Management has shifted capital deployment toward shareholder returns, evidenced by $50.9 million in share repurchases during 2026Q2, while maintaining a 16.7% free cash flow margin.
| Cash from Operations | 45.47M | 5.69M | 48.41M | 37.17M | 45.85M | 46.77M | 23.72M | 26.6M | 18.08M | 7.73M | 10.01M |
| Operating CF Margin % | - | 2.67% | 21.05% | 19.6% | 24.42% | 20.87% | 15.8% | 7.07% | 5.59% | 2.94% | 5.01% |
| Operating CF Growth % | 142.63% | -88.24% | 30.24% | -18.92% | -1.98% | 97.19% | -10.82% | 47.11% | 133.89% | -22.74% | - |
| Net Income | 17.92M | 17.87M | 175.13M | -2.65M | -23.22M | -7.84M | -979K | 563K | -4.96M | 902K | -2.09M |
| Depreciation & Amortization | 28.88M | 29.84M | 37.45M | 36.46M | 29.42M | 24.42M | 18.22M | 16.56M | 11.84M | 10.09M | 9.9M |
| Stock-Based Compensation | 15.78M | 18.34M | 26.34M | 27.88M | 26.23M | 20.86M | 10.45M | 6.12M | 1.57M | 0 | 0 |
| Deferred Taxes | 3.84M | 4.97M | 434K | -5.93M | 2.59M | -287K | -3.21M | -586K | -682K | 56K | -3K |
| Other Non-Cash Items | -16.08M | -11.88M | -208.1M | 1.59M | 17.5M | 10.61M | 269K | 2.74M | 11.35M | -2M | 2.23M |
| Working Capital Changes | -11.98M | -53.46M | 17.16M | -20.17M | -6.68M | -991K | -1.03M | 1.19M | -1.03M | -1.16M | -56K |
| Change in Receivables | -4.63M | -7.41M | 9.58M | -7.66M | -15.77M | -10.94M | -1.03M | 2.43M | -2.32M | -2.43M | -1.18M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 914K | -860K | -2.06M | 237K | 1.87M | 69K |
| Change in Payables | -593K | 1M | -3.24M | 1.67M | 1.54M | 3.88M | 239K | -1.77M | 1.17M | -384K | 509K |
| Cash from Investing | 15.47M | 76.46M | 396.15M | -121.52M | -113.05M | -156.31M | -35.43M | -143.73M | -38.05M | -47.9M | -35.15M |
| Capital Expenditures | -5.13M | -10.13M | 0 | -4.2M | -12.45M | -8.2M | -5.95M | -3.11M | -4.49M | -2.1M | -2.88M |
| CapEx % of Revenue | 2.36% | 4.75% | 1.29% | 2.22% | 6.63% | 3.66% | 3.97% | 0.83% | 1.39% | 0.8% | 1.44% |
| Acquisitions | -166.65M | -11M | -19.1M | -102M | -100.72M | -149.5M | -27.69M | -137.04M | -32.36M | -44.17M | -32.28M |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 187.26M | 97.59M | 415.25M | -13.42M | -430K | 0 | -3.04M | -2.3M | -3.42M | -1.46M | -2.02M |
| Cash from Financing | -61.09M | -104.41M | -367.36M | 72.98M | 73.03M | 102.1M | 29.11M | 119.09M | 19.24M | 37.35M | 28.92M |
| Debt Issued (Net) | 68.74M | -26.48M | -360.04M | 82.79M | 80.62M | 104.39M | -20.56M | 101.62M | -64.65M | 27.6M | 25.7M |
| Equity Issued (Net) | -114.61M | -37.3M | -527K | 180K | 18.39M | 0 | -310K | 21.66M | 84.87M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -114.89M | -37.6M | 0 | 0 | 0 | 0 | -10.88M | -90.03M | -4.63M | 0 | 0 |
| Other Financing | -15.22M | -40.63M | -6.8M | -9.99M | -25.97M | -2.29M | 49.98M | -4.19M | -973K | 9.75M | 3.22M |
| Net Change in Cash | -214K | -19.85M | 77.2M | -385K | 5.83M | -7.44M | 17.4M | 1.96M | -731K | -2.82M | 3.77M |
| Free Cash Flow | 49.5M | 3.75M | 45.45M | 20.8M | 33.4M | 38.57M | 17.77M | 23.49M | 13.59M | 5.63M | 7.13M |
| FCF Margin % | 22.81% | 1.76% | 19.77% | 10.96% | 17.79% | 17.21% | 11.83% | 6.24% | 4.2% | 2.15% | 3.57% |
| FCF Growth % | 1118.94% | -91.74% | 118.54% | -37.74% | -13.42% | 117.12% | -24.37% | 72.8% | 141.29% | -20.96% | - |
| FCF per Share | 1.62 | 0.11 | 1.86 | 0.63 | 1.50 | 1.22 | 1.20 | 2.24 | 1.45 | 0.72 | 0.91 |
