i3 Verticals A

i3 Verticals missed the quarter ended Sept. 30 and lowered its outlook for 2026; for 2027 the company now expects mid-single-digit revenue growth instead of the previously forecast high-single-digit growth. Management highlights that AI reduces development costs and increases productivity, while the business model emphasizes more transaction-based revenue and payments (around 25% of sales). Despite near-term revenue pressure, margins are expected to improve; the company anticipates above-average margin expansion in 2027 and views share buybacks (almost 23% of shares repurchased since highs) as an important capital lever. Operationally the focus remains on public sectors such as courts, utilities and education, with some large projects delayed and their effects expected to be felt more strongly in 2027. » More on de.investing.com

i3 Verticals reported Q2 2026 revenue of $57.5 million (+6%) and adjusted diluted EPS of $0.32 (expectation $0.29). Annualized recurring revenue rose 12% to $183.5 million; SaaS revenue grew 37% year over year to $12.7 million. Despite improved adjusted EBITDA and a continued shift toward higher‑margin recurring revenue, the stock fell about 6% as investors voiced concerns about organic growth and the sizable gap between GAAP and non‑GAAP metrics. » More on de.investing.com

i3 Verticals reported earnings of $0.32 per share for the second fiscal quarter of 2026 versus expected $0.29, a positive surprise of 10.34%. Revenue was $57.7 million, slightly above the $57.46 million estimate; SaaS revenues rose 37% and drove ARR up 12%. The stock rose 4.14% after hours. Challenges remain in declining professional services, while management sees growth potential from SaaS, transaction-based revenues and AI investments and expects adjusted EBITDA margins to improve by 50–100 basis points per year. » More on de.investing.com