I3 Verticals (IIIV) Stock Forecast & Price Target

i3 Verticals Inc is projected to see Adjusted EBITDA growth of 2%-13% year-over-year, indicating strong operational performance with margins potentially improving by up to 100 basis points over fiscal 2025. The company has demonstrated resilience in its revenue model, with recurring revenue increasing 9% year-over-year to $41.3 million, comprising 75% of total revenue, alongside a modest rise in non-recurring revenue. Additionally, a robust M&A pipeline and continued market share gains from smaller competitors highlight i3 Verticals's strategic positioning within key verticals, contributing to a positive financial outlook.

i3 Verticals Inc. reported a non-GAAP EBITDA of $14.4 million for the fiscal 4Q, reflecting a 2% year-over-year decline and falling 5% short of internal forecasts, despite being 4% above consensus estimates. The company's high-margin software license fees plummeted 76% year-over-year to only $0.6 million, contributing to a decreased margin due to a shift in focus towards lower-margin professional services. Additionally, slow progress in expanding their distribution network and organic growth levels below target, particularly in key verticals, raises concerns about the sustainability of i3 Verticals's revenue growth moving forward.