Earnings release
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ふ VERTICALS i3 VERTICALS REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS NASHVILLE , Tenn . ( August 6 , 2026 ) – i3 Verticals , Inc. ( Nasdaq : IIIV ) ( " i3 Verticals ” or the “ Company ” ) today reported its financial results for the fiscal third quarter ended June 30 , 2026 . Highlights from continuing operations¹ for the three and nine months ended June 30 , 2026 vs. 2025 • • • . • Third quarter revenue from continuing operations¹ was $ 53.1 million , an increase of 2.2 % over the prior year's third quarter . Revenue from continuing operations¹ for the nine months ended June 30 , 2026 , was $ 163.3 million , an increase of 3.2 % over the prior year's first nine months . Third quarter net income from continuing operations¹ was $ 5.9 million , compared to net loss from continuing operations1 of $ 1.0 million for the prior year's third quarter . Net income from continuing operations¹ for the nine months ended June 30 , 2026 , was $ 9.2 million , compared to net income from continuing operations¹ of $ 4.1 million in the prior year's first nine months . Third quarter net income from continuing operations attributable to i3 Verticals , Inc.1 was $ 3.6 million , compared to net loss from continuing operations attributable to i3 Verticals , Inc. 1 of $ 0.4 million in the prior year's third quarter . Net income from continuing operations attributable to i3 Verticals , Inc. 1 for the nine months ended June 30 , 2026 , was $ 5.7 million , compared to net income from continuing operations attributable to i3 Verticals , Inc.¹ of $ 2.5 million in the prior year's first nine months . Third quarter adjusted EBITDA from continuing operations 1,2 was $ 13.3 million , an increase of 4.6 % over the prior year's third quarter . Adjusted EBITDA from continuing operations 1,2 for the nine months ended June 30 , 2026 , was $ 43.5 million , an increase of 0.9 % over the prior year's first nine months . Third quarter adjusted EBITDA from continuing operations 1,2 as a percentage of revenue was 25.1 % , compared to 24.5 % in the prior year's third quarter . Adjusted EBITDA from continuing operations 1,2 as a percentage of revenue for the nine months ended June 30 , 2026 , was 26.7 % , compared to 27.3 % in the prior year's first nine months . Diluted net income per share attributable to Class A common stockholders from continuing operations 1,3 was $ 0.19 , compared to diluted net loss per share attributable to Class A common stockholders from continuing operations 1,3 of $ 0.03 in the prior year's third quarter . Diluted net income per share attributable to Class A common stockholders from continuing operations 1,3 was $ 0.25 in the nine months ended June 30 , 2026 , compared to diluted net income per share attributable to Class A common stockholders from continuing operations 1,3 of $ 0.10 in the prior year's first nine months . Third quarter adjusted diluted earnings per share from continuing operations 1,2,3 , which gives effect to the Company's 25 % estimated long - term effective tax rate , was $ 0.25 compared to $ 0.23 for the prior year's third quarter . Non - GAAP adjusted diluted earnings per share from continuing operations 1,2,3 for the nine months ended June 30 , 2026 , was $ 0.82 compared to $ 0.78 for the prior year's first nine months . Annualized Recurring Revenue ( " ARR " ) from continuing operations 1,5 for the three months ended June 30 , 2026 and 2025 was $ 174.1 million and $ 160.8 million , respectively , representing a period - to - period growth rate of 8.3 % . See footnotes on the following page . -MORE-
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IIIV Reports Third Quarter 2026 Financial Results Page 2 August 6, 2026 1. As a result of the sale of the Company’s merchant services business (the "Merchant Services Business"), which was completed on September 20, 2024, and the sale of the Company's healthcare revenue cycle management business (the "Healthcare RCM Business"), which was completed on May 5, 2025, the historical results of the Merchant Services Business and the Healthcare RCM Business have been reflected in discontinued operations in the consolidated statement of operations included in this earnings release, and continuing operations reflect the Company's remaining operations after giving effect to such classifications. Prior period results have been recast to reflect this presentation. 