Q4 2025 i3 Verticals Inc Earnings Call

November 18, 2025

Today through November 25th.

Operator: Recorded. A replay will be available starting today through 25 November. The number for the replay is 855-669-9658, and the code is 8288708. The replay may also be accessed for 30 days at the company's website. At this time, for opening remarks, I would like to turn the call over to Clay Whitson, Chief Strategy Officer. Please go ahead, sir.

Through November 25th.

The number for the replay is 85566 990 658 and the code is 8288708. The replay may also be accessed for 30 days at the Companys website.

At this time for opening remarks, I would like to turn the call over to Clay Whitson Chief strategy Officer. Please go ahead Sir.

Paul Christians: This concludes my comments, Drew. At this time, we will open the call for Q&A, please.

Good morning, and welcome to the fourth quarter 2025 conference call for I three verticals. Joining me on this call are Greg Daily, our chairman and CEO, Rick Stanford, Our President, Jeff Smith, Our Chief Financial Officer, and Paul Krishna <unk>, our Chief revenue Officer.

Clay Whitson: Good morning, and welcome to the Q4 2025 conference call for i3 Verticals, Inc. Joining me on this call are Greg Daily, our Chairman and CEO, Rick Stanford, our President, Geoff Smith, our Chief Financial Officer, and Paul Christians, our Chief Revenue Officer. To the extent any non-GAAP financial measure is discussed in today's call, you will also find a reconciliation to the most directly comparable GAAP financial measure by reviewing yesterday's earnings release. It is the company's intent to provide non-GAAP financial information to enhance understanding of its consolidated GAAP financial information. This non-GAAP financial information should be considered by each individual in addition to, but not instead of, the GAAP financial statements.

Operator: We will now begin the question-and-answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. Again, it is star, then one to ask a question. At this time, we will pause momentarily to assemble our roster. The first question comes from John Davis with Raymond James. Please go ahead.

To the extent any non-GAAP financial measure is discussed in today's call. You will also find a reconciliation to the most directly comparable GAAP financial measure by reviewing yesterday's earnings release.

It is the company's intent to provide non-GAAP financial information.

To enhance understanding of its consolidated GAAP financial information.

This non-GAAP financial information should be considered by each individual in addition to but not instead of the GAAP financial statements.

John Davis: Good morning, guys. Geoff, just wanted to dive in to the 2026 organic growth outlook. Our math is about 5%. I heard 8% to 10% recurring and professional services down. Is that a function of you're no longer selling those professional services, or maybe you're not putting things like Manitoba in the guide because they're lumpy and you don't know if they can, if they're going to hit or when they're going to hit? Just trying to get a sense for the level of conservatism, and also how much you expect professional services to be down on a year-over-year basis.

This.

This conference call may contain forward looking statements within the meaning of the private Securities Securities Litigation Reform Act of 1995.

<unk> call may contain forward looking statements within the meaning of the private Securities Securities Litigation Reform Act of 1995.

Clay Whitson: This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements, among others, regarding the company's expected financial and operating performance. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. You are hereby cautioned that these forward-looking statements may be affected by the important factors, among others, set forth in the company's earnings release and in reports that are filed or furnished to the SEC. Consequently, actual operations and results may differ materially from those discussed in the forward-looking statements. Finally, the information shared on this call is valid as of today's date, and the company undertakes no obligation to update it, except as may be required under applicable law.

Including statements among others regarding the company's expected financial and operating performance.

This purpose any statements made during this call that are not statements of historical fact may be deemed to be forward looking statements.

You are hereby cautioned that these forward looking statements may be affected by the important factors among others set forth in the company's earnings release and in reports that are filed or furnished to the SEC.

Geoff Smith: Yeah. Thanks for the question, JD. It's absolutely true that we are leaning into recurring revenue any chance we get. When it comes to negotiations like the West Virginia deal we just did or any opportunity where we can push and lean on the SaaS and defer or opt for the recurring sources instead of the professional services implementation sources in contract negotiations, we're absolutely doing that at each turn. That being said, the professional services, we don't expect that to go away. We don't think that what we have clear line of sight on in 2026 is reflective of any kind of long-term trend necessarily. There's a number of things: the West Virginia deal, utilities pipeline, then look really strong on the professional services and implementation front further out.

Consequently, actual operations and results may differ materially from those discussed in the forward looking statements.

Finally, the information shared on this call is valid as of today's date and the company undertakes no obligation to update it except as may be required under applicable law.

I will now turn the call over to the company's chairman and CEO Greg Daily.

Clay Whitson: I will now turn the call over to the company's Chairman and CEO, Greg Daily.

Thanks Clay.

And good morning to all of you on the call.

Greg Daily: Thanks, Clay. Good morning to all of you on the call. At the end of 2025, it's worth reflecting on how much we've accomplished over the last 2 years. Divesting our merchant services and our healthcare revenue cycle management businesses have turned a new chapter in i3 Verticals Public Sector. i3 provides transformational solutions in a range of government functions, including courts, public safety, public administration, utilities, transportation, and schools. We have streamlined our businesses and narrowed our investment to that end, and the returns are only beginning to accrue. In 2025, results show that our revenue growth was strong. In fiscal Q4, we grew 7% over a prior year tough comp. For the fiscal year, we grew at 11%, and 8% of that growth was organic. Our ability to grow our recurring revenue is the best predictor of our long-term growth prospects.

At the end of 2020 bond, it's worth reflecting on how much we've accomplished over the last two years.

Divesting, our merchant services and our health care revenue cycle management businesses had turned a new chapter in our three verticals public sector.

Three provides transformational solutions in a range of government functions, including courts.

Geoff Smith: Just true that for 2026, we think that the cadence and timing of some of those things is going to be a little bit lighter. We expect to see that line drop off a little bit here. It was strong in Q4. Some of that was a little bit of pull forward, but most of it is kind of things that we just think that the actual performance obligation fulfillment, the cadence of when we get to rubric on these is further back, end of 2026 or slipping into 2027.

Public safety public administration utilities transportation and schools.

We have streamlined our businesses and narrowed our investment to that end and the returns are only beginning to accrue.

In 2025 results showed that our revenue growth was strong.

In fiscal Q4, we grew 7% over <unk>.

John Davis: Okay, thanks. I just wanted to drill down a little bit on that dollar retention. I think you called it out 104 for the year. How much of that was price, and how should we think about kind of the pricing tailwind going forward?

Prior year tough comp.

For the fiscal year, we grew at 11% and 8% of that growth was organic.

Our ability to grow our recurring revenue.

Is the best predictor of our long term growth prospects.

