UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38532 i3 Verticals, Inc. (Exact name of registrant as specified in its charter) Delaware 82-4052852 (State or other jurisdiction of incorpo ...

Financial Data and Key Metrics Changes - The company reported record revenues of $78.1 million for Q2 2022, a 59% increase from $49.2 million in Q2 2021, driven by organic growth and acquisitions [15] - Adjusted EBITDA increased by 59% to $19.5 million for Q2 2022 from $12.2 million for Q2 2021, with adjusted EBITDA margin improving to 25% from 24.9% [17] - Pro forma adjusted diluted earnings per share rose 61% to $0.37 for Q2 2022 from $0.23 for Q2 2021 [18] Business Line Data and Key Metrics Changes - Software and related services revenue represented 50% of total revenues for the quarter, marking a significant milestone as it surpassed payments as the largest revenue source [9][16] - Revenues in the proprietary software and payments segment more than doubled to $49 million for Q2 2022 from $23.8 million for Q2 2021, primarily due to growth in Public Sector and Healthcare verticals [18] - The education vertical saw a 43% revenue increase year-over-year, driven by the reopening of existing customers and new sales to school districts [19] Market Data and Key Metrics Changes - Annual recurring revenues totaled $258.8 million in Q2 2022, a growth rate of 47% compared to $173.3 million in Q2 2021, with over 80% of revenues coming from recurring sources [17] - The Merchant Services segment revenues increased by 12% to $29.2 million for Q2 2022 from $26.1 million for Q2 2021, reflecting growth in hospitality and B2B sectors [20] Company Strategy and Development Direction - The company is focusing on becoming a software and service company first, with integrated payments as a complementary platform to enhance customer value [16] - Continued investments in technology and infrastructure, including moving to AWS and adopting low-code application technologies, are aimed at improving product offerings and operational efficiencies [30][31] - The M&A strategy emphasizes public sector and healthcare acquisitions, with a recent tuck-in acquisition in the healthcare vertical enhancing the company's product offerings [32][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising guidance for fiscal year 2022, projecting revenues between $300 million to $312 million and adjusted EBITDA between $75 million to $81 million [23] - The company anticipates a tailwind from the rollout of federal stimulus funds for state and local governments, which may lead to increased procurement activity [48] - Management views healthcare as a resilient vertical, with consistent demand even during economic downturns [61] Other Important Information - The company has a strong balance sheet with $182 million borrowed under a revolver and a total leverage ratio of 3.9x as of March 31 [21] - The interest rate for convertible notes is 1%, while the revolver interest rate is around 4.25%, expected to increase with Fed rate hikes [22] Q&A Session Summary Question: Organic growth expectations - Management reported organic growth of 16% for the quarter, consistent with previous quarters, and committed to double-digit growth for the year [40] Question: Size of recent acquisition - The recent acquisition is expected to be less than $10 million, contrary to initial assumptions of $20 million to $30 million [42] Question: Margin expectations - Margins may appear lower due to business mix rather than underlying changes, with no additional investments planned for the second half [43][44] Question: Cross-selling success in software companies - Management confirmed successes in cross-selling payments into public sector and healthcare businesses [46] Question: Impact of federal stimulus on IT spending - There is a $350 billion fund available for state and local governments, with an uptick in RFPs expected as municipalities begin to utilize these funds [48] Question: Guidance for interest expense - Expected cash interest for the year is between $8.5 million and $9 million, factoring in anticipated rate increases [51] Question: Merchant segment performance - The hospitality vertical has been slow to rebound, impacting margins, but there is a resurgence in B2B [53] Question: M&A market conditions - The M&A pipeline remains strong, with no significant impact from public market conditions [55] Question: Competitive environment in public sector and healthcare - Competition remains stable, with Tyler being a notable competitor in the public sector [58] Question: Resilience of healthcare business - Healthcare has proven resilient during the pandemic, with consistent revenue performance [62] Question: Education vertical recovery - The education vertical has outperformed expectations, with potential for further revenue growth if free lunch programs are adjusted [66]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38532 i3 Verticals, Inc. (Exact name of registrant as specified in its charter) Delaware 82-4052852 (State or other jurisdiction of incorp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38532 i3 Verticals, Inc. (Exact name of registrant as specified in its charter) Delaware 82-4052852 (State or other jurisdiction of inc ...

