i3 Verticals, Inc. (IIIV): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for the real story behind i3 Verticals' aggressive pivot to become a pure-play public sector software provider, so I've distilled their entire market approach into the four P's. Honestly, the numbers from fiscal 2025 show this strategy is working: with 75% of Q4 2025 revenue coming from recurring subscriptions and a 104% Net Dollar Retention rate, this isn't just a transition; it's a focused execution on high-margin, mission-critical software. Before you dive into the details, know this: their entire Product, Place, Promotion, and Price structure is now laser-focused on government entities, driving $213.2 million in total revenue for FY 2025. Read on to see the exact levers they are pulling.

i3 Verticals, Inc. (IIIV) - Marketing Mix: Product

You're looking at a company that has deliberately sharpened its focus, moving away from broader services to concentrate on mission-critical, cloud-native enterprise software specifically for the public sector. This strategic pivot is key to understanding their product value proposition as of late 2025.

The core offering is designed to help state and local governments and related agencies operate more effectively. This isn't just generic software; it's deep-domain technology tailored for non-discretionary government functions. The company is defintely leaning into high-margin, sticky recurring software subscriptions as the primary revenue engine.

The product suite addresses several distinct, yet interconnected, government verticals. You see solutions covering courts, public safety, public administration, utilities, transportation, and schools. For instance, the i3 CourtOne${\text{TM}}$ Case Management Solution (CMS) is being implemented statewide in jurisdictions like West Virginia to unify judicial operations.

A significant component of the product strategy is the seamless integration of payment processing directly into this vertical software. This bundling creates stickiness and streamlines financial processes for the government entities using the software. This focus on recurring revenue streams is clearly working, as SaaS revenue grew a healthy 25% in the fourth quarter of fiscal 2025.

Here's a quick look at the revenue composition for the fourth quarter of fiscal 2025, which shows the success of this product focus:

The commitment to recurring revenue is further supported by the Annualized Recurring Revenue (ARR) metric, which stood at $165.3 million at the end of the fourth quarter of fiscal 2025, representing a period-to-period growth rate of 9.2%. Furthermore, the Net Dollar Retention for the full fiscal year 2025 was 104%, meaning existing customers spent more than they did the prior year.

The product portfolio for the public sector is quite deep, offering specialized tools across several functions. You should note the breadth of the JusticeTech offering, for example:

• Case Management (CMS) for all case types.
• eFiling solutions like TrueFiling.
• Document Management System (DMS) for high volume.
• Digital Evidence Management via Vault.
• Public Safety tools: Dispatch and Records Management.
• Financial tools for courts to manage fines and fees.

The overall fiscal year 2025 revenue from continuing operations reached $213.2 million, an 11.5% increase over the prior year, showing the focused product strategy is translating to solid top-line growth. Finance: draft 13-week cash view by Friday.

i3 Verticals, Inc. (IIIV) - Marketing Mix: Place

The distribution strategy for i3 Verticals, Inc. is built around deep penetration into the public sector, ensuring their mission-critical enterprise software is available where and when government entities require it. This reach spans all 50 US states and Canada.

The primary channel for bringing solutions to market is a direct sales force targeting government entities. This is complemented by the use of a growing network of Independent Software Vendor (ISV) partners to extend market coverage and integration capabilities. The scale of this distribution effort supports approximately 33,500 clients.

The strategic focus is on non-discretionary vertical markets, specifically Justice and Utilities, where the company continues to accelerate investments in new solutions. The success of this focused distribution is reflected in the financial results for the fiscal year ended September 30, 2025, where full year revenue from continuing operations reached $213.2 million, an increase of 11.5% over the prior year.

The company's operational hub remains in Nashville, Tennessee, which guides the US operations.

The distribution success is heavily weighted toward recurring revenue streams, which accounted for 75% of total revenues in the fourth quarter of fiscal 2025. This recurring revenue base, measured as Annualized Recurring Revenue (ARR) at the end of Q4 2025, stood at $165.3 million.