Geoff Smith: We've addressed this a little bit with the market, but just to kind of recap some of these things, the company has been extremely conservative on price increases historically. I wouldn't say that we are—this isn't like a pendulum swing to the opposite end of the spectrum at all—but we're much more bought in and have been working through the contracts and the expectations to make sure we kind of get to more of a 3% to 5% price increase range on a consistent basis with our customers. We've kind of guided that you might expect if price increases were historically contributing 1% plus, that that would maybe inch up by about a percent a year for the next several years. The 2025 contribution from price increase, you're still in that vicinity of that 1% to 2% kind of range.

To highlight that point or a R. R grew over 9% in Q4 outpacing revenue.

To highlight that point, our AAR are grew over 9% in Q4 outpacing revenue.

Greg Daily: To highlight that point, our ARR grew over 9% in Q4, outpacing revenue. Geoff will discuss further that we expect similar growth rates in ARR in 2026, while our non-revenue will likely take a step backwards. Last quarter, we highlighted the importance of investing in new product and markets. We are excited that projects are underway in all of our markets, but our justice and utility investments continue to represent an outsized portion of our investment, and we expect these to accelerate in 2026. We have conviction about our revenue opportunities attached to these costs. Many of the impacts will be manifest in the form of durable, recurring revenue growth over the long term. We previously announced a win in the state of West Virginia is a perfect example.

Jeff will discuss further so we expect similar growth rates in <unk> are.

Jeff will discuss further we expect similar growth rates in <unk> are in 2026.

In 2026.

While our revenue.

Our revenue.

Our non revenue.

We'll likely take a step backwards.

We will likely take a step backwards.

Last quarter we.

Last quarter, we highlighted the importance of investing in new product.

Highlighting the importance of investing in new product.

And markets.

We are excited the.

The projects are underway in all of our markets.

That our justice and utilities investments continue to represent announced that portion of our investment.

That our justice and utility investments continue to represent announced that portion of our investment in.

And we expect these to accelerate in 2026.

We have conviction about our revenue opportunities attached to these cost many of the impacts will be manifest in the form of durable recurring revenue growth over the long term.

Geoff Smith: Looking ahead, we're probably getting closer to 1.5 to 3 range for 2026 in our expectations. Modest incremental increases there. We don't think we're at our final destination in terms of the contribution from price increases.

We previously announced a win in the state of West Virginia is a perfect example.

John Davis: Okay. Geoff, one more, and I got one bigger picture for Greg. Just on the margin front, what was the justice tech investment in the quarter? Was it bigger than you thought it was going to be, in line? Just remind us what you're expecting for incremental investments in justice tech in 2026.

We look forward to a long partnership serving courts and citizens of West Virginia, with our court management solution.

We look forward to a long partnership serving the courts and citizens of West Virginia, with our court management solution.

Greg Daily: We look forward to a long partnership serving courts and citizens of West Virginia with our court management solution. Those who know our M&A history are probably surprised we have $85 million in cash on hand and no debt. We will continue to thoughtfully deploy our capital in ways that enhance our ability to bring great solutions to our customers. This includes internal development and M&A. I will now turn the call over to Geoff. He will provide you more details on our financial performance. When he's finished, Rick will address the M&A pipeline. Paul will then discuss revenue.

Those who know our M&A history.

Are probably surprised we had $85 million in cash on hand, and no debt.

Are probably surprised we had $85 million in cash on hand, and no debt. We will continue to thoughtfully deploy our capital in ways that enhance our ability to bring great solutions to our customers.

We previously announced a win in the state of West Virginia is a perfect example.

Geoff Smith: Yeah. To recap, that primarily consists of its bodies, to put it simply, bodies to accelerate the development of our core package, bodies to accelerate the implementation of our core package. It's all things that we think we're going to get a great return on. West Virginia is just one of kind of the sources where that's going to kind of come from. We're really excited about that deal. The cost is, I'd say, it's relatively in line with where we thought it was going to be for Q4, but these are people who are going to be with us for the foreseeable future here. That kind of elevated cost is going to continue into this next fiscal year here.

We'll continue to thoughtfully deploy our capital in ways that enhance our ability to bring great solutions to our customers.

We look forward to a long partnership serving courts and citizens of West Virginia, with our court management solution.

This includes internal development and M&A.

Those who know our M&A history.

I will now turn the call over to Jeff and he will provide you more details on our financial performance.

I will now talk turn the call over to Jeff and he will provide you more details on our financial performance.

Are probably surprised we had $85 million in cash on hand, and no debt.

And when Rick is done and then when he's finished Rick will address M&A pipeline and Paul will then discuss revenue.

We'll continue to thoughtfully deploy our capital in ways that enhance our ability to spring great solutions to our customers.

Okay.

Thanks, Greg the following pertains to the fourth quarter of our fiscal year 2025, which is the quarter ended September 32025.

This includes internal development and M&A.

Geoff Smith: Thanks, Greg. The following pertains to Q4 of our fiscal year 2025, which is the quarter ended 30 September 2025. Please refer to the slide presentation titled Supplemental Information on our website for reference with this discussion. As a recap, we sold our healthcare RCM business in May 2025. The sale followed the sale of our merchant services business in September 2024. We are now a pure-play software solutions provider for the Public Sector operating in a single segment. For financial reporting purposes, when you look at our earnings release or later our 10-K, continuing operations and remain co refer to our results exclusive of the merchant services and healthcare RCM businesses.

I will now turn the call over to Jeff and he will provide you more details on our financial performance.

Please refer to the slide presentation titled supplemental information on our website for reference with this discussion.

And when Rick is done and then when he's finished Rick will address M&A pipeline and Paul will then discuss revenue.

John Davis: Okay. Greg, $85 million cash on the balance sheet here. How do we think about buyback versus M&A? Just remind us how much you have on the buyback. It looks like this year is going to be a little bit of a transition year, at least on the revenue front. Just how are you thinking about that M&A versus buyback here? Remind us how much you guys have authorized left.

As a recap we sold our health care RCM business in May 2025.

Sales followed the sale of our merchant services business in September 2024.

<unk> followed the sale of our merchant services business in September 2024.

Yeah.

Thanks, Greg the following pertains to the fourth quarter of our fiscal year 2025, which is the quarter ended September 32025.

We're now a pure play software solutions provider for the public sector operating in a single segment.

For financial reporting purposes, when you look at our earnings release for later or 10-K, continuing operations and remain co referred to our results exclusive of the merchant services and health care RCM businesses.

Please refer to the slide presentation titled supplemental information on our website for reference with this discussion.

As a recap we sold our health care RCM business in May 2025.

They all followed the sale of our merchant services business in September 2024.

Revenues for the fourth quarter of fiscal 2025 increased 7% to $54 9 million from $51 3 million for Q4 2024.

Geoff Smith: Regarding buybacks, I'll let Greg hit M&A, but the buybacks, we just refreshed the approval to $50 million. Not a lot of activity in this current period. We'll see, obviously, the detail in our 10K. That's something that the emphasis is on being opportunistic. We'll do it when we think we get a good return, and we're not going to chase it when we don't think that we're a given.

