i3 Verticals Reports 8.8% Revenue Growth to $63.1 Million for Q1 2025

i3 Verticals, Inc. reported a revenue increase of 8.8% for the three months ended March 31, 2025, reaching $63.1 million compared to $57.9 million in the same period last year. For the six months ended March 31, 2025, revenue rose by 10.4% to $124.8 million from $113.0 million. The growth was primarily driven by increases in recurring revenues and software license sales, alongside contributions from recent acquisitions. The company also noted a significant reduction in interest expenses, which fell by 94.2% to $0.4 million, reflecting a lower average outstanding debt balance.

Operating expenses for the first quarter increased by 6.5% to $59.1 million, with notable rises in both other costs of services and selling, general, and administrative expenses. The company reported an income from operations of $4.0 million, a substantial increase from $2.5 million in the prior year, indicating improved operational efficiency. However, net income attributable to i3 Verticals, Inc. was a loss of $0.2 million, down from a profit of $1.9 million in the previous year, largely due to losses from discontinued operations related to the sale of its Merchant Services Business.

Strategically, i3 Verticals has undergone significant changes, including the divestiture of its Merchant Services Business in September 2024 for approximately $437 million, which has been classified as discontinued operations. The company also completed the acquisition of a business to enhance its Public Sector utility billing software offerings in April 2025, with a purchase price of $9 million, plus contingent consideration based on performance targets. This acquisition aligns with i3 Verticals' focus on expanding its software solutions in key vertical markets.

As of March 31, 2025, i3 Verticals had 24.4 million shares of Class A common stock and 8.8 million shares of Class B common stock outstanding. The company reported a total of $7.7 million in cash and cash equivalents, alongside $438 million in available capacity under its 2023 Senior Secured Credit Facility. The company remains in compliance with its financial covenants, maintaining a consolidated interest coverage ratio of 92.5x and a total leverage ratio of 0.1x.

Looking ahead, i3 Verticals anticipates continued growth driven by its strategic focus on software solutions for the Public Sector and Healthcare segments. The company aims to leverage its recent acquisitions and ongoing operational improvements to enhance its market position. However, it also acknowledges potential risks from economic uncertainties, including inflation and geopolitical tensions, which could impact its business operations and financial performance.