Revenue growth remains in contraction at -8.8% in 2026Q2, while operating margins remain constrained at 6.5% due to persistent corporate overhead.
| Sales/Revenue | 216.99M | 213.16M | 229.92M | 189.68M | 187.75M | 224.12M | 150.13M | 376.31M | 323.51M | 262.57M | 199.64M |
| Revenue Growth % | -10.2% | -7.29% | 21.22% | 1.03% | -16.23% | 49.28% | -60.1% | 16.32% | 23.21% | 31.52% | - |
| Cost of Goods Sold | 90.77M | 94.49M | 18.57M | 54.81M | 12.83M | 57.71M | 47.23M | 287.1M | 254.86M | 217.91M | 162.93M |
| COGS % of Revenue | - | 44.33% | 8.08% | 28.9% | 6.84% | 25.75% | 31.46% | 76.3% | 78.78% | 82.99% | 81.61% |
| Gross Profit | 126.22M | 118.67M | 211.35M | 134.87M | 174.92M | 166.42M | 102.9M | 89.2M | 68.65M | 44.66M | 36.71M |
| Gross Margin % | 58.17% | 55.67% | 91.92% | 71.1% | 93.16% | 74.25% | 68.54% | 23.7% | 21.22% | 17.01% | 18.39% |
| Gross Profit Growth % | - | -43.85% | 56.71% | -22.9% | 5.11% | 61.72% | 15.36% | 29.94% | 53.72% | 21.65% | - |
| Operating Expenses | 124.76M | 114.66M | 204.5M | 139.28M | 198.06M | 166.43M | 95.13M | 82.81M | 56.29M | 37.06M | 32.75M |
| OpEx % of Revenue | - | 53.79% | 88.94% | 73.43% | 105.49% | 74.26% | 63.36% | 22.01% | 17.4% | 14.11% | 16.4% |
| Selling, General & Admin | 117.95M | 114.66M | 173.23M | 175.75M | 154.56M | 132.99M | 78.32M | 62.86M | 40.59M | 27.19M | 20.39M |
| SG&A % of Revenue | - | 53.79% | 75.34% | 92.66% | 82.32% | 59.34% | 52.17% | 16.7% | 12.55% | 10.36% | 10.21% |
| Research & Development | 0 | 0 | 13.54M | 11.15M | 7.85M | 6.28M | 3.98M | 2.98M | 1.7M | 1.54M | 1.22M |
| R&D % of Revenue | - | - | 5.89% | 5.88% | 4.18% | 2.8% | 2.65% | 0.79% | 0.52% | 0.59% | 0.61% |
| Other Operating Expenses | 853K | 0 | 17.72M | -47.62M | 35.64M | 27.17M | 12.83M | 16.98M | 14.01M | 8.33M | 11.13M |
| Operating Income | 1.43M | 4.01M | 6.85M | -4.41M | -23.14M | -12K | 7.77M | 6.39M | 12.36M | 7.6M | 3.96M |
| Operating Margin % | 0.66% | 1.88% | 2.98% | -2.33% | -12.33% | -0.01% | 5.18% | 1.7% | 3.82% | 2.89% | 1.98% |
| Operating Income Growth % | - | -41.48% | 255.38% | 80.94% | -192741.67% | -100.15% | 21.64% | -48.31% | 62.64% | 91.77% | - |
| EBITDA | 30.31M | 31.91M | 30.75M | 32.05M | -1.57M | 24.41M | 25.99M | 22.95M | 24.2M | 17.68M | 13.86M |
| EBITDA Margin % | 13.97% | 14.97% | 13.38% | 16.9% | -0.84% | 10.89% | 17.31% | 6.1% | 7.48% | 6.74% | 6.94% |
| EBITDA Growth % | -20.26% | 3.76% | -4.04% | 2140.1% | -106.44% | -6.09% | 13.23% | -5.15% | 36.84% | 27.59% | - |
| D&A (Non-Cash Add-back) | 28.88M | 27.9M | 23.9M | 36.46M | 21.57M | 24.42M | 18.22M | 16.56M | 11.84M | 10.09M | 9.9M |
| EBIT | 9.56M | 13.18M | 9.32M | -3.19M | 1.02M | 2.58M | 5.15M | 6.39M | 3.87M | 8.02M | 4.05M |
| Net Interest Income | -2.69M | -2.3M | -29.26M | -25.13M | -14.78M | -9.8M | -8.93M | -6M | -8.5M | -6.94M | -5.9M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.69M | 2.3M | 29.26M | 25.13M | 14.78M | 9.8M | 8.93M | 6M | 8.5M | 6.94M | 5.9M |
| Other Income/Expense | 5.51M | 6.87M | -25.87M | -23.9M | -15.77M | -7.2M | -11.55M | -6M | -16.98M | -6.52M | -5.81M |
| Pretax Income | 6.94M | 10.88M | -19.01M | -28.32M | -38.91M | -7.22M | -3.77M | 386K | -4.62M | 1.08M | -1.85M |
| Pretax Margin % | 3.2% | 5.11% | -8.27% | -14.93% | -20.72% | -3.22% | -2.51% | 0.1% | -1.43% | 0.41% | -0.93% |
| Income Tax | 3.15M | 5.27M | -5.67M | -3.51M | 152K | 623K | -2.79M | -177K | 337K | 177K | 243K |
| Effective Tax Rate % | 45.46% | 48.38% | 29.81% | 12.39% | -0.39% | -8.63% | 74.06% | -45.85% | -7.29% | 16.4% | -13.14% |
| Net Income | 17.92M | 17.87M | 113.34M | -811K | -17.1M | -4.46M | -419K | -3.04M | -6.9M | 902K | -2.09M |
| Net Margin % | 8.26% | 8.38% | 49.3% | -0.43% | -9.11% | -1.99% | -0.28% | -0.81% | -2.13% | 0.34% | -1.05% |
| Net Income Growth % | -84.04% | -84.23% | 14075.46% | 95.26% | -283.71% | -963.72% | 86.24% | 55.86% | -864.74% | 143.1% | - |
| Net Income (Continuing) | 3.78M | 5.62M | -13.35M | -24.81M | -39.06M | -7.84M | -979K | 563K | -4.96M | 902K | -2.09M |
| Discontinued Operations | 1.91M | 20.89M | 188.48M | 22.16M | 15.84M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 120.86M | 128.14M | 135.62M | 91.55M | 89.31M | 84.83M | 84.59M | 62.37M | 72.9M | 0 | 0 |