Geoff Smith: Revenues for the Q4 of fiscal 2025 increased 7% to $54.9 million from $51.3 million for Q4 2024, reflecting organic growth of 4.5% and $1.3 million of inorganic revenues from a permitting and license acquisition in August 2024 and utility billing acquisition in April 2025. Organic revenue growth for the year was 8.4%. Recurring revenues increased 9% to $41.3 million for Q4 2025, compared to $37.8 million for Q4 2024. 75% of our revenues in the quarter came from recurring sources. SaaS revenues grew a healthy 25%, more than offsetting an 8% decline in maintenance. Transactional-based revenues and recurring software services grew 10%, while payments revenue grew 11%.

We're now a pure play software solutions provider for the public sector operating in a single segment we're.

Organic growth of four 5% and $1 $3 million of inorganic revenues.

Organic growth of four 5% and $1 $3 million of inorganic revenues from a permitting and license acquisition in August 2024, and utility billing acquisition in April of 2025.

Permitting in license acquisition in August 2024, and utility billing acquisition in April of 2025.

Revenues for the fourth quarter of fiscal 2025 increased 7% to $54 9 million from $51 3 million for Q4, 'twenty three 'twenty, four reflecting organic growth of 4.5% and $1.3 million of inorganic revenues.

Organic revenue growth for the year was eight 4%.

Recurring revenues increased 9% to $41 3 million for Q4, 2025 compared to $37 8 million for Q4 2024.

Gregory Daily: On the M&A, we've worked in our pipeline for 13 years, and I think you'll see some activity sooner than later. We've done a couple of small ones that we really don't talk a lot about. I think we'll still do those, but I think there'll be a couple of meaningful ones that we get done in 2026.

75% of our revenues in the quarter came from recurring sources.

Permitting in license acquisition in August 2024, and utility billing acquisition in April 2025.

75% of our revenues in the quarter came from recurring sources.

SaaS revenues grew a healthy 25%, it's one offs offsetting an 8% decline in maintenance.

Organic revenue growth for the year was eight 4%.

Transactional base revenues and recurring software services grew 10% while payments revenue grew 11% non.

Recurring revenues increased 9% to $41 3 million for Q4, 2025 compared to $37 8 million for Q4 2024.

Transactional base revenues and recurring software services grew 10% while payments revenue grew 11%.

John Davis: Greg, when you say meaningful, more tuck-in but announced deals that are big enough that you're going to announce them versus maybe some that are just immaterial and not even worth kind of press releasing or talking about?

Nonrecurring sales of software licenses declined $1 9 million, reflecting the ongoing shift to SaaS.

Geoff Smith: Non-recurring sales of software licenses declined $1.9 million, reflecting the ongoing shift to SaaS. Professional services revenue increased $1.8 million, partially offsetting the decline in software license sales. Software and related services represented 70% of total revenues for Q4, with payments 25% and other 5%. At this time last year, we introduced a new metric, net dollar retention, which we will disclose annually. It applies to all recurring revenue line items, but last year excluded payments. This year, we've included the payments revenue in this metric, and the net dollar retention for fiscal 2025 was 104%.

75% of our revenues in the quarter came from recurring sources.

Personal services revenue increased $1 8 million, partially offsetting the decline in software and license software license sales.

SaaS revenues grew a healthy 25% supporting us offsetting an 8% decline in maintenance.

Gregory Daily: Exactly.

John Davis: Nothing transformative?

Gregory Daily: Yeah. Nothing transformative, but they're larger. We say our sweet spot is $2 to 5 million of EBITDA, and we pay 10x. We could get a little bit above that, but nothing dramatically.

Transactional based revenues and recurring software services grew 10% while payments revenue grew 11%.

Software and related services represented 20%, 70% of total revenues for Q4 with payments, 25% and other 5%.

Software and related services represented 27% of total revenues for Q4 with payments, 25% and other 5%.

Nonrecurring sales of software licenses declined 1.9 million, reflecting the ongoing shift to SaaS.

At this time last year, we introduced a new metric net dollar retention, which we will disclose annually.

John Davis: Okay, appreciate it. Thanks, guys.

Personal services revenue increased more than 8 million, partially offsetting the decline in software and license software license sales.

Just all recurring revenue line items last year excluded payments.

This all recurring revenue line items last year excluded payments.

Operator: If you have a question, please press star, then one. This concludes our question-and-answer session. I would like to turn the conference back over to Greg Daily for any closing remarks.

This year, we've included the payments revenue in this metric net dollar retention for fiscal 2025 was 104%.

Software and related services represented 20%, 70% of total revenues for Q4 payments, 25% and other 5%.

Adjusted EBITDA declined slightly to $14 4 million for Q4, 2025% from $14 6 million for Q4, 2024, principally reflecting a decrease in nonrecurring soft sales of software licenses, which are high margin and increase and an increase in lower margin professional services.

At this time last year, we introduced a new metric net dollar retention, which we will disclose annually.

Geoff Smith: Adjusted EBITDA declined slightly to $14.4 million for Q4 2025 from $14.6 million for Q4 2024, principally reflecting a decrease in non-recurring sales of software licenses to high margin, and an increase in lower margin professional services. Adjusted EBITDA as a percentage of revenues was 26.2% for Q4 2025. This is 28.5% for Q4 2024. It improved for the year to 27% for fiscal 2025 from 26.4% for fiscal 2024. The improvement was driven mainly by lower corporate expenses following the two divestitures. The 60 basis point improvement for the year was on the lower end of our long-term expectations of 50 to 100 basis points improvement for the year because of our previously mentioned investment in our JusticeTech products. That will continue into 2026.

This all recurring revenue line items last year excluded payments.

Gregory Daily: Thank you. We do appreciate your interest. We're here if you need to talk, discuss. We do appreciate your support. Thank you. Have a good day.

This year, we've included the payments revenue in this metric net dollar retention for fiscal 2025 was 104%.

Adjusted EBITDA as a percentage of revenues was 26, 2% for Q4, 2025, which was 28, 5% for Q4 2024.

Adjusted EBITDA declined slightly to $14 4 million for Q4, 2025, and $14 6 million for Q4, 2024, principally reflecting a decrease in nonrecurring soft sales of software licenses sure high margin, an increase and an increase in lower margin professional services.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

With improved for the year to 27% for fiscal 2025% from $26 four for fiscal 2020 for the improvement was driven mainly by lower corporate expenses. Following the two divestitures the.

With improved for the year to 27% for fiscal 2025 from $26 four for fiscal 2020 for the improvement was driven mainly by lower corporate expenses. Following the two divestitures the.

Adjusted EBITDA as a percentage of revenues was 26, 2% for Q4, 2025, which was 28, 5% for Q4 2024.

