I3 Verticals (IIIV) Stock Forecast & Price Target

i3 Verticals Inc. has demonstrated significant growth in its software sales, reporting a $2.7 million increase in non-recurring license sales year-over-year, which has positively impacted its EBITDA margins, now at 26.5%. The company achieved a 12% year-over-year revenue growth in the first fiscal quarter, driven by both organic and inorganic contributions, with expectations for its software and payments segments to outpace other areas in fiscal year 2025. Furthermore, i3 Verticals maintains a robust mergers and acquisitions pipeline, anticipating multiple acquisitions that could enhance its market position and drive further revenue growth.

i3 Verticals Inc's slow progress in adding Independent Software Vendors (ISVs) to its distribution network and its inability to achieve high single-digit organic growth targets contribute to a negative outlook, particularly as software revenue underperforms. The company's reliance on its Public Sector segment presents risks, particularly from potential declines in state and municipal spending due to administration-related uncertainties. Additionally, infrequent mergers and acquisitions indicate a struggle to capitalize on opportunities, raising concerns about the company's strategic execution and future revenue growth potential.