i3 Verticals, Inc. Class A Common Stock Technology Leadership Forum 2026

Sure. Geoff Smith, I'm the CFO of the business. The company itself, i3 Verticals, is a vertical market software business concentrated exclusively in the public sector end market, which we believe is a really preferred spot to be at this point in time. Underneath that public sector umbrella, which obviously is broad, there's five spots that we play. The first, and this is our largest group, is courts. You might call it justice. Core enterprise solution there being the case management system. And then we have an array of different solutions around that. Solutions for jury, e-filing. We have public safety solutions, and we have a product called Resolv 360, which essentially helps courts drive revenue collections by helping them with the collections on traffic tickets and things like that. Courts is our largest, fastest growing. After that, we'll hit transportation.

The core solutions here would be the motor vehicle solution for a state. We also have a lot of fuel tax solutions here. And then our most recent acquisition in January is electronic insurance verification. That's been a great success for us so far. And a new spot where software can do something for states that previously wasn't possible. And then after that, public administration. This would be like government fund accounting, tax packages, land records packages. And then our best product here is a board licensing solution that you might use for Department of Consumer Affairs for a state will have a whole array of boards. Could be fish and wildlife boards, could be massage therapist boards, whatever it might be. The workflow software that those entities within a state need to manage renewals and things like that is what that solution is. After that, utilities. In the utilities market, we have customer information systems.

That's the core enterprise billing solution for a utility. We do smaller utilities on up to the very largest. When we talk about our quarter and our year, that's an area that's one of the hotter fires within the business, but it's still a great market opportunity in the long run. And then finally, education. Our niche within education software is school lunch software. Highly transactional, heavily monetized off the payments. We're one of the largest providers of school lunch software anywhere. Kids are going back to school right now, and many millions across the U.S. are using our lunch software.

Sure. That's a question that really we do have to take market by market. I should point out at the outset, as I discuss the company, we're very centralized in terms of how consolidated we are on things like ERP, Salesforce, and things like that. But then when you get to sales and you get to product, that is much more concentrated in the end markets close to the customers, as it would make sense. Our sales force is direct in almost all instances. Then again, focused on a particular market. Somebody that's selling to courts is not also distracted by selling to schools or something like that. It's a different go-to-market motion in each of those markets. If you're talking about transportation, those are always state-level sales, heavy enterprise.

We have basically a couple of very well-connected professional guys, and we don't need a large sales team in that group. Education, that's a lot more base hits. Huge landscape across the U.S. to cover, so you need a bigger sales force in that space. Courts would be similar to that as well.

In terms of the dynamics out there right now, there is a lot of demand for software in the public sector because the gap between what our potential customers are utilizing software for and what it can now do for them is very wide. The demand is very real. They're hurting for people. There's pressure to modernize, pressure to upgrade security, pressure to just adapt to this modern age. That being said, our customers are not motivated by profit generally, and that's part of why they are so systemically behind the times in the software perspective. You talk about AI later on, maybe, and our customers are not generally the driving force for AI adoption. That's very much coming from us to our customers. This is what we can do for you. This is what is possible now. This is a new function that we can add.

As far as demand, there was a lot of money in this space because of the American Rescue Plan, circa 3, 4 years ago, post-COVID. That was part of all those big funding packages that came down. It forgave a lot of debt, greenlit a lot of projects. Also, property taxes, we've probably all felt those have gone up significantly. The tax base for the customers has gone up a lot. That has produced a lot of extra cash flow for these entities, some of which can be spent on software. We are starting to notice that things seem to be getting a little bit thinner, and there's a lot more appetite for creativity in funding in this space right now.

I think it doesn't take long when the property tax base is leveled up for that to be spoken for.

Sure You can imagine. i3 Verticals is really well-positioned in regards to that, we believe, relative to our competitors.

We have about 25% of our revenue comes from payments. Another healthy chunk comes from transactional sources, technology fees or success fees on collections and courts, things like that. We're well-positioned to be creative with our customers to do things on a constituent bit, constituent funded models.

Does that make sense? Yeah.