Company: IIIV
Filing Date: 2025-03-21
Form Type: CORRESP
Source: 0001728688-25-000076
Chunk: 3

Company: i3 Verticals, Inc.
Filing Date: 2025-03-21
Form: CORRESP
Chunk 3
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 filings, we will not include “pro forma” in our description of the following non-GAAP measures referenced in the Staff’s comment: pro forma adjusted income before taxes from continuing operations, pro forma adjusted net income from continuing operations, pro forma adjusted diluted earnings per share from continuing operations and pro forma weighted average shares of adjusted diluted Class A common stock outstanding.

In addition, in future filings, we will expand our narrative disclosure regarding non-GAAP financial measures, including the Company’s non-GAAP financial measures referenced in the Staff’s comment above, to disclose why management believes such measures are useful to investors, any additional purposes for which management uses such measures, and to otherwise comply with Item 10(e) of Regulation S-K.

Form 10-K for the Fiscal Year Ended September 30, 2024

## Item 7. Management's Discussion and Analysis of Financial Condition and Results of
Operations, page 56

#### 3.
We note that you present annualized recurring revenue ("ARR") as a key performance indicator. ARR appears to be a metric. Please revise your disclosures to include or clarify the following information:

• How it is calculated, including any estimates or assumptions underlying the metric or its calculation;

• The reasons why the metric provides useful information to investors; and

• How management uses the metric in managing or monitoring the performance of the business.

#### Refer to SEC Release No. 33-10751

#### Response
: We acknowledge the Staff’s comment and respectfully advise the Staff that ARR is calculated as the sum of quarterly recurring revenue within the following

United States Securities and Exchange Commission

March 21, 2025

Page 5

categories: software-as-a-service (“SaaS”) arrangements, transaction-based software-revenue, software maintenance, recurring software-based services, payments revenue and other recurring revenue sources, the sum of which is then multiplied by four to annualize the result.

The Company’s management uses ARR as a key performance metric because it helps management assess the health and trajectory of the Company's business, as more specifically disclosed in the Company’s disclosure regarding ARR set forth under the heading “Key Performance Indicators” in the Company’s periodic reports. Additionally, the Company’s management reviews ARR in all of our internal management reporting packages. The Company believes that ARR provides useful information to investors for understanding the ongoing revenue potential of the Company's business model, as it excludes non-recurring or one-time contracts, thereby providing a clearer picture of the Company’s revenue base that is anticipated to be sustainable. ARR is also