Company: IIIV
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001728688-25-000108
Chunk: 68

Company: i3 Verticals, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 68
---
 upfront while a portion of the revenue is unbilled. Unbilled amounts associated with these professional services and software licenses sold under the subscription model are presented as accounts receivable as the Company has an unconditional right to payment for services performed.As of June 30, 2025 and September 30, 2024, the Company’s contract assets from contracts with customers was $9,417 and $8,680, respectively.

24

i3 VERTICALS, Inc.NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)(in thousands, except unit, share and per share amounts)

Contract LiabilitiesDeferred revenue represents amounts billed to customers by the Company for services contracts. Payment is typically collected at the start of the contract term. The initial prepaid contract agreement balance is deferred. The balance is then recognized as the services are provided over the contract term. Deferred revenue that is expected to be recognized as revenue within one year is recorded as short-term deferred revenue and the remaining portion is recorded as other long-term liabilities in the condensed consolidated balance sheets. The terms for most of the Company's contracts with a deferred revenue component are one year. Substantially all of the Company's deferred revenue is anticipated to be recognized within the next year.The following tables present the changes in deferred revenue as of and for the nine months ended June 30, 2025 and 2024, respectively:Balance at September 30, 2024$39,156 Deferral of revenue16,881 Recognition of unearned revenue(13,645)Balance at December 31, 202442,392 Deferral of revenue9,841 Recognition of unearned revenue(14,973)Balance at March 31, 202537,260 Deferral of revenue8,844 Recognition of unearned revenue(15,527)Balance at June 30, 2025$30,577 Balance at September 30, 2023$32,253 Deferral of revenue18,612 Recognition of unearned revenue(14,127)Balance at December 31, 202336,738 Deferral of revenue10,362 Recognition of unearned revenue(12,291)Balance at March 31, 202434,809 Deferral of revenue8,975 Recognition of unearned revenue(14,154)Balance at June 30, 2024$29,630 Costs to Obtain and Fulfill a ContractThe Company