The 60 basis point improvement for the year was on the lower end of our long term expectations of 50 to 100 basis points improvement for the year.

Because of our previously mentioned investment in our justice products that.

As of our previously mentioned investment in our Justice products.

With improved for the year to 27% for fiscal 2025 from $26 four for fiscal 2020 for the improvement was driven mainly by lower corporate expenses following the two divestitures.

That will continue into 2026.

And that will continue into 2026.

Adjusted diluted earnings per share from continuing operations was 27.

Geoff Smith: Adjusted diluted earnings per share from continuing operations was $0.27 for Q4 2025 and $1.05 for the fiscal year. These numbers exclude discontinued operations. Again, please refer to the press release for a full description and reconciliation. Our balance sheet is strong and well-positioned for the future. As of 30 September, we had $67 million of cash and no debt. We still have $400 million of borrowing capacity under the revolving credit facility with a 5x leverage constraint. We intend to use the cash and any borrowings for acquisitions and opportunistic stock repurchases. The following sets forth guidance for continuing operations for FY 2026. The outlook does not include acquisitions that have not yet closed or transaction-related costs. Revenues, $217 to 232 million.

For Q4, 2025 and $1 five for the fiscal year. These numbers exclude discontinued operations again, please refer to the press release for a full description and reconciliation.

The 60 basis point improvement for the year was on the lower end of our long term expectations of 50 to 100 basis points improvement for the year.

As of our previously mentioned investment in our Justice products.

Our balance sheet is strong and well positioned for the future as of September 30, we had $67 million of cash and no debt.

Our balance sheet is strong and well positioned for the future as of September 30, we had $67 million of cash and no debt we.

And that will continue into 2026.

Adjusted diluted earnings per share from continuing operations was 27.

We still have $400 million of borrowing capacity under the revolving credit facility with a five X leverage constraint.

For Q4, 2025 and $1 five for the fiscal year. These numbers exclude discontinued operations again, please refer to the press release for a full description and reconciliation.

We intend to use the cash in any borrowings for acquisitions and opportunistic stock repurchases.

The following sets forth guidance for continuing operations for FY 2026 <unk>.

The following sets forth guidance for continuing operations for FY 2026.

Our balance sheet is strong and well positioned for the future as of September 30th we had $67 million of cash and no debt we.

The outlook does not include acquisitions that have not yet closed or transaction related costs.

We still have $400 million of borrowing capacity under the revolving credit facility with a five X leverage constraint.

Revenues $217 million to 330 $232 million.

We intend to use the cash in any borrowings for acquisitions and opportunistic stock repurchases.

Adjusted EBITDA, $58 5 million to $65 million.

Geoff Smith: Adjusted EBITDA, $58.5 to 65 million. Depreciation and internally developed software amortization, $10.5 to 12.5 million. Adjusted diluted earnings per share, $1.06 to $1.16. Currently expect recurring revenues to grow at a rate similar to fiscal 2025 in the range of 8% to 10%. However, we currently expect a decline in our non-recurring professional services driven by the cadence of revenue recognition on certain projects in our utilities and transportation markets. This will be particularly true in Q1. Despite the lower outlook for those markets in fiscal 2026, they are well-positioned to rebound in fiscal 2027 and beyond. Our long-term expectation for organic revenue growth remains high single digit.

Depreciation and internally developed software amortization $10 5 million to $12 5 million adjusted diluted earnings per share.

The following sets forth guidance for continuing operations for FY 2026.

Depreciation and internally developed software amortization 10, five to $12 5 million adjusted diluted earnings per share.

The outlook does not include acquisitions that have not yet closed or transaction related costs.

$1 <unk>.

$1 <unk> to.

It's a $1 16.

Revenues $217 million to 330 $232 million.

So $1 16.

Currently expect recurring revenues to grow at a rate similar to fiscal 2025, and the range of 8% to 10%.

Adjusted EBITDA, $58 5 million to $65 million.

However, we currently expect a decline in our non recurring professional services.

However, we currently expect a decline in our non recurring professional services or the cadence driven by the cadence of revenue recognition on certain projects in our utilities and transportation markets.

Depreciation and internally developed software amortization 10, five to $12 5 million adjusted diluted earnings per share.

Cadence driven by the cadence of revenue recognition on certain projects in our utilities and transportation markets. This will be particularly true in Q1.

$1.06 to $1 16.

It will be particularly true in Q1.

Currently expect recurring revenues to grow at a rate similar to fiscal 2025, and the range of 8% to 10%.

Despite the lower outlook for those markets in fiscal 2026, they are well positioned to rebound in fiscal 'twenty seven and beyond.

Despite the lower outlook for those markets in fiscal 2026, they are well positioned to rebound in fiscal 2007 and beyond.

However, we currently expect a decline in our non recurring professional services.

Our long term expectation for organic revenue growth remains high single digit.

Cadence driven by the cadence of revenue recognition on certain projects in our utilities and transportation markets. This will be particularly true in Q1.

While we are now a single operating segment, we would like to provide some detail regarding the size and relative contributions to revenues by our core markets.

Geoff Smith: While we are now a single operating segment, we would like to provide some detail regarding the size and relative contributions to revenues by our core markets. Justice is our largest market, representing approximately 25% of revenues. Utilities, transportation, education, and public administration are all roughly equally weighted. From a seasonality standpoint, software license sales and professional services represent the most variable line items to forecast and can distort seasonality in given quarter. We currently expect our revenue distribution to approximate the following: Q1, 23%, Q2, 25.5%, Q3, 24.5%, Q4, 27%. I'll now turn the call over to Rick for updates on the M&A pipeline.

Despite the lower outlook for those markets in fiscal 2026 and are well positioned to rebound in fiscal 'twenty seven and beyond.

Justice is our largest market representing approximately 25% of revenues utilities transportation education and public administration are all roughly equally weighted.

Our long term expectation for organic revenue growth remains high single digits.

From a seasonality standpoint software license sales and professional services represent the most variable line items to forecast and can distort seasonality in given quarter.

From a seasonality standpoint software license sales and professional services represent the most variable line items to forecast and can historic seasonality in given quarter.

While we are now a single operating segment, we would like to provide some detail regarding the size and relative contributions to revenues by our core markets.

We currently expect our revenue distribution to approximate the following.

We currently expect our revenue distribution to approximate the following Q1, 23% Q2, 25, 5% Q3, 24, 5% Q4, 27%.

Justice is our largest market representing approximately 25% of revenues utilities transportation education Public administration are all roughly equally weighted.

Q1, 43% Q2, 25, 5% Q3, 24, 5% Q4, 27%.

From a seasonality standpoint software license sales and professional services represent the most variable line items to forecast and can distort seasonality in given quarter.

I'll now turn the call over to Rick for updates on the M&A pipeline.

