i3 Verticals Reports Q1 Earnings, Highlights New Transportation Acquisition

The software and payments company saw modest revenue growth and discussed its approach to buybacks, product investment, and AI adoption in government tech.

Feb. 6, 2026 at 9:31am

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i3 Verticals reported first-quarter fiscal 2026 results, with revenue up 1% to $52.7 million. The company highlighted continued strength in recurring and SaaS revenue, while non-recurring revenue declined. i3 also discussed a new $60 million acquisition in the transportation market that closed at the start of 2026, as well as its plans for buybacks, product investment, and the pace of AI adoption in government technology.

Why it matters

i3 Verticals is a key provider of integrated software and payment processing solutions for government agencies and other vertical markets. The company's Q1 results and commentary on strategic priorities provide insights into trends in the government technology sector, including the growing importance of recurring revenue, mergers and acquisitions, and the adoption of emerging technologies like AI.

The details

For the quarter ended December 31, 2025, i3 Verticals posted revenue of $52.7 million, up 1% from the prior-year period. This reflected 8% growth in recurring revenues, partially offset by a $3 million decline in non-recurring professional services and software license revenues. Adjusted EBITDA was $13.6 million, down from $14.6 million a year earlier, due to investments in the company's justice and utility markets, higher hosting costs, and lower professional services revenue. The company expects adjusted EBITDA margin to improve over the remainder of fiscal 2026.

  • i3 Verticals reported first-quarter fiscal 2026 results on February 6, 2026.
  • The company's $60 million acquisition in the transportation market closed on January 1, 2026.

The players

i3 Verticals

A provider of integrated software and merchant payment processing solutions tailored for specific vertical markets across the United States.

Geoff Smith

Chief Financial Officer of i3 Verticals.

Greg Daily

Chief Executive Officer of i3 Verticals.

Rick Stanford

President of i3 Verticals.

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