# i3 Verticals (IIIV.US)

Canonical: https://gigainvestors.com/s/IIIV

Analysis as of: 2026-10-16T07:29:18.739Z. Financial observations: FY2016–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $16.60 per share; close as of 2026-10-15.

Estimated value: low $13.45 per share, central $15.30 per share, high $17.77 per share. Buy at or below the central value $15.30 per share. Valuation as of 2026-10-16T07:29:18.739Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 7

- Operating margin variation: 8.17×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: 0.03×

- FY2018: 0.04×

- FY2019: 0.02×

- FY2020: 0.05×

- FY2021: -0.00×

- FY2022: -0.12×

- FY2023: -0.02×

- FY2024: 0.03×

- FY2025: 0.02×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 6.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.5%

- ROIC, second-lowest year: -0.9%

- Typical minus recent gross margin: 6.4 pp

- Typical gross margin (annual median): 62.1%

- Recent gross margin (lower of latest and 3-year median): 55.7%

- Years with nonpositive capital: 1

- Capital spending / revenue: 2.6%

- ROIC including acquisitions, ten-year median: 4.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.9%

- FY2017: 11.7%

- FY2018: 12.8%

- FY2019: 5.0%

- FY2020: 10.3%

- FY2021: -0.0%

- FY2022: -6.0%

- FY2023: -0.9%

- FY2024: 6.1%

- FY2025: 3.2%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.74×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $189M

- Net income, five-year total: $109M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 3.2 pp

- Working capital / revenue, change between three-year averages: 21.6 pp

- Working capital / revenue, final three-year average: 24.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -2.64×

- FY2022: 0.47×

- FY2023: -23.77×

- FY2024: 1.08×

- FY2025: 2.45×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 11.7% vs 3.2%

- Per-share earnings: -0.25 to 0.52 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 4.5%

- Market cap gain: $907M

- Cumulative retained earnings: $118M

- Diluted shares, 5-year annual growth: 4.5%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: $0.77

- Per-share value, starting three-year median: -$0.25

- Per-share value, ending three-year median: $0.52

- Buybacks concentrated in cheaper years (correlation): -0.14

- Average buyback yield: 6.3%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: $97M

- ROIC, first three-year median: 11.7%

- ROIC, last three-year median: 3.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.25

- FY2017: $0.12

- FY2018: -$0.78

- FY2019: -$0.29

- FY2020: -$0.02

- FY2021: -$0.14

- FY2022: -$0.77

- FY2023: -$0.02

- FY2024: $3.35

- FY2025: $0.52

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 1.9%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 322.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.32×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.99×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -12.1%

- FY2017: -4.9%

- FY2018: -14.3%

- FY2019: -8.5%

- FY2020: -6.0%

- FY2021: -7.9%

- FY2022: -8.2%

- FY2023: -4.3%

- FY2024: 8.9%

- FY2025: 1.9%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 49% since Sep 2025 · "i3 Verticals Sees Strong Demand but Cuts Outlook as Public-Sector Budgets Normalize" (finance.yahoo.com, Aug 2026) · sales -7.3%

Story as of 2026-10-16T09:58:56.716Z; price observation 2026-10-15.

Price needs cash profits to grow 1.9% a year for ten years

- 2026-02-06: I3 Verticals targets double-digit recurring revenue growth for FY 2026 as SaaS momentum accelerates ([seekingalpha.com](https://seekingalpha.com/news/4548641-i3-verticals-targets-double-digit-recurring-revenue-growth-for-fy-2026-as-saas-momentum?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-10: i3 Verticals Sees Strong Demand but Cuts Outlook as Public-Sector Budgets Normalize ([finance.yahoo.com](https://finance.yahoo.com/technology/articles/i3-verticals-sees-strong-demand-230406424.html))

### Sales · FY2024–2025

sales -7.3%; source https://www.sec.gov/Archives/edgar/data/1728688/000172868825000122/iiiv-20250930.htm; observed 2025-11-21.

- FY2016: $200M 

- FY2017: $263M 

- FY2018: $324M 

- FY2019: $376M 

- FY2020: $150M 

- FY2021: $224M 

- FY2022: $188M 

- FY2023: $190M 

- FY2024: $230M 

- FY2025: $213M 

### Gross margin · FY2025

gross margin 55.7%; source https://www.sec.gov/Archives/edgar/data/1728688/000172868825000122/iiiv-20250930.htm; observed 2025-11-21.

