Overview

• US public sector software provider's fiscal Q2 revenue grew 6% yr/yr, slightly beating analyst expectations

• Adjusted diluted EPS for fiscal Q2 rose to $0.32 from $0.29 a year earlier

• Company revised full-year revenue outlook downward to $221-229 mln from prior $223-234 mln range

Outlook

• Company lowers FY 2026 revenue outlook to $221 mln-$229 mln from $223 mln-$234 mln

• Company expects FY 2026 adjusted EBITDA guidance at $61 mln-$65 mln

• Company raises lower end of FY 2026 adjusted diluted EPS outlook to $1.09-$1.15

Result Drivers

• RECURRING REVENUE - Co said Q2 revenue growth was driven by strong performance across recurring revenue streams

• PRODUCT INVESTMENT - Co said it continues to invest in products with long-term growth opportunities in the public sector

• EFFICIENCY INITIATIVES - Ongoing process improvements and efficiency initiatives positioned co for margin expansion

Company press release: ID:nBw6cYnx5a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial technology (fintech) peer group is "buy"

• Wall Street's median 12-month price target for I3 Verticals Inc is $32.50, about 47.7% above its May 6 closing price of $22.00

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

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