I3 Verticals Stock Price, News & Analysis

Public sector software capabilities

Across multiple investor and press materials, i3 Verticals explains that its cloud-native enterprise software addresses a wide range of government use cases:

• Courts and public safety – case management and related justice technology solutions, including JusticeTech offerings.
• Public administration and revenue – software that supports administrative and revenue-related government functions.
• Utilities – utility billing and accounting platforms, including a utility billing software company the firm acquired to complement its existing utilities practices.
• Transportation – applications supporting transportation-related government activities.
• Schools and K‑12 public education – solutions serving public education markets within the broader public sector focus.

The company states that it has thousands of software installations across all 50 U.S. states and Canada, and describes itself as a leader in the public sector vertical. Its disclosures also refer to integrated software and services solutions, including cloud-native enterprise software and applications that help governments digitize records, improve transparency, and manage key workflows.

Examples of public sector solutions

Several specific public sector initiatives illustrate how i3 Verticals positions its software:

• The company has described JusticeTech solutions, including a public access search system in West Virginia (WVPASS) that allows citizens in all counties of the state to search and download publicly available circuit court case information from their computer or mobile device, rather than visiting a courthouse.
• It has announced a contract with the Supreme Court of Appeals of West Virginia to implement the i3 CourtOne Case Management Solution (CMS) across Circuit, Family and Magistrate Courts, with the goal of promoting a more unified, transparent and efficient judicial system.
• The company has referenced an expanded WVPASS platform to provide greater access to aggregated public court data, and an i3 Fund Recovery Solution, Resolv 360, which is described as helping streamline financial processes and improve courts’ disposition rates.

These examples are presented by the company as evidence of its role in helping public sector customers modernize judicial systems, digitize records and enhance transparency for citizens.

Revenue model and recurring software focus

In its financial communications, i3 Verticals explains that it generates the majority of its revenue from software and related services. This includes subscriptions, recurring services, ongoing support, licenses, and installation and implementation services specific to its software. The company also refers to transaction-based software revenue, software maintenance, recurring software-based services, payments revenue and other recurring revenue sources as components of its business.

Management highlights Annualized Recurring Revenue (ARR) as a key metric. ARR is defined by the company as annualized revenue derived from recurring sources where it has ongoing contracts with customers, including software-as-a-service (SaaS) arrangements, transaction-based software revenue, software maintenance, recurring software-based services, payments revenue and other recurring revenue sources within a quarter. The company states that it views revenue from recurring sources as a strategic priority and that ARR is used internally to assess the health and trajectory of its business and the sustainability of its revenue base.

Strategic portfolio changes

i3 Verticals has reported several notable portfolio actions. It completed the sale of its merchant services business, with the historical results of that business reflected in discontinued operations in its financial statements. It also completed the divestiture of its Healthcare Revenue Cycle Management (RCM) business to Infinx in an all‑cash transaction, with the associated proprietary technology included in the sale.

In connection with these divestitures, the company has explained that its historical results for the merchant services business and the healthcare RCM business are presented as discontinued operations, and that continuing operations reflect the remaining operations after these classifications. Management has stated that, after the divestiture of the healthcare RCM business, the company will be completely streamlined and focused on the Public Sector vertical, including K‑12 public education markets.

On the acquisition side, i3 Verticals has disclosed the purchase of a utility billing and accounting platform, which it describes as a good fit with its existing utilities practices. The company also notes that it continues to create and acquire software products to serve the specific needs of public and private organizations in the public sector.

Customer base and geographic reach

Across multiple “About i3 Verticals” sections in its public communications, the company states that it has thousands of software installations across all 50 states and Canada. These installations are associated with its enterprise software and services solutions for public sector customers, including state and local governments, courts, utilities, transportation departments, revenue-related agencies and schools.

The company’s disclosures emphasize that its software is used by governments and related agencies seeking to improve efficiency, digitize records, manage billing and accounting processes, and provide more accessible services to citizens, such as online access to court information.

Stock information and regulatory context

i3 Verticals, Inc. trades on the Nasdaq under the ticker symbol IIIV. The company files periodic and current reports with the U.S. Securities and Exchange Commission (SEC), including Forms 10‑Q, 10‑K and 8‑K. Recent Form 8‑K filings have covered quarterly and annual financial results, supplemental financial presentations, and corporate governance matters such as a director resignation.

In one Form 8‑K, the company also disclosed that its Board of Directors approved a share repurchase program for its Class A common stock, authorizing repurchases up to a specified dollar amount over a defined period, with purchases permitted in the open market, through privately negotiated transactions, or under Rule 10b5‑1 plans, subject to market conditions, liquidity, and other factors.

Segment presentation and focus

i3 Verticals has reported that, prior to the disposition of its healthcare RCM business, it had two operating and reportable segments: a Public Sector segment and a Healthcare segment. After the sale of the healthcare RCM business, the company determined that it has one operating and reportable segment, and has stated that it will update its segment presentation in its consolidated financial statements accordingly.

Management commentary in earnings releases indicates that the company plans to continue investing in government technology and in new solutions for areas such as courts and utilities, consistent with its stated mission to support state and local governments and related agencies.

Use of non‑GAAP measures

In its earnings releases, i3 Verticals presents financial information prepared in conformity with GAAP alongside non‑GAAP measures, such as adjusted EBITDA from continuing operations and non‑GAAP adjusted diluted earnings per share from continuing operations. The company explains that these non‑GAAP measures are intended to enhance understanding of its consolidated financial information and that reconciliations to the most directly comparable GAAP measures are provided in accompanying financial schedules.

The company also notes that corporate income tax expense used in certain non‑GAAP calculations is based on an estimated long‑term effective tax rate, and that ARR does not have a standardized definition and may not be comparable to similarly titled measures used by other companies.

Summary

Overall, i3 Verticals, Inc. describes itself as an enterprise software company focused on mission-critical, cloud-native and integrated solutions for public sector customers. Through its emphasis on recurring software and services revenue, ARR, and targeted acquisitions and divestitures, the company presents a strategy centered on serving state and local governments, courts, utilities, transportation agencies, revenue departments and schools across the United States and Canada.