i3 Verticals, Inc. (NASDAQ: IIIV)

i3 Verticals provides mission critical enterprise software solutions to public sector entities, delivering cloud native platforms that serve courts and public safety, public administration, utilities, transportation and schools across all 50 states and Canada. The company reports thousands of software installations in every U. S. state and in Canadian jurisdictions, establishing itself as a leader in the public sector vertical. Its solutions are designed to enable state and local governments and related agencies to perform their functions and serve constituents effectively and efficiently.

The company generates revenue primarily from its software and related services, including volume and transaction based fees for payment processing that are integrated into its solutions, with approximately 76% of its recurring revenue coming from ongoing software subscriptions and support. i3 Verticals also earns revenue from its proprietary payment facilitator platform, which enables seamless processing of payments for court fees, utility bills, school meals and other government transactions. This integrated payment capability creates additional value by combining software functionality with transaction based revenue streams.

As a result of the sale of the Merchant Services Business in 2024 and the Healthcare RCM Business in 2025, i3 Verticals reports only one operating segment and one reportable segment. This segment encompasses all of the company's continuing operations in the public sector software market.

• Public Sector: This segment provides mission critical enterprise software and services solutions to public sector customers at the state, county, and local levels of government entities, covering markets such as JusticeTech, Utilities, Public Administration, Education, and Transportation. The segment delivers end to end digital transformation, streamlining complex government operations and enhancing citizen engagement through cloud native applications and integrated payment processing.

i3 Verticals holds a leading position in the public sector software market, competing with a range of established and emerging providers while differentiating itself through integrated payment facilitation, cloud native architecture, strong security measures, and multi cloud partnerships with AWS and Azure. The company’s competitive advantages include its ability to deliver compliant, scalable solutions that meet strict government requirements, its deep domain expertise in vertical specific workflows, and its recurring revenue model that provides financial stability. These factors enable i3 Verticals to maintain strong customer retention and to pursue growth through both organic expansion and strategic acquisitions.

The company serves state and local government agencies, including court systems, public safety departments, utility providers, transportation authorities, and school districts, as well as other public sector organizations that require mission critical software and payment solutions. Its customer base spans thousands of installations across all fifty states and in Canada, ranging from small municipal offices to large state wide agencies. i3 Verticals does not disclose specific customer names in its filing, but it emphasizes that its solutions are used by entities responsible for justice, public safety, utility management, education and transportation functions.