2. Represents a non-GAAP financial measure. For additional information regarding non-GAAP financial measures (including reconciliation information), see the attached schedules to this release. 3. Diluted net income (loss) per share attributable to Class A common stockholders from continuing operations and adjusted diluted earnings per share from continuing operations both exclude discontinued operations of the Merchant Services Business and the Healthcare RCM Business but include the consolidated cash interest expense. 4. Corporate income tax expense is based on non-GAAP adjusted income before taxes from continuing operations and is calculated using a tax rate of 25.0% for both the nine months ended June 30, 2026 and 2025, based on the estimated long-term effective tax rate, considering blended federal and state tax rates. 5. Annualized Recurring Revenue (ARR) is the annualized revenue derived from recurring sources where the Company has an ongoing contract with its customers. The Company believes revenue from recurring sources is a strategic priority. ARR is comprised of software-as-a-service (“SaaS”) arrangements, transaction-based software-revenue, software maintenance, recurring software-based services, payments revenue and other recurring revenue sources within the quarter. The sum of these revenue categories is multiplied by four to calculate ARR. ARR excludes revenue that is not recurring or is one-time in nature. The Company's management believes this metric provides useful information to investors by providing visibility regarding the ongoing revenue potential of the Company's business model and providing a clearer picture of its sustainable revenue base. Further, the Company's management uses ARR as a metric because it helps to assess the health and trajectory of the Company's business. The Company's management believes that focusing on ARR can orient the Company's sales and operations management towards long-term, reliable revenue growth. This focus on recurring revenue is particularly relevant for businesses operating under a subscription model, where customer retention and contract renewals play a significant role in long-term financial performance. ARR does not have a standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. It should be reviewed independently of revenue, and it is not a forecast. Additionally, ARR does not take into account seasonality. The active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by the Company's customers. -MORE-
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IIIV Reports Third Quarter Fiscal Year 2026 Financial Results Page 3 August 6, 2026 Greg Daily, Chairman and CEO of i3 Verticals, commented, "Our third quarter results came in below our expectations, reflecting ongoing weakness in certain non-recurring revenue streams and implementation delays. While we are disappointed with this outcome, we remain focused on attractive future growth opportunities. “Annualized recurring revenue grew 8% year over year. We are pleased to announce the go-live of four material statewide services in our Transportation market, which we believe will help re-accelerate recurring revenue growth going forward. "We have now repurchased more than 20% of our outstanding shares under share repurchase programs since October 2024, reflecting our long-term confidence in the direction of our business." 2026 Outlook The Company's practice is to provide annual guidance, excluding the impact of future acquisitions and transaction-related costs. The Company is providing the following revised outlook for the fiscal year ending September 30, 2026: (in thousands, except share and per share amounts) Previous Outlook Range Revised Outlook Range Fiscal year ending September 30, 2026 Revenue $ 221,000 - $ 229,000 $ 216,000 - $ 221,000 Adjusted EBITDA (non-GAAP) $ 61,000 - $ 65,000 $ 57,000 - $ 60,000 Adjusted diluted earnings per share (non-GAAP) $ 1.09 - $ 1.15 $ 1.08 - $ 1.12 _______________________ 1. Assumes an effective tax rate of 25.0% (non-GAAP), based on the estimated long-term effective tax rate, considering blended federal and state tax rates. With respect to the “2026 Outlook” above, reconciliations of adjusted EBITDA from continuing operations and adjusted diluted earnings per share from continuing operations guidance to the closest corresponding GAAP measure on a forward-looking basis are not available without unreasonable efforts. This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliations, including changes in the fair value of contingent consideration, income tax expense of i3 