i3 Verticals, Inc. (IIIV): History, Ownership, Mission, How It Works & Makes Money

How is i3 Verticals, Inc. carving its path in the integrated payments and software solutions space, particularly within specialized vertical markets? With fiscal year 2024 revenues approaching the **$400 million** mark, fueled significantly by strategic acquisitions and persistent organic growth in sectors like education and the public sector, the company demonstrates a focused approach to expansion. Are you curious about the forces driving its unique vertical market strategy and operational success? Explore further to understand the foundational history, the ownership dynamics shaping its direction, and precisely how i3 Verticals operates and generates revenue within its targeted industries.

i3 Verticals, Inc. (IIIV) History

i3 Verticals' Founding Timeline

The journey began with a clear vision for integrating software and payments within specific industry verticals.

Year established

2012

Original location

Nashville, Tennessee

Founding team members

Founded by Greg Daily, leveraging his extensive experience in the payments industry.

Initial capital/funding

The company was initiated with private capital, setting the stage for its acquisition-led growth strategy before eventually tapping public markets.

i3 Verticals' Evolution Milestones

From its inception, the company pursued growth aggressively, primarily through strategic acquisitions. This approach rapidly expanded its footprint and capabilities.

i3 Verticals' Transformative Moments

Strategic Pivot to Vertical Market Software

Early on, the decision was made not just to be a payment processor, but a software provider with deeply integrated payment capabilities. This focus on specific underserved vertical markets like local government, healthcare, and education created stickier customer relationships and differentiated the company from generic payment processors.

Aggressive Mergers & Acquisitions (M&A) Strategy

The core growth engine has been a disciplined, consistent M&A strategy. By acquiring niche software businesses and integrating payments, the company rapidly built scale and entered new segments. This approach required significant capital allocation but proved effective in consolidating fragmented markets. Understanding this strategy is key for anyone Exploring i3 Verticals, Inc. (IIIV) Investor Profile: Who’s Buying and Why?

Emphasis on Integrated Payments

Moving beyond simple payment facilitation, the company focused on embedding payment processing directly within the workflow software used by its clients. This created efficiencies for customers and generated high-margin recurring revenue streams for the business, transforming the value proposition significantly from standalone payment processing.

i3 Verticals, Inc. (IIIV) Ownership Structure

The company's ownership is primarily concentrated among institutional investors, reflecting confidence from the broader market, alongside significant holdings by insiders which aligns leadership interests with shareholder value. This structure influences governance and strategic decisions.

The Company's Current Status

As of the close of the 2024 fiscal year, i3 Verticals, Inc. operates as a publicly traded company. Its shares are listed on the Nasdaq Global Select Market under the ticker symbol IIIV.

The Company's Ownership Breakdown

Understanding the distribution of ownership provides insight into who holds influence over the company. The breakdown below reflects approximate percentages based on filings towards the end of the 2024 fiscal period.

This ownership landscape is a key factor when assessing corporate governance; for more details on the company's financial standing, see Breaking Down i3 Verticals, Inc. (IIIV) Financial Health: Key Insights for Investors.

The Company's Leadership

Steering the company at the end of 2024 is a dedicated leadership team responsible for executing strategy and driving growth. Key figures include:

• Greg Daily: Chairman and Chief Executive Officer
• Clay Whitson: Chief Financial Officer
• Chris Laisure: Chief Operating Officer

This team brings extensive experience in payments, software, and technology sectors, guiding the company's operational and financial trajectory.

i3 Verticals, Inc. (IIIV) Mission and Values

i3 Verticals centers its purpose on delivering tailored, integrated software and payment solutions deep within specific vertical markets, aiming to become an indispensable partner rather than just a vendor. Their values manifest in a strategy focused on long-term growth and technological leadership within these chosen niches.

i3 Verticals, Inc. (IIIV) Core Purpose

The company's core purpose revolves around simplifying complex business operations for clients in sectors like public administration, healthcare, education, and non-profits through deeply embedded technology.

Official mission statement

While i3 Verticals does not prominently publicize a formal mission statement in the traditional sense, its operational focus clearly communicates a mission: To provide industry-specific software and integrated payment processing solutions that enhance efficiency, reduce complexity, and drive growth for businesses and organizations within targeted vertical markets. Their strategy involves both organic development and strategic acquisitions to achieve this.

Vision statement

The company's vision appears centered on becoming the leading provider of integrated software and payment solutions in each of its chosen vertical markets. This involves continuous innovation, deepening market penetration, and expanding its footprint, likely fueled by strong performance metrics, such as achieving Q2 fiscal 2024 revenues of $101.4 million. Understanding who backs this vision is key; Exploring i3 Verticals, Inc. (IIIV) Investor Profile: Who’s Buying and Why? offers insights.

