i3 Verticals, Inc. (IIIV) AI Stock Analysis
IIIV AI stock analysis summary
AI Researchi3 Verticals, Inc. provides integrated payment and software solutions for small- and medium-sized organizations across public, healthcare, and education sectors. Over the trailing twelve months, the company generated $218.2M in revenue with an operating margin of 1.0%. The stock closed at $16.68 after declining 47.8% over the past year.
- Market cap
- $580.2M
- Revenue (TTM)
- $218.2M
- P/E
- 57.5x fwd 19.2x
- 1Y return
- -47.8% S&P 500 16.8%
- Avg. target
- $25.50 52.9% vs last close
Bull case
- Wall Street analysts hold 3 Strong Buy ratings with a mean price target of $25.50, reflecting 52.9% upside potential from the last close.
- The stock trades at an EV-to-EBITDA multiple of 8.1x, well below the 16.6x median of its US-listed Technology peers.
- Analysts estimate next fiscal year EPS will rise 13.8% to reach $1.22 alongside 5.0% revenue growth to $228.6M.
Bear case
- The stock has declined 47.8% over the past year, significantly underperforming the S&P 500 gain of 16.8%.
- For the quarter ended June 30, 2026, quarterly earnings decreased 66.1% compared to the prior-year period.
- Cash and short-term investments totaled only $2.6M against $118.9M in total debt as of June 30, 2026.
What i3 Verticals does
i3 Verticals, Inc. specializes in providing integrated payment and software solutions tailored for small- and medium-sized businesses across education, non-profit organizations, the public sector, and healthcare markets throughout the United States. The company operates through two primary segments: Merchant Services and Proprietary Software and Payments. Through Merchant Services, it offers payment processing solutions enabling electronic payments, software licensing, ongoing support, and point-of-sale solutions. i3 Verticals distributes its solutions through direct sales, independent software vendors, value-added resellers, and independent sales organizations, alongside referral partnerships with financial institutions and card issuers.
Growth and profitability
Revenue fluctuated over recent fiscal years, moving from $224.1M in FY2021 to $187.8M in FY2022, before climbing 21.2% to $229.9M in FY2024. In FY2025, revenue decreased 7.3% to $213.2M, while gross margin compressed to 55.7% from 91.9% in FY2024. Net income shifted from -$4.5M in FY2021 to $113.3M in FY2024, before dropping to $17.9M in FY2025. Over the trailing twelve months, revenue reached $218.2M with a net profit margin of 3.9%. For the quarter ended June 30, 2026, revenue increased 2.2% year-over-year, while quarterly earnings declined 66.1%.
Balance sheet and cash flow
As of June 30, 2026, i3 Verticals held $2.6M in cash and short-term investments against total debt of $118.9M, leaving net debt at $116.2M. Shareholders' equity was $280.5M, resulting in a debt-to-equity ratio of 0.42 and a current ratio of 1.21. In FY2025, operating cash flow stood at $5.7M and free cash flow reached $3.8M, while capital expenditures totaled $1.9M and share buybacks consumed $37.6M.
Valuation and performance
i3 Verticals has a market capitalization of $580.2M and an enterprise value of $388.3M. Its trailing P/E of 57.5x trades above the 28.1x median of its US-listed Technology peers. Its forward P/E of 19.2x compares to the peer median of 18.8x, while its EV-to-EBITDA ratio of 8.1x is lower than the peer median of 16.6x. The price-to-sales ratio stands at 2.7x versus the peer median of 2.8x. Over the past year, the stock fell 47.8%, trailing the S&P 500 gain of 16.8%.
What analysts expect
Wall Street coverage includes 3 Strong Buy ratings and 1 Hold rating. The mean price target is $25.50, implying a 52.9% premium to the last close of $16.68. For the fiscal year ending September 30, 2026, consensus estimates anticipate revenue of $217.7M and EPS of $1.07. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings release date is November 16, 2026.
Key risks and what to watch
- Short interest represents 54.0% of the float, creating heightened volatility and downside sentiment.
- Net debt of $116.2M remains elevated relative to the company's $2.6M cash reserve as of June 30, 2026.
- Free cash flow dropped sharply from $33.4M in FY2024 to $3.8M in FY2025.
- Trailing twelve months operating margin is 1.0%, trailing the US-listed Technology peer median of 13.2%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this IIIV AI stock analysis
This page is an AI-written research summary of i3 Verticals, Inc. (IIIV). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: IIIV income statement, IIIV balance sheet, IIIV key metrics, IIIV analyst forecast, IIIV chart. See the IIIV stock overview for the latest quote and news.
IIIV AI stock analysis FAQ
What does i3 Verticals do?
i3 Verticals, Inc. delivers integrated payment processing and proprietary software solutions tailored for small- and medium-sized organizations across sectors including education, public sector, and healthcare.
What is the valuation of i3 Verticals compared to peers?
i3 Verticals trades at a forward P/E of 19.2x and an EV-to-EBITDA of 8.1x, compared to medians of 18.8x and 16.6x, respectively, for its US-listed Technology peers.
Does i3 Verticals pay a dividend?
No, i3 Verticals does not pay a regular dividend.
What is i3 Verticals' debt position?
As of June 30, 2026, the company held $118.9M in total debt and $2.6M in cash and short-term investments, resulting in net debt of $116.2M.
When is the next earnings date for IIIV?
The company's next earnings report is scheduled for November 16, 2026.