i3 Verticals Seeks Acquisitions for Public Sector Growth
ByAinvest
Saturday, Aug 9, 2025 3:02 am ET1min read
IIIV--
i3 Verticals Inc. (NasdaqGS:IIIV) reported its third quarter financial results for fiscal year 2025, outperforming analyst expectations and demonstrating robust growth in its public sector software business. The company's adjusted diluted earnings per share (EPS) of $0.23 surpassed the forecasted $0.21, marking a 9.52% surprise. Revenue reached $51.9 million, up 12.4% year-over-year, compared to the expected $49.89 million [1].
Following the announcement, the company’s stock surged by 10%, closing at $28.50. This significant increase reflects investor confidence in i3 Verticals' strategic direction and future growth potential. The company's strong financial performance is underscored by impressive gross profit margins of 91.28% and a healthy debt-to-equity ratio of 0.05 [1].
Key highlights of the quarter include:
- Revenue Growth: The company reported a 12.4% year-over-year revenue increase, driven by organic growth of 8% and inorganic revenues from recent acquisitions.
- Adjusted EBITDA: Adjusted EBITDA increased by 18% to $12.7 million, indicating strong operational efficiency.
- Stock Performance: The stock price rose by 10% post-earnings announcement, closing near its 52-week high.
In addition to its strong financial performance, i3 Verticals is actively seeking acquisitions, with a focus on the public sector vertical. The company's President, Frederick Stanford, stated that they will continue to integrate targeted AI solutions and that their acquisition pipeline remains full. This strategic move aligns with the company's mission to modernize public sector systems and enhance constituent services [1].
Looking ahead, i3 Verticals projects revenue between $207 million and $217 million for fiscal year 2025, with adjusted EBITDA ranging from $55 million to $61 million. The company anticipates high single-digit organic revenue growth and expects annual EBITDA margin improvements of 50 to 100 basis points. The focus remains on expanding within the public sector through strategic acquisitions [1].
References
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-i3-verticals-beats-q3-2025-expectations-stock-jumps-10-93CH-4181054
i3 Verticals, Inc. (NasdaqGS:IIIV) is actively seeking acquisitions, with a focus on the public sector vertical. The company's President, Frederick Stanford, stated that they will continue to integrate targeted AI solutions and that their acquisition pipeline remains full.
Title: i3 Verticals Inc. Reports Strong Q3 FY 2025 Results, Seeks Public Sector Acquisitionsi3 Verticals Inc. (NasdaqGS:IIIV) reported its third quarter financial results for fiscal year 2025, outperforming analyst expectations and demonstrating robust growth in its public sector software business. The company's adjusted diluted earnings per share (EPS) of $0.23 surpassed the forecasted $0.21, marking a 9.52% surprise. Revenue reached $51.9 million, up 12.4% year-over-year, compared to the expected $49.89 million [1].
Following the announcement, the company’s stock surged by 10%, closing at $28.50. This significant increase reflects investor confidence in i3 Verticals' strategic direction and future growth potential. The company's strong financial performance is underscored by impressive gross profit margins of 91.28% and a healthy debt-to-equity ratio of 0.05 [1].
Key highlights of the quarter include:
- Revenue Growth: The company reported a 12.4% year-over-year revenue increase, driven by organic growth of 8% and inorganic revenues from recent acquisitions.
- Adjusted EBITDA: Adjusted EBITDA increased by 18% to $12.7 million, indicating strong operational efficiency.
- Stock Performance: The stock price rose by 10% post-earnings announcement, closing near its 52-week high.
In addition to its strong financial performance, i3 Verticals is actively seeking acquisitions, with a focus on the public sector vertical. The company's President, Frederick Stanford, stated that they will continue to integrate targeted AI solutions and that their acquisition pipeline remains full. This strategic move aligns with the company's mission to modernize public sector systems and enhance constituent services [1].
Looking ahead, i3 Verticals projects revenue between $207 million and $217 million for fiscal year 2025, with adjusted EBITDA ranging from $55 million to $61 million. The company anticipates high single-digit organic revenue growth and expects annual EBITDA margin improvements of 50 to 100 basis points. The focus remains on expanding within the public sector through strategic acquisitions [1].
References
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-i3-verticals-beats-q3-2025-expectations-stock-jumps-10-93CH-4181054
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