These 4 Low P/E Tech Stocks Could be Breakout-Ready Bargains i3 Verticals (NASDAQ:IIIV) reported third-quarter fiscal 2026 results that fell short of its expectations, prompting the public-sector software and payments company to lower its full-year outlook.
Management cited weaker-than-expected professional services revenue, particularly in utilities, and slower transaction revenue growth
For the quarter ended June 30, revenue increased 2% year over year to $53.1 million. Organic revenue declined 2%, affected by a $1.8 million decrease in professional services revenue. Annual recurring revenue, however, increased 8% to $174.1 million, with SaaS revenue rising 38% and transaction-based revenue increasing 5%. “Our third quarter results fell short of our expectations,” Chairman and CEO Greg Daily said. “The primary challenge continues to be slower than expected growth in certain areas of the business, particularly within revenue streams that tend to be less recurring in nature.” Professional Services and Transaction Revenue Pressure CFO Geoff Smith said the decline in professional services was concentrated in the utilities market and is expected to continue on a year-over-year basis in the fourth quarter.
Overall, non-recurring revenue decreased 18% from the prior-year quarter. During the analyst question-and-answer session, Smith said that roughly $4.5 million of the company’s $6.5 million reduction in revenue guidance was related to professional services. Of that amount, approximately $3 million was tied to utilities, including delays in a large customer information system project and other smaller projects.