i3 Verticals, Inc. (IIIV): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama dinámico de la tecnología financiera, I3 Verticals, Inc. (IIIV) surge como una potencia estratégica, transformando el procesamiento de pagos y las soluciones del mercado vertical con su innovador modelo de negocio. Al crear meticulosamente los ecosistemas tecnológicos especializados para industrias de nicho, esta compañía ha sido pionera en un enfoque único que une las tecnologías de pago avanzadas con plataformas de software específicas de la industria. Desde proveedores de atención médica hasta organizaciones gubernamentales, I3 Verticals ofrece soluciones integrales y personalizadas que no solo racionalizan las operaciones comerciales, sino que también crean una eficiencia sin precedentes en diversos segmentos de mercado.

I3 Verticals, Inc. (IIIV) - Modelo de negocio: asociaciones clave

Procesadores de pagos y proveedores de tecnología financiera

A partir del cuarto trimestre de 2023, I3 Verticals se asocia con:

Pareja	Detalles de la asociación
Fiserv	Servicios de integración de procesamiento de pagos
Pagos globales	Soluciones de pago integradas
Chase Merchant Services	Colaboración de tecnología de pago

Desarrollo de software y socios de integración

Las asociaciones clave de desarrollo de software incluyen:

• Microsoft Dynamics
• Oracle Netsuite
• Software de sabio

Proveedores de software independientes (ISV)

Asociaciones de ISV a partir de 2024:

ISV	Enfoque de integración
Avidxchange	Automatización de cuentas por pagar
Tecnologías de línea inferior	Soluciones de flujo de trabajo financiero

Proveedores de soluciones del mercado vertical

Asociaciones del mercado vertical:

• Soluciones de pago de atención médica
• Sistemas de pago del gobierno
• Tecnología financiera educativa

Instituciones bancarias y financieras

Asociaciones bancarias principales:

Institución financiera	Alcance de la asociación
Wells Fargo	Integración de servicios comerciales
Banco de América	Colaboración de procesamiento de pagos

Ecosistema de asociación total: más de 15 asociaciones estratégicas en sectores de pago, software y tecnología financiera

I3 Verticals, Inc. (IIIV) - Modelo de negocio: actividades clave

Procesamiento de pagos y servicios comerciales

A partir del cuarto trimestre de 2023, i3 verticales procesó aproximadamente $ 10.4 mil millones en volumen de pago total. La compañía apoya Más de 25,000 clientes comerciales en varios mercados verticales.

Categoría de servicio de pago	Volumen de transacción	Contribución de ingresos
Procesamiento de tarjetas de crédito	$ 6.2 mil millones	42% de los ingresos por pago
Ach/Pagos electrónicos	$ 3.8 mil millones	31% de los ingresos por pago
Métodos de pago alternativos	$ 400 millones	12% de los ingresos por pago

Desarrollo y personalización de software

En 2023, I3 vertical invirtió $ 18.7 millones en investigación y desarrollo. La compañía mantiene un equipo de ingeniería de software de 127 profesionales.

• Ciclo promedio de desarrollo de software: 4-6 meses
• Tasa de desarrollo de soluciones personalizadas: 37 soluciones por año
• Frecuencia de actualización de software: trimestralmente

Diseño de solución de mercado vertical

i3 vertical sirve seis mercados verticales primarios:

Mercado vertical	Número de soluciones	Penetración del mercado
Gobierno	42 soluciones especializadas	Cuota de mercado del 18%
Cuidado de la salud	35 soluciones especializadas	Cuota de mercado del 22%
Educación	28 soluciones especializadas	15% de participación de mercado

Integración y consultoría tecnológica

En 2023, la compañía completó 89 Proyectos de integración de tecnología complejas con un valor promedio del proyecto de $ 275,000.

• Duración promedio del proyecto de integración: 3-4 meses
• Ingresos de consultoría tecnológica: $ 24.6 millones
• Tasa de satisfacción del cliente: 94%

Fusiones y adquisiciones

En 2023, i3 vertical completado 4 adquisiciones estratégicas con una inversión total de $ 62.3 millones.

