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i3 Verticals, Inc. has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing outlines the company's financial performance, reporting a revenue increase of 1.4% to $229.9 million from $226.7 million in the previous year. This growth was driven by acquisitions and existing business expansions in the Public Sector and Healthcare segments.
Operating expenses decreased by 3.1% to $223.1 million from $230.3 million, attributed to a reduction in selling, general, and administrative expenses.
The company reported a net income of $175.1 million, a significant increase from a net loss of $2.7 million in the prior year, primarily due to the gain on the sale of its Merchant Services Business.
i3 Verticals completed the sale of its Merchant Services Business on September 20, 2024, for approximately $438 million, which contributed to the substantial net income increase.
Interest expense increased by 16.5% to $29.3 million due to higher average interest rates and outstanding debt balances.
The company made acquisitions totaling $19.3 million to expand its software offerings, primarily in the Public Sector segment.
i3 Verticals' cash and cash equivalents increased to $86.5 million, with a total available borrowing capacity of $450 million under its 2023 Senior Secured Credit Facility.
The filing also details the company's focus on strategic growth through acquisitions, with a disciplined approach evidenced by numerous acquisitions since its inception in 2012.
The company continues to invest in its technology infrastructure and software development, with capitalized software costs of $14.1 million for the year.
i3 Verticals anticipates that its cash flow from operations, current cash, and available borrowing capacity will be sufficient to meet its liquidity needs for the foreseeable future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the i3 Verticals Inc. annual 10-K report dated November 25, 2024. To report an error, please email earnings@qz.com.