i3 Verticals, Inc. — Earnings Quality Grade F
IIIV · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 100 days, change +3 days YoY
AR growth 15.1% vs revenue growth 11.5%
Revenue grew 11.5% but CFFO declined -88.2%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory 3.8% vs COGS 10.0%. Normal
CapEx growth -32.3% vs revenue 11.5%. Normal
SG&A/Gross Profit = 78.2%, exceeds 70%
Gross margin 68.8%, change +0.4pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF < 50% of Net Income for 2 years
Accruals ratio = 1.9%. Low accruals
Cash $0.1B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.4B = 111% of equity. Over 50%
Interest coverage = 1.7x (<2x). Financial stress
Other assets -90.3% vs revenue 11.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.10 (grey zone)
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25