Verticals, Inc. and equity-based compensation expense. The Company expects these adjustments may have a potentially significant impact on future GAAP financial results. Conference Call The Company will host a conference call on Friday, August 7, 2026, at 8:30 a.m. ET, to discuss financial results and operations. To listen to the call live via telephone, participants should dial (844) 887-9399 approximately 10 minutes prior to the start of the call. A telephonic replay will be available from 11:30 a.m. ET on August 7, 2026, through August 14, 2026, by dialing (855) 669-9658 and entering Confirmation Code 9466422. To listen to the call live via webcast, participants should visit the “Investors” section of the Company’s website, www.i3verticals.com, and go to the “Events” page approximately 10 minutes prior to the start of the call. The online replay will be available on this page of the Company’s website beginning shortly after the conclusion of the call and will remain available for 30 days. Non-GAAP Measures This press release contains information prepared in conformity with GAAP as well as non-GAAP information. It is management’s intent to provide non-GAAP financial information to enhance understanding of the Company's consolidated financial information as prepared in accordance with GAAP. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure and the most directly comparable GAAP financial measure are presented for historical periods so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies. (1) -MORE-
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IIIV Reports Third Quarter Fiscal Year 2026 Financial Results Page 4 August 6, 2026 Additional information about non-GAAP financial measures, and a reconciliation of those measures to the most directly comparable GAAP measures, is included in the financial schedules of this release. About i3 Verticals The Company provides mission-critical enterprise software solutions to public sector entities. These comprehensive cloud- native solutions address a broad range of government functions, including courts and public safety, public administration, utilities, transportation and schools. The Company’s mission is to enable state and local governments and related agencies to perform their functions and serve their constituents as effectively and efficiently as possible. With thousands of software installations across all 50 states and Canada, i3 Verticals is a leader in the public sector vertical. More information about the Company can be found at www.i3verticals.com. Forward-Looking Statements This release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this release are forward-looking statements, including any statements regarding the Company's fiscal 2026 financial outlook for continuing operations and statements of a general economic or industry specific nature. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, guidance, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “could have,” “exceed,” “significantly,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The forward-looking statements contained in this release are based on assumptions that we have made in light of the Company's industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. As you review and consider information presented herein, you should understand that these statements are not guarantees of future performance or results. They depend upon future events and are subject to risks, uncertainties (many of which are beyond the Company's control) and assumptions. Factors that could cause actual results to differ from those expressed or implied by our forward-looking statements include, among other things: ongoing and future economic and geopolitical conditions, including the impact of inflation, elevated interest rates, tariff and trade-related developments, ongoing military conflicts in the Middle East and Ukraine, the evolving legal, ethical, regulatory and operational landscape related to artificial intelligence technologies, competition in our industry and our ability to compete effectively, regulatory developments, the successful integration of acquired businesses, our ability to execute on our strategy and achieve our goals following the completion of the sale of our Merchant Services Business and Healthcare RCM Business, and future decisions made by us and our competitors. All of these factors are difficult or impossible to predict accurately and many of them are beyond our control. For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A - Risk Factors in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which we may further update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q we will file hereafter, and the risks and uncertainties identified in other filings filed with the Securities and Exchange Commission from time to time. Any forward-looking statement made by us in this release speaks only as of the date of this release and we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Contact: Clay Whitson Chief Strategy Officer (888) 251-0987 investorrelations@i3verticals.com -MORE-
