i3 Verticals Reports 2.2% Revenue Growth and Significant Net Income Improvement

i3 Verticals, Inc. reported a revenue increase of 2.2% for the three months ended June 30, 2026, reaching $53.1 million compared to $51.9 million in the same period last year. For the nine months ended June 30, 2026, revenue rose by 3.2% to $163.3 million from $158.3 million. The growth in revenue was primarily driven by an increase in recurring revenues, which rose by $3.3 million in the latest quarter, although this was partially offset by a decline in non-recurring revenues. The company also reported a net income from continuing operations of $5.9 million for the quarter, a significant improvement from a loss of $1.0 million in the prior year, while net income for the nine-month period was $9.2 million, up from $4.1 million.

Operating expenses for the quarter decreased by 4.9% to $54.0 million, down from $56.7 million a year earlier, largely due to a reduction in selling, general, and administrative expenses, which fell by 12.6% to $28.9 million. This decrease was attributed to lower M&A-related expenses compared to the previous year. The company also experienced a notable increase in interest expense, which rose by 125.8% to $1.8 million, reflecting a higher average outstanding debt balance. Other income surged to $9.9 million, primarily due to an unrealized gain on an investment.

In terms of strategic developments, i3 Verticals completed the acquisition of a business in the transportation market for $60 million in cash, with additional contingent consideration of up to $20 million based on performance targets. This acquisition is part of the company's ongoing strategy to expand its offerings and customer base. The company also reported a significant reduction in its cash and cash equivalents, which fell to $2.6 million from $66.7 million a year earlier, largely due to share repurchase activities and cash used for acquisitions.

The company’s total liabilities increased significantly to $226.7 million as of June 30, 2026, compared to $120.7 million a year prior, primarily due to the new long-term debt incurred from the acquisition. i3 Verticals also reported a decrease in total stockholders' equity to $400.3 million from $517.7 million, reflecting the impact of share repurchases and the financial results from discontinued operations. The company has indicated that it expects to continue focusing on growth through acquisitions and enhancing its software solutions, while maintaining compliance with its financial covenants under its credit facility.

Looking ahead, i3 Verticals anticipates that its cash flow from operations, combined with available borrowing capacity, will be sufficient to meet its cash needs for the foreseeable future. The company remains committed to its growth strategy, which includes expanding its market share and enhancing its product offerings, while navigating the challenges posed by current economic conditions.