i3 Verticals reported Q1 FY2026 results in line with expectations, characterized by modest overall revenue growth offset by a strong increase in recurring revenue and SaaS growth. The company also completed a strategic acquisition in the transportation market.
Annualized Recurring Revenue (ARR) increased by 8.4% year-over-year to $169.6 million.
positiveSaaS growth in the first quarter rose to 24%.
positiveCompleted acquisition of a driver and motor vehicle insurance verification software company for $60.0 million plus potential contingent consideration.
positiveRevenue from continuing operations increased by only 0.9% year-over-year to $52.7 million.
attentionNet income from continuing operations attributable to i3 Verticals, Inc. decreased by 69% to $0.6 million from $1.9 million in the prior year.
negativeAdjusted EBITDA from continuing operations decreased by 6.5% to $13.6 million from $14.6 million in the prior year.
negativeAdjusted EBITDA margin from continuing operations compressed to 25.8% from 27.9% in the prior year.
negativeDiluted net income per share attributable to Class A common stock from continuing operations decreased to $0.02 from $0.08 in the prior year.
negativeAdjusted diluted earnings per share from continuing operations decreased to $0.26 from $0.27 in the prior year.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Results were in line with expectations and market guidance.
Recurring revenue increased by more than 8%, reflecting our long-term growth strategy.
SaaS growth in the first quarter rose to 24%.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.