i3 Verticals (IIIV) Q3 2026 Earnings Call Transcript
i3 Verticals (IIIV) reported Q3 FY2026 revenue of $53.1 million, up 2% YoY, with annualized recurring revenue (ARR) of $174.1 million, up 8.3%. Non-GAAP adjusted diluted EPS was $0.25 and adjusted EBITDA was $13.3 million. The company revised FY2026 guidance to $216-$221 million revenue and $57-$60 million adjusted EBITDA, citing non-recurring weakness and professional services delays.
How this was made
The 30-second read
Why it matters
Management reported Q3 revenue of $53.1M (+2% YoY) but said non-recurring weakness and professional-services project delays persisted into Q4, leading to lower FY2026 guidance and a reduced 2027 revenue growth outlook (mid-single digits). Offsetting positives include ARR growth to $174.1M (+8.3% YoY), SaaS revenue growth (+38% YoY), and adjusted EBITDA margin expansion to 25.1% (+60 bps).
Market read
Traders can update models based on the explicit FY2026 guidance ranges and the stated persistence of professional-services drawdown, while also reassessing margin durability from AI/process improvements.
What to watch
Cash balance is very low ($2.6M) versus debt ($114.3M), so any further working-capital pressure or slower conversions could matter more than the headline EBITDA margin expansion.
Background
This is the Q3 2026 earnings call transcript for i3 Verticals, covering results, guidance revisions, and operating drivers (recurring mix, professional services delays, transaction interchange effects, and AI tooling).
Ticker impact
i3 Verticals revised FY2026 revenue guidance to $216M-$221M and FY2026 adjusted EBITDA to $57M-$60M after professional-services delays and weaker non-recurring revenue.
Near-term bias likely negative on guidance cut, partially offset by recurring revenue strength and AI-driven EBITDA margin expansion.
The article discloses specific, time-sensitive guidance revisions (revenue, EBITDA, EPS) and cites concrete drivers (utilities project delays, interchange pressure on transaction revenue). It also provides offsetting positives (ARR growth, recurring mix, margin expansion), so direction depends on how the market weighs recurring resilience versus growth deceleration.
Market effects
Signals that vertical SaaS and transaction-processing peers may face similar professional-services timing risk and interchange-driven take-rate volatility.
No clear regional-specific impact beyond utilities and state-level deployments mentioned.
Primarily US-focused government/state workflow and vertical software demand; limited global read-through.
Counterpoint
The recurring revenue mix (82%) and ARR growth (8.3%) may mean the guidance cut is more timing-related than demand-related, supporting a faster-than-expected recovery if utilities projects re-accelerate.
Key entities
- public_companyi3 Verticals
Reported Q3 2026 results and revised FY2026 guidance; cited utilities professional-services delays and interchange pressure as key headwinds.
- executiveGregory Daily
CEO who highlighted ARR growth and software value proposition.
- executiveGeoffrey Smith
CFO who attributed guidance reduction to professional-services delays and transaction interchange effects.