Jeff Good morning, everyone I'll briefly address M&A, and then I'll hand, the call off to Paul This past quarter as presented various opportunities to assess potential acquisition targets are interest in some of these companies remained strong and discussions are ongoing.

Jeff Good morning, everyone I'll briefly address M&A, and then I will hand, the call off to Paul This past quarter as presented various opportunities to assess potential acquisition targets are interest in some of these companies remained strong and discussions are ongoing.

We currently expect our revenue distribution to approximate the following.

Rick Stanford: Thank you, Geoff. Good morning, everyone. I'll briefly address M&A, and then I'll hand the call off to Paul. This past quarter has presented various opportunities to assess potential acquisition targets. Our interest in some of these companies remains strong, and discussions are ongoing. Acquisition philosophy remains steady. We will pursue opportunities that align with our strategic goals while maintaining a disciplined approach to pricing. Additionally, each potential acquisition must fit well within our operational framework, ensuring compatibility. We remain optimistic as our acquisition pipeline is constantly churning and continually filled with promising opportunities. Our primary focus remains on strengthening our public sector vertical, where we see significant potential for growth and innovation. I'll now turn the call over to Paul for final comments.

Q1, 43% Q2, 25, 5% Q3, 24, 5% Q4, 27%.

Physician philosophy remains steady we will pursue opportunities that align with our strategic goals, while maintaining a disciplined approach to pricing. Additionally, each potential acquisition less fit well within our operational framework, ensuring compatibility we remain optimistic optimistic as our acquisition pipeline is constantly churning.

Physician philosophy remains steady we will pursue opportunities that align with our strategic goals, while maintaining a disciplined approach to pricing traditionally.

I'll now turn the call over to Rick for updates on the M&A pipeline.

Thank you Jeff Good morning, everyone I'll briefly address M&A, and then I will hand, the call off to Paul This past quarter as presented various opportunities to assess potential acquisition targets are interest in some of these companies remained strong and discussions are ongoing.

Additionally, each potential acquisition less fit well within our operational framework ensuring compatibility.

We remain optimistic optimistic as our acquisition pipeline is constantly churning and continually filled with promising opportunities. Our primary focus remains on strengthening our public sector vertical where we see significant potential for growth and innovation I'll now turn the call over to Paul for final comments.

And continually filled with promising opportunities our primary focus remains on strengthening our public sector vertical where we see significant potential for growth and innovation I will now turn the call over to Paul for final comments.

Physician philosophy remains steady we will pursue opportunities that align with our strategic goals, while maintaining a disciplined approach to pricing traditional each potential acquisition must fit well within our operational framework, ensuring compatibility we remain optimistic optimistic as our acquisition pipeline is constantly churning.

Thank you Rick.

Hi, three verticals as structured into five primary markets Justice Tech transportation.

Three verticals as structured into five primary markets Justice Tech transportation.

Paul Christians: Thank you, Rick. i3 Verticals is structured into five primary markets: JusticeTech, transportation, public administration, education, and utilities. Because we intentionally structured our organization in a market-centric model to remain as close to the customer as possible, intra-market cross-selling naturally progressed into solution bundling. As solutions have evolved, some are applicable cross-market. Given that, leadership is actively identifying synergistic opportunities across markets, further accelerating revenue and deepening customer engagements. Governments are prioritizing the modernization of legacy systems, enhanced user experience, and improved transparency for constituents. The combination of modernization needs and scope expansion creates a unique market opportunity for i3 Verticals to address the gap by providing solutions that include ancillary modules such as payments and other revenue cycle activities that may reduce costs of systems modernizations. Additionally, i3 is positioned to address the needs of all sides of the state and local government agencies.

And continually filled with promising opportunities our primary focus remains on strengthening our public sector vertical where we see significant potential for growth and innovation I'll now turn the call over to Paul for final comments.

<unk> administration education and utilities.

Administration education and utilities.

Because we intentionally structured our organization in a market and a market centric model to be made as close to the customer as possible interim market cross selling naturally progressed into solution bundling.

Because we intentionally structured our organization in a market and a market centric model to be made as close to the customer as possible.

From market cross selling naturally progressed into solution bundling.

Thank you Rick.

Hi, three verticals is structured and five primary markets Justice Tac transportation.

Our solutions have evolved.

Some are applicable cross market given.

<unk> administration education and utilities.

Given that leadership is actively identifying synergistic opportunities across markets further accelerating revenue and deepening customer engagement.

Because we intentionally structured our organization in a market and a market.

Market centric model.

Made as close to the customer as possible interim market cross selling naturally progressed into solution bumpy <unk>.

Governments are prioritizing the modernization of legacy systems, and enhanced user experience and improve transparency for our constituents.

<unk> solutions have evolved some are applicable cross market.

The combination of modernization needs and scope expansion creates a unique market opportunity for <unk> III verticals to address the gap by.

The combination of modernization needs and scope expansion creates a unique market opportunity for <unk> III verticals to address the GAAP.

Given that leadership is actively identifying synergistic opportunities across markets further accelerating revenue and deepening customer engagement.

By providing solutions that include ancillary modules, such as payments and other revenue cycle activities that may reduce cost of systems Modernizations.

Governments are prioritizing the modernization of legacy systems, and enhanced user experience and improve transparency for our constituents.

Additionally, <unk> is positioned to address the needs of all sides of the state and local government agencies.

The combination of modernization needs and scope expansion creates a unique market opportunity for ion three verticals to address the gap by.

Our solutions architecture and service delivery model allows us to scale from an from a single agency to an entire state system broadening our addressable market.

Paul Christians: Our solutions architecture and service delivery model allows us to scale from a single agency to an entire state system, broadening our addressable market. Recently, i3 Verticals announced the expansion of our partnership with the West Virginia Supreme Court to deliver the i3 CourtOne case management solution to the state's circuit, family, and magistrate courts. With the new contract, i3 provides ancillary value-added services designed to maximize efficiency and offset project costs for West Virginia's unified judicial system. An expanded platform will empower citizens to gain greater access to aggregated public court data, while the revenue cycle management module will streamline financial processes and improve courts' case disposition rates. We are experiencing a heightened awareness and demand for technology-forward platform solutions across the public sector. Platform offerings support decision-makers' ability to manage results versus managing assembly of multiple systems, vendors, and ongoing maintenance.

By providing solutions that include ancillary modules, such as payments and other revenue cycle activities that may reduce cost of systems Modernizations additions.

Recently, ICP verticals announced the expansion of our partnership with the West Virginia Supreme Court to deliver the <unk> CT one case management solution to the states circuit family and magistrate Court.

Recently, I have three verticals announced the expansion of our partnership with the West Virginia Supreme Court to deliver the <unk> CT one case management solution to the states circuit family and magistrate Court.

Additionally, <unk> is positioned to address the needs of all sides of the state and local government agencies, our solutions architecture and service delivery model.

