i3 Verticals (IIIV) Q4 2025 Earnings Transcript

Image source: The Motley Fool.

Tuesday, Nov. 18, 2025 astatine 8:30 a.m. ET

• Chief Financial Officer — Clay M. Whitson

• President, Public Sector — Rick Stanford

• Chief Executive Officer — Paul Christians

Need a punctuation from a Motley Fool analyst? Email [email protected]

Clay M. Whitson: The cadence driven by the cadence of gross designation connected definite projects successful our utilities and proscription markets. This volition beryllium peculiarly existent successful Q1. Despite the little outlook for those markets successful fiscal 2026, they are good positioned to rebound successful fiscal 2027 and beyond. Our semipermanent anticipation for integrated gross maturation remains precocious azygous digit. While we are present a azygous operating segment, we would similar to supply immoderate item regarding the size and comparative contributions to revenues by our halfway markets. 25% of revenues utilities, transportation, education, and nationalist medication are each astir arsenic weighted.

From a seasonality standpoint, bundle licence income and nonrecreational services correspond the astir adaptable enactment items to forecast and tin distort seasonality successful a fixed quarter. We presently expect our gross organisation to approximate the following: Q1, 23%; Q2, 25.5%; Q3, 24.5%; Q4, 27%. I'll present crook the telephone implicit to Rick Stanford for updates connected the M&A. Thank you, Geoff. Good morning, everyone. I'll concisely code M&A and past I'll manus the telephone disconnected to Paul Christians.

Rick Stanford: This past 4th has presented assorted opportunities to measure imaginable acquisition targets. Our involvement successful immoderate of these companies remains beardown and discussions are ongoing. Acquisition doctrine remains steady. We volition prosecute opportunities that align with our strategical goals portion maintaining a disciplined attack to pricing. Additionally, each imaginable acquisition indispensable acceptable good wrong our operational model ensuring compatibility. We stay optimistic arsenic our acquisition pipeline is perpetually churning and continually filled with promising opportunities. Our superior absorption remains connected strengthening our nationalist assemblage vertical wherever we spot important imaginable for maturation and innovation. I'll present crook the telephone implicit to Paul Christians for last comments.

Paul Christians: Thank you, Rick. i3 Verticals, Inc. is structured into 5 superior markets: Justice tech, transportation, nationalist administration, education, and utilities. Because we intentionally structured our enactment successful a market-centric exemplary to stay arsenic adjacent to the lawsuit arsenic possible, intra-market cross-selling people progressed into solution bundling. As solutions person evolved, immoderate are applicable cross-market. Given that, enactment is actively identifying synergistic opportunities crossed markets further accelerating gross and deepening lawsuit engagements. Governments are prioritizing the modernization of bequest systems, enhanced idiosyncratic experience, and improved transparency for constituents.