I3 Verticals, Inc. (IIIV) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Technology / Software · as of Sep 25, 2026
I3 Verticals, Inc. (IIIV)
A forensic read on I3 Verticals, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
4.8
Distress distance
Clean
Earnings quality
4
Forensic signals
45.7
P / E (ttm)
4.6%
ROE
$397M
Market cap
11.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
I3 Verticals, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 4.8, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.70×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, cumulative operating cash flow was 0.70× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
0.5%
FY2025
Return on invested capital.Return on invested capital is 0.5% in the latest fiscal year and steady across FY2023–FY2025, inside a 1.1-point range. After-tax operating profit was ($3M) in FY2023 and $2M in FY2025, with operating income at -2.3% of revenue in FY2023, 2.3% in FY2024 and 1.8% in FY2025. The capital base behind it came down -36% across FY2023–FY2025, from $788M to $501M, so this is a return struck on a smaller base rather than a record of money put to work.
+1.4%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +3% over the last 2 years to FY2025 (+1.4%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~3%.
FCF ($4M)
FY2025
Shareholder returns.Returned $48M to shareholders (buybacks + dividends) in FY2025, but free cash flow was ($4M) after capex — there was no free cash flow to fund the payout from at all, though operating cash flow alone was $6M — 837% of that. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
Key fundamentals
Latest Revenue$213.2M
Revenue Growth YoY+11.5%
Revenue CAGR (2yr)+6.0%
Net Margin8.4%
Free Cash Flow-$4.4M
Return on Equity4.6%
Debt / Equity0.00x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from I3 Verticals, Inc.'s actual 10-K/10-Q/8-K filings?