- FY2016: 18.4% 

- FY2017: 17.0% 

- FY2018: 21.2% 

- FY2019: 23.7% 

- FY2020: 68.5% 

- FY2021: 74.3% 

- FY2022: 93.2% 

- FY2023: 71.1% 

- FY2024: 91.9% 

- FY2025: 55.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 213.2 million.

- Source: https://www.sec.gov/Archives/edgar/data/1728688/000172868825000122/iiiv-20250930.htm (filed 2025-11-21); FY2025: revenue 213158000; grossProfit 118671000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); IIIV.US: i3 Verticals, Inc. provides enterprise software and services solutions to public sector entities in the United States and Canada. The company offers digital solutions for dynamic processes to plan, coordinate, evaluate, record, and provide up to date information within court systems; E-Filing and revenue cycle management solutions for courts; solutions for computer aided dispatch, records management, evidence management, jail management, mobile solutions, and livescan; and software solutions for vehicle title and registration, driver's license and permit management, and motor carrier compliance for departments of transportation. It also provides digital customer engagement platform, comprising web, mobile, chat, and voice options; billing and back-office management software solutions and services; solutions for school lunch programs, including meal account management, point of sale, menu planning, nutritional analysis, food inventory and free, and reduced meal applications, as well as school event solutions, such as ticketing and concessions. In addition, the company offers government fund accounting software; digital land records solutions, including AI indexing of information; computer assisted mass appraisal solutions; licensing and permitting solutions that include automation every step of the application, renewal, and payment process; and tax and revenue collection management solutions. i3 Verticals, Inc. was founded in 2012 and is based in Nashville, Tennessee.

### Why customers stay

Margins ranged from 55.7% to 91.9% during 2023–25; it earns 5.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2023: grossProfit / revenue = 71.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: grossProfit / revenue = 91.9%.

- Source: https://www.sec.gov/Archives/edgar/data/1728688/000172868825000122/iiiv-20250930.htm (filed 2025-11-21); FY2025: grossProfit / revenue = 55.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); 10-year return on capital observations [[2016,0.08895496519391959],[2017,0.11655274414622209],[2018,0.12835929387331257],[2019,0.04950149898905389],[2020,0.10292603208125911],[2021,-0.00007605782962404326],[2022,-0.05983148310576407],[2023,-0.00862591867399048],[2024,0.061172921797681724],[2025,0.03171831088725866]]; median 0.05533721039336781. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 10 years; bought back USD 37.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2016: growth capex 0; upkeep 2877000; owner earnings 4928000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2017: growth capex 0; upkeep 2096000; owner earnings 8891000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2018: growth capex 0; upkeep 4486000; owner earnings 455000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2019: growth capex 0; upkeep 3106000; owner earnings 10413000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2020: growth capex 0; upkeep 5954000; owner earnings 11844000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2021: growth capex 0; upkeep 8201000; owner earnings 11760000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2023: growth capex 0; upkeep 16375000; owner earnings 19275000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: growth capex 0; upkeep 14960000; owner earnings 122281000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1728688/000172868825000122/iiiv-20250930.htm (filed 2025-11-21); FY2025: growth capex 0; upkeep 1941000; owner earnings 43832000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Dividend observations: [[2016,56000],[2017,1464000],[2018,52191000],[2019,189163000],[2020,325556000],[2021,594000],[2022,643000],[2023,310000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1728688/000172868825000122/iiiv-20250930.htm (filed 2025-11-21); FY2025: cash repurchases 37604000 USD.

