I3 Verticals (IIIV) Stock Forecast & Price Target

i3 Verticals Inc. is projected to achieve a year-over-year increase in adjusted EBITDA of 2%-13%, estimated to reach between $58.5 million and $65.0 million, with margins expected to remain stable or improve. The company's recurring revenue has demonstrated strong growth, rising 9% year-over-year to $41.3 million, constituting 75% of total revenue, while non-recurring revenue has also shown modest growth of 1%. Additionally, the company is well-positioned in its market with a strong M&A pipeline, which supports its strategic expansion and competitive positioning against smaller regional players.

i3 Verticals Inc has experienced a decline in non-GAAP EBITDA, which fell 2% year-over-year to $14.4 million, ultimately missing internal forecasts by 5%. Additionally, the company's high-margin software license fees plummeted 76% year-over-year, indicating significant challenges in revenue generation from key products. Coupled with underpenetration in key verticals and a sluggish pace of adding independent software vendors to its distribution network, i3 Verticals's organic growth is failing to meet expectations, raising concerns about its future financial performance.