i3 Verticals Inc
IIIV
$23.21 0.52%
Exchange: NASDAQ | Sector: Technology | Industry: Software Infrastructure
Q4 2024
Published: Nov 25, 2024

Earnings Highlights

  • Revenue of $60.86M down 36.9% year-over-year
  • EPS of $4.65 increased by 2% from previous year
  • Gross margin of 91.7%
  • Net income of 117.91M
  • "“Our team worked exceptionally hard this year to advance our transition to a pure-play vertical market software business and set the table for our next stage of growth. We exit the year as a streamlined and scaled vertical market software provider.”" - Greg Daily
IIIV
Company IIIV

Executive Summary

i3 Verticals completed the divestiture of its Merchant Services business in September 2024 and is now reporting as RemainCo, a pure-play vertical market software company. In Q4 2024, revenues rose 4% year over year to $60.9 million, driven by organic growth of 2% and two months of revenue from the public sector permitting-and-licensing acquisition. Recurring revenue accounted for 77% of quarterly revenues, with SaaS and payments growth of 8% and 11% respectively, and annualized recurring revenues (ARR) of $188.2 million, up 7.5% YoY. Net dollar retention for fiscal 2024 was 100%, underscoring the stickiness of the remaining software and services book, though payments are not included in that metric. Adjusted EBITDA for Q4 2024 was $16.2 million (27% of revenue approximately 26.7%), reflecting higher corporate costs related to the divestiture and ongoing transition. Pro forma adjusted diluted EPS from continuing operations was $0.15 for Q4 2024. Management guided FY2025 continuing-operations revenue of $243–$263 million, adjusted EBITDA of $63–$71.5 million, and pro forma diluted EPS of $1.05–$1.25, with high-single-digit organic revenue growth and margin improvements of 50–100 basis points. The company ended the quarter with $86.5 million of cash, $26.2 million of debt, and $450 million of revolving debt capacity, implying substantial liquidity to fund growth and select bolt-on acquisitions (3–5 deals targeted for 2025). In management commentary, the leadership emphasized a strategic shift to web-native, configurable software, a robust M&A pipeline, and a renewed emphasis on cross-vertical solution bundling as key growth drivers. Overall, IIIV presents a materially stronger recurring-revenue base and clearer path to profitability post-transition, with meaningful optionality from an active M&A program and product-roadmap investments.

Key Performance Indicators

Revenue
Decreasing
60.86M
QoQ: 8.61% | YoY: -36.87%
Gross Profit
Decreasing
55.83M
91.73% margin
QoQ: 8.80% | YoY: -25.94%
Operating Income
Decreasing
3.55M
QoQ: 631.24% | YoY: -59.59%
Net Income
Increasing
117.91M
QoQ: 1 662.76% | YoY: 2 492.57%
EPS
Increasing
4.98
QoQ: 1 656.25% | YoY: 2 390.00%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 63.06 -0.01 -33.3% View
Q1 2025 61.69 0.08 -32.9% View
Q4 2024 60.86 4.65 -36.9% View
Q3 2024 56.04 -0.32 -40.3% View
Q2 2024 94.54 0.08 +0.7% View