📊 IIIV Key Takeaways
Is i3 Verticals, Inc. (IIIV) a Good Investment?
i3 Verticals shows deteriorating profitability fundamentals with net income down 32.6% and EPS down 84.8% YoY despite 11.5% revenue growth, indicating operational margin compression. Microscopic returns (ROE 0.6%, ROA 0.3%, 1.8% net margin) and extremely low cash position ($7.1M) create financial fragility, though positive free cash flow ($23.4M) provides limited cushion.
Solid top-line growth and strong free cash flow with low capital intensity and no long-term debt indicate healthy underlying cash generation. However, GAAP profitability and returns on capital are very weak and trending down, and the reported gross margin appears anomalous, raising questions about earnings quality and mix. Await clearer operating leverage and margin normalization before a more constructive view.
Why Buy i3 Verticals, Inc. Stock? IIIV Key Strengths
- Solid revenue growth of 11.5% YoY demonstrates market demand
- Strong free cash flow generation at $23.4M with 21.3% FCF margin despite low net income
- Moderate leverage with 0.26x debt-to-equity ratio provides debt capacity
- Double-digit revenue growth (+11.5% YoY)
- Strong free cash flow margin (26.2%) with minimal capex
- Clean balance sheet with zero long-term debt and healthy liquidity (current ratio 1.61x)
IIIV Stock Risks: i3 Verticals, Inc. Investment Risks
- Severe profitability collapse with net income down 32.6% and EPS down 84.8% YoY signals operational distress
- Abnormally high gross margin of 151.8% suggests data irregularities or one-time charges requiring investigation
- Critical cash shortage with only $7.1M cash against $110.2M revenue; insufficient liquidity cushion
- Abysmal returns with ROE of 0.6% and ROA of 0.3% indicate capital is not productively deployed
- Very thin profitability (0.9% net margin) and declining EPS
- Extremely low ROE/ROA (0.1%), suggesting poor capital efficiency
- Data anomaly in gross margin (gross profit exceeds revenue) implies mix/classification issues and earnings-quality risk
Key Metrics to Watch
- Quarterly net income and operating margin trend to confirm whether profitability recovery occurs
- Gross margin normalization and detailed breakdown to verify data accuracy
- Cash balance trajectory and working capital management given extremely tight liquidity
- Operating cash flow sustainability and whether FCF remains positive without earnings recovery
- Operating margin
- Free cash flow margin
i3 Verticals, Inc. (IIIV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 21.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
IIIV Profit Margin, ROE & Profitability Analysis
IIIV vs Technology Sector: How i3 Verticals, Inc. Compares
How i3 Verticals, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is i3 Verticals, Inc. Stock Overvalued? IIIV Valuation Analysis 2026
Based on fundamental analysis, i3 Verticals, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
i3 Verticals, Inc. Balance Sheet: IIIV Debt, Cash & Liquidity
IIIV Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: i3 Verticals, Inc.'s revenue has declined by 43% over the 5-year period, indicating business contraction. The most recent EPS of $-0.07 indicates the company is currently unprofitable.
IIIV Revenue Growth, EPS Growth & YoY Performance
IIIV Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $54.1M | -$154.0K | $0.07 |
| Q1 2026 | $52.2M | $484.0K | $0.02 |
| Q3 2025 | $46.2M | -$4.6M | $0.50 |
| Q2 2025 | $58.0M | -$154.0K | $0.08 |
| Q1 2025 | $55.1M | $1.1M | $0.04 |
| Q3 2024 | $56.0M | -$4.6M | $-0.20 |
| Q2 2024 | $93.9M | $36.0K | $0.00 |
| Q1 2024 | $86.0M | -$240.0K | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
i3 Verticals, Inc. Dividends, Buybacks & Capital Allocation
IIIV SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for i3 Verticals, Inc. (CIK: 0001728688)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IIIV
What is the AI rating for IIIV?
i3 Verticals, Inc. (IIIV) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IIIV's key strengths?
Claude: Solid revenue growth of 11.5% YoY demonstrates market demand. Strong free cash flow generation at $23.4M with 21.3% FCF margin despite low net income. ChatGPT: Double-digit revenue growth (+11.5% YoY). Strong free cash flow margin (26.2%) with minimal capex.
What are the risks of investing in IIIV?
Claude: Severe profitability collapse with net income down 32.6% and EPS down 84.8% YoY signals operational distress. Abnormally high gross margin of 151.8% suggests data irregularities or one-time charges requiring investigation. ChatGPT: Very thin profitability (0.9% net margin) and declining EPS. Extremely low ROE/ROA (0.1%), suggesting poor capital efficiency.
What is IIIV's revenue and growth?
i3 Verticals, Inc. reported revenue of $110.2M.
Does IIIV pay dividends?
i3 Verticals, Inc. does not currently pay dividends.
Where can I find IIIV SEC filings?
Official SEC filings for i3 Verticals, Inc. (CIK: 0001728688) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IIIV's EPS?
i3 Verticals, Inc. has a diluted EPS of $0.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IIIV a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, i3 Verticals, Inc. has a SELL rating with 66% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IIIV stock overvalued or undervalued?
Valuation metrics for IIIV: ROE of 0.6% (sector avg: 22%), net margin of 1.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy IIIV stock in 2026?
Our dual AI analysis gives i3 Verticals, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is IIIV's free cash flow?
i3 Verticals, Inc.'s operating cash flow is $24.2M, with capital expenditures of $722.0K. FCF margin is 21.3%.
How does IIIV compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.8% (avg: 18%), ROE 0.6% (avg: 22%), current ratio 1.34 (avg: 2.5).