I3 Verticals, Inc. (IIIV): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage dynamique de la technologie financière, I3 Verticals, Inc. (IIIV) émerge comme une puissance stratégique, transformant le traitement des paiements et les solutions du marché vertical avec son modèle commercial innovant. En fabriquant méticuleusement les écosystèmes technologiques spécialisés pour les industries de niche, cette entreprise a été la mise au point une approche unique qui prie les technologies de paiement avancées avec des plateformes logicielles spécifiques à l'industrie. Des prestataires de soins de santé aux organisations gouvernementales, i3 vertical fournit des solutions complètes et sur mesure qui non seulement rationalisent les opérations commerciales mais créent également une efficacité sans précédent dans divers segments de marché.

I3 Verticals, Inc. (IIIV) - Modèle commercial: partenariats clés

Processeurs de paiement et fournisseurs de technologies financières

Au Q4 2023, i3 Verticals s'associe à:

Partenaire	Détails du partenariat
Finerv	Services d'intégration de traitement des paiements
Paiements mondiaux	Solutions de paiement intégrées
Chase Services marchands	Collaboration technologique de paiement

Partenaires de développement et d'intégration logiciels

Les partenariats clés de développement de logiciels comprennent:

• Microsoft Dynamics
• Oracle NetSuite
• Logiciel SAGE

Fournisseurs de logiciels indépendants (ISV)

Partenariats ISV à partir de 2024:

ISV	Focus d'intégration
Avidxchange	Automatisation des comptes payables
Technologies en bas	Solutions de flux de travail financier

Fournisseurs de solutions de marché verticales

Partenariats du marché vertical:

• Solutions de paiement des soins de santé
• Systèmes de paiement du gouvernement
• Technologie financière de l'éducation

Institutions bancaires et financières

Partenariats bancaires primaires:

Institution financière	Portée du partenariat
Wells Fargo	Intégration des services marchands
Banque d'Amérique	Collaboration de traitement des paiements

Écosystème du partenariat total: 15+ partenariats stratégiques dans tous les secteurs de paiement, de logiciels et de technologie financière

I3 Verticals, Inc. (IIIV) - Modèle d'entreprise: Activités clés

Traitement des paiements et services marchands

Au quatrième trimestre 2023, les verticales i3 ont traité environ 10,4 milliards de dollars de volume de paiement total. La société soutient Plus de 25 000 clients marchands sur divers marchés verticaux.

Catégorie de service de paiement	Volume de transaction	Contribution des revenus
Traitement des cartes de crédit	6,2 milliards de dollars	42% des revenus de paiement
Paiements ACh / électronique	3,8 milliards de dollars	31% des revenus de paiement
Méthodes de paiement alternatives	400 millions de dollars	12% des revenus de paiement

Développement et personnalisation logicielles

En 2023, les verticales i3 ont investi 18,7 millions de dollars en recherche et développement. La société maintient une équipe d'ingénierie logicielle de 127 professionnels.

• Cycle de développement des logiciels moyen: 4-6 mois
• Taux de développement de solutions personnalisés: 37 solutions par an
• Fréquence de mise à jour logicielle: trimestriel

Conception de la solution de marché vertical

I3 Verticals Serve Six marchés verticaux principaux:

Marché vertical	Nombre de solutions	Pénétration du marché
Gouvernement	42 solutions spécialisées	18% de part de marché
Soins de santé	35 solutions spécialisées	22% de part de marché
Éducation	28 solutions spécialisées	15% de part de marché

Intégration et consultation technologiques

En 2023, l'entreprise a terminé 89 Projets d'intégration technologique complexes Avec une valeur de projet moyenne de 275 000 $.

• Durée moyenne du projet d'intégration: 3-4 mois
• Revenus de consultation technologique: 24,6 millions de dollars
• Taux de satisfaction du client: 94%

Fusions et acquisitions

En 2023, i3 vertical terminé 4 acquisitions stratégiques avec un investissement total de 62,3 millions de dollars.

