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IIIV, i3 Verticals Inc.

Software asset-light CyclicalSerial acquirer

Verticals provides mission-critical enterprise software solutions to public sector entities.

With thousands of software installations across all 50 states and Canada, i3 Verticals is a leader in the public sector vertical.

Pursuant to the terms of the Merchant Services Purchase Agreement, Buyer paid to Sellers an aggregate purchase price of approximately $439.5 million paid in cash at the Closing, after giving effect to post-closing net working capital, indebtedness and cash adjustments.

Latest annual: FY2025 10-K

IIIV · i3 Verticals Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$213M

+11.5% YoY · 7% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $217M 5-yr avg $201M

Operating margin 0.9% 5-yr avg −2.1%

ROIC 0% 5-yr avg −0%

Owner-earnings margin 20% 5-yr avg 17%

Free cash flow margin 20% 5-yr avg 17%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is License and Service (70%), Proprietary payments revenue (25%) and Other revenue (5%).
Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power. Serial acquirer. Goodwill and acquired intangibles are 60% of assets, with meaningful acquisition spending in 10 of the record's 10 years; much of what this business is was bought, at prices the record carries.
What moves the needle: Gross margin has run about 34% and operating margin about 1.8% through the cycle, a spread the cycle sets more than the company does. The margin is cyclical, swinging between −12% and 5.2% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Stock-based pay runs about 7.0% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on retention and the cost of growth. On its own account, the filing leans hardest on supplier & input dependence, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 1%, above 15% in 0 of 8 years). The steadier read is owner earnings: roughly 10% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

License and Service is 70% of revenue, with Proprietary payments revenue the other meaningful line at 25%.

Revenue by product line, FY2025

License and Service70%$149M
Proprietary payments revenue25%$54M
Other revenue5%$10M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$200M	$263M	$324M	$376M	$150M	$224M	$188M	$190M	$191M	$213M	$217M	RevenueRevenue
29%	28%	34%	35%	—	—	—	—	—	—	—	Gross marginGross mgn
10%	10%	13%	17%	52%	60%	83%	56%	53%	54%	54%	SG&A / revenueSG&A/rev
$4M	$8M	$12M	$6M	$8M	($12K)	($23M)	($4M)	$4M	$4M	$2M	Operating incomeOp. inc.
2.0%	2.9%	3.8%	1.7%	5.2%	−0.0%	−12.3%	−2.3%	2.3%	1.8%	0.9%	Operating marginOp. mgn
($2M)	$902K	($7M)	($3M)	($419K)	($4M)	($17M)	($811K)	$113M	$18M	$18M	Net incomeNet inc.
—	16%	—	—	—	—	—	—	-5%	23%	15%	Effective tax rateTax rate
											Cash flow & returns
$10M	$8M	$18M	$27M	$24M	$45M	$44M	$37M	$48M	$6M	$45M	Operating cash flowOp. cash
$10M	$10M	$12M	$17M	$18M	$24M	$19M	$23M	$26M	$28M	$29M	DepreciationDeprec.
$2M	($3M)	$12M	$7M	($5M)	$4M	$15M	($13M)	($117M)	($58M)	($21M)	Working capital & otherWC & other
$862K	$636K	$2M	$807K	$3M	$2M	$2M	$4M	$3M	$2M	$2M	CapexCapex
0.4%	0.2%	0.7%	0.2%	1.9%	0.9%	1.2%	2.2%	1.5%	0.9%	0.8%	Capex / revenueCapex/rev
$9M	$8M	$16M	$26M	$21M	$43M	$41M	$33M	$45M	$4M	$44M	Owner earningsOwner earn.
4.6%	2.9%	4.9%	6.9%	13.9%	19.0%	22.1%	17.4%	23.8%	1.8%	20.2%	Owner earnings marginOE mgn
$9M	$8M	$16M	$26M	$21M	$43M	$41M	$33M	$45M	$4M	$44M	Free cash flowFCF
4.6%	2.9%	4.9%	6.9%	13.9%	19.0%	22.1%	17.4%	23.8%	1.8%	20.2%	Free cash flow marginFCF mgn
$32M	$44M	$32M	$137M	$28M	$142M	$101M	$102M	$19M	$11M	$71M	AcquisitionsAcquis.
—	—	—	—	—	—	—	$0	$0	$38M	—	BuybacksBuybacks
—	—	13%	2%	3%	-0%	-4%	-1%	1%	1%	0%	ROICROIC
—	—	-18%	-4%	-0%	-2%	-8%	-0%	30%	5%	6%	Return on equityROE
—	—	−18%	−4%	−0%	−2%	−8%	−0%	30%	5%	6%	Retained to equityRetained/eq
											Balance sheet
$4M	$955K	$572K	$1M	$16M	$4M	$3M	$3M	$87M	$67M	$7M	Cash & investmentsCash+inv
—	$8M	$13M	$15M	$18M	$39M	$53M	$51M	$51M	$58M	$55M	ReceivablesReceiv.
—	$930K	$1M	$1M	$1M	$2M	$4M	$2M	$2M	$3M	$3M	InventoryInvent.
—	$2M	$4M	$3M	$4M	$8M	$9M	$6M	$5M	$6M	$4M	Accounts payablePayables
—	$8M	$10M	$13M	$15M	$33M	$48M	$46M	$48M	$55M	$54M	Operating working capitalOper. WC
—	$16M	$17M	$21M	$38M	$58M	$84M	$86M	$153M	$138M	$78M	Current assetsCur. assets
—	$20M	$26M	$35M	$39M	$97M	$111M	$93M	$165M	$71M	$59M	Current liabilitiesCur. liab.
—	0.8×	0.6×	0.6×	1.0×	0.6×	0.8×	0.9×	0.9×	1.9×	1.3×	Current ratioCurr. ratio
$35M	$59M	$84M	$168M	$187M	$292M	$215M	$230M	$243M	$248M	$282M	GoodwillGoodwill
$100M	$140M	$175M	$349M	$404M	$652M	$770M	$884M	$731M	$638M	$636M	Total assetsAssets
—	$111M	$37M	$139M	$91M	$201M	$287M	$388M	$26M	$0	$81M	Total debtDebt
—	$110M	$36M	$138M	$75M	$197M	$284M	$385M	($60M)	($67M)	$74M	Net debt / (cash)Net debt
—	—	$39M	$80M	$156M	$205M	$218M	$237M	$380M	$390M	$317M	Shareholders’ equityEquity
0.0%	0.0%	0.5%	1.6%	7.0%	9.3%	14.0%	14.7%	13.8%	8.6%	9.4%	Stock comp / revenueSBC/rev
											Per share
—	—	17.9M	7.0M	18.3M	21.1M	14.8M	22.2M	22.6M	22.8M	23.7M	Shares out (diluted)Shares
—	—	$18.06	$53.80	$8.21	$10.60	$12.66	$8.56	$8.47	$9.35	$9.17	Revenue / shareRev/sh
—	—	$-0.39	$-0.44	$-0.02	$-0.21	$-1.15	$-0.04	$5.02	$0.78	$0.76	EPS (diluted)EPS
—	—	$0.89	$3.69	$1.14	$2.01	$2.80	$1.49	$2.01	$0.16	$1.85	Owner earnings / shareOE/sh
—	—	$0.89	$3.69	$1.14	$2.01	$2.80	$1.49	$2.01	$0.16	$1.85	Free cash flow / shareFCF/sh
—	—	$0.12	$0.12	$0.16	$0.09	$0.15	$0.19	$0.13	$0.09	$0.07	Cap. spending / shareCapex/sh
—	—	$2.19	$11.45	$8.51	$9.68	$14.72	$10.68	$16.81	$17.09	$13.42	Book value / shareBVPS

