i3 Verticals, Inc. (NASDAQ:IIIV) About To Shift From Loss To Profit

We feel now is a pretty good time to analyse i3 Verticals, Inc.'s (NASDAQ:IIIV) business as it appears the company may be on the cusp of a considerable accomplishment. i3 Verticals, Inc. provides integrated payment and software solutions primarily to the public sector and healthcare markets in the United States. On 30 September 2024, the US$786m market-cap company posted a loss of US$5.3m for its most recent financial year. Many investors are wondering about the rate at which i3 Verticals will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for i3 Verticals

i3 Verticals is bordering on breakeven, according to the 6 American Diversified Financial analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$19m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 92%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for i3 Verticals given that this is a high-level summary, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 5.1% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of i3 Verticals to cover in one brief article, but the key fundamentals for the company can all be found in one place – i3 Verticals' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:

1. Historical Track Record: What has i3 Verticals' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on i3 Verticals' board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.