i3 Verticals, Inc. (NASDAQ: IIIV) closed at $6.12, up 1.80% on the day, following the release of its first-quarter fiscal 2026 earnings. The company’s market capitalization was approximately $0.85 billion at the latest market close.
Latest Quarterly Results (Q1FY26)
For the quarter ended December 31, 2025, revenue from continuing operations totaled $52.671 million, reflecting modest year-over-year growth. Adjusted EBITDA from continuing operations was $13.615 million, resulting in an adjusted EBITDA margin of approximately 26%. Adjusted diluted earnings per share from continuing operations were $0.26.
Recurring revenue for the quarter was $42.406 million, while annualized recurring revenue reached $169.624 million. Management continued to emphasize the importance of expanding recurring revenue streams as part of its operating model.
Segment Highlights
Software and related services generated $35.682 million of revenue during the quarter, representing the largest component of total revenue. Payments revenue was $14.475 million, reflecting ongoing transaction activity across supported verticals. Other revenue totaled $2.514 million for the period.
Financial Trends
On an annualized basis, the company reported continued growth in recurring revenue and ARR compared with the prior year. Management indicated that recurring revenue remains a key strategic focus, supporting revenue visibility and margin stability. Adjusted EBITDA performance reflected normal seasonality and continued investment in growth initiatives.
Business & Operations Update
During the quarter, i3 Verticals continued to prioritize ARR expansion, payments scale, and integration of product capabilities across its platform. The company reported ongoing investments in technology infrastructure, customer success, and sales enablement. Efforts to reduce reliance on one-time services and to shift the revenue mix toward recurring sources remained a focus.
M&A or Strategic Moves
No acquisitions or divestitures were announced during the quarter. Management reiterated its focus on organic growth, product development, and selective partnerships aimed at enhancing software and payments capabilities.
Equity Analyst Commentary
Discussion during the earnings call focused on ARR growth trends, margin sustainability, and the pace of recurring revenue expansion. Management addressed questions related to seasonality, cost structure, and initiatives designed to improve operating leverage.
Guidance & Outlook — what to watch for
What to watch for includes quarterly ARR progression, trends in payments revenue, adjusted EBITDA margin performance, execution of recurring revenue initiatives, and updates on platform integrations or partnerships.
Performance Summary
i3 Verticals reported modest revenue growth and improved recurring revenue metrics in the first quarter of fiscal 2026. Revenue totaled $52.671 million, adjusted EBITDA was $13.615 million, and ARR reached $169.624 million. The quarter reflected continued focus on building a more predictable, recurring revenue base.