i3 Verticals Q2 slightly beats revenue estimates but cuts FY revenue outlook

i3 Verticals

07/05/2026 21:49

Overview

US public sector software provider's fiscal Q2 revenue grew 6% yr/yr, slightly beating analyst expectations

Adjusted diluted EPS for fiscal Q2 rose to $0.32 from $0.29 a year earlier

Company revised full-year revenue outlook downward to $221-229 mln from prior $223-234 mln range

Outlook

Company lowers FY 2026 revenue outlook to $221 mln-$229 mln from $223 mln-$234 mln

Company expects FY 2026 adjusted EBITDA guidance at $61 mln-$65 mln

Company raises lower end of FY 2026 adjusted diluted EPS outlook to $1.09-$1.15

Result Drivers

RECURRING REVENUE - Co said Q2 revenue growth was driven by strong performance across recurring revenue streams

PRODUCT INVESTMENT - Co said it continues to invest in products with long-term growth opportunities in the public sector

EFFICIENCY INITIATIVES - Ongoing process improvements and efficiency initiatives positioned co for margin expansion

Company press release: ID:nBw6cYnx5a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$57.52 mln
$57.51 mln (5 Analysts)
Q2 Net Income
$2.19 mln
Q2 Pretax Profit
$2.67 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the financial technology (fintech) peer group is "buy"

Wall Street's median 12-month price target for I3 Verticals Inc is $32.50, about 47.7% above its May 6 closing price of $22.00

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)