i3 Verticals (IIIV) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue from continuing operations increased 0.9% year-over-year to $52.7 million, driven by higher recurring and SaaS revenues.

• Net income from continuing operations was $1.1 million, down from $2.8 million in the prior year, with adjusted EBITDA at $13.6 million (25.8%–26% margin).

• SaaS revenue grew over 24% year-over-year for the fourth consecutive quarter.

• Major divestitures included the sale of Merchant Services and Healthcare RCM businesses, now reflected as discontinued operations.

• A $60 million transportation software acquisition closed January 1, 2026, expected to drive further SaaS and recurring revenue growth.

Financial highlights

• Recurring revenue comprised $42.4 million (80%) of Q1 revenue, with ARR up 8.4% year-over-year to $169.6 million.

• Non-recurring professional services and license revenues declined by $3 million.

• Adjusted EBITDA was $13.6 million (25.8% margin), down from $14.6 million (27.9%) in Q1 2025.

• Adjusted diluted EPS from continuing operations was $0.26, compared to $0.27 in the prior year.

• Net cash provided by operating activities was $14.1 million, up from $11.5 million year-over-year.

Outlook and guidance

• FY 2026 revenue guidance raised to $232–$234 million; adjusted EBITDA: $65–$66.5 million; adjusted diluted EPS: $1.16.

• Recurring revenues expected to grow at a double-digit rate, with organic recurring revenue growth of 8–10%.

• Non-recurring professional services revenue expected to decline due to project timing in utilities and transportation.

• Revenue distribution for FY 2026 expected: Q1 23%, Q2 25%, Q3 25%, Q4 27%.

• Management expects sufficient liquidity for at least the next twelve months, with $37–$37.5 million in cash and $400 million in available credit as of December 31, 2025.