Here's a look at the key operational metrics that define the scale of i3 Verticals, Inc.'s Place strategy as of late 2025:

The composition of the revenue delivered through these channels in the fourth quarter of fiscal 2025 illustrates the product mix being distributed:

• Software and related services represented 70% of total revenues for Q4 2025.
• Payments revenue accounted for 25% of total revenues for Q4 2025.
• Other revenue streams made up the remaining 5% of total revenues for Q4 2025.

i3 Verticals, Inc. (IIIV) - Marketing Mix: Promotion

Promotion activities for i3 Verticals, Inc. (IIIV) are heavily weighted toward investor and stakeholder communication, reinforcing the strategic pivot achieved through portfolio restructuring.

The core promotional narrative centers on the successful execution of its strategy, which is fundamentally built on Mergers & Acquisitions (M&A) to expand within the public sector.

• Completed sale of Merchant Services Business for approximately $439.5 million in cash in September 2024.
• Completed sale of Healthcare RCM Business for $96.3 million in cash in May 2025.
• The company now reports a single public sector-focused segment following these divestitures.

Communication efforts consistently emphasize the company's positioning as a pure-play public sector software provider, a narrative designed to attract investors looking for specialized, resilient vertical market software exposure.

The direct sales force is positioned as the primary vehicle for customer engagement, offering tailored, consultative support necessary for complex government procurement and implementation cycles across verticals like Justice Tech, transportation, public administration, education, and utilities.

Investor relations promotion highlights the durability and growth profile of the remaining business, focusing on recurring revenue metrics and operational efficiency improvements.

Net Dollar Retention (NDR) for fiscal 2025 was reported at 104%, a key metric for growth that includes payments revenue in the calculation for the year.

Further supporting the investor narrative, the balance sheet as of September 30, 2025, showed $67 million of cash and no debt.

• SaaS revenues grew 25% year-over-year in Q4 FY2025.
• Annualized Recurring Revenue (ARR) grew 9% to $165.3 million for Q4 2025.
• Adjusted diluted earnings per share from continuing operations for fiscal 2025 was $1.05.

i3 Verticals, Inc. (IIIV) - Marketing Mix: Price

You're looking at the financial results that underpin i3 Verticals, Inc.'s pricing power. The full fiscal year 2025 revenue from continuing operations landed at $213.2 million. This top-line performance reflects the success of shifting the customer spend toward more predictable models. To be fair, the pricing strategy is directly tied to the company's transition away from one-time sales.

The core of the pricing model is a blend of recurring and usage-based charges. It is subscription-based Software-as-a-Service (SaaS) plus transaction fees. This structure captures value both from the ongoing use of the software and the volume of business processed through it, which is a powerful combination for sticky government contracts. The success of this model is evident in the revenue mix.

Here's the quick math on how much of the revenue stream is now locked in:

• Recurring revenues made up 75% of Q4 2025 total revenue.
• Annualized Recurring Revenue (ARR) reached $165.3 million as of the end of Q4 2025.
• SaaS revenue, a key recurring component, grew 25% year-over-year in Q4 2025.
• The net dollar retention rate for fiscal 2025 was a healthy 104%.
• Management is targeting consistent price increases of 3-5% going forward.

The financial results clearly show the margin implications of this pricing and revenue mix shift. While the overall Adjusted EBITDA for FY 2025 was $57.5 million, reflecting high software margins, the quarterly picture shows the pressure from the transition. Non-recurring software license sales are declining due to the SaaS transition; for instance, these sales fell by $1.9 million year-over-year in Q4 2025, which pressured the quarter's margins.

You can see the key financial metrics that validate the pricing strategy's effectiveness over the full year versus the quarter:

The pricing strategy involves bundling ancillary services to reduce upfront costs for government clients, enabling them to adopt modern, integrated modular solutions faster. This approach helps manage the budgeting paradigm shift government clients face when moving from traditional capital expenditure models to SaaS subscriptions. If onboarding takes 14+ days, churn risk rises, so speed in deployment is a pricing enabler.

Finance: draft 13-week cash view by Friday.