Modest Q1 Profit At I3 Verticals (IIIV) Tests Bullish Earnings Acceleration Narratives

i3 Verticals (IIIV) opened fiscal Q1 2026 with revenue of US$52.7 million and basic EPS of US$0.03, while net income excluding extra items came in at US$0.6 million. The company has seen quarterly revenue move between US$46.2 million and US$61.7 million over the past two years, with basic EPS ranging from a loss of US$0.58 to a profit of US$0.54. This latest print lands in the middle of its recent earnings range and keeps the focus firmly on how margins are evolving from here.

See our full analysis for i3 Verticals.

With the headline numbers on the table, the next step is to line them up against the dominant market narratives around i3 Verticals and see which stories the latest margins and profit trends actually support.

Curious how numbers become stories that shape markets? Explore Community Narratives

Profitability at US$0.6 million on US$213.6 million LTM sales

• On a trailing twelve month basis, i3 Verticals earned US$2.5 million of net income excluding extra items on US$213.6 million of revenue. This lines up with the recent quarterly pattern of modest profits, such as the Q1 2026 result of US$0.6 million.
• What stands out for bullish investors is that this profitability follows prior trailing periods that showed losses. However, the latest LTM EPS of US$0.10 remains close to the US$0.03 quarterly EPS, so anyone expecting a much sharper earnings ramp may want to watch how future quarters compare with that history.

Curious how this shift into modest profitability fits into longer term growth stories and risk views across the community? Curious how numbers become stories that shape markets? Explore Community Narratives

Price at US$20.97 versus US$34.17 analyst target

• With the share price at US$20.97 and analysts pointing to a US$34.17 price target, the implied upside from here is large relative to the current level. This is particularly notable given the P/S ratio of 2.2x compared with peer and broader US software averages of 3.2x and 3.7x.
• Supporters of the bullish view highlight this valuation gap and the company’s recent move into profit. At the same time, the forecast revenue growth of about 7.7% per year is slower than the 10.2% US market forecast, so much of the optimism focuses on earnings growing faster than sales. Investors will only be able to assess this as more quarters like Q1 2026 and the US$213.6 million LTM period are reported.

Bulls argue these valuation gaps could matter if earnings growth materializes, but skeptics may focus on how future margins compare with the recent US$2.5 million LTM profit before placing too much weight on target prices. 📊 Read the full i3 Verticals Consensus Narrative.

One off US$2.7 million gain still in trailing numbers

• The trailing 12 month figures still include a US$2.7 million non recurring gain within US$13.8 million of earnings from discontinued operations, so part of the recent profitability reflects items that are not expected to repeat.
• Critics of the bullish narrative note that earlier LTM periods showed sizeable losses even with much larger discontinued operations gains. With Q1 2026 earnings from discontinued operations at US$0.1 million and net income excluding extra items at US$0.6 million, they may argue that the underlying run rate appears lower than the headline LTM profit suggests.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on i3 Verticals's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

i3 Verticals is only just profitable on its recent LTM numbers, with modest EPS and some support from non recurring gains within discontinued operations.

If that slim profit cushion feels tight, check out our 86 resilient stocks with low risk scores to quickly focus on companies where earnings quality and balance sheet strength play a more significant role.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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