i3 Verticals (IIIV) Q1 2026 Earnings Transcript

Chairman and Chief Executive Officer — Gregory Daily Chief Financial Officer — Geoffrey Smith Chief Administrative Officer — Clay Whitson Need a quote from a Motley Fool analyst? Email pr@fool.com Clay Whitson: Good morning, and welcome to the first quarter of 2026 Conference Call for i3 Verticals. Joining me on this call are Greg Daily, our Chairman and CEO; Rick Stanford, our President; Geoff Smith, our Chief Financial Officer; and Paul Christians, our Chief Revenue Officer. To the extent any non-GAAP financial measure is discussed in today s call, you will also find a reconciliation to the most directly comparable GAAP financial measure by reviewing yesterday s earnings release. It is the company s intent to provide non-GAAP financial information to enhance understanding of its consolidated GAAP financial information. This non-GAAP financial information should be considered by each individual in addition to, but not instead of, the GAAP financial statements. This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding the company s expected financial and operating performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. You are hereby cautioned that these forward-looking statements may be affected by the important factors, among others, set forth in the company s earnings release and in reports that are filed or furnished to the SEC. Consequently, actual operations and results may differ materially from those discussed in the forward-looking statements. Finally, the information shared on this call is valid as of today s date, and the company undertakes no obligation to update it, except as may be required by applicable law. I will now turn the call over to the company s Chairman and CEO, Greg Daily. Gregory Daily: Thanks, Clay, and good morning to all of you on the call. We re excited with the start of 2026. As we anticipated and guided the market, revenue was only up 1% over prior year s Q1, but recurring revenue was up over 8%, more closely reflecting our expectation of long-term growth. SaaS revenue led with over 24% growth. We re now -- we ve now had 4 quarters in a row over 20% SaaS growth, and we see that number staying north of that level through the year. While our recurring revenue sources, professional services and license are both down, we believe our focus on recurring sources will carry the day. We re very excited to announce our latest acquisition. Rick will share more, but this is a deal we re very proud of. Our best deals tend to be the ones we sell -- we source ourselves, and this is the latest example. It is a perfect fit within our transportation market. You will always be surprised at the durable, sticky niche software solutions you will find in the public sector. Well, here s another one. Helping states early detect uninsured motorists is only possible because of thoughtful, well-executed software business solutions like this. Because they already have integrations with the insurance carriers, they have an incredible defensive market positioning and their growth is compelling. The team that built this business is staying on, and we couldn t be more excited about what we can accomplish together. We remain exceptionally well capitalized and thoughtful about how to deploy our capital and expect to have great opportunities in 2026. As always, the focus is discipline. I will now turn the call over to Geoff, and he will provide more details on financial performance. When he s finished, Rick will address our latest deal in more detail. And finally, Paul will discuss revenue, and then we ll open up the call for questions. Geoffrey Smith: Thanks, Greg. The following pertains to the first quarter of fiscal year 2026, which is the quarter ended December 31, 2025. Please refer to the slide presentation titled Supplemental Information on our website for reference with this discussion. Revenues for the first quarter of fiscal 2026 increased 1% to $52.7 million or $52.2 million for Q1 2025, in line with expectations. The growth reflected 8% growth in recurring revenues, partially offset by a $3 million decline in nonrecurring professional services and software license revenues. Annual recurring revenues increased 8% to $169.6 million for Q1 2026 compared to $156.4 million for Q1 2025. 80% of our revenues for the quarter came from recurring sources, driven by SaaS revenue growth of 24%, transaction-based revenue growth of 12% and payments revenue growth of 8%. Maintenance revenues declined 8%, reflecting the emphasis on SaaS and new sales. Adjusted EBITDA declined $1 million to $13.6 million for Q1 2026 from $14.6 million for Q1 2025, in line with expectations. Adjusted EBITDA as a percentage of revenues was 25.8% for Q1 2026 versus 27.9% for Q1 2025. The dollar and per

i3 Verticals (IIIV) Q1 2026 Earnings Transcript

Key takeaways

Also covered by

i3 Verticals (IIIV) Q1 2026 Earnings Transcript

Key takeaways

Also covered by

More in business