Cible d'acquisition	Valeur de transaction	Focus stratégique
Fournisseur de solutions de paiement	22,5 millions de dollars	Développer les services marchands
Entreprise de développement de logiciels	18,7 millions de dollars	Améliorer les solutions de marché vertical

I3 Verticals, Inc. (IIIV) - Modèle commercial: Ressources clés

Plateformes de technologie de paiement propriétaire

Depuis le Q4 2023, les verticales i3 maintiennent 14 plateformes de traitement des paiements distincts sur divers marchés verticaux. L'infrastructure technologique de l'entreprise soutient:

Type de plate-forme	Nombre de plateformes	Investissement annuel
Traitement des paiements	8	4,2 millions de dollars
Solutions logicielles intégrées	6	3,7 millions de dollars

Équipes d'ingénierie logicielle et de développement

En 2023, I3 vertical employé:

• Ingénieurs logiciels totaux: 127
• Investissement en R&D: 12,3 millions de dollars
• Expérience d'ingénierie moyenne: 7,4 ans

Expertise sur le marché vertical spécifique à l'industrie

Marché vertical	Taille de l'équipe spécialisée	Pénétration du marché
Gouvernement	22 spécialistes	Part de marché de 38%
Éducation	18 spécialistes	29% de part de marché
Soins de santé	16 spécialistes	25% de part de marché

Systèmes de gestion de la relation client

Détails de l'infrastructure CRM pour 2023:

• Plates-formes CRM totales: 3
• Investissement annuel de technologie CRM: 1,9 million de dollars
• Points de données clients suivis: 47 mesures uniques

Infrastructure financière et technologique stratégique

Composant d'infrastructure	Investissement	Capacité
Cloud computing	6,5 millions de dollars	99,99% de disponibilité
Cybersécurité	4,1 millions de dollars	Cryptage 256 bits
Centres de données	3,8 millions de dollars	5 centres géographiquement distribués

I3 Verticals, Inc. (IIIV) - Modèle d'entreprise: propositions de valeur

Solutions de paiement complètes pour les industries de niche

En 2024, I3 Verticals fournit des solutions de traitement de paiement pour des segments de marché spécifiques avec des volumes de transaction annuels de 8,3 milliards de dollars sur les marchés verticaux ciblés.

Industrie verticale	Volume de transaction annuel	Pénétration du marché
Services gouvernementaux	2,1 milliards de dollars	37% de part de marché
Soins de santé	1,9 milliard de dollars	29% de part de marché
Éducation	1,5 milliard de dollars	24% de part de marché

Plates-formes logicielles sur mesure pour des marchés verticaux spécifiques

I3 vertical développe des solutions logicielles personnalisées avec un coût de développement moyen de 475 000 $ par plate-forme, desservant environ 12 500 clients uniques.

Technologie intégrée qui rationalise les opérations commerciales

• Capacités de traitement des transactions en temps réel
• Systèmes d'intégration basés sur le cloud
• Gestion automatisée de la conformité
• Protocoles de sécurité avancés

Traitement de paiement rentable et efficace

Les frais de traitement en moyenne de 2,1% par transaction, par rapport à la norme de l'industrie de 2,7%, générant 156 millions de dollars de revenus annuels des services de traitement des paiements.

Solutions technologiques spécifiques de l'industrie

Solution technologique	Taux de mise en œuvre	Satisfaction du client
Intégrations de paiement personnalisées	Taux d'adoption de 87%	94% Satisfaction du client
Systèmes de gestion de la conformité	Mise en œuvre de 79%	91% de satisfaction du client

I3 Verticals, Inc. (IIIV) - Modèle d'entreprise: relations avec les clients

Gestion de compte dédiée

En 2024, les verticales i3 maintient un Équipe de gestion des comptes clients desservant environ 6 500 clients commerciaux sur plusieurs marchés verticaux.

Métrique de gestion du compte	Valeur
Taille moyenne du compte	37 500 $ de revenus annuels par client
Personnel de gestion des comptes	42 gestionnaires de comptes dédiés
Taux de rétention des clients	92.4%

Assistance technique et service client continu

I3 Verticals fournit un support technique complet via plusieurs canaux.

• Disponibilité du support technique 24/7
• Temps de réponse moyen: 17 minutes
• Prise en charge multicanal, y compris le téléphone, les e-mails et le chat en ligne

Canal de support	Volume de soutien annuel
Support téléphonique	43 200 appels d'assistance
Assistance par e-mail	28 900 billets de support
Chat en ligne	16 500 interactions de chat

Mise en œuvre et formation personnalisées

I3 Verticals propose des services d'implémentation personnalisés pour chaque segment client.

• Temps de mise en œuvre moyen: 45 jours
• Spécialistes de la mise en œuvre dédiés: 29
• Heures de formation par client: 12-18 heures

Mises à jour logicielles régulières et améliorations

La société investit considérablement dans l'amélioration continue des logiciels.

