Company: IIIV
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0001728688-25-000043
Chunk: 160

Company: i3 Verticals, Inc.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 8
Chunk 160
---
 our customers provide more responsive and efficient services to their citizens and stakeholders. The Healthcare segment is dedicated to delivering integrated solutions across the healthcare ecosystem, catering to providers and payers, with a strong emphasis on enhancing process efficiency and ensuring compliance. The Other category includes corporate overhead expenses, technology resources shared across segments and inter-segment eliminations.The Company has since updated its intercompany transactions and allocations to adhere to the updated segment structure, which includes Public Sector intercompany, Healthcare intercompany, and intercompany locations within its business. As described above, these transactions include, but are not limited to, resources shared across segments and also exist to eliminate revenue and cost between components that should not be included on a consolidated basis. Although our intercompany structure and allocations have changed due to our updated segments, this reporting is consistent with our accounting policies from prior periods.

37

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

The Company primarily uses adjusted EBITDA margin to measure operating performance and for purposes of making decisions about allocating resources to the Company's business segments. The following is a summary of reportable segment operating performance for continuing operations for the three months ended December 31, 2024 and 2023.As of and for the Three Months Ended December 31,20242023Public Sector adjusted EBITDA margin(1)39 %40 %Healthcare adjusted EBITDA margin(1)28 %24 %Public Sector revenue$48,785 $43,498 Healthcare revenue13,171 11,580 Other revenue(265)(24)Total revenue$61,691 $55,054 Public sector adjusted EBITDA19,243 17,359 Healthcare adjusted EBITDA3,748 2,794 Corporate, eliminations and other(6,619)(6,165)Stock compensation expense(3,814)(5,358)M&A-related expenses(546)(244)Other taxes and one-time expenses(252)(84)Depreciation and amortization(7,684)(7,054)Change in fair value of contingent consideration(1,377)237 Income from operations2,699 1,485 Other incomeInterest expense680 6,687 Other income(1,826)107 Total other income(1,146)6,794 Income before income taxes