i3 Verticals Reports Q2 Results, Lowers Full-Year Revenue and EBITDA Guidance

summarizeSummary

i3 Verticals reported Q2 FY26 results with revenue in-line with estimates and growth in adjusted EPS and EBITDA, but lowered its full-year revenue and Adjusted EBITDA guidance.

check_boxKey Events

• Q2 FY26 Financial Results Reported

  For the second quarter ended March 31, 2026, i3 Verticals reported revenue of $57.5 million, a 6.2% increase year-over-year, which was in-line with analyst estimates. GAAP diluted net income per share was $0.07, up from $0.04 in the prior year, and adjusted diluted EPS was $0.32, up from $0.29.

• Full-Year Guidance Lowered

  The company revised its full-year fiscal 2026 revenue guidance to a range of $221 million to $229 million, down from the previous range of $223 million to $234 million. Adjusted EBITDA guidance was also lowered to $61 million - $65 million, from the prior $61 million - $66.5 million.

• Strong Annualized Recurring Revenue Growth

  Annualized Recurring Revenue (ARR) from continuing operations grew by 11.6% year-over-year to $183.5 million for the three months ended March 31, 2026, highlighting strength in recurring revenue streams.

auto_awesomeAnalysis

i3 Verticals reported second-quarter results that were largely in-line with analyst expectations for revenue, showing growth in both revenue and adjusted profitability metrics. However, the company revised its full-year fiscal 2026 guidance downwards for both revenue and Adjusted EBITDA, indicating a more cautious outlook for the remainder of the year. While the Q2 performance itself was solid, the lowered guidance is likely to temper investor enthusiasm and could lead to negative market reaction as it suggests a deceleration or increased headwinds in the coming quarters. Investors should monitor future updates on the company's ability to meet its revised targets and the drivers behind the lowered outlook.