i3 Verticals (IIIV) 10-Q 9 Feb 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Dec. 31, 2021	Feb. 08, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2021
Document Transition Report	false
Entity File Number	001-38532
Entity Registrant Name	i3 Verticals, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-4052852
Entity Address, Address Line One	40 Burton Hills Blvd., Suite 415
Entity Address, City or Town	Nashville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37215
City Area Code	615
Local Phone Number	465-4487
Title of 12(b) Security	Class A Common Stock, $0.0001 Par Value
Trading Symbol	IIIV
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001728688
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		22,068,275
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		10,214,142

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Current assets
Cash and cash equivalents	$ 3,371	$ 3,641
Accounts receivable, net	39,794	38,500
Settlement assets	8,034	4,768
Prepaid expenses and other current assets	15,614	11,214
Total current assets	66,813	58,123
Property and equipment, net	5,705	5,902
Restricted cash	15,306	9,522
Capitalized software, net	50,783	41,371
Goodwill	349,597	292,243
Intangible assets, net	207,739	171,706
Deferred tax asset	50,647	49,992
Operating lease right-of-use assets	20,369	14,479
Other assets	9,477	8,462
Total assets	776,436	651,800
Current liabilities
Accounts payable	8,264	7,865
Accrued expenses and other current liabilities	93,695	50,815
Settlement obligations	8,034	4,768
Deferred revenue	35,321	29,862
Current portion of operating lease liabilities	4,471	3,201
Total current liabilities	149,785	96,511
Long-term debt, less current portion and debt issuance costs, net	257,130	200,605
Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	39,204	39,122
Operating lease liabilities, less current portion	16,587	11,960
Other long-term liabilities	20,677	14,011
Total liabilities	483,383	362,209
Commitments and contingencies (see Note 12)
Stockholders' equity
Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2021 and September 30, 2021	0	0
Additional paid-in capital	216,604	211,237
Accumulated deficit	(9,008)	(6,480)
Total stockholders' equity	207,599	204,760
Non-controlling interest	85,454	84,831
Total equity	293,053	289,591
Total liabilities and equity	776,436	651,800
Class A Common Stock
Stockholders' equity
Common stock	2	2
Class B Common Stock
Stockholders' equity
Common stock	$ 1	$ 1

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Sep. 30, 2021
Preferred Stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Preferred Stock authorized (shares)	10,000,000	10,000,000
Preferred Stock issued (shares)	0	0
Preferred Stock outstanding (shares)	0	0
Class A Common Stock
Common Stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common Stock authorized (shares)	150,000,000	150,000,000
Common Stock issued (shares)	22,064,317	22,026,098
Common Stock, outstanding (shares)	22,064,317	22,026,098
Class B Common Stock
Common Stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common Stock authorized (shares)	40,000,000	40,000,000
Common Stock issued (shares)	10,214,142	10,229,142
Common Stock, outstanding (shares)	10,214,142	10,229,142

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	[1]
Income Statement [Abstract]
Revenue	$ 73,939	$ 44,621
Operating expenses
Other costs of services	16,510	13,666
Selling, general and administrative	46,387	24,962
Depreciation and amortization	6,870	5,092	[2],[3]
Change in fair value of contingent consideration	4,927	1,904	[2],[3]
Total operating expenses	74,694	45,624
Loss from operations	(755)	(1,003)
Interest expense, net	3,154	2,029
Loss before income taxes	(3,909)	(3,032)
Benefit from income taxes	(228)	(10)
Net loss	(3,681)	(3,022)	[2],[3],[4]
Net loss attributable to non-controlling interest	(1,153)	(1,024)
Net loss attributable to i3 Verticals, Inc.	$ (2,528)	$ (1,998)
Net loss per share attributable to Class A common stockholders:
Basic (in USD per share)	$ (0.11)	$ (0.10)	[5]
Diluted net loss per share (in USD per Share)	$ (0.11)	$ (0.10)
Weighted average shares of Class A common stock outstanding:
Basic (shares)	22,042,801	19,129,056
Diluted (shares)	22,042,801	19,129,056
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of operations.
[2]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of cash flows.
[3]	The prior period amounts included in the statement of cash flows have been updated to correct settlement assets as restricted cash, which were previously reported as cash flows used in operating activities. These adjustments reflect an increase in prior year cash flows provided by operating activities of $84 and a corresponding increase in cash, cash equivalents, and restricted cash at the end of the period.
[4]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statement of changes in equity.