How's us to scale from an eight from a single agency to an entire state system broadening our addressable market.

With the new contract <unk> provides ancillary value added services designed to maximize efficiency and offset project costs for West Virginia is unified judicial system.

Recently, I had three verticals announced the expansion of our partnership with the West Virginia Supreme Court to deliver the <unk> CT one case management solution to the states circuit family and magistrate Court.

An expanded platform will empower citizens to gain greater access to aggregated public court data, while the revenue cycle management module will streamline financial processes and improved court case disposition rates.

With the new contract <unk> provides ancillary value added services designed to maximize efficiency and offset project costs for West Virginia is unified judicial system.

We are experiencing a heightened awareness and demand for technology forward platform solutions across the public sector.

And expanded platform will empower citizens to gain greater access to aggregated public court data, while the revenue cycle management module will streamline financial processes and improved courts case disposition rates.

Platform offerings to support decision makers ability to manage results versus managing assembly of multiple systems vendors and ongoing maintenance.

Recent evidence of market platform orientation include higher number of Rfps and increase in the scope of the solutions covered unified data structure for analytics.

Paul Christians: Recent evidence of market platform orientation include higher number of RFPs, an increase in the scope of the solutions covered, unified data structure for analytics, and ongoing systems evolution and maintenance requirements. The shift from traditional licensing and capital expenditure models to SaaS introduces a new budgeting paradigm for government clients. One of our differentiators is that i3 is organized both in solution bundling and delivery structure to scale implementation from a single agency to statewide deployment. To address evolving platform market trends, we bundle ancillary services to reduce upfront costs and deliver integrated modular solutions that deliver modernization with extended scope and enable rapid rollout of additional modules. As referenced earlier, we're observing increased RFP activity alongside continued pipeline growth.

We are experiencing a heightened awareness and demand for technology forward platform solutions across the public sector.

And ongoing systems evolution and maintenance requirements.

Platform offerings to support decision makers ability to manage results versus managing assembly of multiple systems vendors and ongoing maintenance.

Shifting from traditional licensing and capital expenditure models to SaaS introduces a new budgeting paradigm for government clients.

Recent evidence of market platform orientation include higher number of Rfps and increase in the scope of the solutions covered unified data structure for analytics and.

One of our Differentiators is that <unk> is organized both in solution bundling and delivery structure to scale implementation from a single agency to statewide deployment.

And ongoing systems evolution and maintenance requirements.

The address evolving platform market trends, we bundle ancillary services to reduce upfront cost and deliver integrated modular solutions that deliver that deliver modernization with extended scope and enable rapid rollout of additional modules.

The shift from traditional licensing and capital expenditure models to SaaS introduces a new budgeting paradigm for government clients.

One of our Differentiators is that <unk> is organized both in solution bundling and delivery structure to scale implementation from a single agency to statewide deployment.

As referenced earlier, we are absorbing increased our RFP activity alongside continued pipeline growth.

As referenced earlier, we are observing increased our RFP activity alongside continued pipeline growth.

This momentum in part reflects increased recognition of <unk> as a trusted platform provider.

Paul Christians: This momentum, in part, reflects increased recognition of i3 as a trusted platform provider and the enhanced market visibility achieved through our brand unification over the past year. This concludes my comments, Drew. At this time, we will open the call for Q&A, please.

The enhanced market visibility achieved through our brand unification over the past year.

This concludes my comments drew at this time, we will open the call for Q&A. Please.

As referenced earlier, we are absorbing increased our RFP activity alongside continued pipeline growth.

We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if you're using a speakerphone. Please pick up your handset before pressing the keys.

We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad. If you are using a speakerphone. Please pick up your handset before pressing the keys.

Operator: The first question comes from John Davis with Raymond James. Please go ahead.

This momentum in part reflects increased recognition of <unk> as a trusted platform provider.

The enhanced market visibility achieved through our brand unification over the past year.

This concludes my comments drew at this time, we will open the call for Q&A. Please.

If at any time. Your question has been addressed and you would like to withdraw. Your question. Please press Star then two again. It is star then one to ask a question.

We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if you're using a speaker phone. Please pick up your handset before pressing the keys.

At this time, we will pause momentarily to assemble our roster.

The first question comes from John Davis with Raymond James. Please go ahead.

If at any time. Your question has been addressed and you would like to withdraw. Your question. Please press Star then two again. It is star then one to ask a question.

Good morning, guys.

Jeff just wanted to dive in.

John Davis: Good morning, guys. Geoff, just wanted to dive in to the 2026 organic growth outlook. You are masked about 5%. You know, I heard 8% to 10% recurring and professional services down. Is that a function of you're no longer selling those professional services or maybe you're not putting things like Manitoba in the guide because they're lumping, you don't know if they can you know, if they're gonna hit or when they're gonna hit? Just trying to get a sense for the level of conservatism and almost how and also how much you expect professional services to be down on a year-over-year basis.

To the 26 organic growth outlook, our math about 5%.

8% to 10% recurring and professional services down is that a function of you're no longer selling those professional services or maybe youre not putting things like Manitoba in the guide because they're lumpy and you don't know if they can if theyre going to hit or when they're going to hit.

8% to 10% recurring and professional services down is that a function of you're no longer selling those professional services or maybe youre not putting things like Manitoba in the guide because they are lumpy and you don't know if they can if theyre going to hit or when they're going to hit.

At this time, we will pause momentarily to assemble our roster.

The first question comes from John Davis with Raymond James. Please go ahead.

Good morning, guys.

Jeff just wanted to dive in.

To the 26 organic growth outlook, our math about 5%.

Just trying to get a sense for the level of conservatism in almost half and also how much you expect professional services to be down on a year over year basis.

8% to 10% recurring and professional services down is that a function of you're no longer selling those professional services or maybe youre not putting things like Manitoba in the guide because they are lumpy and you don't know if they can if theyre going to hit or when they're going to hit.

Yes, thanks for the question JD.

Yes. Thanks for the question JD. So it's absolutely true that we are leaning into recurring revenue any chance we get so when it comes to negotiations like the West Virginia deal. We just did.

No.

Geoff Smith: Thanks for the question, JD. It's absolutely true that we are leaning into recurring revenue any chance we get. When it comes to negotiations like the West Virginia deal we just did, or any opportunity where we can, you know, push and lean on the SaaS and defer or, you know, opt for the recurring sources instead of the professional services implementation sources in contract negotiations, we're absolutely doing that at each turn. That being said, the professional services, we don't expect that to go away. We don't think that, you know, what we have clear line of sight on in 2026 is reflective of any kind of long-term trend necessarily. There's a number of things, the West Virginia deal, utilities pipeline. They look really strong on the professional services and implementation front further out.

