i3 Verticals Q3 revenue misses estimates, cuts annual outlook

I3 Verticals

06/08/2026 22:29

Overview
US public sector software provider's fiscal Q3 revenue rose 2% yr/yr but missed analyst expectations
Adjusted diluted EPS for fiscal Q3 increased yr/yr
Company lowered full-year revenue and adjusted EBITDA outlook due to weakness in non-recurring revenue streams

Outlook
i3 Verticals lowers FY 2026 revenue outlook to $216 mln-$221 mln from $221 mln-$229 mln
Company cuts FY 2026 adjusted EBITDA forecast to $57 mln-$60 mln from $61 mln-$65 mln
i3 Verticals now sees FY 2026 adjusted diluted EPS at $1.08-$1.12, down from $1.09-$1.15

Result Drivers
NON-RECURRING REVENUE WEAKNESS - Co said ongoing weakness in certain non-recurring revenue streams contributed to results missing expectations
IMPLEMENTATION DELAYS - Co attributed part of Q3 underperformance to delays in implementing new services
RECURRING REVENUE GROWTH - Annualized recurring revenue grew 8% yr/yr, helped by launch of four statewide services in Transportation market

Company press release: ID:nBwbjmCMxa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$53.07 mln
$54.99 mln (4 Analysts)
Q3 Net Income
 
$5.66 mln
 
Q3 Pretax Profit
 
$7.19 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "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 $28.50, about 27% above its August 5 closing price of $22.44
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads
Aug 6 - Maximus Q3 revenue falls 5%, misses estimates
Aug 5 - Motorola Solutions lifts annual guidance on resilient public safety demand
Aug 6 - PAR Technology Q2 revenue tops estimates, raises revenue, adjusted EBITDA outlook

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.)