Métrique de développement logiciel	Valeur
Investissement annuel de R&D	8,2 millions de dollars
Fréquence de mise à jour logicielle	Mises à jour trimestrielles majeures
Nombre de versions de logiciels annuels	4 versions majeures

Approche de partenariat à long terme

I3 vertical met l'accent sur les relations soutenues des clients grâce à l'engagement stratégique.

• Durée moyenne des relations avec le client: 5,7 ans
• Équipe de gestion de partenariat dédiée: 18 professionnels
• Participation annuelle de l'enquête sur la satisfaction des clients: 87%

I3 Verticals, Inc. (IIIV) - Modèle commercial: canaux

Équipe de vente directe

Au quatrième trimestre 2023, I3 Verticals maintient une équipe de vente directe d'environ 127 représentants commerciaux. L'équipe a généré 98,3 millions de dollars de revenus de ventes directs au cours de l'exercice 2023.

Métrique du canal de vente	2023 données
Représentants des ventes totales	127
Revenus de ventes directes	98,3 millions de dollars
Revenu moyen par représentant des ventes	$773,228

Marketing en ligne et plateformes numériques

Les canaux numériques représentent 22,6% de l'acquisition de clients verticaux i3 en 2023. La société a investi 4,2 millions de dollars dans des initiatives de marketing numérique.

• Trafic de site Web: 387 000 visiteurs uniques par mois
• Taux de conversion du plomb numérique: 3,7%
• Dépenses en marketing numérique: 4,2 millions de dollars

Conférences et salons commerciaux de l'industrie

En 2023, I3 vertical a participé à 47 conférences de l'industrie, générant 215 prospects qualifiés avec une valeur de contrat potentielle de 6,5 millions de dollars.

Métrique de la conférence	2023 données
Les conférences totales ont assisté	47
Leads qualifiés générés	215
Valeur de contrat potentiel	6,5 millions de dollars

Partenariats stratégiques

I3 Verticals maintient 83 partenariats stratégiques actifs, contribuant à 18,4% du total des revenus de l'entreprise en 2023, ce qui équivaut à 72,6 millions de dollars.

• Partenaires stratégiques totaux: 83
• Revenus de partenariat: 72,6 millions de dollars
• Valeur du partenariat moyen: 875 904 $

Réseaux de référence

Les réseaux de référence ont généré 43,2 millions de dollars de revenus pour les verticaux i3 en 2023, ce qui représente 10,9% du total des revenus de l'entreprise.

Métrique du réseau de référence	2023 données
Revenus de référence	43,2 millions de dollars
Pourcentage du total des revenus	10.9%
Nombre de partenaires de référence actifs	62

I3 Verticals, Inc. (IIIV) - Modèle d'entreprise: segments de clientèle

Fournisseurs de soins de santé

Taille du marché: 4,1 billions de dollars sur le marché américain des soins de santé en 2022

Type de client	Détails du segment	Pénétration estimée du marché
Hôpitaux	Systèmes de santé communautaires et régionaux	12% du marché total du traitement des paiements à l'hôpital
Cliniques	Centres chirurgicaux ambulatoires et pratiques privées	8,5% de part de marché

Organisations gouvernementales et municipales

Marché total adressable: 6,8 billions de dollars sur le marché des services gouvernementaux

• Volume de traitement des paiements locaux: 378 millions de dollars par an
• Marché des solutions logicielles municipales: 2,3 milliards de dollars
• Budget de modernisation des technologies gouvernementales: 87,4 milliards de dollars

Établissements d'éducation

Type d'institution	Total des institutions	Potentiel de traitement des paiements
Écoles K-12	130 930 écoles totales	Volume de transaction annuel de 1,2 milliard de dollars
Enseignement supérieur	4 360 institutions de degré	Volume de transaction annuel de 2,4 milliards de dollars

Organisations à but non lucratif

Métriques financières du secteur à but non lucratif:

• Revenu total à but non lucratif: 2,62 billions de dollars
• Nombre d'organismes sans but lucratif enregistrés: 1,8 million
• Volume de traitement annuel moyen du don: 427 millions de dollars

Petites et moyennes entreprises dans des verticales spécialisées

Entreprise verticale	Total des entreprises	Revenus de traitement des transactions annuelles
Services professionnels	1,1 million d'entreprises	3,6 milliards de dollars
Spécialité de vente au détail	782 000 entreprises	2,9 milliards de dollars
Industries des services	1,3 million d'entreprises	4,1 milliards de dollars

I3 Verticals, Inc. (IIIV) - Modèle d'entreprise: Structure des coûts

Frais de recherche et de développement

Pour l'exercice 2023, I3 Verticals a déclaré des dépenses de R&D de 14,3 millions de dollars, ce qui représente 7,2% des revenus totaux.

