I3 Verticals lowered its fiscal 2026 guidance and reset fiscal 2027 expectations to mid-single-digit revenue growth, while targeting 100 to 200 basis points of margin expansion. Chairman and CEO Gregory Daily said third-quarter results fell short of expectations, with the primary challenge being slower growth in less-recurring revenue streams. CFO Geoffrey Smith reported revenues of $53.1 million, up 2%, but organic revenue declined 2% due to a $1.8 million decrease in professional services, and non-recurring revenue sources fell 18% year-over-year. Annual recurring revenue grew 8% to $174.1 million, representing 82% of total revenue, with SaaS revenue up 38% and transaction-based revenue up 5%. The company updated its fiscal 2026 guidance to revenue of $216 million to $221 million, adjusted EBITDA of $57 million to $60 million, and adjusted diluted earnings per share of $1.08 to $1.12, which Smith said was meaningfully lower than prior guidance due to lower professional services and a deceleration of transaction revenues. For fiscal 2027, management expects mid-single-digit revenue growth, down from previously guided high single-digit growth, and sees margin expansion of 100 to 200 basis points, supported by cost actions, AI-driven efficiencies, and multiple go-lives.
i3 Verticals IncLowered FY2026 guidance and reset FY2027 growth expectations to mid-single-digit, with Q3 organic revenue decline and weaker non-recurring revenue.
