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Jun 30, 2025
i3 Verticals Q3 2025 Earnings Report
i3 Verticals reported its financial results for the fiscal third quarter ended June 30, 2025, with significant increases in revenue and adjusted EBITDA from continuing operations, alongside a reduced net loss.
Key Takeaways
i3 Verticals delivered a strong third quarter for fiscal year 2025, with revenue from continuing operations increasing by 12.4% year-over-year to $51.9 million. The company significantly reduced its net loss from continuing operations to $1.0 million from $14.4 million in the prior year, and adjusted EBITDA from continuing operations grew by 18.0% to $12.7 million. This performance was primarily driven by growth in recurring contracts, particularly SaaS and payments revenue.
Third quarter revenue from continuing operations increased by 12.4% to $51.9 million compared to the prior year.
Net loss from continuing operations significantly decreased to $1.0 million from $14.4 million in the prior year's third quarter.
Adjusted EBITDA from continuing operations grew by 18.0% to $12.7 million, with the adjusted EBITDA margin improving to 24.5%.
Annualized Recurring Revenue (ARR) from continuing operations reached $160.8 million, representing a 12.0% growth rate year-over-year.
Forward Guidance
i3 Verticals reaffirmed its previously issued outlook for the fiscal year ending September 30, 2025, projecting revenue between $207 million and $217 million, adjusted EBITDA between $55 million and $61 million, and adjusted diluted earnings per share between $0.96 and $1.06.
Positive Outlook
- Reaffirmed annual revenue guidance of $207 million to $217 million for fiscal year 2025.
- Reaffirmed adjusted EBITDA guidance of $55 million to $61 million for fiscal year 2025.
- Reaffirmed adjusted diluted earnings per share guidance of $0.96 to $1.06 for fiscal year 2025.
- Company remains well capitalized with over $50 million in cash on hand.
- Plans to continue investment in government technology, focusing on enabling state and local governments.
Challenges Ahead
- Reconciliations of non-GAAP guidance to GAAP measures are not available without unreasonable efforts due to forecasting difficulties.
- Certain adjustments, such as changes in fair value of contingent consideration and equity-based compensation, may significantly impact future GAAP results.
Historical Earnings Impact
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