i3 Verticals' Q3 2025: Navigating Contradictions in Justice Tech Investment, Revenue Projections, and Growth Strategy

Revenue growth and investment in Justice Tech, utility customer and revenue projection, investment and cost management, free cash flow conversion expectations, and revenue growth strategy are the key contradictions discussed in i3 Verticals' latest 2025Q3 earnings call.



Revenue and Earnings Growth:
- i3 Verticals reported revenue growth of 12% in Q3 2025, with SaaS revenue growing at 24% compared to the prior year.
- The growth was driven by the completion of divestitures, allowing the company to focus on its public sector software business, and strong performance in strategic markets like Justice Tech and transportation.

AI Integration and Product Innovations:
- The company has been integrating AI solutions to enhance product features and streamline support, with initial implementations in land records products and AI chatbots for software support.
- These initiatives have resulted in significant user time savings and incremental revenue, contributing to operational efficiency and customer satisfaction.

Investment in Talent and Future Growth:
- i3 has increased investment in talent, particularly in Justice products, in anticipation of revenue opportunities in FY 2026.
- This investment is expected to impact Q4 results but will contribute to long-term growth and market expansion as new revenue opportunities materialize.

Mergers and Acquisitions Strategy:
- The company remains focused on acquisitions in the public sector vertical, with a full acquisition pipeline.
- Strategic M&A is aimed at expanding market presence and product offerings, with a disciplined approach to ensure value creation and alignment with the company's mission.