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Dec 31, 2024
i3 Verticals Q1 2025 Earnings Report
i3 Verticals reported its financial results for the fiscal first quarter ended December 31, 2024, showing significant increases in revenue, net income, and adjusted EBITDA from continuing operations.
Key Takeaways
i3 Verticals, Inc. reported a strong fiscal first quarter for 2025, with revenue from continuing operations increasing by 12.1% to $61.7 million and net income from continuing operations attributable to i3 Verticals, Inc. reaching $2.2 million, a significant improvement from a net loss in the prior year. Adjusted EBITDA from continuing operations also saw a 17.0% increase to $16.4 million.
Revenue from continuing operations increased by 12.1% to $61.7 million compared to the prior year's first quarter.
Net income from continuing operations attributable to i3 Verticals, Inc. was $2.2 million, a turnaround from a $2.9 million net loss in the prior year's first quarter.
Adjusted EBITDA from continuing operations grew by 17.0% to $16.4 million, with the margin improving to 26.5% of revenue.
Diluted net income per share attributable to Class A common stock from continuing operations was $0.09, up from a $0.12 diluted net loss per share in the prior year.
i3 Verticals
i3 Verticals
Forward Guidance
i3 Verticals is reaffirming its outlook for continuing operations for the fiscal year ending September 30, 2025, anticipating strong SaaS growth and continued positive momentum.
Positive Outlook
- Expects significant improvements in SaaS growth, which began this quarter with a 16% increase over the prior year.
- Anticipates continued positive momentum throughout the year.
- Retained robust payment capabilities and ability to integrate services with proprietary vertical market software as a key competitive advantage.
- Payments revenue grew 7% this quarter and is expected to reaccelerate.
- Balance sheet is strong, revenue growth is trending upward, and margins are headed in the right direction.
Challenges Ahead
- Guidance excludes the impact of acquisitions, dispositions, and transaction-related costs.
- Reconciliations of adjusted EBITDA and pro forma adjusted diluted earnings per share to GAAP measures are not available without unreasonable efforts.
- Inherent difficulty in forecasting and quantifying certain projected amounts for reconciliations.
- Sufficient information is not available to calculate certain adjustments like changes in fair value of contingent consideration, income tax expense, and equity-based compensation expense.
- These adjustments may have a potentially significant impact on future GAAP financial results.