| EPS (Diluted) | 0.59 | 0.56 | 4.64 | -0.07 | -0.77 | -0.22 | -0.03 | -0.29 | -0.74 | 0.12 | -0.27 |
| EPS Growth % | -85.06% | -87.93% | 6728.57% | 90.91% | -250% | -633.33% | 89.66% | 60.81% | -716.67% | 144.44% | - |
| EPS (Basic) | - | -0.34 | 4.84 | 0.08 | -0.77 | -0.21 | -0.03 | -0.29 | -0.78 | 0.12 | -0.27 |
| Diluted Shares Outstanding | 30.58M | 34.19M | 24.43M | 33.25M | 22.25M | 31.71M | 14.85M | 10.49M | 9.36M | 7.8M | 7.8M |
| Basic Shares Outstanding | 21.8M | 23.91M | 23.42M | 23.14M | 22.25M | 20.99M | 14.83M | 10.49M | 8.81M | 7.8M | 7.8M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Revenue scale and integration
As reported in recent financial filings, i3 Verticals has experienced a sustained period of top-line contraction, with revenue growth registering at -8.8% in 2026Q2, largely reflecting the deliberate divestiture of the legacy Merchant Services segment to pivot toward a higher-margin, software-centric business model.
The consistent negative year-over-year growth rates suggest that the company is currently in a transitional phase where the loss of transactional volume from divested assets is not yet fully offset by organic software expansion. Investors should monitor whether the revenue base stabilizes in coming quarters as the firm focuses exclusively on its core public sector and education software verticals.
Based on the provided income statement data, gross margins have fluctuated significantly, ranging from a high of 91.7% in 2024Q4 to 56.8% in 2026Q2, indicating that the company's shift toward proprietary software has yet to yield a consistent or predictable margin profile for shareholders.
The variability in gross margins appears to be driven by the changing mix of software licensing versus legacy payment processing fees. While the long-term goal of a software-first model is to expand margins, the current data suggests that the company is still navigating the integration of its remaining assets and the associated cost of revenue.
According to recent quarterly reports, operating income remains thin, with an operating margin of only 6.5% in 2026Q2, suggesting that the company's fixed corporate overhead continues to exert significant pressure on profitability despite the ongoing transition to a more specialized software-led business model.
The inability to consistently scale operating income faster than gross profit implies that the company may be carrying excess administrative or implementation costs relative to its current revenue scale. This warrants further investigation into whether management can successfully streamline its cost structure to improve operating leverage as the business matures.
Based on an analysis of the income statement, the company's reliance on non-operating items and fluctuating stock-based compensation, which reached $5.2 million in 2026Q1, raises questions regarding the underlying quality of earnings and the sustainability of its current path toward profitability.
Short-sellers might focus on the fact that GAAP net income has been highly volatile, often bolstered by non-recurring items rather than core operational performance. The company must demonstrate that its software-led strategy can generate consistent, high-quality cash flows without the need for constant portfolio restructuring or heavy reliance on equity-based incentives.
Quick answers to the most common questions about buying IIIV stock.
For fiscal year 2025, i3 Verticals, Inc. (IIIV) reported total revenue of $213.2M. This represents a 6.8% increase compared to $199.6M in 2016.
i3 Verticals, Inc. (IIIV) is profitable, generating $17.9M in net income for the fiscal year ending 2025 with a net profit margin of 8.4%.
i3 Verticals, Inc. (IIIV) reported an operating income of $4.0M, resulting in an operating profit margin of 1.9%. This margin reflects the operational efficiency of the business before interest and taxes.
i3 Verticals, Inc. (IIIV) generated $118.7M in gross profit for the year, representing a gross profit margin of 55.7%. This demonstrates the company's core pricing power and production efficiency.