i3 Verticals (IIIV) investor relations material

Business overview and market focus

• Operates as a vertical market software provider focused on the public sector, with key segments in courts, transportation, public administration, utilities, and education.

• Courts is the largest and fastest-growing segment, offering case management and revenue collection solutions.

• Recent acquisition in transportation added electronic insurance verification, expanding capabilities.

• Utilities segment provides billing solutions for a range of utility sizes; education focuses on school lunch software with significant transaction volume.

Sales environment and demand trends

• Sales teams are specialized by vertical, with direct sales models tailored to each market.

• Public sector demand for software remains strong due to modernization and security pressures, though customers are not profit-driven and lag in AI adoption.

• Funding from the American Rescue Plan and increased property taxes boosted budgets, but spending is normalizing and requires creative funding models.

• About 25% of revenue comes from payments, with additional transactional sources supporting flexible customer funding.

AI adoption and internal impact

• AI integration is organization-wide, accelerating development and reducing costs, with heavy use of Microsoft Copilot and various AI models.

• CapEx has remained stable despite increased development velocity, reflecting AI-driven efficiency.

• Effectiveness is measured by token usage, code commits, and successful product launches, not just CapEx.