i3 Verticals, Inc. (IIIV) is a provider of integrated software and services tailored to strategic vertical markets. The company specializes in delivering enterprise software solutions that are seamlessly integrated with its proprietary payment facilitator platform. Its offerings include software solutions, payment processing services, and recurring revenue streams designed to enhance efficiency and compliance across various industries.
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Software and Services - Provides vertical market software solutions across strategic verticals, including embedded payments, SaaS, transaction-based fees, software licenses, ongoing software maintenance, and professional services.
- Public Sector - Enhances information flow across state and local governments to improve responsiveness and efficiency.
- Healthcare - Delivers integrated solutions for providers and payers, focusing on process efficiency and compliance.
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Merchant Services - Offers comprehensive payment solutions, including third-party integrated payment solutions and traditional merchant processing services, with revenue from discount fees, gateway fees, and other fixed transaction or service fees.
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Other - Includes corporate overhead expenses, shared technology resources, and inter-segment eliminations.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Clay Whitson ExecutiveBoard | Chief Strategy Officer | Clay Whitson has served as the Chief Strategy Officer at i3 Verticals, Inc. since September 2024 and has been a Director on the Board since January 2018. Previously, he served as CFO of i3 Verticals, Inc. from January 2018 to September 2024. | ||
Gregory Daily ExecutiveBoard | Chief Executive Officer and Chairman of the Board | CEO of IIIV since January 2018 ; previously, he founded i3 Verticals, LLC in 2012 and led iPayment, Inc. as Chairman and CEO from 2001 to 2011. | ||
Chris Laisure Executive | President - Public Sector | Chris Laisure is currently the President - Public Sector at i3 Verticals since November 2022. He previously served as CEO of i3-BIS, LLC from February 2021 to November 2022 and as CEO of Business Information Systems, GP from 2006 to 2021. | ||
Geoff Smith Executive | Chief Financial Officer | Geoff Smith serves as the Chief Financial Officer (CFO) for i3 Verticals, Inc. since September 2024, overseeing the company’s financial strategy. Previously, he held roles such as Principal Accounting Officer from June 2021 and Senior Vice President of Finance from November 2022 to September 2024. | ||
Paul Christians Executive | Chief Revenue Officer | Paul Christians is the Chief Revenue Officer at IIIV since May 2024. He previously served as Chief Operating Officer from November 2022 to May 2024 and as President of the Public Sector vertical from May 2019 to November 2022. | ||
Paul Maple Executive | General Counsel and Secretary | Paul Maple is the General Counsel and Secretary at i3 Verticals, Inc. since January 2018, and he also served as General Counsel of i3 Verticals, LLC since June 2017 with prior experience at CLARCOR, Inc. from May 2007 to May 2017. | ||
Rick Stanford Executive | President | Rick Stanford is the President of i3 Verticals, Inc. since January 2018. Previously, he served as an executive at i3 Verticals, LLC, holding roles such as President and Executive Vice President. | ||
Burton Harvey Board | Director | Managing Partner at Capital Alignment Partners; Board member at Live Technologies, Inc.; Board member at Centerline Healthcare Partners, Inc.; Board member at Homecare ParentCo, LLC | Burton Harvey is a Director at i3 Verticals, Inc. since January 2018, bringing extensive expertise in private equity investments and company oversight. He has served as Managing Partner at Capital Alignment Partners since January 2012 and held executive roles at Wachovia Bank and Bank of America. | |
David Morgan Board | Board Member | President and Chairman of LBMC Financial Services, LLC | David Morgan has served on IIIV's Board of Directors since March 2018 and as Chair of the Audit Committee. He brings extensive experience from leadership roles at LBMC Financial Services, LLC and Lattimore Black Morgan & Cain, PC. | |
David Wilds Board | Lead Independent Director | Founder and Managing Partner at First Avenue Partners; Board Member at iPayment, Inc.; Board Member at Dollar General Corporation; Board Member at Symbion, Inc.; Board Member at Internet Pictures Corporation; Board Member at Comdata Holdings Corporation; Board Member at ILD Telecommunications, Inc.; Board Member at HCCA International, Inc. | David Wilds has served as the Lead Independent Director at i3 Verticals, Inc. since January 2018 and brings extensive experience in finance and governance, having previously served as CEO of TFO, LLC and founded First Avenue Partners. | |
Decosta Jenkins Board | Board of Directors | Audit Committee and Trust Committee, Pinnacle Financial Partners, Inc.; Chair, Audit and Compliance Committee, University of Tennessee Board of Trustees; Board Member, YMCA of Middle Tennessee | Decosta Jenkins has served on the Board of Directors of IIIV since November 23, 2021. He previously served as President and CEO of Nashville Electric Service from 2004 until his retirement in June 2022 and began his career as Senior Vice President and CFO in 1991 following an 11-year tenure at Deloitte LLP. | |
Elizabeth Seigenthaler Courtney Board | Board Director | Managing Partner, Southeast at Finn Partners, Inc. | Elizabeth Seigenthaler Courtney has served as a Board Director at i3 Verticals, Inc. since May 2018, where she chairs the Nominating and Corporate Governance Committee and is a member of the Compensation Committee. She brings extensive experience from her role as Managing Partner, Southeast at Finn Partners, Inc. since January 2019, as well as her previous leadership positions at Seigenthaler Public Relations, Inc. and LocalShares Investment Trust. | |
John Harrison Board | Board Member | Senior Managing Director, HMC Credit Solutions Team; Investment Committee Member, Harbert European Growth Fund; Director, HMC | John Harrison has served as a Board Member at IIIV since January 2018. He brings extensive experience in private equity investment and financial oversight, as demonstrated by his roles on key committees. | |
Timothy McKenna Board | Board Member and Chair of the Compensation Committee | Timothy McKenna has served on the Board of Directors at i3 Verticals, Inc. since January 2018 and chairs its Compensation Committee, demonstrating extensive expertise in strategic, risk management, and organizational leadership. He brings a wealth of previous experience from roles at Fidelity Capital Markets and various financial institutions. |
- Given the guidance that Q3 revenues are expected to dip to 48% with margins falling into the mid-20s, what concrete steps is management taking to mitigate margin compression during seasonal downturns?