Objetivo de adquisición	Valor de transacción	Enfoque estratégico
Proveedor de soluciones de pago	$ 22.5 millones	Expandir los servicios comerciales
Firma de desarrollo de software	$ 18.7 millones	Mejorar las soluciones del mercado vertical

I3 Verticals, Inc. (IIIV) - Modelo de negocio: recursos clave

Plataformas de tecnología de pago patentadas

A partir del cuarto trimestre de 2023, I3 Verticals mantiene 14 plataformas de procesamiento de pagos distintas en varios mercados verticales. La infraestructura tecnológica de la compañía admite:

Tipo de plataforma	Número de plataformas	Inversión anual
Procesamiento de pagos	8	$ 4.2 millones
Soluciones de software integradas	6	$ 3.7 millones

Equipos de ingeniería y desarrollo de software

En 2023, I3 vertical empleado:

• Ingenieros de software totales: 127
• Inversión de I + D: $ 12.3 millones
• Experiencia promedio de ingeniería: 7.4 años

Experiencia del mercado vertical específico de la industria

Mercado vertical	Tamaño de equipo especializado	Penetración del mercado
Gobierno	22 especialistas	38% de participación de mercado
Educación	18 especialistas	Cuota de mercado del 29%
Cuidado de la salud	16 especialistas	Cuota de mercado del 25%

Sistemas de gestión de relaciones con el cliente

Detalles de la infraestructura de CRM para 2023:

• Plataformas CRM totales: 3
• Inversión anual de tecnología CRM: $ 1.9 millones
• Puntos de datos del cliente rastreado: 47 métricas únicas

Infraestructura financiera y tecnológica estratégica

Componente de infraestructura	Inversión	Capacidad
Computación en la nube	$ 6.5 millones	99.99% de tiempo de actividad
Ciberseguridad	$ 4.1 millones	Cifrado de 256 bits
Centros de datos	$ 3.8 millones	5 centros distribuidos geográficamente

I3 Verticals, Inc. (iiiv) - Modelo de negocio: propuestas de valor

Soluciones de pago integrales para industrias de nicho

A partir de 2024, I3 Verticals proporciona soluciones de procesamiento de pagos para segmentos de mercado específicos con volúmenes de transacciones anuales de $ 8.3 mil millones en los mercados verticales específicos.

De la industria vertical	Volumen de transacción anual	Penetración del mercado
Servicios gubernamentales	$ 2.1 mil millones	37% de participación de mercado
Cuidado de la salud	$ 1.9 mil millones	Cuota de mercado del 29%
Educación	$ 1.5 mil millones	24% de participación de mercado

Plataformas de software personalizadas para mercados verticales específicos

I3 Verticals desarrolla soluciones de software personalizadas con un costo promedio de desarrollo de $ 475,000 por plataforma, que sirve a aproximadamente 12,500 clientes únicos.

Tecnología integrada que optimiza las operaciones comerciales

• Capacidades de procesamiento de transacciones en tiempo real
• Sistemas de integración basados ​​en la nube
• Gestión de cumplimiento automatizada
• Protocolos de seguridad avanzados

Procesamiento de pago rentable y eficiente

Las tarifas de procesamiento promedian 2.1% por transacción, en comparación con el estándar de la industria del 2.7%, generando $ 156 millones en ingresos anuales de los servicios de procesamiento de pagos.

Soluciones tecnológicas especializadas específicas de la industria

Solución tecnológica	Tasa de implementación	Satisfacción del cliente
Integraciones de pagos personalizados	Tasa de adopción del 87%	94% de satisfacción del cliente
Sistemas de gestión de cumplimiento	Implementación del 79%	91% de satisfacción del cliente

I3 Verticals, Inc. (IIIV) - Modelo de negocios: relaciones con los clientes

Gestión de cuentas dedicada

A partir de 2024, I3 Verticals mantiene un equipo de gestión de cuentas de clientes Sirviendo a aproximadamente 6.500 clientes comerciales en múltiples mercados verticales.

Métrica de gestión de cuentas	Valor
Tamaño promedio de la cuenta	$ 37,500 ingresos anuales por cliente
Personal de administración de cuentas	42 gerentes de cuentas dedicados
Tasa de retención de clientes	92.4%

Soporte técnico continuo y servicio al cliente

I3 Verticals proporciona soporte técnico integral a través de múltiples canales.

• Disponibilidad de soporte técnico 24/7
• Tiempo de respuesta promedio: 17 minutos
• Soporte multicanal que incluye teléfono, correo electrónico y chat en línea

Canal de soporte	Volumen de soporte anual
Soporte telefónico	43,200 llamadas de soporte
Soporte por correo electrónico	28,900 boletos de soporte
Chat en línea	16,500 interacciones de chat

Implementación y capacitación personalizada

I3 Verticals ofrece servicios de implementación personalizados para cada segmento de cliente.