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IIIV Reports Third Quarter Fiscal Year 2026 Financial Results Page 5 August 6, 2026 i3 Verticals, Inc. Consolidated Statements of Operations (Unaudited) ($ in thousands, except share and per share amounts) Three Months Ended June 30, Nine Months Ended June 30, 2026 2025 % Change 2026 2025 % Change Revenue $ 53,067 $ 51,901 2% $ 163,256 $ 158,257 3% Operating expenses Costs of services (excluding depreciation and amortization) 16,314 16,733 (3)% 51,034 48,889 4% Selling, general and administrative 28,858 33,018 (13)% 84,905 85,779 (1)% Depreciation and amortization 7,349 6,989 5% 21,917 20,848 5% Change in fair value of contingent consideration 1,438 (26) n/m 940 440 114% Total operating expenses 53,959 56,714 (5)% 158,796 155,956 2% (Loss) income from operations (892) (4,813) (81)% 4,460 2,301 94% Other expenses (income) Interest expense 1,820 806 126% 3,342 1,932 73% Other income (9,903) (4,601) 115% (10,534) (7,020) 50% Total other income (8,083) (3,795) 113% (7,192) (5,088) 41% Income (loss) before income taxes 7,191 (1,018) n/m 11,652 7,389 58% Provision for (benefit from) income taxes 1,313 (22) n/m 2,495 3,272 (24)% Net income (loss) from continuing operations 5,878 (996) 9,157 4,117 Net (loss) income from discontinued operations, net of incometaxes (217) 19,421 (355) 18,185 Net income 5,661 18,425 (69)% 8,802 22,302 (61)% Net income (loss) from continuing operations attributable tonon-controlling interest 2,258 (586) 3,497 1,653 Net (loss) income from discontinued operations attributable tonon-controlling interest (79) 6,129 (125) 5,865 Net income attributable to non-controlling interest 2,179 5,543 (61)% 3,372 7,518 (55)% Net income (loss) from continuing operations attributable to i3Verticals, Inc. 3,620 (410) 5,660 2,464 Net (loss) income from discontinued operations attributable toi3 Verticals, Inc. (138) 13,292 (230) 12,320 Net income attributable to i3 Verticals, Inc. $ 3,482 $ 12,882 (73)% $ 5,430 $ 14,784 (63)% Net income (loss) per share attributable to Class A commonstockholders from continuing operations: Basic $ 0.19 $ (0.02) $ 0.26 $ 0.10 Diluted $ 0.19 $ (0.03) $ 0.25 $ 0.10 Net (loss) income per share attributable to Class A commonstockholders from discontinued operations: Basic $ (0.01) $ 0.55 $ (0.01) $ 0.52 Diluted $ (0.01) $ 0.55 $ (0.01) $ 0.49 Weighted average shares of Class A common stockoutstanding: Basic, for continuing operations 19,419,792 24,345,826 21,638,108 23,909,714 Diluted, for continuing operations 19,543,611 32,983,325 22,285,629 24,823,635 Basic, for discontinued operations 19,419,792 24,345,826 21,638,108 23,909,714 Diluted, for discontinued operations 27,801,473 24,345,826 30,019,789 34,183,267 n/m = not meaningful -MORE-
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IIIV Reports Third Quarter Fiscal Year 2026 Financial Results Page 6 August 6, 2026 i3 Verticals, Inc. Consolidated Balance Sheets (Unaudited) ($ in thousands, except share and per share amounts) June 30, September 30, 2026 2025 Assets Current assets Cash and cash equivalents $ 2,647 $ 66,672 Accounts receivable, net 48,519 58,467 Settlement assets 36 411 Prepaid expenses and other current assets 12,270 12,075 Total current assets 63,472 137,625 Property and equipment, net 6,627 7,181 Restricted cash 2,760 250 Capitalized software, net 50,983 48,314 Goodwill 282,284 248,469 Intangible assets, net 153,599 135,797 Deferred tax asset 46,595 49,058 Operating lease right-of-use assets 4,495 4,577 Other assets 16,169 7,140 Total assets $ 626,984 $ 638,411 Liabilities and equity Liabilities Current liabilities Accounts payable $ 4,384 $ 6,248 Accrued expenses and other current liabilities 21,026 24,525 Settlement obligations 36 411 Deferred revenue 25,285 37,678 Current portion of operating lease liabilities 1,907 1,827 Total current liabilities 52,638 70,689 Long-term debt, less current portion 114,276 — Long-term tax receivable