| FCF Conversion (FCF/Net Income) | 2.76x | 0.32x | 0.43x | -45.83x | -2.68x | -10.49x | -56.61x | -8.73x | -2.62x | 8.57x | -4.78x |
| Interest Paid | -440K | 931K | 29.49M | 21.48M | 8.98M | 4.43M | 5.25M | 4.91M | 7.88M | 6.29M | 5.39M |
| Taxes Paid | -34.16M | 34.87M | 7.33M | 3.24M | 1.08M | 287K | 792K | 1.42M | 483K | 837K | 21K |
Execution of software pivot
As reported in financial statements, the relationship between net income and operating cash flow remains highly volatile, with the OCF/NI ratio reaching an extreme 6.85x in 2026Q2, suggesting that GAAP earnings significantly understate the actual cash-generating capacity of the underlying software-led business model.
The persistent gap between net income and operating cash flow appears driven by substantial non-cash charges, including amortization of intangibles from historical acquisitions. Investors should monitor whether this conversion efficiency stabilizes as the company moves further away from its legacy merchant processing operations.
Based on recent quarterly filings, i3 Verticals has maintained positive free cash flow in most periods, with an FCF margin of 16.7% in 2026Q2, demonstrating that the firm's core software operations remain cash-generative despite the significant top-line headwinds associated with recent divestitures.
The ability to sustain positive free cash flow while undergoing a major portfolio restructuring suggests that the underlying software assets possess a durable cash profile. However, the variability in these margins warrants further investigation into the sustainability of current working capital management practices.
According to the provided cash flow data, working capital movements have been erratic, highlighted by a $7.2 million outflow in 2026Q2 following a $27.7 million inflow in 2024Q4, indicating that the company's cash cycle remains sensitive to the timing of large-scale contract settlements and divestiture-related adjustments.
These fluctuations suggest that the company's cash flow is subject to significant timing differences in collections, which may be exacerbated by the transition to a software-first model. Analysts should scrutinize whether these swings represent structural inefficiencies in the billing process or merely temporary noise from the recent business sale.
As evidenced by recent cash flow statements, the company has pivoted from heavy acquisition-led spending, such as the $60 million net outflow in 2026Q2, toward significant share repurchases, including $50.9 million in the same period, reflecting a strategic shift in how management deploys excess capital.
This transition from external growth via M&A to internal capital return suggests management is prioritizing shareholder value as the business matures. Investors should monitor if this shift toward buybacks is sustainable without the scale previously provided by the divested merchant services segment.
Quick answers to the most common questions about buying IIIV stock.
i3 Verticals, Inc. (IIIV) generated $5.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
i3 Verticals, Inc. (IIIV) generated $3.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
i3 Verticals, Inc. (IIIV) spent $10.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, i3 Verticals, Inc. (IIIV) spent $37.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.