Overview

* I3 Verticals ( IIIV ) fiscal Q3 revenue rises 12.4%, beating analyst expectations

* Company reports net loss from continuing operations of $1.0 mln, improved from $14.4 mln loss last year

* Adjusted EBITDA increases 18% to $12.7 mln, reflecting operational efficiency

Outlook

* Company reaffirms FY 2025 revenue outlook of $207 mln to $217 mln

* Company reaffirms FY 2025 adjusted EBITDA guidance of $55 mln to $61 mln

* Company reaffirms FY 2025 adjusted EPS guidance of $0.96 to $1.06

* Company plans continued investment in government technology

Result Drivers

* RECURRING CONTRACTS - Revenue growth driven by recurring contracts, with SaaS growth leading at 24%, per CEO Greg Daily

* PAYMENTS REVENUE - Payments revenue increased by 11% compared to the prior year quarter

* DIVESTITURE IMPACT - Smooth completion of Healthcare RCM Business divestiture, allowing focus on core software solutions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $51.90 $49.10

Revenue mln mln (4

Analysts

)

Q3 Net $18.42

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the financial technology (fintech) peer group is "buy"

* Wall Street's median 12-month price target for I3 Verticals Inc ( IIIV ) is $33.00, about 13.9% above its August 6 closing price of $28.41

* The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)