i3 Verticals Inc. Class A Common Stock (IIIV)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable moats, conservative balance sheets, and a price that leaves room for error. i3 Verticals sells enterprise software and services to public-sector entities in the U.S. and Canada, including courts, dispatch, records, and jail management. Those markets can be sticky because government customers rarely switch systems quickly, but the financials do not yet prove a high-quality compounder. In fiscal 2025, the company reported revenue of $213.2M and net income of $17.9M, or diluted EPS of $0.72. That was far below fiscal 2024, when net income was $113.3M and diluted EPS was $4.73. Fiscal 2023 had a net loss of $811,000, or $0.07 per share, which explains the FairStock TURNAROUND category. The latest filed quarter, fiscal Q3 2026 ended 2026-06-30, showed revenue of $53.1M, net income of $3.5M, and diluted EPS of $0.18. Positive, but trailing profitability remains thin. At the $16.03 close on 2026-10-13, FairStock calculations show a P/E of 55.3, P/B of 1.04, ROE of 2.34%, ROCE of 0.56%, and a Graham Number of $10.02. That implies the price is roughly 60% above the Graham anchor, with a negative margin of safety. The best feature is cash generation: trailing free cash flow of $41.5M gives a 13.2% FCF yield. Debt is moderate with D/E of 0.30, but an Altman Z-Score of 1.21 and Piotroski F-Score of 5/9 signal fragility. This is a speculative turnaround, not a bargain.

In plain English: i3 Verticals sells software and services to government agencies, especially courts and public safety teams. Profits have been small and uneven, and the latest reported quarter showed a modest profit, so the business looks only moderately healthy. At $16.03, the stock looks expensive compared with the company's earnings and asset value, even though it generates a solid amount of cash.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q4 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer