**i3 Verticals, Inc. Reports Fiscal Year 2025 Results, Navigating Strategic Shifts**
i3 Verticals, Inc., a provider of enterprise software solutions, reported its financial results for the fiscal year ended September 30, 2025, showcasing a revenue of $213.2 million, an 11.5% increase compared to the $191.2 million reported in the previous fiscal year. This growth was partially fueled by $5.9 million in incremental revenue from acquisitions completed during fiscal years 2024 and 2025. The company's net income attributable to i3 Verticals, Inc. was $17.9 million, a significant shift from the net loss of $0.8 million in fiscal year 2023, primarily due to gains from discontinued operations. The company's strategic shift included the sale of its Merchant Services Business in September 2024 and its Healthcare RCM Business in May 2025, with the results of these businesses now classified as discontinued operations.
The company's operating expenses for continuing operations totaled $209.4 million, a 12.0% increase from the $186.9 million reported in the previous fiscal year. This increase was primarily driven by a $13.9 million increase in selling, general, and administrative expenses, which reached $114.7 million, and a $6.1 million increase in other costs of services, which reached $66.6 million. Interest expense significantly decreased by 92.1% to $2.3 million, reflecting a lower average outstanding debt balance. The company's annualized recurring revenue (ARR) from continuing operations for the three months ended September 30, 2025, was $165.3 million, a 9.2% increase compared to the $151.4 million reported in the same period of the previous year.
Key operational developments included the completion of two acquisitions during fiscal year 2025, aimed at expanding the company's public sector utility billing software offerings and customer footprint. The company's technology strategy focuses on agile development, scalable platforms, and secure solutions, including a proprietary payment facilitation platform. As of September 30, 2025, i3 Verticals had approximately 1,202 employees across 49 states and two countries, with a focus on talent attraction and retention through competitive compensation and benefits programs.
Looking ahead, i3 Verticals will focus on its public sector markets, which it believes are technologically underserved, large, growing, and insulated from market cycles. The company intends to continue its disciplined approach to acquisitions, targeting founder-led, growing, and cash-flow-generating businesses that augment its existing solutions. The company's financial strategy includes managing its indebtedness under its 2023 Senior Secured Credit Facility, which had no outstanding borrowings as of September 30, 2025, and maintaining compliance with its financial covenants. The company's future performance is subject to various risks, including cybersecurity threats, competition, regulatory changes, and economic conditions, as detailed in its annual report on Form 10-K.
About i3 Verticals, Inc.
i3 Verticals specializes in building, acquiring, and growing software solutions for the Public Sector and Healthcare markets. Its core offerings include integrated enterprise software and payment facilitation platforms that serve government agencies, healthcare providers, and payers. The company emphasizes long-term partnerships, recurring revenue, and strategic acquisitions to expand its market presence and product capabilities. Its business model centers on scalable, compliant, and deeply integrated solutions that enhance operational efficiency and revenue for its customers.
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