The diluted share count moved ×1/2.56 into 2019 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×2.61 into 2020 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1/1.43 into 2022 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×1.49 into 2023 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Share counts before TTM are restated ×1/1.5 for a stock split, so per-share figures sit on one basis.

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	−9.0%/yr (7-yr)	+2.6%/yr
Owner earnings / share	−21.4%/yr (7-yr)	−32.1%/yr
Capital spending / share	−5.2%/yr (7-yr)	−11.8%/yr
Book value / share	+34.1%/yr (7-yr)	+15.0%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

34Mpeak FY2025

ROIC

1%low FY2022

Gross margin

35%low FY2017

Net debt ÷ owner earnings

-17.8×peak FY2017

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$4Mowner earningsvs.$18Mnet incomelow FY2025

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $18M of profit but $4M of owner earnings: $14M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$18M

Owner earnings$4M · 2% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$18M	$113M	($811K)	($17M)	($4M)
Depreciation & amortizationnon-cash charge added back	+$28M	+$26M	+$23M	+$19M	+$24M
Stock-based compensationreal costnon-cash, but a real cost	+$18M	+$26M	+$28M	+$26M	+$21M
Working capital & othertiming of cash in and out, other non-cash items	−$58M	−$117M	−$13M	+$15M	+$4M
Cash from operations	$6M	$48M	$37M	$44M	$45M
Capital expenditurecash put back in to keep running and to grow	−$2M	−$3M	−$4M	−$2M	−$2M
Owner earnings	$4M	$45M	$33M	$41M	$43M
Owner-earnings marginowner earnings ÷ revenue	2%	24%	17%	22%	19%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $18M), owner earnings is nearer ($15M).

Much of fiscal 2025's profit didn't arrive as operating cash; it sits in “working capital & other” above. That can be a real inventory or timing swing, or profit that doesn't run through operating cash at all: a heavy tax year, equity-method earnings, or investment income booked through investing. For a year like this, owner earnings understates the cash earned; the full cash-flow statement carries the rest.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$67M

Net cash, debt-free

Cash $67M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $67M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 1%

Below average through the cycle

8-yr median, range -4%–13%; 1% latest = NOPAT $3M ÷ invested capital $323M

Industry peers: median -21%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 8 years (it ran 1% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 7%

Solid through the cycle

10-yr median margin, range 2%–24%; latest $4M = operating cash $6M − maintenance capex $2M

Industry peers: median 1%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 2% of revenue this year, a 7% median across 10 years. Treating stock comp as the real expense it is (less $18M of SBC) leaves ($15M).
Are earnings backed by cash? 0.32×