[5]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands	Total		Class A Common Stock		Class B Common Stock	Common StockClass A Common Stock	Common StockClass B Common Stock	Additional Paid-In Capital	Retained Earnings (Deficit)	Non-Controlling Interest
Common Stock, Shares, Outstanding, beginning at Sep. 30, 2020						18,864,143	11,900,621
Stockholders' Equity, beginning at Sep. 30, 2020	$ 240,168	[1]				$ 2	$ 1	$ 157,598	$ (2,023)	$ 84,590
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	3,441	[1]						3,441
Net loss	(1,998)	[2]	$ (1,998)	[3]					(1,998)
Net (loss) income attributable to non-controlling interests	1,024	[2]	1,024	[3]						(1,024)
Net loss	(3,022)	[1],[2],[4],[5]	$ (3,022)	[3]
Redemption of common units in i3 Verticals, LLC (shares)						1,019,609	(1,019,609)
Redemption of common units in i3 Verticals, LLC	0	[1]						7,185		(7,185)
Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	1,162	[1]						1,162
Exercise of equity-based awards (shares)						121,019
Exercise of equity-based awards	688	[1]						688
Allocation of equity to non-controlling interests	0	[1]						(1,008)		1,008
Common Stock, Shares, Outstanding, ending at Dec. 31, 2020						20,004,771	10,881,012
Stockholders' Equity, ending at Dec. 31, 2020	242,437	[1]				$ 2	$ 1	169,066	(4,021)	77,389
Common Stock, Shares, Outstanding, beginning at Sep. 30, 2021			22,026,098		10,229,142	22,026,098	10,229,142
Stockholders' Equity, beginning at Sep. 30, 2021	289,591					$ 2	$ 1	211,237	(6,480)	84,831
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity-based compensation	6,624							6,624
Net loss	(2,528)		$ (2,528)						(2,528)
Net (loss) income attributable to non-controlling interests	1,153		1,153							(1,153)
Net loss	(3,681)		$ (3,681)
Redemption of common units in i3 Verticals, LLC (shares)						15,000	(15,000)
Redemption of common units in i3 Verticals, LLC	0					$ 0	$ 0	123		(123)
Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	$ 345							345
Exercise of equity-based awards (shares)	43,889					23,219
Exercise of equity-based awards	$ 174					$ 0		174
Allocation of equity to non-controlling interests	0							(1,899)		1,899
Common Stock, Shares, Outstanding, ending at Dec. 31, 2021			22,064,317		10,214,142	22,064,317	10,214,142
Stockholders' Equity, ending at Dec. 31, 2021	$ 293,053					$ 2	$ 1	$ 216,604	$ (9,008)	$ 85,454
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statement of changes in equity.
[2]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of operations.
[3]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement.
[4]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of cash flows.
[5]	The prior period amounts included in the statement of cash flows have been updated to correct settlement assets as restricted cash, which were previously reported as cash flows used in operating activities. These adjustments reflect an increase in prior year cash flows provided by operating activities of $84 and a corresponding increase in cash, cash equivalents, and restricted cash at the end of the period.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	[2],[4]
Cash flows from operating activities:
Net loss	$ (3,681)	$ (3,022)	[1],[3]
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	6,870	5,092	[3]
Equity-based compensation	6,624	3,441
Provision for doubtful accounts	116	62
Amortization of debt discount and issuance costs	1,416	1,332
Amortization of capitalized customer acquisition costs	167	119
Loss on disposal of assets	0	0
Unrealized gain on investment	0	0
Benefit from deferred income taxes	(228)	(10)
Non-cash lease expense	1,205	694
Increase in non-cash contingent consideration expense from original estimate	4,927	1,904	[3]
Changes in operating assets:
Accounts receivable	(628)	(1,094)
Prepaid expenses and other current assets	(4,541)	(1,976)
Other assets	(877)	(1,298)
Changes in operating liabilities:
Accounts payable	419	2,503
Accrued expenses and other current liabilities	6,818	(3,496)
Settlement obligations	2,581	84
Deferred revenue	5,439	6,563
Operating lease liabilities	(1,180)	(782)
Other long-term liabilities	1	6,037
Contingent consideration paid in excess of original estimates	(3,538)	(4,115)
Net cash provided by operating activities	21,910	12,038
Cash flows from investing activities:
Expenditures for property and equipment	(384)	(549)
Expenditures for capitalized software	(1,958)	(1,166)
Acquisitions of businesses, net of cash and restricted cash acquired	(60,000)	(59,595)
Acquisition of other intangibles	(11)	(19)
Net cash used in investing activities	(62,353)	(61,329)
Cash flows from financing activities:
Proceeds from revolving credit facility	105,009	88,255
Payments on revolving credit facility	(49,900)	(38,948)
Cash paid for contingent consideration	(6,217)	(1,736)
Proceeds from stock option exercises	174	851
Payments for employee's tax withholdings from net settled stock option exercises	157	(200)
Net cash provided by financing activities	49,223	48,222
Net increase in cash, cash equivalents and restricted cash	8,780	(1,069)
Cash, cash equivalents and restricted cash at beginning of period	17,931	20,601
Cash, cash equivalents and restricted cash at end of period	26,711	19,532
Supplemental disclosure of cash flow information:
Cash paid for interest	1,367	420
Cash paid for income taxes	$ 556	$ 0
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statement of changes in equity.
