NASDAQ$IIIV

i3 Verticals Inc · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

i3 Verticals reported its financial results for the fiscal first quarter ended December 31, 2024, showing significant increases in revenue, net income, and adjusted EBITDA from continuing operations.

i3 Verticals, Inc. reported a strong fiscal first quarter for 2025, with revenue from continuing operations increasing by 12.1% to $61.7 million and net income from continuing operations attributable to i3 Verticals, Inc. reaching $2.2 million, a significant improvement from a net loss in the prior year. Adjusted EBITDA from continuing operations also saw a 17.0% increase to $16.4 million.

  • Revenue from continuing operations increased by 12.1% to $61.7 million compared to the prior year's first quarter.
  • Net income from continuing operations attributable to i3 Verticals, Inc. was $2.2 million, a turnaround from a $2.9 million net loss in the prior year's first quarter.
  • Adjusted EBITDA from continuing operations grew by 17.0% to $16.4 million, with the margin improving to 26.5% of revenue.
  • Diluted net income per share attributable to Class A common stock from continuing operations was $0.09, up from a $0.12 diluted net loss per share in the prior year.

Headline financials

Total Revenue

$61.7M

Previous: $92M-32.9%
EPS (adj)

$0.31

Previous: $0.36-13.9%
Adjusted EBITDA

$14.6M

No prior period
Adjusted EBITDA as % of revenue

27.9%

No prior period
Annualized Recurring Revenue

$156M

No prior period
Capital Expenditures

-$471K

Previous: -$699K+32.6%
Net Income

$3.11M

Previous: $1.1M+183.1%
Operating Income

$2.7M

Previous: $8.53M-68.4%
Gross Profit

$33M

Previous: $82.6M-60.1%

Revenue & EPS history

i3 Verticals · Revenue · Quarterly

$61.7M

Q1 2025-32.9%vs Q1 2024
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

i3 Verticals is reaffirming its outlook for continuing operations for the fiscal year ending September 30, 2025, anticipating strong SaaS growth and continued positive momentum.

Tailwinds

  • Expects significant improvements in SaaS growth, which began this quarter with a 16% increase over the prior year.
  • Anticipates continued positive momentum throughout the year.
  • Retained robust payment capabilities and ability to integrate services with proprietary vertical market software as a key competitive advantage.
  • Payments revenue grew 7% this quarter and is expected to reaccelerate.
  • Balance sheet is strong, revenue growth is trending upward, and margins are headed in the right direction.

Headwinds

  • Guidance excludes the impact of acquisitions, dispositions, and transaction-related costs.
  • Reconciliations of adjusted EBITDA and pro forma adjusted diluted earnings per share to GAAP measures are not available without unreasonable efforts.
  • Inherent difficulty in forecasting and quantifying certain projected amounts for reconciliations.
  • Sufficient information is not available to calculate certain adjustments like changes in fair value of contingent consideration, income tax expense, and equity-based compensation expense.
  • These adjustments may have a potentially significant impact on future GAAP financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-0.5%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+0.0%

Avg return

30 days after

35%

11 / 31 earnings

Positive

+14.6%

Q4 2019

Best reaction

-13.8%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-7.7%-17.5%-13.9%
Q1 2026+5.3%+9.8%+18.0%
Q4 2025-10.4%-17.5%-9.4%
Q2 2025-4.3%-0.6%-7.7%
Q1 2025+9.9%+12.7%-2.4%
Q4 2024-1.2%-3.0%-3.9%
Q3 2024-5.2%-11.0%-9.6%
Q2 2024-9.9%-10.1%-13.9%
Q1 2024+0.3%+3.8%+20.7%
Q4 2023-0.8%+1.4%+1.8%
Q3 2023-5.7%-2.0%-3.0%
Q2 2023-3.8%-9.3%-0.9%
Q1 2023-11.1%-10.3%-16.8%
Q4 2022+7.8%+4.5%+5.1%
Q3 2022-8.2%-12.6%-22.3%
Q2 2022-3.1%-7.1%-4.1%
Q1 2022+10.3%+12.1%+8.1%
Q4 2021-2.4%-12.0%-5.1%
Q3 2021-4.8%-8.0%-8.6%
Q2 2021-2.6%-0.3%-0.7%
Q1 2021+8.0%+4.0%-1.6%
Q4 2020+0.0%+11.5%+31.2%
Q3 2020+10.9%+10.4%+3.2%
Q2 2020+9.5%+10.7%+36.9%
Q1 2020-2.9%-12.1%-30.4%
Q4 2019+14.6%+18.0%+28.7%
Q3 2019-13.8%-22.2%-19.5%
Q2 2019-1.5%+0.6%-3.2%
Q1 2019-3.7%-3.8%-10.6%
Q4 2018+11.5%+26.9%+27.5%
Q3 2018-1.5%+10.3%+7.2%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2016

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