• Tiempo de implementación promedio: 45 días
• Especialistas de implementación dedicados: 29
• Horas de entrenamiento por cliente: 12-18 horas

Actualizaciones y mejoras de software regulares

La compañía invierte significativamente en la mejora continua del software.

Métrico de desarrollo de software	Valor
Inversión anual de I + D	$ 8.2 millones
Frecuencia de actualización de software	Actualizaciones principales trimestrales
Número de lanzamientos anuales de software	4 lanzamientos principales

Enfoque de asociación a largo plazo

I3 Verticals enfatiza las relaciones sostenidas de los clientes a través del compromiso estratégico.

• Duración promedio de la relación con el cliente: 5.7 años
• Equipo de gestión de asociación dedicado: 18 profesionales
• Participación anual de la encuesta de satisfacción del cliente: 87%

I3 Verticals, Inc. (IIIV) - Modelo de negocio: canales

Equipo de ventas directas

A partir del cuarto trimestre de 2023, I3 Verticals mantiene un equipo de ventas directo de aproximadamente 127 representantes de ventas. El equipo generó $ 98.3 millones en ingresos de ventas directas en el año fiscal 2023.

Métrico de canal de ventas	2023 datos
Representantes de ventas totales	127
Ingresos de ventas directos	$ 98.3 millones
Ingresos promedio por representante de ventas	$773,228

Plataformas digitales y marketing en línea

Los canales digitales representan el 22.6% de la adquisición de clientes de I3 Verticals en 2023. La compañía invirtió $ 4.2 millones en iniciativas de marketing digital.

• Tráfico del sitio web: 387,000 visitantes únicos por mes
• Tasa de conversión de plomo digital: 3.7%
• Gasto de marketing digital: $ 4.2 millones

Conferencias de la industria y ferias comerciales

En 2023, I3 Verticals participó en 47 conferencias de la industria, generando 215 clientes potenciales calificados con un valor contrato potencial de $ 6.5 millones.

Métrico de conferencia	2023 datos
Conferencias totales a las que asistió	47
Clientes potenciales calificados generados	215
Valor de contrato potencial	$ 6.5 millones

Asociaciones estratégicas

I3 Verticals mantiene 83 asociaciones estratégicas activas, contribuyendo con el 18.4% de los ingresos totales de la compañía en 2023, lo que equivale a $ 72.6 millones.

• Socios estratégicos totales: 83
• Ingresos de la asociación: $ 72.6 millones
• Valor de asociación promedio: $ 875,904

Redes de referencia

Las redes de referencia generaron $ 43.2 millones en ingresos para i3 verticales en 2023, lo que representa el 10.9% de los ingresos totales de la compañía.

Métrica de red de referencia	2023 datos
Ingreso de referencia	$ 43.2 millones
Porcentaje de ingresos totales	10.9%
Número de socios de referencia activos	62

I3 Verticals, Inc. (iiiv) - Modelo de negocio: segmentos de clientes

Proveedores de atención médica

Tamaño del mercado: $ 4.1 billones de atención médica de EE. UU. En 2022

Tipo de cliente	Detalles de segmento	Penetración estimada del mercado
Hospitales	Sistemas de atención médica comunitaria y regional	12% del mercado total de procesamiento de pagos del hospital
Clínicas	Centros quirúrgicos ambulatorios y prácticas privadas	Cuota de mercado de 8.5%

Organizaciones gubernamentales y municipales

Mercado total direccionable: mercado de servicios gubernamentales de $ 6.8 billones

• Volumen de procesamiento de pagos del gobierno local: $ 378 millones anuales
• Mercado de soluciones de software municipal: $ 2.3 mil millones
• Presupuesto de modernización de tecnología gubernamental: $ 87.4 mil millones

Instituciones educativas

Tipo de institución	Total de instituciones	Potencial de procesamiento de pagos
Escuelas K-12	130,930 escuelas totales	Volumen de transacción anual de $ 1.2 mil millones
Educación superior	4,360 instituciones que otorgan grados	Volumen de transacción anual de $ 2.4 mil millones

Organizaciones sin fines de lucro

Métricas financieras del sector sin fines de lucro:

• Ingresos totales sin fines de lucro: $ 2.62 billones
• Número de organizaciones sin fines de lucro registradas: 1.8 millones
• Volumen promedio de procesamiento de donación anual: $ 427 millones

Empresas pequeñas a medianas en verticales especializadas

Vertical de negocios	Total de negocios	Ingresos anuales de procesamiento de transacciones
Servicios profesionales	1.1 millones de empresas	$ 3.6 mil millones
Minorista especializado	782,000 negocios	$ 2.9 mil millones
Industrias de servicios	1.3 millones de empresas	$ 4.1 mil millones

I3 Verticals, Inc. (iiiv) - Modelo de negocio: estructura de costos

Gastos de investigación y desarrollo

Para el año fiscal 2023, I3 Verticals reportó gastos de I + D de $ 14.3 millones, lo que representa el 7.2% de los ingresos totales.

Año fiscal	Gastos de I + D	Porcentaje de ingresos
2023	$ 14.3 millones	7.2%
2022	$ 12.1 millones	6.5%

Ingeniería de software e infraestructura de tecnología

Los costos de infraestructura tecnológica para i3 verticales en 2023 totalizaron aproximadamente $ 22.6 millones.

• Gastos de alojamiento en la nube: $ 6.8 millones
• Infraestructura de red: $ 5.4 millones
• Herramientas de desarrollo de software: $ 3.2 millones
• Mantenimiento del centro de datos: $ 7.2 millones

Inversiones de ventas y marketing

Los gastos de ventas y marketing para el año fiscal 2023 fueron de $ 37.5 millones.

Canal de marketing	Gastos	Porcentaje del presupuesto de marketing
Marketing digital	$ 11.2 millones	29.9%
Ventas directas	$ 15.3 millones	40.8%
Marketing de eventos	$ 4.5 millones	12.0%
Marketing de socios	$ 6.5 millones	17.3%

Costos de atención al cliente y implementación

Los gastos de atención al cliente para 2023 ascendieron a $ 16.7 millones.

• Personal de soporte técnico: $ 9.3 millones
• Incorporación del cliente: $ 4.2 millones
• Capacitación e implementación: $ 3.2 millones

Mantenimiento y actualizaciones de tecnología continua

Los costos de mantenimiento y actualización de la tecnología en 2023 fueron de $ 19.8 millones.

Categoría de mantenimiento	Gastos	Porcentaje de total
Actualizaciones de software	$ 7.5 millones	37.9%
Mejoras de seguridad	$ 5.6 millones	28.3%
Optimización del sistema	$ 4.2 millones	21.2%
Actualizaciones del sistema heredado	$ 2.5 millones	12.6%

I3 Verticals, Inc. (IIIV) - Modelo de negocio: flujos de ingresos

Tarifas de procesamiento de transacciones

Para el año fiscal 2023, I3 Verticals reportó tarifas de procesamiento de transacciones de $ 166.4 millones, lo que representa una parte significativa de sus ingresos totales. Estas tarifas se generan a partir de servicios de procesamiento de pagos en diversas verticales de la industria.

Categoría de ingresos	Cantidad (2023)	Porcentaje de ingresos totales
Tarifas de procesamiento de transacciones	$ 166.4 millones	48.3%

Ingresos de licencia y suscripción de software

En 2023, los ingresos por licencias y suscripción de software alcanzaron los $ 82.7 millones, lo que demuestra el fuerte modelo de ingresos recurrentes de la compañía.

• Ingresos recurrentes anuales (ARR) de suscripciones de software: $ 82.7 millones
• Duración promedio de la suscripción del software: 3-5 años

Servicios de implementación y consultoría

Los servicios de implementación y consultoría generaron $ 37.5 millones en ingresos para el año fiscal 2023.

Tipo de servicio	Ingresos 2023	Duración promedio del proyecto
Servicios de implementación	$ 37.5 millones	2-4 meses

Cargos de servicio comercial

Los cargos de servicio comercial contribuyeron con $ 54.2 millones a los ingresos de la compañía en 2023.

• Ingresos totales del servicio comercial: $ 54.2 millones
• Tarifa promedio de transacción comercial: 2.5-3.5%

Tarifas de servicio de valor agregado

Los servicios de valor agregado generaron $ 22.6 millones en ingresos adicionales para i3 verticales en 2023.