agreement obligations 32,192 32,191 Operating lease liabilities, less current portion 2,689 2,964 Other long-term liabilities 24,859 14,844 Total liabilities 226,654 120,688 Commitments and contingencies Stockholders' equity Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized; 0 shares issued and outstandingas of both June 30, 2026 and September 30, 2025 — — Class A common stock, par value $0.0001 per share, 150,000,000 shares authorized; 18,241,855 and23,983,125 shares issued and outstanding as of June 30, 2026 and September 30, 2025, respectively 2 2 Class B common stock, par value $0.0001 per share, 40,000,000 shares authorized; 8,381,681 shares issuedand outstanding as of both June 30, 2026 and September 30, 2025 1 1 Additional paid-in capital 156,844 271,310 Accumulated earnings 123,700 118,270 Total stockholders' equity 280,547 389,583 Non-controlling interest 119,783 128,140 Total equity 400,330 517,723 Total liabilities and equity $ 626,984 $ 638,411 -MORE-
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IIIV Reports Third Quarter Fiscal Year 2026 Financial Results Page 7 August 6, 2026 i3 Verticals, Inc. Consolidated Cash Flow Data (Unaudited) ($ in thousands) Nine Months Ended June 30, 2026 2025 Net cash provided by (used in) operating activities $ 38,414 $ (8,276) Net cash (used in) provided by investing activities $ (68,120) $ 78,774 Net cash used in financing activities $ (32,184) $ (104,283) Reconciliation of GAAP to Non-GAAP Financial Measures The Company discloses the following non-GAAP financial measures in this earnings release: • Adjusted Income Before Taxes from Continuing Operations. Adjusted income before taxes from continuing operations equals net income (loss) from continuing operations attributable to i3 Verticals Inc., adjusted to add back net income (loss) from continuing operations attributable to non-controlling interest and to exclude certain items on a pre-tax basis which the Company believes may not fully reflect our underlying operating performance. The Company believes that this non-GAAP measure provides useful information to investors in understanding and evaluating the Company’s results of continuing operations and ongoing operational performance on a pre-tax basis. • Adjusted Net Income from Continuing Operations and Adjusted Diluted Earnings per Share from Continuing Operations. Adjusted net income from continuing operations equals adjusted income before taxes from continuing operations as described above, adjusted to give effect to an effective tax rate of 25%, which reflects our estimated long- term effective tax rate, considering blended federal and state tax rates. Adjusted diluted earnings per share from continuing operations equals adjusted net income from continuing operations divided by our adjusted weighted average shares of adjusted diluted Class A common stock outstanding. The Company believes that these non-GAAP measures provide useful information to investors in understanding and evaluating the Company’s results of continuing operations and ongoing operational performance on a post-tax basis after giving effect to this assumed tax rate. Adjusted Diluted Earnings per Share from Continuing Operations has also been utilized as a metric in connection with performance-based equity awards previously granted by the Company to executives. • Adjusted EBITDA from Continuing Operations and Adjusted EBITDA Margin from Continuing Operations. Adjusted EBITDA from continuing operations equals net income (loss) from continuing operations attributable to i3 Verticals Inc., before interest, income taxes, depreciation and amortization, adjusted to add back net income (loss) from continuing operations attributable to non-controlling interest, and to exclude certain items which the Company believes do not fully reflect our underlying operating performance. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue. The Company believes that these non-GAAP measures provide useful information to investors in understanding and evaluating the Company’s results of continuing operations and ongoing operational performance. In addition, Adjusted EBITDA and Adjusted EBITDA margin have been metrics utilized in connection with the Company’s short-term annual cash incentive program for executive management. The Company believes that the disclosure of these non-GAAP financial measures provides investors with useful information in connection with assessing the Company's financial results as described above. In addition, these non-GAAP financial measures are utilized by management to assess the Company's financial results, evaluate the Company's business, manage budgets, allocate resources, and make operational decisions. The Company believes that disclosure of these non-GAAP financial measures provides investors with additional information to help them better understand our financial results just as management utilizes these non-GAAP financial measures as described above. Although these non-GAAP financial measures assist in measuring the Company's financial results and assessing its financial performance, they are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation. See below for reconciliations of the non-GAAP financial measures presented in this release. -MORE-
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IIIV Reports Third Quarter Fiscal Year 2026 Financial Results Page 8 August 6, 2026 i3 Verticals, Inc. Reconciliation of GAAP Net Income (Loss) from Continuing Operations to Non-GAAP Adjusted Net Income from Continuing Operations and Non-GAAP Adjusted EBITDA from Continuing Operations (Unaudited) ($ in thousands) Three Months Ended June30, Nine Months Ended June 30, 2026 2025 2026 2025 Net income (loss) from continuing operations attributable to i3 Verticals, Inc. $ 3,620 $ (410) $ 5,660 $ 2,464 Net income (loss) from continuing operations attributable to non-controllinginterest 2,258 (586) 3,497 1,653 Net income (loss) from continuing operations $ 5,878 $ (996) $ 9,157 $ 4,117 Non-GAAP adjustments: Provision for (benefit from) income taxes 1,313 (22) 2,495 3,272 Non-cash change in fair value of contingent consideration 1,438 (26) 940 440 Equity-based compensation from continuing operations 5,136 4,879 14,933 12,030 M&A-related activity 172 1,137 319 1,296 Acquisition intangible amortization 4,789 4,444 14,155 12,897 Non-cash interest expense 216 511 647 1,041 Other taxes 77 322 691 1,029 Gain on Investment (9,868) — (9,868) — Loss (gain) on disposal of property and equipment — — 71 (585) Non-GAAP adjusted income before taxes from continuing operations $ 9,151 $ 10,249 $ 33,540 $ 35,537 Estimated taxes at 25% (2,288) (2,562) (8,385) (8,885) Adjusted net income from continuing operations $ 6,863 $ 7,687 $ 25,155 $ 26,652 Cash interest expense (income), net 1,601 (70) 2,214 (352) Estimated taxes at 25% 2,288 2,562 8,385 8,885 Depreciation and internally developed software amortization 2,560 2,545 7,762 7,951 Adjusted EBITDA from continuing operations $ 13,312 $ 12,724 $ 43,516 $ 43,136 ________________ 1. Non-cash change in fair value of contingent consideration reflects the changes in management’s estimates of future cash consideration to be paid in connection with prior acquisitions from the amount estimated as of the later of the most recent balance sheet date forming the beginning of the income statement period or the original estimates made at the closing of the applicable acquisition. 2. Equity-based compensation expense related to stock options and restricted stock units issued under the Company's 2018 Equity Incentive Plan and 2020 Acquisition Equity Incentive Plan. 3. M&A-related activity is the net impact of professional service and related costs directly related to any merger, acquisition and disposition activity of the Company ("M&A-related expenses"), which are recorded in selling, general and administrative in the condensed consolidated statements of operations, and revenue earned through post-sale non-recurring activities with divestitures ("M&A-related income"), which are recorded in other income in the condensed consolidated statements of operations. i3 Verticals believes these activities are not reflective of the underlying operational performance of the Company. M&A-related income was $31 and $256 for the three and nine months ended June 30, 2026, respectively, and $4,237 and $5,193 for the three and nine months ended June 30, 2025, respectively. M&A-related expenses were $203 and $575 for the three and nine months ended June 30, 2026, respectively and $5,373 and $6,489 for the three and nine months ended June 30, 2025, respectively. 4. Acquisition intangible amortization reflects amortization of intangible assets and software acquired through acquisitions of business or other purchases of intangible assets. 5. Non-cash interest expense reflects amortization of debt issuance costs and any write-offs of debt issuance costs. 6. Other taxes consist of franchise taxes, reserves for ongoing tax audit matters, the employer portion of payroll taxes related to stock option exercises and other non-income-based taxes. Taxes related to salaries are not included. 