Financial Data and Key Metrics Changes - The company reported a 66% increase in revenue for Q1 2022, reaching $73.9 million compared to $44.6 million in Q1 2021 [14] - Adjusted EBITDA increased by 72% to $18.3 million from $10.6 million in Q1 2021 [18] - Pro forma adjusted diluted earnings per share rose 67% to $0.35 for Q1 2022 from $0.21 in Q1 2021 [19] Business Line Data and Key Metrics Changes - Software and related services revenue grew 116% year-over-year, representing 49% of total revenue in Q1 2022, up from 38% in Q1 2021 [9][16] - Revenue from the proprietary software and payments segment increased 124% to $44.8 million for Q1 2022 from $20.0 million in Q1 2021 [20] - Merchant services segment revenue increased 16% to $29.2 million for Q1 2022 from $25.1 million in Q1 2021 [22] Market Data and Key Metrics Changes - The company noted an increase in RFP activity within the public sector, indicating a positive trend and strong win rates [12] - The public sector represents roughly half of the consolidated business, while healthcare accounts for an estimated 20% [21] Company Strategy and Development Direction - The company is focused on a software-led strategy, emphasizing growth in proprietary software and payment segments [8] - Recent acquisitions, including a public sector deal, are expected to enhance the company's capabilities and market reach [10][34] - The company aims to maintain a disciplined approach to acquisitions, targeting four to five per year, primarily in public sector and healthcare [36][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to produce strong results for the remainder of the year, supported by momentum from previous fiscal year [8] - The company anticipates continued organic growth, with guidance for fiscal year 2022 indicating revenues between $288 million and $304 million [26] - Management acknowledged inflationary pressures on expenses but noted that higher ticket sizes are beneficial for payment processing [55] Other Important Information - The company reported an annualized recurring revenue (ARR) of $240 million, growing 53% year-over-year [10][17] - The balance sheet remains strong, with a total leverage ratio of 3.8 times as of December 31, 2021 [23] Q&A Session Summary Question: What was the approximate growth rate in the second quarter? - Management indicated an organic growth rate of 16% [39] Question: Is the growth in guidance for fiscal year 2022 primarily from the recent public sector acquisition? - Management stated that the majority of the growth is from the acquisition, but there was also a slight beat in Q1 expectations [47] Question: How does the company view inflation's impact on top and bottom lines? - Management noted that higher ticket sizes are generally good for payment processors, while they are experiencing pressure on compensation due to inflation [55] Question: What is the expected margin expansion in Merchant Services? - Management targets a margin expansion of 50 to 100 basis points per year, with expectations to reach the 30% EBITDA margin range over time [64] Question: How does the company view the current acquisition environment? - Management believes that private company valuations remain stable and anticipates continuing their acquisition strategy at a pace of four to five per year [69]

VERTICALS Q1 Fiscal 2022 Supplemental Information Annualized Recurring Revenue ("ARR") | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------------------------------------------------------------|-------|--------------------|-------|---------------------|-------|---------------|-------|----------------|-------|-------|-------|-------|------------------------------|-------|-------|------- ...

VERTICALS Q4 Fiscal 2021 Supplemental Information Updates to Acquisition Revenue Adjustments Under GAAP, companies historically were required to adjust, as necessary, beginning balances of acquired deferred revenue to fair value as part of acquisition accounting. Prior to the second quarter of our fiscal 2021 we included adjusted net revenue, adjusted EBITDA and pro forma adjusted diluted EPS inclusive of an "Acquisition Revenue Adjustment" which removed the effect of purchase accounting write-downs of defe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38532 i3 Verticals, Inc. (Exact name of re ...

i3 Verticals, Inc. (NASDAQ:IIIV) Q4 2021 Earnings Conference Call November 18, 2021 8:30 AM ET Company Participants Scott Meriwether – Chief Operating Officer Greg Daily – Chairman and Chief Executive Officer Clay Whitson – Chief Financial Officer Rick Stanford – President Conference Call Participants John Davis – Raymond James George Mihalos – Cowen Peter Heckmann – D.A. Davidson Cathy Chen – Bank of America Mark Palmer – BTIG Chris Donat – Piper Sandler Operator Good day, everyone, and welcome to i3 Verti ...

Q3 Fiscal 2021 Performance - Total revenue increased by 96% to $61964 thousand, compared to $31573 thousand in the same period last year[3] - Proprietary Software and Payments revenue increased significantly by 234% to $32615 thousand[3] - Merchant Services revenue increased by 35% to $29912 thousand[3] - Adjusted EBITDA increased by 104% to $14368 thousand, compared to $7027 thousand in the same period last year[3] YTD Fiscal 2021 Performance - Total revenue increased by 37% to $153140 thousand, compared to $111862 thousand in the same period last year[4] - Proprietary Software and Payments revenue increased by 100% to $73940 thousand[4] - Merchant Services revenue increased by 6% to $80874 thousand[4] - Adjusted EBITDA increased by 22% to $34543 thousand, compared to $28205 thousand in the same period last year[4] Debt and Leverage - Total long-term debt, net of issuance costs, was $212700 thousand as of June 30, 2021[12] - Total long-term debt for use in the Total Leverage Ratio was $230100 thousand, after adjustments for the discount on Exchangeable Notes and cash and cash equivalents[12]