Categoría de servicio de valor agregado	Ingresos 2023	Índice de crecimiento
Tarifas de servicio adicionales	$ 22.6 millones	8.7%

Desglose total de ingresos para 2023:

• Tasas de procesamiento de transacciones: $ 166.4 millones
• Licencias de software y suscripciones: $ 82.7 millones
• Servicios de implementación y consultoría: $ 37.5 millones
• CARGOS DE SERVICIO MERCERANTE: $ 54.2 millones
• Tarifas de servicio de valor agregado: $ 22.6 millones
• Ingresos anuales totales: $ 363.4 millones

i3 Verticals, Inc. (IIIV) - Canvas Business Model: Value Propositions

You're looking at the core value i3 Verticals, Inc. (IIIV) delivers, especially now that they've sharpened their focus as a pure-play public sector software provider following the divestitures of their Merchant Services and Healthcare RCM businesses. The value proposition centers on deep vertical expertise married to modern, secure technology for government entities.

The seamless integration of software and payment solutions is a key differentiator. This isn't just about selling software; it's about embedding the transaction capability directly into the workflow. For the fourth quarter of fiscal year 2025, the revenue mix shows this integration in action: software and related services accounted for 70% of total revenues, while payments made up 25% of the total. This embedded approach helps ensure sticky customer relationships, which is reflected in the strong retention figures.

i3 Verticals, Inc. (IIIV) provides mission-critical, cloud-native solutions for government functions. They are squarely focused on state and local governments across the U.S. and Canada, serving verticals like courts, public safety, utilities, public administration, education, and transportation. Their development strategy is built on cloud-native Software as a Service (SaaS) solutions. This focus on essential government operations means their offerings are deeply embedded and necessary for daily function.

This technological foundation directly translates to increased efficiency and streamlined processes for public sector clients. The solutions are deployed to reduce or eliminate paper, automate processing, and securely manage records, establishing end-to-end enterprise content solutions that boost visibility and collaboration among affiliated parties and constituents. The success of this strategy is evident in the growth of their recurring revenue base, which was 76% of revenue from continuing operations as of the last report.

The stickiness of these mission-critical solutions is quantified by their customer loyalty metrics. For fiscal year 2025, i3 Verticals, Inc. (IIIV) achieved a high net dollar retention of 104%. That number means that even after accounting for any churn, the existing customer base spent 4% more with the company than the prior year, a defintely strong signal of value realization. Furthermore, the underlying SaaS revenue stream is accelerating, growing a healthy 25% in Q4 2025.

Here's a quick look at how the core business components are performing as of the end of fiscal year 2025:

Metric	Value	Period/Notes
High Net Dollar Retention	104%	Fiscal Year 2025
Recurring Revenue Percentage	76%	Of revenue from continuing operations
Total FY2025 Revenue (Continuing Ops)	$213.2 million	Fiscal Year Ended September 30, 2025
FY2025 Adjusted EBITDA Margin	27.0%	For the fiscal year ended September 30, 2025
Q4 2025 SaaS Revenue Growth	25%	Year-over-year growth

The value propositions can be summarized by the outcomes they drive for the public sector customer base:

• Seamless integration of software and payment solutions, with payments representing 25% of Q4 2025 revenue.
• Mission-critical, cloud-native solutions for government functions including JusticeTech, Public Administration, and Utilities.
• Increased efficiency and streamlined processes, evidenced by 76% of continuing operations revenue being recurring.
• High net dollar retention of 104% in fiscal year 2025, showing existing customers expand usage.

The overall financial performance supports this value delivery, with Adjusted EBITDA as a percentage of revenue improving to 27.0% for fiscal 2025 from 26.4% in fiscal 2024. Finance: draft 13-week cash view by Friday.

i3 Verticals, Inc. (IIIV) - Canvas Business Model: Customer Relationships

You're looking at how i3 Verticals, Inc. (IIIV) locks in its public sector customers; it's all about deep integration and sticky, recurring revenue streams, especially after streamlining the portfolio.

The commitment to customer proximity is structural, with the organization intentionally set up in a market-centric model to stay as close to the customer as possible. This structure naturally pushed intra-market cross-selling into solution bundling. As of late 2025, i3 Verticals, Inc. (IIIV) serves approximately 33,500 clients across its core public sector verticals. The company's focus on deep vertical expertise and a recurring revenue model is designed to drive high client retention.

