i3 Verticals, Inc. reported a revenue increase of 12.4% for the three months ended June 30, 2025, reaching $51.9 million compared to $46.2 million in the same period last year. For the nine months ended June 30, 2025, revenue rose by 13.1% to $158.3 million from $139.9 million. The growth was attributed to an increase in recurring revenues and contributions from recent acquisitions, which added approximately $2.2 million to the quarterly revenue. Despite the revenue growth, the company experienced a loss from operations of $4.8 million for the quarter, a significant increase from a loss of $1.3 million in the prior year, primarily due to rising operating expenses.
Operating expenses for the quarter increased by 19.4% to $56.7 million, driven by a 26.8% rise in selling, general, and administrative expenses, which totaled $33.0 million. This increase was largely due to higher M&A-related expenses and personnel costs. Additionally, depreciation and amortization expenses rose to $7.0 million, reflecting the impact of recent acquisitions. The company reported a net income of $18.4 million for the quarter, a turnaround from a net loss of $8.3 million in the previous year, largely due to a gain from the sale of its Healthcare RCM Business.
i3 Verticals has undergone significant strategic changes, including the divestiture of its Healthcare RCM and Merchant Services businesses. The sale of the Healthcare RCM Business on May 5, 2025, generated $96.4 million in cash, while the Merchant Services Business was sold for approximately $439.5 million in September 2024. These transactions have been classified as discontinued operations in the financial statements, allowing the company to focus on its core public sector software solutions. The company now operates as a single reportable segment, emphasizing its commitment to providing software solutions to state and local governments.
As of June 30, 2025, i3 Verticals reported $55.5 million in cash and cash equivalents, with no outstanding borrowings under its $400 million revolving credit facility. The company is in compliance with its financial covenants, maintaining a consolidated interest coverage ratio of 87.1x and a total leverage ratio of 0.0x. Looking ahead, i3 Verticals aims to leverage its strong liquidity position to fund future acquisitions and investments in technology infrastructure, while continuing to focus on enhancing its software offerings for public sector clients.
About i3 Verticals, Inc.
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