I3 Verticals (IIIV) Stock Forecast & Price Target

i3 Verticals Inc. displays a positive financial outlook, characterized by an anticipated increase in Adjusted EBITDA of 2%-13% year-over-year for fiscal 2025, reaching between $58.5 million and $65.0 million, alongside stable margins. The company's recurring revenue has demonstrated robust growth, rising 9% year-over-year to $41.3 million, constituting 75% of total revenue, which highlights the stability of its revenue streams. Additionally, the firm is well-positioned for future expansion, with a strong M&A pipeline and ongoing market share gains against smaller regional competitors, which bodes well for sustained growth in key verticals.

i3 Verticals Inc experienced a 2% year-over-year decline in Non-GAAP EBITDA to $14.4 million, which fell short of internal forecasts by 5%, indicating challenges in revenue generation, particularly in high-margin software license fees that plummeted 76% year-over-year. Additionally, the company's guidance for EBITDA was below expectations due to anticipated reductions in non-recurring professional services revenue and ongoing investments in product innovation, suggesting a strategic pivot that may not yield immediate financial returns. Furthermore, the slow growth in key verticals and underperformance in adding independent software vendors to their network negatively impact organic growth, further complicating the company's long-term revenue prospects.