Exercice fiscal	Dépenses de R&D	Pourcentage de revenus
2023	14,3 millions de dollars	7.2%
2022	12,1 millions de dollars	6.5%

Ingénierie logicielle et infrastructure technologique

Les coûts des infrastructures technologiques pour les verticales i3 en 2023 ont totalisé environ 22,6 millions de dollars.

• Dépenses d'hébergement cloud: 6,8 millions de dollars
• Infrastructure réseau: 5,4 millions de dollars
• Outils de développement de logiciels: 3,2 millions de dollars
• Maintenance du centre de données: 7,2 millions de dollars

Investissements de vente et de marketing

Les dépenses de vente et de marketing pour l'exercice 2023 étaient de 37,5 millions de dollars.

Canal de marketing	Dépenses	Pourcentage du budget marketing
Marketing numérique	11,2 millions de dollars	29.9%
Ventes directes	15,3 millions de dollars	40.8%
Marketing d'événement	4,5 millions de dollars	12.0%
Marketing partenaire	6,5 millions de dollars	17.3%

Cosses de support client et de mise en œuvre

Les dépenses de support client pour 2023 s'élevaient à 16,7 millions de dollars.

• Personnel de soutien technique: 9,3 millions de dollars
• Intégration du client: 4,2 millions de dollars
• Formation et mise en œuvre: 3,2 millions de dollars

Entretien et mises à niveau de la technologie en cours

Les coûts de maintenance et de mise à niveau de la technologie en 2023 étaient de 19,8 millions de dollars.

Catégorie de maintenance	Dépenses	Pourcentage du total
Mises à jour logicielles	7,5 millions de dollars	37.9%
Améliorations de la sécurité	5,6 millions de dollars	28.3%
Optimisation du système	4,2 millions de dollars	21.2%
Mises à niveau du système hérité	2,5 millions de dollars	12.6%

I3 Verticals, Inc. (IIIV) - Modèle d'entreprise: Strots de revenus

Frais de traitement des transactions

Pour l'exercice 2023, I3 Verticals a déclaré des frais de traitement des transactions de 166,4 millions de dollars, ce qui représente une partie importante de leurs revenus totaux. Ces frais sont générés à partir des services de traitement des paiements dans divers secteurs verticaux de l'industrie.

Catégorie de revenus	Montant (2023)	Pourcentage du total des revenus
Frais de traitement des transactions	166,4 millions de dollars	48.3%

Revenus de licences logicielles et d'abonnement

En 2023, les revenus de licence de logiciels et d'abonnement ont atteint 82,7 millions de dollars, démontrant le solide modèle de revenus récurrent de l'entreprise.

• Revenus récurrents annuels (ARR) des abonnements logiciels: 82,7 millions de dollars
• Durée moyenne de l'abonnement logiciel: 3-5 ans

Services de mise en œuvre et de conseil

Les services de mise en œuvre et de conseil ont généré 37,5 millions de dollars de revenus pour l'exercice 2023.

Type de service	Revenu 2023	Durée moyenne du projet
Services de mise en œuvre	37,5 millions de dollars	2-4 mois

Frais de service marchand

Les frais de service marchand ont contribué 54,2 millions de dollars aux revenus de la société en 2023.

• Revenus de services marchands totaux: 54,2 millions de dollars
• Frais de transaction marchand moyens: 2,5 à 3,5%

Frais de service à valeur ajoutée

Les services à valeur ajoutée ont généré 22,6 millions de dollars de revenus supplémentaires pour les verticales i3 en 2023.

Catégorie de service à valeur ajoutée	Revenu 2023	Taux de croissance
Frais de service supplémentaires	22,6 millions de dollars	8.7%

Répartition totale des revenus pour 2023:

• Frais de traitement des transactions: 166,4 millions de dollars
• Licence et abonnements logiciels: 82,7 millions de dollars
• Services de mise en œuvre et de conseil: 37,5 millions de dollars
• Frais de service marchand: 54,2 millions de dollars
• Frais de service à valeur ajoutée: 22,6 millions de dollars
• Revenu annuel total: 363,4 millions de dollars

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.