I3 Verticals (IIIV) Stock Forecast & Price Target

i3 Verticals Inc. is anticipated to achieve an Adjusted EBITDA increase of 2%-13% year-over-year, reaching between $58.5 million and $65.0 million, with margins remaining flat to increasing by up to 100 basis points during fiscal 2025. The company has also demonstrated a robust recurring revenue growth of 9% year-over-year, accounting for 75% of total revenue, signaling strong customer retention and sustainability. Additionally, the strength of i3 Verticals' M&A pipeline, along with its successful execution in targeted acquisitions, supports the company's competitive positioning within key vertical markets, enabling it to capture market share from smaller competitors.

i3 Verticals Inc. has reported a 2% year-over-year decline in Non-GAAP EBITDA, totaling $14.4 million, which fell short of internal forecasts by 5%, raising concerns regarding the company’s revenue generation capabilities. A significant drop of 76% year-over-year in high-margin software license fees to $0.6 million compounds these issues, indicating potential challenges in maintaining profitability amidst increasing lower-margin professional services revenue. Furthermore, slow growth in the addition of independent software vendors (ISVs) and a failure to achieve targeted organic growth levels suggest difficulties in enhancing market presence and software revenue, negatively impacting i3 Verticals' overall financial outlook.