It's absolutely true that we are leaning into recurring revenue any chance we get so when it comes to negotiations like the West Virginia deal. We just did.

Just trying to get a sense for the level of conservatism in almost half and also how much you expect professional services to be down on a year over year basis.

For any opportunity, where we can push and lean on the SaaS.

Any opportunity, where we can push and lean on the SaaS.

And defer okay.

And defer or.

Yes.

Opt for the recurring sources instead of the professional services implementation sources and contract negotiations, we're absolutely doing that at each turn.

Yes, thanks for the question JD so.

For the recurring sources instead of the professional services implementation sources and contract negotiations, we're absolutely doing that at each turn.

It's absolutely true that we are leaning into recurring revenue any chance we get so when it comes to the negotiations like the West Virginia deal. We just did.

That being said the professional services, we don't expect that to go away. We don't think that you know what we have clear line of sight on in 2026 is reflective of any kind of long term trend necessarily.

Any opportunity, where we can push and lean on the SaaS.

And defer or are you now.

Yes.

For the recurring sources instead of the professional services implementation sources and contract negotiations, we're absolutely doing that at each turn.

There's a number of things West Virginia deal.

Utilities pipeline, they look really strong on the professional services and implementation front further out.

Just true that for 2026, we think that the cadence and timing of some of those things is going to be a little bit.

Just true that for 2026, we think that the cadence and timing of some of those things is going to be a little bit lighter and so we expect to see that line drop off a little bit here.

Geoff Smith: just true that for 2026, we think that the cadence and timing of some of those things is gonna be a little bit lighter. We expect to see that line drop off a little bit here. It was strong in Q4. Some of that was a little bit of pull forward, but most of it is kind of things that we just think that the actual performance obligation fulfillment, the cadence of when we get to revenue recognition on these is further back, end of 2026 or slipping into 2027.

Buyer and so we expect to see that line drop off a little bit here and it was strong in Q4 some of that was a little bit of pull forward, but most of it is kind of things that we just think that the actual performance obligation fulfillment the cadence of when we get to Rev. Rec. On these is further back end of 2026 are slipping into 2027.

There is a number of things West Virginia deal Utah.

And it was strong in Q4 some of that was a little bit of pull forward, but most of it is kind of things that we just think that the actual performance obligation fulfillment the cadence of when we get to Rev. Rec. On these is further back end of 2026 are slipping into 2027.

Utilities pipeline, they look really strong on the professional services and implementation front further out.

Just true that for 2026, we think that the cadence and timing of some of those things is going to be a little bit.

Yeah.

Okay. Thanks, and then I just wanted to drill down a little bit on that dollar retention I think you called out 104 for the year, how much of that was price and how should we think about kind of a pricing tailwind going going forward.

Peter.

So we expect to see that line drop off a little bit here.

Going forward.

Yeah.

So we've addressed this a little bit with the market, but just to kind of recap. Some of these things. The company has been extremely conservative on price increases historically and I wouldn't say that we are.

Further back end of 2026 are slipping into 2027.

Geoff Smith: We've addressed this a little bit with the market, but just to kind of recap some of these things. The company has been extremely conservative on price increases historically. I wouldn't say that This isn't like a pendulum swing to the opposite end of the spectrum at all, but we're much more bought in and have been, you know, working through the contracts and the expectations to make sure we kind of get to more of a 3% to 5% price increase range on a consistent basis with our customers. We've kind of guided that you might expect, you know, if price increases were historically contributing, you know, 1%+, that would maybe inch up by about 1% a year for the next several years.

This isn't like a pendulum swing to the opposite and spectrum at all but we're much more bought in and have been working through the contracts and the expectations.

This isn't like a pendulum swing to the opposite and spectrum at all but we're much more bought in and have been.

Working through the contracts and the expectations to make sure we kind of get to more of a 3% to 5% price increase range on a consistent basis with our.

Make sure we kind of get to more of a 3% to 5% price increase range on a consistent basis with our.

With our customers, we've kind of guided that you might expect.

If price increases where historically contributing.

This isn't like a pendulum swing to the ops and spectrum at all but we're much more bought in and have been working through the contracts and the expectations.

One plus percent that that would maybe inch up by about 1% a year for the next several years.

To make sure we kind of get to more of a 3% to 5% price increase range on a consistent basis with our.

So 2025 contribution from price increase you're still in that vicinity of that you know, 1% to 2% kind of range looking ahead.

And so 2025 contribution from price increase you're still in that vicinity of that you know.

Geoff Smith: 2025 contribution from price increase, you know, you're still in that vicinity of that, you know, 1% to 2% kinda range. Looking ahead, you know, we're probably getting closer to, you know, 1.5% to 3% range for 2026 in our expectations. Modest incremental increases there. We don't think we're at our final destination in terms of the contribution from price increases.

With our customers, we've kind of guided that you might expect.

<unk> to 2% kind of range looking ahead, we're probably getting closer to one and a half to three range for 2026, and our expectations some modest incremental increases there.

We're getting closer to one and a half to three range for 2026, and our expectations some modest incremental increases there we.

If price increases where historically contributing.

One plus percent.

Maybe inch up by about 1% a year for the next several years and so 2025 contribution from price increase you're still in that vicinity at that one.

We don't think we're at our final destination in terms of the contribution from price increases.

Okay, and then Jeff one more and I got one bigger picture for Greg.

1% to 2% kind of range looking ahead, we're probably getting closer to one and a half to three range for 2026, and our expectations. Some modest incremental increases there. We don't think we're at our final destination in terms of the contribution from price increases.

John Davis: Okay. Then, Geoff, one more, and I got one bigger picture for Greg. Just on the margin front, what was the JusticeTech investment in the quarter? Was it bigger than you thought it was gonna be, in line? Just remind us what you're expecting for incremental investments in JusticeTech in 2026.

Just one on the margin front, what was the Justice Tech investment in the quarter was bigger than you thought it was going to be in line, just remind us what youre expecting for incremental investments in Justice second 2026.

To recap we're.

Primarily consists of its bodies to put it simply bodies to accelerate the development of our core package body.

Geoff Smith: Yeah, to recap, you know, that primarily consists of, you know, it's bodies, to put it simply. Bodies to accelerate the development of our core package, bodies to accelerate the implementation of our core package. It's all things that we think we're gonna get a great return on. You know, West Virginia is just one of kind of, you know, the sources where that's gonna kinda come from. We're really excited about that deal. The cost is I'd say it's, you know, relatively in line with where we thought it was gonna be for Q4, but these are people who are gonna be with us for, you know, the foreseeable future here, you know, that elevated cost is gonna continue into this next fiscal year here.

Primarily consists of its bodies to put it simply bodies to accelerate the development of our core package body.

Okay, and then Jeff one more and I got one bigger picture for Greg just.