Company slogan

i3 Verticals does not appear to utilize a single, widely promoted company slogan. Their branding and communication emphasize their focus on vertical markets and integrated solutions, letting the specificity of their offerings define their market position. This focus is executed by a dedicated team, numbering approximately 1,400 employees as of early 2024, driving their specialized approach.

i3 Verticals, Inc. (IIIV) How It Works

i3 Verticals primarily operates by delivering integrated payment processing and vertical-specific software solutions tailored to niche markets. The company bundles these offerings to streamline operations and payment acceptance for its clients, generating revenue through transaction fees and recurring software subscriptions.

i3 Verticals, Inc.'s Product/Service Portfolio

i3 Verticals, Inc.'s Operational Framework

The company's operational model focuses on acquiring businesses with established software in specific verticals and integrating its payment processing capabilities. Development teams enhance and maintain these software platforms, while dedicated sales teams target specific market niches. Customer support ensures client retention and smooth operation. A significant part of their strategy involves identifying and integrating acquisitions that complement their existing verticals or provide entry into new ones. This M&A activity fuels expansion and diversification. For instance, in fiscal year 2024, the company successfully integrated several acquisitions, contributing to its Software & Services revenue growth of 24.0% year-over-year, reaching $285.5 million. Understanding who invests in companies pursuing such strategies can be insightful; Exploring i3 Verticals, Inc. (IIIV) Investor Profile: Who’s Buying and Why? offers a deeper look into shareholder perspectives.

i3 Verticals, Inc.'s Strategic Advantages

Several factors contribute to the company's competitive positioning:

• Deep Vertical Expertise: Tailored software solutions address specific needs within underserved markets like Public Sector and Healthcare, creating high switching costs.
• Integrated Platform: Combining software and payments simplifies vendor management for clients and provides multiple revenue streams for the company, evidenced by total 2024 revenues reaching $416.6 million.
• Acquisition Strategy: A proven ability to acquire and integrate complementary businesses accelerates growth and market penetration.
• Recurring Revenue Model: A significant portion of revenue comes from software subscriptions and transaction-based fees, providing predictability. In 2024, Software & Services constituted approximately 68.5% of total revenue.
• Cross-selling Opportunities: Embedding payment processing within specialized software creates natural opportunities to sell additional services to a captive audience.

i3 Verticals, Inc. (IIIV) How It Makes Money

i3 Verticals generates revenue primarily by providing integrated payment processing and software solutions tailored to specific vertical markets. The company earns fees based on payment transaction volume and recurring fees for its software subscriptions and related services.

i3 Verticals, Inc.'s Revenue Breakdown

i3 Verticals, Inc.'s Business Economics

The company's economic engine relies on a blend of transaction-based and recurring revenue models. For payment processing (Merchant Services), it typically charges a percentage of the transaction value or a fixed fee per transaction. Software & Related Services generate revenue through recurring subscription fees (SaaS), software license fees, implementation services, and ongoing maintenance and support contracts. Focusing on specific verticals like Public Sector, Healthcare, and Education allows for specialized solutions that often command better pricing power and foster client stickiness. Key drivers include:

• Increasing payment processing volumes within its client base.
• Acquiring new software clients and maintaining high retention rates for recurring revenue streams.
• Successfully cross-selling payment solutions to software clients and vice-versa.
• Strategically acquiring complementary businesses and integrating them effectively to achieve synergies. Delving deeper into shareholder structure can offer additional context, as seen in Exploring i3 Verticals, Inc. (IIIV) Investor Profile: Who’s Buying and Why?

This integrated approach aims to capture a larger share of each client's technology and payment spend.

i3 Verticals, Inc.'s Financial Performance

Based on performance trends leading into fiscal year 2024, i3 Verticals continued to demonstrate revenue growth, driven by both organic expansion and strategic acquisitions. Total revenue for fiscal year 2024 was projected to show solid year-over-year growth, potentially in the range of 10% to 15% compared to fiscal year 2023's $359.9 million. A key metric for the company, Adjusted EBITDA, also showed strength, with margins anticipated to remain robust, likely hovering around the 28% to 30% mark, reflecting efficient operations and the contribution from higher-margin software revenues. Gross profit margins (viewed as revenue less cost of services) were expected to remain healthy, supported by the mix of software and payment services, likely staying near the 50% level observed in prior periods. The company manages its growth partly through acquisitions, which can impact short-term profitability metrics but are central to its long-term strategy of building scale within its chosen vertical markets.

i3 Verticals, Inc. (IIIV) Market Position & Future Outlook

As of 2025, i3 Verticals continues to carve out its niche by integrating software solutions with payment processing, primarily targeting non-discretionary, counter-cyclical verticals like Public Sector, Healthcare, and Education. Its future outlook hinges on successfully executing its acquisition strategy and deepening penetration within these core markets through cross-selling initiatives, building upon its performance trends observed through fiscal year 2024.

Competitive Landscape

Opportunities & Challenges

Industry Position

Within the vast payments and FinTech landscape, i3 Verticals positions itself not as a broad horizontal player but as a focused vertical market specialist. Its strategy revolves around acquiring software companies in specific sectors and embedding its payment processing capabilities, creating sticky customer relationships. While significantly smaller than giants like Fiserv or Global Payments, its strength lies in this targeted approach, addressing specific workflow needs that larger, more generalized providers might overlook. Based on fiscal 2024 revenues trending towards the $380 million mark and consistent adjusted EBITDA margins around 30%, the company demonstrates financial viability within its chosen niches. Its ability to identify, acquire, and integrate niche software providers is central to its competitive standing and future growth prospects. Understanding its financial underpinnings is crucial; explore further analysis here: Breaking Down i3 Verticals, Inc. (IIIV) Financial Health: Key Insights for Investors. The company aims for continued organic growth supplemented by strategic M&A, seeking to deepen its footprint in resilient sectors.