i3 Verticals 2025 Q4 Earnings Sharp Net Income Drop Despite Revenue Growth

i3 Verticals (IIIV) released its fiscal 2025 Q4 earnings on Nov 21st, 2025, with a stark divergence between revenue and earnings performance. The company reported a 7.0% revenue increase to $54.90 million, yet net income plummeted 97.6% to $4.20 million, marking a significant contrast to the prior year’s $178.54 million. Despite setting a seven-year Q4 net income record, the 97.3% EPS decline to $0.10 highlighted operational challenges.

Revenue

i3 Verticals’ total revenue rose 7.0% year-over-year to $54.90 million in Q4 2025, driven by sustained demand for its public-sector software solutions. The company attributed this growth to organic expansion and strategic market positioning, though no segment-specific revenue figures were disclosed.

Earnings/Net Income

The sharp 97.3% decline in EPS to $0.10 underscores significant earnings pressure, despite a record-high Q4 net income of $4.20 million. This stark drop from $3.48 in 2024 Q4 reflects broader margin compression and one-time factors, including the transition to recurring revenue models and reduced non-recurring license sales.

Price Action

Post-earnings, i3 Verticals’ stock exhibited mixed short-term performance. Shares rose 1.66% on the day of the report but fell sharply in broader timeframes: a 17.02% weekly decline and a 24.41% month-to-date drop as of Nov 21, 2025. This volatility signals investor caution amid earnings uncertainty.

CEO Commentary

In the earnings call, CEO Jeff emphasized the company’s strategic shift toward recurring revenue and SaaS solutions, calling it “a foundational step for long-term stability.” He noted, “While Q4 results reflect transitional challenges, our 7% revenue growth and $67 million cash position position us to capitalize on acquisition opportunities and customer-centric innovation.” The tone was cautiously optimistic, balancing near-term pressures with confidence in the software transition.

Guidance

The company provided limited forward-looking guidance, reiterating a focus on recurring revenue and disciplined capital deployment. CFO Unidentified_4 highlighted a 2026 organic growth outlook, with a shift toward SaaS over professional services and a target of 3–5% annual price increases.

Additional News

Recent updates include a robust acquisition pipeline and a $67 million cash position, supporting strategic M&A. The transition to SaaS models, while boosting recurring revenue, introduced margin pressures as adjusted EBITDA dipped to 26.2% in Q4 2025. In Q&A, the CFO noted 2026 will see lighter professional services revenue due to timing of projects, but long-term pricing discipline aims to offset this.

The earnings report underscores i3 Verticals’ strategic pivot to recurring revenue and software solutions, even as near-term margin pressures persist. Investors remain focused on the company’s ability to sustain growth amid a shifting market landscape.