- With the divestiture of the healthcare RCM business now shaping RemainCo’s focus, how does management expect the removal of over $8 million in annual revenues to impact overall organic growth and cost structures in the coming quarters?
- The recent acquisition in the utility billing space is expected to enhance high-margin performance; what integration milestones and risk mitigation strategies are in place to ensure that delays or operational hurdles do not disrupt the anticipated synergies?
- In discussing free cash flow conversion, management mentioned a target exceeding two-thirds of EBITDA despite upcoming investments; could you elaborate on the specific levers that will sustain cash flow performance amid increased CapEx and integration costs?
- With AI initiatives being introduced to augment both customer engagement and operational efficiency, what early performance metrics or pilot outcomes will management use to assess whether these investments are delivering the promised revenue and margin improvements?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
This competitor is identified as one of the established software providers in the vertical market software industry, which has a sizable market share and services more customers than the company does. It is noted that many competitors, including this one, have substantially greater financial, technological, and marketing resources, potentially allowing them to offer more attractive solutions to customers. | |
Constellation Software, Inc. | This competitor is highlighted as part of the competitive landscape in the vertical market software industry, which includes companies with significant resources and capabilities that could challenge the company's market position. |
This competitor is mentioned as part of the competitive environment in the vertical market software industry, which could impact the company's ability to grow its market share. | |
This competitor is listed among others in the vertical market software industry, which is characterized by competition from both large and small providers, potentially limiting pricing and requiring aggressive cost control. | |
This competitor is noted as part of the competitive landscape in the vertical market software industry, which includes companies with greater resources that may offer a broader range of products and services. | |
This competitor is identified as part of the competitive environment in the vertical market software industry, which could affect the company's ability to attract and retain customers. | |
This competitor is mentioned as part of the competitive landscape in the vertical market software industry, which includes companies with varying business models and technical capabilities. | |
This competitor is highlighted as part of the competitive environment in the vertical market software industry, which could challenge the company's ability to maintain its market position. | |
This competitor is listed among others in the vertical market software industry, which is characterized by competition from both large and small providers, potentially impacting the company's revenue and margins. | |
This competitor is identified as part of the competitive landscape in the vertical market software industry, which includes companies with significant resources and capabilities. | |
This competitor is mentioned as part of the competitive environment in the vertical market software industry, which could affect the company's ability to grow its market share and maintain profitability. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Utility Billing Software Company | 2025 | Completed on April 1, 2025, the deal was valued at $9 million in cash with up to an additional $5 million in contingent payments based on financial targets through September 2027. The acquisition expands i3 Verticals’ offerings to small‐ and medium‑sized municipal utilities with cloud‑based, mobile‑compatible billing and integrated payment processing capabilities. |
Eduloka Ltd. (inLumon) | 2024 | Completed on August 1, 2024, this acquisition was structured for a total purchase consideration of $27,477,000 (including cash, stock, and contingent consideration) to enhance permitting and licensing software in the Public Sector, acquiring key intangibles such as customer relationships, capitalized software, and a trade name. |
Another Business Acquisition (Public Sector) | 2024 | Completed during the year ended September 30, 2024, the $1.3 million transaction (including cash and contingent consideration) was designed to expand the Company’s Public Sector software offerings, with purchase price allocations to property and equipment, capitalized software, customer relationships, and goodwill. |
Two Additional Businesses Acquisition | 2023 | Completed in 2023, this acquisition involved a total consideration of $19.8 million (via $17.0 million in cash, Class A common stock, and $0.8 million in contingent consideration) to grow software offerings, with significant allocations to customer relationships, capitalized software, and goodwill. |
