IIIVi3 Verticals, Inc.

$15.47-52% 1Y

Is the business good?

Mixed

The checks split: nothing decisive, though margins widening.

1 good, 1 neutral, 2 without data
Margin direction, 3 years+5.5 pts

Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.

Where ROE comes from2% ROA

A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.

All from derived.

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

How good a business is IIIV?

i3 Verticals, Inc. earns 1.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

1.2%

Return on invested capital · cost of capital 9.0% · 7.8 points below what the capital costs: growth destroys value

Operating margin
2.7%

Operating margin · Software - Infrastructure median 5.8% · 12 months to Q3 2026

Share count, year on year
−42%

Share count, year on year · bought back, each share owns more of the company

Gross margin
68%

Gross margin

Operating margin by fiscal year
YearOperating margin
FY20205.2%
FY2021−0.01%
FY2022−12%
FY2023−2.3%
FY20242.3%
FY20251.8%
Details›
Gross margin12 months to Q3 2026
68%
Operating margin12 months to Q3 2026
2.7%
Net margin12 months to Q3 2026
3.9%
Free cash flow margin
23%
Revenue, trailing twelve months
$218M
Free cash flow, trailing twelve months
$50M
Net income, trailing twelve months
$8.5M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
1.2%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.