The EPS beat and strong ARR growth are positives, but the lowered revenue guidance and declining GAAP operating income warrant caution. Monitor Q3 results for recurring revenue acceleration and margin trends to validate the growth trajectory.
Price Chart
Executive Summary
i3 Verticals reported Q2 FY2026 adjusted EPS of $0.32, beating consensus of $0.29 by ~10%, while revenue of $57.5M was in line. Annualized Recurring Revenue (ARR) grew 11.6% YoY to $183.5M. However, FY2026 revenue guidance was slightly lowered to $221M-$229M (from $223M-$234M), and GAAP operating income declined 26% YoY, creating a mixed picture.
Key Financial Metrics
Key Facts
- Q2 revenue $57.5M, +6.2% YoY (in line with consensus)
- Adjusted diluted EPS $0.32, +10.3% vs consensus $0.29
- ARR $183.5M, +11.6% YoY, driven by SaaS growth (+24% YoY in Q1)
- FY2026 revenue guidance lowered to $221M-$229M from $223M-$234M
- Adjusted EBITDA $16.6M, +4.7% YoY; margin 28.8% vs 29.3% last year
- GAAP operating income fell 26% YoY to $3.7M
Financial Impact
Q2 adjusted EPS beat by $0.03 (10%) vs consensus; revenue guidance midpoint reduced by ~1.5%
Risk Factors
- Lowered FY2026 revenue guidance signals potential top-line headwinds
- GAAP operating income declined 26% YoY due to higher SG&A and acquisition-related costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001728688-26-000029 |
| Document: supplementalpresentation.htm | 0001728688-26-000029 |
| Document: iiiv-20260507.htm | 0001728688-26-000029 |
| Document: 0001728688-26-000029-index-headers.html | 0001728688-26-000029 |
| Document: 0001728688-26-000029-index.html | 0001728688-26-000029 |
| Document: 0001728688-26-000029.txt | 0001728688-26-000029 |
| 8-K Data (Synthetic) | 0001728688-26-000029 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 7d ago | SC 13G/A | $17.07 $16.94 | ▲ +0.76% | ▲ +1.29% | $16.90 (+1.00%) |
Oct 9, 2026 17d ago | 8-K | $16.20 $16.03 | ▼ −1.05% | ▼ −1.04% | $16.90 (+4.32%) |
Sep 30, 2026 26d ago | SC 13G | $14.46 $14.28 | ▼ −1.21% | ▼ −1.95% | $16.90 (+16.91%) |
Jun 2, 2026 20w ago | 8-K | $19.61 $19.86 | ▲ +1.27% | ▲ +0.88% | $16.90 (−13.82%) |
May 12, 2026 23w ago | 8-K | $18.89 $18.89 | · 0.00% | ▲ +0.00% | $16.90 (−10.53%) |
May 7, 2026 24w ago | 8-K | $21.14 $20.17 | ▼ −4.59% | ▼ −4.82% | $16.90 (−20.06%) |
US Market Status
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