Celtic Cross Holdings, Inc. and Celtic Systems Pvt. Ltd. | 2023 | Completed in 2023, the $85 million cash acquisition was aimed at expanding Public Sector software capabilities through the addition of customer relationships, capitalized software, a trade name, and non‑compete agreements, with significant tax‑deductible goodwill and acquisition‑related costs. |
Enterprise Software Solutions Provider (Motor Carrier/Vehicle) | 2022 | Completed effective October 1, 2022, this $85 million cash deal strategically bolsters the complementary transportation products of BIS by providing software solutions for fleet, title, and dealer inventory management across 18 U.S. States and 4 Canadian Provinces. |
Three Businesses Acquisition | 2022 | Completed in 2022 for a total purchase consideration of $107.7 million (with $101.4 million in cash and $6.3 million in contingent consideration), this acquisition expanded the Company’s presence in the Public Sector and Healthcare markets by acquiring key assets including customer relationships, capitalized software, and trade names alongside future performance‐based payments. |
Two Businesses Acquisition (First Period) | 2022 | Completed during the six months ended March 31, 2022, this acquisition totaled $100.5 million (with $95.0 million in cash and $5.5 million in contingent consideration plus potential additional payments up to $18 million based on performance targets) to further expand software solutions in the Public Sector and Healthcare verticals. |
Recent press releases and 8-K filings for IIIV.
- i3 Verticals Inc. has divested its Healthcare Revenue Cycle Management (RCM) business for $96,000,000, which had approximately $39,000,000 in revenues and $8,000,000 in adjusted EBITDA in its fiscal year 2025 guidance, to focus on the public sector vertical market.
- For the second quarter of fiscal year 2025, "RemainCo" revenues increased 11.6% to $54,100,000, with organic growth of 9%, and adjusted EBITDA increased 17% to $15,800,000. Annual recurring revenues for RemainCo increased 9.2% to $164,500,000, driven by 23% SaaS revenue growth.
- The company provided updated fiscal year 2025 guidance for "RemainCo," with revenues expected between $207,000,000 and $217,000,000 and adjusted EBITDA between $56,000,000 and $61,000,000. Following the divestiture, the company has a cash position of approximately $64,000,000 and intends to use cash and borrowing capacity for acquisitions and potential stock repurchases.
- i3 Verticals acquired a utility billing software company for $9,000,000 on April 1, which is included in the updated guidance. The company is also introducing AI applications in its transportation and ERP markets to solve client pain points and enhance efficiency.
- I3 Verticals Inc. (IIIV) has strategically shifted its focus from a payments-heavy business to a public sector software company, having divested its merchant services and healthcare RCM businesses to concentrate on 26 software acquisitions in the public sector. Payments now constitute 26% of revenues.
- The company reports over $200 million of revenues with an adjusted EBITDA margin percentage in the high 20s. It is currently debt-free with approximately $64 million of cash on its balance sheet.
- IIIV targets high single-digit revenue growth, with the midpoint of its guide for revenue growth being 7-8%, and aims for 50 to 100 basis points margin improvement each year. 75% of its revenues are recurring and growing at 9%.
- The company plans to pursue future acquisitions in the public sector, leveraging its cash and an untapped $400 million credit facility. Its M&A philosophy focuses on smaller, founder-owned deals typically in the $10 million to $30 million range.
- i3 Verticals, Inc. reported strong financial results from continuing operations for the fiscal second quarter ended March 31, 2025, with revenue increasing 8.8% to $63.1 million and non-GAAP adjusted diluted earnings per share growing to $0.32 compared to $0.12 in the prior year's second quarter.
- The company completed the divestiture of its Healthcare Revenue Cycle Management (RCM) business on May 5, 2025, for $96.0 million in cash. This business contributed $9.1 million in revenue for the three months ended March 31, 2025.
- i3 Verticals updated its fiscal year 2025 outlook for RemainCo operations, revising revenue to a range of $207.0 million to $217.0 million and adjusted EBITDA to $55.0 million to $61.0 million.
- Additionally, on April 1, 2025, the company acquired a utility billing software company for $9.0 million in cash.
- i3 Verticals, Inc. (IIIV) completed the sale of its Healthcare Revenue Cycle Management (RCM) business, including associated proprietary technology, to Infinx, Inc. for $96 million in an all-cash transaction on May 5, 2025.
- The divested RCM Business represented approximately 83% of i3 Verticals' Healthcare Segment revenues for calendar year 2024.
- Following the divestiture, i3 Verticals will be streamlined and focused on the Public Sector vertical, including K-12 public education markets.
- Concurrently, i3 Verticals amended its Credit Agreement, reducing its aggregate revolving credit commitments from $450 million to $400 million.