I3 Verticals (IIIV) Stock Forecast & Price Target

i3 Verticals Inc is projected to achieve an adjusted EBITDA growth of 2% to 13% year-over-year, reaching between $58.5 million and $65 million, with margins expected to remain stable or improve by up to 100 basis points. Recurring revenue demonstrated strong performance, increasing by 9% year-over-year to $41.3 million, which constitutes 75% of total revenue for the period, while non-recurring revenue saw a modest 1% increase to $13.6 million. Additionally, the company has an active M&A pipeline that offers promising opportunities for expansion, which, combined with strong annual recurring revenue (ARR) growth and positive fiscal 2026 guidance, supports a favorable outlook for the company's financial performance.

i3 Verticals Inc. experienced a 2% year-over-year decline in Non-GAAP EBITDA, totalling $14.4 million, which fell 5% short of forecasts despite exceeding consensus estimates. Additionally, significant drops in high-margin software license fees, down 76% to $0.6 million, coupled with a projected decrease in non-recurring professional services revenue, contribute to concerns about the company's operational efficiency and profitability. Furthermore, i3 Verticals faces challenges in organic growth due to underpenetration in key verticals and sluggishness in adding Independent Software Vendors (ISVs) to its distribution network, undermining its ability to achieve higher sales targets in its software segment.