The relationship is cemented by long-term, recurring contractual agreements, which form the backbone of the financial profile. This is evident in the latest reported figures:

Metric	Q4 2025 Value	Year-over-Year Growth	Outlook/Context
Recurring Revenue Percentage of Total Revenue	75%	N/A	For Q1 2025, this figure was 78%.
Annual Recurring Revenue (ARR)	$165.3 million	9.2%	Q3 2025 ARR was $160.8 million, up 12.0%.
SaaS Revenue Growth	25%	N/A	Q3 2025 SaaS growth was 24%; Q2 2025 was 23%.
Net Dollar Retention (NDR)	104%	N/A	This is the reported NDR for fiscal 2025.
Projected FY 2026 Recurring Revenue Growth	8% to 10%	N/A	Management expectation for the next fiscal year.

The emphasis on Software-as-a-Service (SaaS) shows the shift toward more predictable revenue; for instance, SaaS revenue growth in Q4 2025 hit 25%, outpacing the 9% growth in overall ARR for that quarter. This stickiness is further quantified by the fiscal 2025 Net Dollar Retention rate of 104%, meaning existing customers spent more than they did the prior year, even after accounting for churn.

For complex government installs, the sales cycle is high-touch, involving significant professional services. You see this in the Q4 2025 results where professional services revenue increased by $1.8 million, even as less predictable, high-margin nonrecurring software license sales declined by $1.9 million. The Justice vertical remains the largest market segment, accounting for approximately 25% of total revenues, with Utilities, Transportation, Education, and Public Administration all carrying roughly equal weight. The company recently secured a new contract with the Supreme Court of Appeals of West Virginia to implement its new case management software statewide, which includes ancillary value-added services.

Regarding direct customer engagement, the structure supports the following relationship elements:

• Dedicated 24/7 U.S.-based customer support team
• Client-centric approach with tailored, sticky solutions
• High-touch sales and professional services for complex government installs
• Long-term, recurring contractual relationships (SaaS/Maintenance)

The company reclassified personnel costs related to installation, data conversion, training, and customer support activities directly to other costs of services during the first quarter of fiscal year 2025, showing where these high-touch service costs are tracked internally.

i3 Verticals, Inc. (IIIV) - Canvas Business Model: Channels

You're looking at how i3 Verticals, Inc. (IIIV) gets its specialized public sector software and integrated payments into the hands of government entities. The channel strategy is heavily weighted toward direct engagement and product integration, supported by strategic tuck-in acquisitions.

Direct sales force focused on public sector and strategic verticals

The company's focus is clearly on direct engagement within its core markets, which now represent the vast majority of its business following portfolio streamlining. The public sector vertical market accounted for a 12% revenue growth in Q2 2025, and these public sector offerings represented 80% of its Q1 2025 revenue. The company recently announced a new contract with the Supreme Court of Appeals of West Virginia to implement its new case management software statewide, a clear win for the direct sales effort in the Justice Tech vertical. While the exact size of the direct sales force as of late 2025 isn't public, the focus on high-value, complex government contracts necessitates this dedicated team.

Integrated software platforms (the product itself is the channel)

The product architecture itself acts as a primary channel for revenue expansion, particularly through recurring streams. The success of this channel is visible in the growth of Annualized Recurring Revenue (ARR) and Software-as-a-Service (SaaS) revenue. For the fiscal year ended September 30, 2025, ARR from continuing operations reached $165.3 million, representing a period-to-period growth rate of 9.2% over the prior year's Q4. Furthermore, SaaS revenue, a key component of this integrated channel, grew 25% in Q4 2025, indicating strong adoption and stickiness of the embedded solutions. Overall, recurring revenue for Q4 2025 was $41.3 million, making up 75% of the total $54.9 million in Q4 revenue.

Here's a look at the financial metrics that reflect the strength of the recurring revenue channel as of the end of fiscal year 2025:

Metric	Value (Q4 2025)	Value (FY 2025)	YoY Growth (Q4 vs Q4 2024)
Revenue from Continuing Operations	$54.9 million	$213.2 million	7.0%
Recurring Revenue	$41.3 million	Not Explicitly Stated	9%
SaaS Revenue Growth	Not Explicitly Stated	Not Explicitly Stated	25%
Annualized Recurring Revenue (ARR)	$165.3 million	Not Explicitly Stated	9.2%
Adjusted EBITDA Margin	26.2%	27.0%	Change from 28.5% (Q4 2024)

