i3 Verticals IIIV 2025Q3 Earnings Preview Upside Potential on Revenue Recovery and EPS Growth

Forward-Looking Analysis
Analysts anticipate i3 Verticals to report Q3 2025 revenue of $49.43 million, marking an 11.79% year-over-year decrease. Despite the reduction in revenue, the company is expected to achieve an EPS of $0.013, reversing a prior loss into profitability. This figures reflect US-GAAP accounting standards. Recent trends show an increase in estimated revenue projections for 2025 from $251.27 million to $253.79 million and earnings forecast improvements from $0.34 to $0.42 per share for the year. Analysts maintain a consensus "Outperform" rating with an average price target of $31.71, suggesting a potential upside of 20.54% from the current share price of $26.31. However, GuruFocus estimates indicate a potential downside of -32.88% with a GF Value of $17.66. These projections stem from historical data and analyst predictions, emphasizing the company's potential for revenue recovery and earnings growth.

Historical Performance Review
For Q2 2025, i3 Verticals reported revenue of $63.06 million, net income of $769.00 thousand, an EPS of -$0.01, and a gross profit of $40.87 million. Despite the negative EPS, the company showed resilience through strong revenue and gross profit figures, highlighting ongoing operational capabilities and potential for future profitability improvements.

Additional News
i3 Verticals is set to release its Q3 2025 financial results on August 7 after market close. The company announced the sale of its healthcare RCM business, which contributed approximately $39 million in revenue and $8 million in adjusted EBITDA to the fiscal year 2025 guidance. This strategic divestment aligns with i3 Verticals’ focus on consolidating its core business operations and enhancing financial efficiency. Furthermore, the company's ongoing efforts in optimizing its portfolio indicate a strategic shift towards more profitable ventures and streamlined operations.

Summary & Outlook
i3 Verticals demonstrates robust financial health with promising growth catalysts from strategic divestment and revenue recovery. The projected EPS improvement signals potential profitability, supported by analyst ratings indicating a bullish outlook. Despite short-term revenue decline, the company’s strategic actions suggest a positive trajectory. With an "Outperform" rating and price target indicating upside potential, i3 Verticals stands poised for future growth, driven by effective portfolio management and operational efficiencies. However, investors should remain aware of potential valuation discrepancies, reflecting mixed market sentiment.