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. The US$778m market-cap company posted a loss in its most recent financial year of US$811k and a latest trailing-twelve-month loss of US$629k shrinking the gap between loss and breakeven. As path to profitability is the topic on i3 Verticals' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

According to the 7 industry analysts covering i3 Verticals, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$14m in 2025. So, the company is predicted to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 75%, which is extremely buoyant. 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, but, take into account that typically 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 issue worth mentioning. i3 Verticals currently has a debt-to-equity ratio of 108%. Typically, debt shouldn't exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases 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 important 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.