Strategic acquisitions that bring an immediate customer base

i3 Verticals, Inc. (IIIV) continues to use acquisitions as a channel to immediately expand its customer base and product footprint within the public sector. The company executed a notable acquisition in April 2025, purchasing a utility billing software company for $9.0 million. This move expanded the company's footprint in the utilities market, bringing in an established customer base in that sub-vertical. This disciplined approach to M&A is supported by a strong balance sheet, ending the fiscal year with $67 million in cash and no debt, alongside $400 million in available borrowing capacity under its credit facility, positioning the company for future channel-building acquisitions.

i3 Verticals, Inc. (IIIV) - Canvas Business Model: Customer Segments

You're looking at i3 Verticals, Inc. (IIIV) after a major strategic pivot, shedding non-core businesses to become a pure-play software provider for the public sector. This focus dictates every customer interaction now.

The customer base is overwhelmingly concentrated in government and public-facing entities, which provides a defintely resilient, non-discretionary revenue stream. As of the fiscal year ended September 30, 2025, the company reported total revenue from continuing operations of $213.2M, with approximately 76% of that being recurring revenue, underscoring the sticky nature of these government contracts.

The primary customer groups served by i3 Verticals, Inc. are:

• - Public Sector: State and local government entities, including specialized software for courts, public safety, public administration, and transportation.
• - Utilities: Customers include utility providers, supported by software like AVR uVisionPLUS.
• - Education: Institutions such as K-12 and higher education, with solutions like PaySchools being a known part of this vertical.
• - Niche Markets: The focus is on vertical market software (VMS) deeply embedded in these public functions, which is where the company sees its competitive moat.

The nature of the business within these segments is reflected in the Q4 2025 revenue breakdown, where 70% of total revenues came from software and related services, and 25% from payments, showing the integration of payment facilitation into their core government software offerings.

Here's a look at the financial context surrounding these customer segments for the fiscal year 2025:

Metric	Value (FY 2025 Continuing Operations)	Context
Total Revenue	$213.2M	Total revenue from the focused public sector operations.
Annualized Recurring Revenue (ARR)	$165.3M	ARR as of Q4 2025, showing the scale of committed, predictable revenue from these customers.
Recurring Revenue Percentage	76%	Percentage of continuing operations revenue considered recurring.
SaaS Revenue Growth (Q4 Y/Y)	23% or 25%	Growth rate highlighting strong adoption within the customer base for subscription software.
Geographic Reach	All 50 states and Canada	The breadth of the customer installation base across North America.

While the outline mentions Non-profit and Property Management organizations, the company's stated strategy post-divestiture is a singular focus on the public sector verticals like justice, transportation, utilities, and education, which represented 80% of Q1 2025 revenue post-transition. The company's most adopted products, such as i3 BIS Tennessee Trustee and i3 Court Solutions MyFinePayment, directly serve these government and public service functions.

i3 Verticals, Inc. (IIIV) - Canvas Business Model: Cost Structure

You're looking at the cost base of i3 Verticals, Inc. (IIIV) after a major portfolio realignment, so the numbers reflect a pure-play public sector software provider as of late 2025. The focus shifts heavily toward maintaining and growing the core software base and integrating recent, smaller acquisitions.

High cost of software development and R&D investment (Justice/Utilities)

For a company selling mission-critical, cloud-native enterprise software, technology investment is a major, ongoing cost. While the company divested large segments, the remaining core still requires heavy investment to keep the software current and compliant. You can see a proxy for this investment in the amortization of internally developed software. For the nine months ended June 30, 2025, Depreciation and internally developed software amortization totaled $7,951 (in thousands), or approximately $7.95 million. This number reflects the long-term cost of building and upgrading the software platforms that generate the recurring revenue.

Significant personnel costs for specialized engineering and support staff

Specialized engineering talent to maintain and evolve vertical market software, plus the support staff to service government and utility clients, drives personnel costs up. While direct personnel expense isn't isolated in the latest reports, we can look at the scale of general operating costs before the major divestitures to gauge the baseline. For the full fiscal year ended September 30, 2024, the company reported Recurring cash SG&A expenses totaling $153,062 (in thousands), which is $153.06 million, across its segments. Personnel is the largest component of this figure, naturally. The current focus on a single public sector segment should, in theory, allow for some streamlining here, though specialized talent remains expensive.