[2]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of cash flows.
[3]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of operations.
[4]	The prior period amounts included in the statement of cash flows have been updated to correct settlement assets as restricted cash, which were previously reported as cash flows used in operating activities. These adjustments reflect an increase in prior year cash flows provided by operating activities of $84 and a corresponding increase in cash, cash equivalents, and restricted cash at the end of the period.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020		Sep. 30, 2021	Sep. 30, 2020
Increase in cash provided by operating activities	$ 21,910	$ 12,038	[1],[2]
Net increase in cash, cash equivalents and restricted cash	8,780	(1,069)	[1],[2]
Cash and cash equivalents	3,371	10,879		$ 3,641	$ 15,568
Settlement assets	8,034	84		4,768	0
Restricted cash	15,306	8,569		9,522	5,033
Total cash, cash equivalents, and restricted cash	$ 26,711	19,532	[1],[2]	$ 17,931	$ 20,601	[1],[2]
Adjustment
Increase in cash provided by operating activities		84
Net increase in cash, cash equivalents and restricted cash		$ 84
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of cash flows.
[2]	The prior period amounts included in the statement of cash flows have been updated to correct settlement assets as restricted cash, which were previously reported as cash flows used in operating activities. These adjustments reflect an increase in prior year cash flows provided by operating activities of $84 and a corresponding increase in cash, cash equivalents, and restricted cash at the end of the period.

Organization and Operations

Organization and Operations	3 Months Ended
	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	ORGANIZATION AND OPERATIONS i3 Verticals, Inc. (the “Company”) was formed as a Delaware corporation on January 17, 2018. The Company was formed for the purpose of completing an initial public offering (“IPO”) of its Class A common stock and other related transactions in order to carry on the business of i3 Verticals, LLC and its subsidiaries. i3 Verticals, LLC was founded in 2012 and delivers seamlessly integrated payment and software solutions to small- and medium-sized businesses (“SMBs”) and organizations in strategic vertical markets. The Company’s headquarters are located in Nashville, Tennessee, with operations throughout the United States. Unless the context otherwise requires, references to “we,” “us,” “our,” “i3 Verticals” and the “Company” refer to i3 Verticals, Inc. and its subsidiaries, including i3 Verticals, LLC. Reorganization Transactions In connection with the IPO, the Company completed the following transactions (the “Reorganization Transactions”): • i3 Verticals, LLC amended and restated its existing limited liability company agreement to, among other things, (1) convert all existing Class A units, common units (including common units issued upon the exercise of existing warrants) and Class P units of ownership interest in i3 Verticals, LLC into either Class A voting common units of i3 Verticals, LLC (such holders of Class A voting common units referred to herein as the “Continuing Equity Owners”) or Class B non-voting common units of i3 Verticals, LLC (such holders of Class B non-voting common units referred to herein as the “Former Equity Owners”), and (2) appoint i3 Verticals, Inc. as the sole managing member of i3 Verticals, LLC upon its acquisition of Common Units in connection with the IPO; • the Company amended and restated its certificate of incorporation to provide for, among other things, Class A common stock and Class B common stock; • i3 Verticals, LLC and the Company consummated a merger among i3 Verticals, LLC, i3 Verticals, Inc. and a newly formed wholly-owned subsidiary of i3 Verticals, Inc. (“MergerSub”) whereby: (1) MergerSub merged with and into i3 Verticals, LLC, with i3 Verticals, LLC as the surviving entity; (2) Class A voting common units converted into newly issued Common Units in i3 Verticals, LLC together with an equal number of shares of Class B common stock of i3 Verticals, Inc., and (3) Class B non-voting common units converted into Class A common stock of i3 Verticals, Inc. based on a conversion ratio that provided an equitable adjustment to reflect the full value of the Class B non-voting common units; and • the Company issued shares of its Class A common stock pursuant to a voluntary private conversion of certain subordinated notes by certain related and unrelated creditors of i3 Verticals, LLC. Following the completion of the IPO and Reorganization Transactions, the Company became a holding company and the principal asset that it owns are the Common Units in i3 Verticals, LLC. i3 Verticals, Inc. operates and controls all of i3 Verticals, LLC's operations and, through i3 Verticals, LLC and its subsidiaries, conducts i3 Verticals, LLC's business. i3 Verticals, Inc. has a majority economic interest in i3 Verticals, LLC.