings · risk analysis
Pay attention to
next catalyst
Q2 2026 earnings report
Estimated for may 14, 2026. You want to know whether 1% revenue growth was a one-quarter wobble or the actual pace of the business.
growth mix
recurring revenue versus total revenue
Recurring revenue is 85% of the business and grew 8% in the base cited here. Total revenue grew 1%. That gap is the entire story.
guidance
the $223M–$234M full-year range
The midpoint is $228.5M. If management starts trimming that number, the stock loses one of its few clean support points.
margin check
whether the next EPS beat actually holds up in the stock
The last quarter told you what investors care about. Another beat without better operating leverage is not enough if costs keep eating the growth.
Analyst rankings
earnings predictability
30 / 100
Low predictability means the quarterly print can move around more than you would like. In human-speak, analysts do not trust this company to produce smooth numbers yet.
risk rank
3
This sits around the middle of the pack on safety. Not distressed. Not sleepy either.
source: institutional data
Institutional activity
institutional ownership data for IIIV is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$26
current price
n/a
target midpoint · n/a from current
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