Acquisition and integration costs for M&A strategy

i3 Verticals, Inc. maintains an active M&A pipeline, focusing on smaller, specialized public sector vertical acquisitions, like the utility billing acquisition mentioned in April 2025. These deals bring integration costs, which are expensed as incurred. You need to track the M&A-related expenses recorded in selling, general and administrative. Here's the quick math on those recent integration costs:

Period Ended	M&A-Related Expenses (in thousands)	M&A-Related Expenses (USD)
June 30, 2025	$5,373	$5.373 million
March 31, 2025	$570	$0.570 million
December 31, 2024	$546	$0.546 million

What this estimate hides is the cost of the two massive divestitures-the Merchant Services Business sale for $439.5 million in September 2024 and the Healthcare RCM Business sale for $96.3 million in May 2025-which involved their own transaction-related costs, though the net result was cash inflow.

Transaction processing fees and network costs

Since a core part of the value proposition is embedding payment processing into the vertical software, transaction processing fees are a direct cost of revenue, though they are often netted against the payment revenue stream. The company's focus on recurring revenue, with approximately 76% of revenue from continuing operations being recurring, largely from software and services integrated with its payment platform, means these variable costs scale with transaction volume. The overall cost structure efficiency is reflected in the Adjusted EBITDA margin. For the full fiscal year ended September 30, 2025, the Adjusted EBITDA from continuing operations as a percentage of revenue was 27.0%. This margin is the ultimate measure of how well i3 Verticals, Inc. manages its combined cost of services, personnel, and transaction-related network costs relative to its revenue base.

i3 Verticals, Inc. (IIIV) - Canvas Business Model: Revenue Streams

You're looking at the core of how i3 Verticals, Inc. (IIIV) makes money now that they've streamlined the business post-divestitures. The focus is heavily weighted toward predictable, high-quality software income, which is what sophisticated investors like to see.

The primary engine is recurring SaaS and subscription fees. This is the bedrock of the current model. You can see this clearly in the latest figures: Annual Recurring Revenue (ARR) hit $165.3 million in Q4 2025. That ARR growth of 9% in the quarter actually outpaced the overall revenue growth, which is a strong signal about the quality of the business they are keeping. The company is actively leaning into these recurring streams in negotiations.

Next up is the transactional component. Transaction-based payment processing fees are a significant, though smaller, piece. For the fourth quarter of 2025, payments accounted for 25% of Q4 2025 revenue. This segment still showed growth, with payments revenue increasing 11% year-over-year for the quarter.

The third category covers the less predictable, project-based work: professional services and non-recurring software license sales. This area saw some movement in Q4 2025. Nonrecurring sales of software licenses actually declined by $1.9 million, which management noted reflects the ongoing shift toward SaaS. To balance that, professional services revenue increased by $1.8 million in the same period, though this segment is expected to decline near-term, particularly in Q1 2026.

To put the whole picture together for the most recent full fiscal year, Total fiscal year 2025 revenue from continuing operations was $213.2 million. This revenue is now overwhelmingly from their core public sector software focus.

Here's the quick math on how the Q4 2025 revenue of $54.9 million broke down, which gives you a clearer view of the revenue mix:

Revenue Component	Q4 2025 Percentage of Total Revenue	Q4 2025 Dollar Amount (Implied/Stated)
Recurring Revenue (Total)	75%	$41.3 million
Payments Revenue	25%	(Implied: $13.725 million)
Software and Related Services (SaaS/Maintenance)	70%	(Implied: $38.43 million)
Professional Services & Non-Recurring Licenses	(Remainder of Software/Services)	(Implied: $13.57 million)
Other Revenue	5%	(Implied: $2.745 million)

The strategic direction is clear: they are prioritizing the durable, high-margin recurring revenue. You can see the focus on the software side, with SaaS revenues growing a healthy 25% year-over-year in the fourth quarter. This shift is what management believes will drive durable growth going forward.

The composition of that recurring bucket is also telling:

• - Recurring SaaS and subscription fees; ARR hit $165.3 million in Q4 2025
• - Transaction-based payment processing fees (Payments were 25% of Q4 2025 revenue)
• - Professional services and non-recurring software license sales (Nonrecurring licenses declined $1.9 million; professional services increased $1.8 million in Q4 2025)
• - Total fiscal year 2025 revenue from continuing operations was $213.2 million

Finance: draft 13-week cash view by Friday.