i3 Verticals Reports Q3 2025 Earnings: Revenue Up 12.4%, Net Loss Down 93%

i3 Verticals reported a 12.4% revenue increase to $51.9 million in Q3 2025, with net loss reduced to $1.0 million from $14.4 million YoY. Annualized Recurring Revenue grew by 12% to $160.8 million. The company reaffirmed its financial outlook for FY25, projecting revenue between $207 million and $217 million and adjusted EBITDA between $55 million and $61 million.

i3 Verticals Inc. (IIIV) delivered a robust performance during the third quarter of fiscal year 2025, with revenue increasing by 12.4% to $51.9 million, surpassing analyst expectations [1]. The company's net loss was reduced to $1.0 million from $14.4 million year-over-year (YoY), reflecting improved operational efficiency. Annualized Recurring Revenue (ARR) grew by 12% to $160.8 million, highlighting the company's strong recurring revenue streams.

Key highlights from the quarter include:

- Revenue Growth: The company's revenue grew by 12.4% YoY to $51.9 million, surpassing the expected $49.89 million by 4.03% [1].
- EBITDA Improvement: Adjusted EBITDA increased by 18% to $12.7 million, outpacing revenue growth and demonstrating improved profitability [1].
- Stock Performance: Following the earnings announcement, the company's stock surged by 10%, closing at $28.50 [1].
- Financial Outlook: i3 Verticals reaffirmed its financial outlook for fiscal year 2025, projecting revenue between $207 million and $217 million and adjusted EBITDA between $55 million and $61 million [1].

The company's strategic shift towards being a pure-play public sector software provider appears to be yielding positive results, as evidenced by its robust organic growth of 8% and significant gains in SaaS and payments revenue [1]. i3 Verticals continues to focus on expanding within the public sector through strategic acquisitions and investments in new product development.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-i3-verticals-beats-q3-2025-expectations-stock-jumps-10-93CH-4181054