Thinly cash-backed

Cash from ops $6M ÷ net income $18M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 1002%

Returned more than it generated

Dividends + buybacks $38M ÷ Owner Earnings $4M

What this means
The company returned more than it generated: against $4M of Owner Earnings, $38M (1002%) went back to shareholders, $0 dividends, $38M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $18M stock comp, the real buyback was about $19M. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.07×

Harvesting

Capex $2M ÷ depreciation $28M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $213M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.95×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $0 vs $67M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 7 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $1.91/share (latest year $0.79), the averaged base the calculator's gate runs on, and book value is $17.13/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 3 of 10

What this means
Lost money in 7 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 8 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 3% → 1% (3-yr avg ends)

What this means
Through the cycle the operating margin slipped — about 3% early to 1% lately, median 2% — competition or costs are biting in.
Reinvestment, incremental ROIC −2%

What this means
Reinvested capital came back at a negative incremental return over this window — the invested base grew while operating profit did not. The filings show where it went.
Owner earnings growth +13%/yr

What this means
Owner earnings grew about 13% a year over the record.
Worst year 2022 · −12.3% op. margin

What this means
Operations went underwater in 2022, understand why before trusting the good years.
Share count +2.7%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.

Does AI threaten the moat?

Elevated contestability

The product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“Further, if we fail to leverage AI technologies as effectively or rapidly as our peers, our competitiveness and financial results could be adversely impacted.”

AI has collapsed the cost of building a capable substitute for the very thing this business sells. When a credible alternative can be assembled for a fraction of the incumbent's price, it is pricing power that erodes first, not revenue tomorrow. The live question is whether the moat survives that, not whether it held in the past. Whether that question is answerable at all is yours to decide, against your own circle of competence.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$78M

Cash & short-term investments$7M
Receivables$55M
Inventory$3M
Other current assets$13M

Current liabilities$59M

Accounts payable$4M
Other current liabilities$55M

Current ratio1.34×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.29×stricter: inventory excluded

Cash ratio0.12×strictest: cash alone against what's due

Working capital$20Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+6.2%the freshest read on whether the business is still growing

Current ratio, recent quarters3.0× → 1.3×

Deeper floors

Tangible book value($122M)equity stripped of goodwill & intangibles

Net current asset value($120M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$86M$5M of it operating leases

Deferred revenue$36Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $266M of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$21M · 8%
Buybacks$38M · 14%
Retained (debt / cash)$208M · 78%

Returned to owners$38M
15% of the owner earnings the business produced over the span, $0 as dividends and $38M as buybacks.
Average price paid for buybacks—
Buybacks ran $38M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count32.0%
The diluted count rose from 18M to 24M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained28%
Of the earnings it kept rather than paid out ($60M over the span), annual owner earnings (first three years vs last three) grew $16M, so each retained $1 added about 0.28 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$384M60% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity64%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$649Mover 10 years buying other businesses, against $21M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Greg Daily	$308k	$308k	$43M
2022	Greg Daily	$334k	$334k	$41M
2023	Greg Daily	$346k	$346k	$33M
2024	Greg Daily	$350k	$350k	$45M
2025	Greg Daily	$351k	$351k	$4M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership33.6%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$18M
The slice of the business handed to employees in shares this year, 9% of revenue, equal to 486% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why i3 Verticals Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 3 tests turned up something to look into; the other 2 came back clean.

Look hereDid the share count rise anyway?32.0%
Diluted shares grew 32.0% over 2016–2025, even as the company spent $38M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Acquisitions, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Software

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
CRNCCerence Inc.	$252M	70%	1.3%	-1%	12%
AIC3.ai Inc.	$250M	67%	-80.5%	-36%	-37%
WEAVWeave Communications Inc.	$239M	63%	-35.0%	-111%	-10%
PDFSPDF Solutions Inc.	$219M	61%	0.0%	0%	7%
XZOExzeo Group Inc.	$217M	40%	28.4%	—	35%
IIIVi3 Verticals Inc.	$213M	32%	1.9%	1%	10%
SOUNSoundHound AI Inc	$169M	69%	-308.2%	-6%	-150%
BLZEBackblaze Inc.	$146M	52%	-32.1%	-88%	1%
Group median	—	62%	-16.0%	-6%	4%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what i3 Verticals Inc. has delivered.

Today’s price $

Through the cycle, i3 Verticals Inc. earns about $22M on its 10.4% median owner-earnings margin. This year’s 1.8% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($22M) Net of stock comp (−$20M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−13%/yr

Owner-earnings growth · ’16→’25+13%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $44M on 23M shares outstanding (a weighted basic average, the only count this filer tags); net debt $74M. The if-converted diluted count is 24M, 4% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh IIIV against another business →

The owners of IIIV: the meeting and the votes →

Cite: Owner Scorecard, "i3 Verticals Inc. (IIIV), the owner's record," https://ownerscorecard.com/c/IIIV, data as of 2026-07-09.

Manual order: ← IIIN its page in the Manual IIPR →

Industry order: ← IAC the Software chapter INTA →