### Are managers owners

Insiders own 2.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); IIIV.US SharesStats.PercentInsiders = 2.919 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits grow 1.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Ten-year compound average after fade. Initial solved rate 0.014518911315060445. Price 16.6; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-06: $15.22 per share

- 2018-07: $15.31 per share

- 2018-08: $18.62 per share

- 2018-09: $22.98 per share

- 2018-10: $21.49 per share

- 2018-11: $22.53 per share

- 2018-12: $24.10 per share

- 2019-01: $24.73 per share

- 2019-02: $21.04 per share

- 2019-03: $24.02 per share

- 2019-04: $24.14 per share

- 2019-05: $25.57 per share

- 2019-06: $29.45 per share

- 2019-07: $28.57 per share

- 2019-08: $22.62 per share

- 2019-09: $20.12 per share

- 2019-10: $20.45 per share

- 2019-11: $27.32 per share

- 2019-12: $28.25 per share

- 2020-01: $32.29 per share

- 2020-02: $28.98 per share

- 2020-03: $19.09 per share

- 2020-04: $23.24 per share

- 2020-05: $28.86 per share

- 2020-06: $30.25 per share

- 2020-07: $24.18 per share

- 2020-08: $27.89 per share

- 2020-09: $25.25 per share

- 2020-10: $20.63 per share

- 2020-11: $27.90 per share

- 2020-12: $33.20 per share

- 2021-01: $29.02 per share

- 2021-02: $33.20 per share

- 2021-03: $31.13 per share

- 2021-04: $33.22 per share

- 2021-05: $31.07 per share

- 2021-06: $30.22 per share

- 2021-07: $31.92 per share

- 2021-08: $28.91 per share

- 2021-09: $24.21 per share

- 2021-10: $22.39 per share

- 2021-11: $18.65 per share

- 2021-12: $22.79 per share

- 2022-01: $23.14 per share

- 2022-02: $26.40 per share

- 2022-03: $27.86 per share

- 2022-04: $27.45 per share

- 2022-05: $23.32 per share

- 2022-06: $25.02 per share

- 2022-07: $27.13 per share

- 2022-08: $23.36 per share

- 2022-09: $20.03 per share

- 2022-10: $21.76 per share

- 2022-11: $26.29 per share

- 2022-12: $24.34 per share

- 2023-01: $28.92 per share

- 2023-02: $24.61 per share

- 2023-03: $24.53 per share

- 2023-04: $23.25 per share

- 2023-05: $22.85 per share

- 2023-06: $22.86 per share

- 2023-07: $25.01 per share

- 2023-08: $23.65 per share

- 2023-09: $21.14 per share

- 2023-10: $18.75 per share

- 2023-11: $20.13 per share

- 2023-12: $21.17 per share

- 2024-01: $18.74 per share

- 2024-02: $21.31 per share

- 2024-03: $22.89 per share

- 2024-04: $22.71 per share

- 2024-05: $19.48 per share

- 2024-06: $22.08 per share

- 2024-07: $24.51 per share

- 2024-08: $22.66 per share

- 2024-09: $21.31 per share

- 2024-10: $22.99 per share

- 2024-11: $24.80 per share

- 2024-12: $23.04 per share

- 2025-01: $24.89 per share

- 2025-02: $25.93 per share

- 2025-03: $24.67 per share

- 2025-04: $25.12 per share

- 2025-05: $24.71 per share

- 2025-06: $27.48 per share

- 2025-07: $27.98 per share

- 2025-08: $31.45 per share

- 2025-09: $32.46 per share

- 2025-10: $30.75 per share

- 2025-11: $23.67 per share

- 2025-12: $25.19 per share

- 2026-01: $22.21 per share

- 2026-02: $22.38 per share

- 2026-03: $22.36 per share

- 2026-04: $22.55 per share

- 2026-05: $20.36 per share

- 2026-06: $21.36 per share

- 2026-07: $21.06 per share

- 2026-08: $16.05 per share

- 2026-09: $13.82 per share

- 2026-10: $16.60 per share

## Annual estimated value (USD per share)

- FY2020: low $1.95 per share, central $2.18 per share, high $2.48 per share

- FY2021: low $2.62 per share, central $2.98 per share, high $3.46 per share

- FY2022: low $2.55 per share, central $2.90 per share, high $3.37 per share

- FY2023: low $3.27 per share, central $3.72 per share, high $4.32 per share

- FY2024: low $7.63 per share, central $8.44 per share, high $9.52 per share

- FY2025: low $8.30 per share, central $9.25 per share, high $10.53 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1728688/000172868825000122/iiiv-20250930.htm); period 2025-09-30, filed 2025-11-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.