One on the margin front, what was the Justice Tech investment in the quarter or was it bigger than you thought it was going to be in line, just remind us what youre expecting for incremental investments in Justice second 2026.

He used to call it the implementation of our core package.

As to the implementation of our core package.

It's all things that we think we're going to get a great return on.

West Virginia is just one of the sources, where that's going to kind of come from really excited about that deal.

To recap we're.

Primarily consists of its bodies to put it simply bodies to accelerate the development of our core package bodies to implementation of our core package.

The cost is.

I'd say, it's relatively in line with where we thought it was going to be for Q4, but these are people who are going to be with us for.

The foreseeable future here and Thats kind of that elevated cost is going to continue into this next fiscal year here.

Its all things that we think we're going to get a great return on.

The foreseeable future here and that's kind of that elevated cost is going to continue into this next fiscal year here.

West Virginia is just one of the sources, where that's going to kind of come from really excited about that deal.

Okay, and then Greg $85 million.

The cost is.

John Davis: Okay. Greg, $85 million cash balance on the balance sheet here. you know, how do we think about buyback versus M&A? just remind us how much you have on the buyback. you know, it looks like, you know, this year is gonna be a little bit of a transition year, at least on the revenue front. just how are you thinking about that, M&A versus buyback here? remind us how much you guys have authorized left.

Cash on the balance sheet.

<unk> here.

It's relatively in line with where we thought it was going to be for Q4, but.

<unk> here.

How do we think about buyback versus M&A, and just remind us how much you have them on the buyback.

These are people, who are going to be with us for a foreseeable.

Foreseeable future here and that's kind of you know that elevated cost is going to continue into this next fiscal year here.

It looks like.

This year it can be a little bit of a transition year at least on the revenue front.

This year it can be a little bit of a transition year at least from a revenue front.

Just how are you thinking about that.

Okay, and then Greg.

M&A versus buyback here and remind us how much you guys have authorized left.

$85 million.

Cash on the balance sheet.

She here.

He just regarding buybacks, then I'll, let Greg had M&A buyback.

How do we think about buyback versus M&A, and just remind us how much you have them on the buyback.

Geoff Smith: Regarding buybacks, and I'll let Greg hit M&A, but buybacks, we just refreshed the approval to $50 million. Not a lot of activity in this current period. We'll see obviously the detail in our 10-K. That's something that, you know, the emphasis is on being opportunistic. You know, we'll do it when we think we get a good return, and we're not gonna chase it when we don't think, you know, that we're given.

Buybacks, we just refreshed the.

Approval to $50 million.

It looks like.

Approval to $50 million.

This year it can be a little bit of a transition year at least from a revenue front just.

Not a lot of activity in this current period, let's see obviously the detail in our 10-K.

Just how are you thinking about that.

Today versus buyback here and remind us how much you guys have authorized left.

That's something that you know.

The emphasis is on being opportunistic where we will do it when we think we get a good return.

The emphasis is on being opportunistic yeah, we'll do it when we think we get a good return.

We just regarding buybacks, then I'll, let Greg had M&A buyback.

Well, we're not going to chase it when we don't think that we are.

Buybacks, we just refreshed the.

Todd Gibbons.

Approval to $50 million.

On the M&A, we've worked in our pipeline for 13 years and.

Not a lot of activity in this current period, let's see obviously the detail in our 10-K.

Greg Daily: On the M&A, we, you know, we've worked in our pipeline for 13 years, and I think you'll see some activity sooner than later. We've done a couple of small ones that we really don't talk a lot about, and I think we'll still do those. I think there'll be a couple of meaningful ones that we get done in 2026.

I think youll see some activity soon.

I think youll see some activity.

That's something that you know.

Sooner than later.

The emphasis is on being opportunistic yeah, we'll do it when we think we get a good return.

We've done a couple of small ones that we'd really don't talk a lot about and I think we'll still do those but I think there'll be a couple of meaningful ones.

We've done a couple of small ones that we'd really don't talk a lot about.

I think we will still do those but I think there'll be a couple of meaningful ones.

We're not going to chase it when we don't think so.

That we get done in 'twenty six.

Kevin.

That we get done in 'twenty six.

On the M&A, we've worked in our pipeline for 13 years and.

And Greg when you say meaningful more tuck in but announced deals that are big enough that you are going to announce them versus maybe some that are just immaterial and not even worth.

John Davis: Greg, when you say meaningful, more tuck in, but announce, you know, deals that are big enough that you're gonna announce them versus maybe some that are just immaterial and not even worth, you know, kind of press releasing or talking about.

I think youll see some activity.

Sooner than later.

We've done a couple of small ones that we'd really don't talk a lot about.

A press release, saying Theyre talking about.

Exactly nothing transformative.

I think we will still do those but I think there'll be a couple of meaningful ones.

Exactly but nothing transformative.

Yes, nothing transforming that there there.

Greg Daily: Exactly.

Yes, nothing transformative, but there they.

John Davis: Nothing transformative.

They are larger there we say our sweet spot is.

That we get done in 'twenty six.

Greg Daily: Yeah. Nothing transforming. They're larger. You know, we say our sweet spot is 2 to 5 million of EBITDA, and we pay 10 times. You know, we can get a little bit above that, but nothing dramatically.

They are larger there.

We say our sweet spot is.

And Greg when you say meaningful more tuck in but announced deals that are big enough that you are going to announce them versus maybe some that are just immaterial and not even worth.

$2 million to $5 million of EBITDA, and we paid 10 times.

We could get a little bit above that but nothing dramatically.

Okay I appreciate it thanks guys.

A press release, saying Theyre talking about.

Okay I appreciate it thanks guys.

Exactly but nothing transformative.

John Davis: Okay. Appreciate it. Thanks, guys.

Yes, nothing transformative, but there.

Again, if you have a question. Please press Star then one.

There are larger there.

Operator: Again, if you have a question, please press star then one. This concludes our question and answer session. I would like to turn the conference back over to Greg Daily for any closing remarks.

We say our sweet spot is.

$2 million to $5 million of EBITDA, and we paid 10 times.

We could get a little bit above that but nothing dramatically.

This concludes our question and answer session I would like to turn the conference back over to Greg Daily for any closing remarks.

Okay. Appreciate it thanks guys.

Again, if you have a question. Please press Star then one.

Thank you.

We do appreciate your interest.

Do appreciate your interest.

Greg Daily: Thank you. We do appreciate your interest. We're here if you need to talk, discuss. We do appreciate your support. Thank you. Have a good day.

We are here, if you need to talk discuss.

We do appreciate your support thank you have a good day.

This concludes our question and answer session I would like to turn the conference back over to Greg Daily for any closing remarks.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Thank you we do appreciate your interest.

We are here, if you need to talk discuss.

We do appreciate your support thank you have a good day.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

No no no.

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Q4 2025 i3 Verticals Inc Earnings Call

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