7. Gain on investment reflects an unrealized gain on a minority equity investment due to adjusting the carrying value of such investment to its fair value as a result of a new investment round. The Company recognized this change in fair value in other income. 8. Loss (gain) on disposal of property and equipment is related to the sale of buildings and automobiles purchased through acquisitions. 9. Represents a non-GAAP financial measure. 10. Corporate income tax expense is based on non-GAAP adjusted income before taxes from continuing operations and is calculated using a tax rate of 25.0% for both the nine months ended June 30, 2026 and 2025, based on the estimated long-term effective tax rate, considering blended federal and state tax rates. 11. Cash interest expense (income), net, represents all interest expense net of interest income recorded on the Company's statement of operations other than non-cash interest expense, which represents amortization of debt issuance costs and any write-offs of debt issuance costs. 12. Depreciation and internally developed software amortization reflects depreciation on the Company's property, plant and equipment, net, and amortization expense on its internally developed capitalized software. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (9) (11) (10) (12) (9) -MORE-
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IIIV Reports Third Quarter Fiscal Year 2026 Financial Results Page 9 August 6, 2026 i3 Verticals, Inc. GAAP Diluted EPS from Continuing Operations and Non-GAAP Adjusted Diluted EPS from Continuing Operations (Unaudited) ($ in thousands, except share and per share amounts) Three Months Ended June 30, Nine Months Ended June 30, 2026 2025 2026 2025 Diluted net income (loss) per share attributable to Class Acommon stockholders from continuing operations$ 0.19 $ (0.03)$ 0.25 $ 0.10 Adjusted diluted earnings per share from continuingoperations $ 0.25 $ 0.23 $ 0.82 $ 0.78 Adjusted net income from continuing operations$ 6,863 $ 7,687 $ 25,155 $ 26,652 Adjusted weighted average shares of adjusted diluted Class Acommon stock outstanding 27,925,292 33,936,121 30,667,310 34,183,267 ________________ 1. Diluted net income (loss) per share attributable to Class A common stockholders from continuing operations and adjusted diluted earnings per share from continuing operations both exclude the discontinued operations of the Merchant Services Business and the Healthcare RCM Business but include the consolidated cash interest expense. 2. Represents a non-GAAP financial measure. 3. Adjusted diluted earnings per share from continuing operations, a non-GAAP financial measure, is calculated using adjusted net income from continuing operations and the adjusted weighted average shares of adjusted diluted Class A common stock outstanding. Further, adjusted diluted earnings per share from continuing operations assumes that all Common Units in i3 Verticals, LLC and the associated non-voting Class B common stock were exchanged for Class A common stock at the beginning of the period on a one-for-one basis. 4. Adjusted net income from continuing operations, a non-GAAP financial measure, assumes that all net income from continuing operations during the period is available to the holders of the Company's Class A common stock. 5. Adjusted weighted average shares of adjusted diluted Class A common stock outstanding include 8,381,681 and 8,637,499 weighted average outstanding shares of Class B common stock (which can be converted into Class A common stock upon the exchange of the Class B common stock and the associated Common Units in i3 Verticals, LLC) and 123,819 and 952,796 shares resulting from estimated stock option exercises and restricted stock units vesting as calculated by the treasury stock method for the three months ended June 30, 2026 and 2025, respectively. Adjusted weighted average shares of adjusted diluted Class A common stock outstanding include 8,381,681 and 9,359,632 weighted average outstanding shares of Class B common stock (which can be converted into Class A common stock upon the exchange of the Class B common stock and the associated Common Units in i3 Verticals, LLC) and 647,521 and 913,921 shares resulting from estimated stock option exercises and restricted stock units vesting as calculated by the treasury stock method for the nine months ended June 30, 2026 and 2025, respectively. (1) (2)(3) (2)(4) (2)(5) -END-