Company: IIIV
Filing Date: 2025-03-21
Form Type: CORRESP
Source: 0001728688-25-000076
Chunk: 4

Company: i3 Verticals, Inc.
Filing Date: 2025-03-21
Form: CORRESP
Chunk 4
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 a metric reported by many of our peers in the technology industry.

In future periodic reports, the Company will expand our disclosure to include the following (with additions to this disclosure included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, indicated by underlining and deletions indicated by strike-outs):

“ARR is the annualized revenue derived from recurring sources where the Company has an ongoing contract with its customers. The Company believes revenue from recurring sources is a strategic priority. ARR is comprised of software-as-a-service (“SaaS”) arrangements, transaction-based software-revenue, software maintenance, recurring software-based services, payments revenue and other recurring revenue sources within the quarter. The sum of these revenue categories is multiplied by four to calculate ARR. ARR excludes revenue that is not recurring or is one-time in nature.

We believe this metric provides useful information to investors by providing visibility regarding the ongoing revenue potential of the Company's business model and providing a clearer picture of the Company's sustainable revenue base. We focus on ARR Further, the Company’s management uses ARR as a metric because it helps us to

United States Securities and Exchange Commission

March 21, 2025

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assess the health and trajectory of our business. The Company believes that focusing on ARR can orient the Company's sales and operations management towards long-term, reliable revenue growth. This focus on recurring revenue is particularly relevant for businesses operating under a subscription model, where customer retention and contract renewals play a significant role in long-term financial performance.

ARR does not have a standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. It should be reviewed independently of revenue and it is not a forecast. Additionally, ARR does not take into account seasonality. The active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers. ARR from continuing operations for the three months ended [____] and [____] was [$____ million] and [$____ million], respectively, representing a period-to-period growth rate of [____%].”

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United States Securities and Exchange Commission

March 21, 2025

Page 7

Please do not hesitate to contact the undersigned at (615) 257-7210 with any questions or comments you may have regarding this letter.

| Sincerely,                           |
| /s/ Geoff Smith                      |
| Geoff Smith, Chief Financial Officer |

|