i3 Verticals Misses Q3 Revenue, Slashes Full-Year Guidance on Weak Non-Recurring Revenue
IIIV sits 18% above its 52-week low of $18.47.
Summary
i3 Verticals missed Q3 FY26 revenue estimates and slashed full-year guidance, citing weak non-recurring revenue and implementation delays. Recurring revenue grew 8%, but the near-term outlook deteriorated significantly.
Key Events · Earnings and Guidance · IIIV
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Q3 Revenue Miss
Revenue of $53.07M fell short of the $54.99M consensus, with non-recurring revenue down 18% year-over-year.
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Full-Year Guidance Cut
FY26 revenue outlook reduced to $216M–$221M from $221M–$229M; adjusted EBITDA cut to $57M–$60M from $61M–$65M.
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Recurring Revenue Growth Intact
Annualized Recurring Revenue (ARR) grew 8% to $174.1M, and four material statewide transportation contracts went live.
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Aggressive Share Buybacks Continue
Company has repurchased over 20% of outstanding shares since October 2024, including under a new $100M program authorized in May 2026.
Analysis · IIIV · Technology
i3 Verticals reported Q3 revenue of $53.07 million, missing the $54.99 million consensus, and cut its full-year revenue outlook by $5–$8 million. Adjusted EBITDA guidance was reduced by $4–$5 million. The miss was driven by ongoing weakness in non-recurring professional services and software license revenue, plus implementation delays. While recurring revenue grew 8% year-over-year and four large statewide transportation contracts went live, the near-term headwinds are material enough to force a guidance reset. The company has been aggressively buying back stock — repurchasing over 20% of shares since October 2024 — which provides some support, but the operational shortfall is the dominant signal here.
At the time of this filing, IIIV was trading at $21.72 on NASDAQ in the Technology sector, with a market capitalization of approximately $613.4M. The 52-week trading range was $18.47 to $33.97. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.