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SEC filingQ2 reflected revenue and operating income declines from prior year amid software cost pressures, offset by return to net income profitability and strong operating cash generation supporting historical financing of operations and working capital.
Revenue of $57.5 million for the three months ended March 31, 2026 decreased 8.8% from $63.1 million in the prior year quarter. This decline reflects softer discount fees, which are recognized each day based on the volume or transaction count at the time merchants' transactions are processed, consistent with post-divestiture stabilization following the Merchant Services exit.
Net income marked a return to profitability at $1.5 million, a substantial improvement from the prior year's $154 thousand loss. This swing underscores the benefits of eliminating discontinued operations drag, enabling positive earnings amid revenue headwinds.
Overall, these results demonstrate resilience through cost management and cash discipline despite top-line challenges, positioning i3 Verticals to navigate market conditions while maintaining liquidity for strategic flexibility.