I3 Verticals (IIIV) Stock Forecast & Price Target

i3 Verticals Inc is poised for a positive outlook, with projected Adjusted EBITDA growth of 2%-13% year-over-year, reaching between $58.5 million and $65.0 million, while maintaining or improving margins into fiscal 2025. The company has demonstrated strong performance in recurring revenue, with a 9% year-over-year increase to $41.3 million, representing 75% of total revenue, alongside a modest rise in non-recurring revenue. Additionally, i3 Verticals is expanding its presence in critical markets through an active M&A pipeline, which enhances its competitive position against smaller players in the sector.

i3 Verticals Inc has reported a 2% year-over-year decline in Non-GAAP EBITDA, amounting to $14.4 million, which was 5% below the company's forecast, highlighting operational inefficiencies despite a slight beat against consensus estimates. The company experienced a significant 76% year-over-year drop in high-margin software license fees, indicating challenges in revenue generation from its core offerings. Additionally, the anticipated decline in non-recurring professional services revenue, coupled with slow progress in adding independent software vendors to its distribution network, points to a dampened organic growth outlook, raising concerns about the company's long-term revenue sustainability.