i3 Verticals — Third Quarter 2026 Earnings Summary

Financial Performance

• Third quarter revenue from continuing operations was $53.1 million, a 2.2% increase year-over-year; nine-month revenue was $163.3 million, a 3.2% increase.
• Third quarter net income from continuing operations was $5.9 million, compared to a $1.0 million net loss in the prior year period; nine-month net income was $9.2 million, compared to $4.1 million.
• Net income from continuing operations attributable to i3 Verticals, Inc. was $3.6 million for the third quarter (vs. $0.4 million loss) and $5.7 million for the nine months (vs. $2.5 million).
• Third quarter adjusted EBITDA from continuing operations was $13.3 million, a 4.6% increase year-over-year; nine-month adjusted EBITDA was $43.5 million, a 0.9% increase.
• Adjusted EBITDA margin for the third quarter was 25.1% (vs. 24.5% prior year); for the nine months, it was 26.7% (vs. 27.3%).
• Diluted net income per share from continuing operations attributable to Class A common stockholders was $0.19 for the quarter (vs. $0.03 loss) and $0.25 for the nine months (vs. $0.10).
• Adjusted diluted earnings per share from continuing operations was $0.25 for the quarter (vs. $0.23) and $0.82 for the nine months (vs. $0.78).
• Annualized Recurring Revenue (ARR) from continuing operations was $174.1 million for the quarter ended June 30, 2026, representing an 8.3% growth rate compared to $160.8 million in the prior year period.
• Cash and cash equivalents were $2.6 million as of June 30, 2026, down from $66.7 million as of September 30, 2025.
• Long-term debt was $114.3 million as of June 30, 2026, compared to zero as of September 30, 2025.
• Deferred revenue decreased to $25.3 million as of June 30, 2026, from $37.7 million as of September 30, 2025.
• Net cash provided by operating activities for the nine months ended June 30, 2026, was $38.4 million, compared to a net cash used of $8.3 million in the prior year period.

Guidance and Future Outlook

• The Company revised its fiscal year 2026 outlook to exclude the impact of future acquisitions and transaction-related costs.
• Revised revenue guidance for the fiscal year ending September 30, 2026, is $216.0 million to $221.0 million (down from a previous range of $221.0 million to $229.0 million).
• Revised adjusted EBITDA guidance for the fiscal year ending September 30, 2026, is $57.0 million to $60.0 million (down from a previous range of $61.0 million to $65.0 million).
• Revised adjusted diluted earnings per share guidance for the fiscal year ending September 30, 2026, is $1.08 to $1.12 (down from a previous range of $1.09 to $1.15).
• Management noted that reconciliations of forward-looking adjusted EBITDA and adjusted diluted EPS to GAAP measures are not available without unreasonable efforts due to the difficulty in forecasting certain adjustments, including changes in the fair value of contingent consideration, income tax expense, and equity-based compensation.

Business Segments and Product Lines

• The Company reported the go-live of four material statewide services in its Transportation market.
• Management identified ongoing weakness in certain non-recurring revenue streams and implementation delays as factors impacting the third quarter results.
• The Company continues to focus on recurring revenue sources, including SaaS arrangements, transaction-based software revenue, software maintenance, and recurring software-based services.
• Historical results for the Merchant Services Business (sold September 2024) and Healthcare RCM Business (sold May 2025) are reflected in discontinued operations.

Market and Competitive Landscape

• The Company provides mission-critical enterprise software solutions to public sector entities across courts, public safety, public administration, utilities, transportation, and schools.
• The Company operates with thousands of software installations across all 50 states and Canada.
• Management highlighted the Transportation market as a specific area of focus for re-accelerating recurring revenue growth.

Risks and Challenges

• Results were impacted by ongoing weakness in non-recurring revenue streams and implementation delays.
• Forward-looking statements are subject to risks including economic and geopolitical conditions, inflation, elevated interest rates, trade developments, military conflicts, and the evolving regulatory landscape regarding artificial intelligence.
• Risks include competition in the industry, regulatory developments, and the successful integration of acquired businesses or execution of strategy following the sale of the Merchant Services and Healthcare RCM businesses.
• The inability to provide GAAP reconciliations for forward-looking non-GAAP measures may impact investor understanding of future GAAP financial results.

Management Commentary and Tone

• Greg Daily, Chairman and CEO, stated that third quarter results came in below expectations due to non-recurring revenue weakness and implementation delays.
• Management expressed disappointment with the outcome but emphasized a continued focus on attractive future growth opportunities.
• Management noted satisfaction with the 8% year-over-year growth in Annualized Recurring Revenue.
• Management highlighted confidence in the business direction, citing the repurchase of more than 20% of outstanding shares under share repurchase programs since October 2024.

Other Key Points

• The Company has repurchased more than 20% of its outstanding shares under share repurchase programs since October 2024.
• The sale of the Merchant Services Business was completed on September 20, 2024, and the Healthcare RCM Business was completed on May 5, 2025.
• The Company recognized a gain on investment of $9.9 million for the nine months ended June 30, 2026, due to an unrealized gain on a minority equity investment.
• Equity-based compensation expense for continuing operations was $5.1 million for the quarter and $14.9 million for the nine months.
• A conference call to discuss results was scheduled for August 7, 2026, at 8:30 a.m. ET.