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the reporting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for fair presentation of the unaudited condensed consolidated financial statements of the Company and its subsidiaries as of December 31, 2021 and for the three months ended December 31, 2021 and 2020. The results of operations for the three months ended December 31, 2021 and 2020 are not necessarily indicative of the operating results for the full year. It is recommended that these interim condensed consolidated financial statements be read in conjunction with the Company's consolidated financial statements and related footnotes for the years ended September 30, 2021 and 2020, included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2021. Principles of Consolidation These interim condensed consolidated financial statements include the accounts of the Company and its subsidiary companies. All significant intercompany accounts and transactions have been eliminated in consolidation. Restricted Cash Restricted cash represents funds held-on-deposit with processing banks pursuant to agreements to cover potential merchant losses. It is presented as long-term assets on the accompanying condensed consolidated balance sheets since the related agreements extend beyond the next twelve months. Settlement Assets and Obligations Settlement assets and obligations result when funds are temporarily held or owed by the Company on behalf of merchants, consumers, schools, and other institutions. Timing differences, interchange expense, merchant reserves and exceptional items cause differences between the amount received from the card networks and the amount funded to counterparties. These balances arising in the settlement process are reflected as settlement assets and obligations on the accompanying consolidated balance sheets. With the exception of merchant reserves, settlement assets or settlement obligations are generally collected and paid within one to four days. As of December 31, 2021, settlement assets and settlement obligations were both $8,034. As of September 30, 2021, the Company had $4,768 of settlement assets and settlement obligations. Inventories Inventories consist of point-of-sale equipment to be sold to clients and are stated at the lower of cost, determined on a weighted average or specific basis, or net realizable value. Inventories were $3,071 and $2,220 at December 31, 2021 and September 30, 2021, respectively, and are included within prepaid expenses and other current assets on the accompanying condensed consolidated balance sheets. Acquisitions Business acquisitions have been recorded using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”), and, accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair value as of the date of acquisition. Where relevant, the fair value of contingent consideration included in an acquisition is calculated using a Monte Carlo simulation. The fair value of merchant relationships and non-compete assets acquired is identified using the Income Approach. The fair values of trade names and internally-developed software acquired are identified using the Relief from Royalty Method. The fair value of deferred revenue is identified using the Adjusted Fulfillment Cost Method. After the purchase price has been allocated, goodwill is recorded to the extent the total consideration paid for the acquisition, including the acquisition date fair value of contingent consideration, if any, exceeds the sum of the fair values of the separately identifiable acquired assets and assumed liabilities. Acquisition costs for business combinations are expensed when incurred and recorded in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. Acquisitions not meeting the accounting criteria to be accounted for as a business combination are accounted for as an asset acquisition. An asset acquisition is recorded at its purchase price, inclusive of acquisition costs, which is allocated among the acquired assets and assumed liabilities based upon their relative fair values at the date of acquisition. The operating results of an acquisition are included in the Company’s condensed consolidated statements of operations from the date of such acquisition. Acquisitions completed during the three months ended December 31, 2021 contributed $7,555 and $805 of revenue and net income, respectively, to the Company's condensed consolidated statements of operations for the three months then ended. Leases The Company adopted ASU 2016-02, Leases, (“ASC 842”) on October 1, 2020, using the optional modified retrospective method under which the prior period financial statements were not restated for the new guidance. The Company elected the accounting policy practical expedients for all classes of underlying assets to (i) combine associated lease and non-lease components in a lease arrangement as a combined lease component and (ii) exclude recording short-term leases as right-of-use assets on the condensed consolidated balance sheets. At contract inception the Company determines whether an arrangement is, or contains a lease, and for each identified lease, evaluates the classification as operating or financing. Leased assets and obligations are recognized at the lease commencement date based on the present value of fixed lease payments to be made over the term of the lease. Renewal and termination options are factored into determination of the lease term only if the option is reasonably certain to be exercised. The Company’s leases do not provide a readily determinable implicit interest rate and the Company uses its incremental borrowing rate to measure the lease liability and corresponding right-of-use asset. The incremental borrowing rate is a fully collateralized rate that considers the Company’s credit rating, market conditions and the term of the lease. The Company accounts for all components in a lease arrangement as a single combined lease component. Operating lease cost is recognized on a straight-line basis over the lease term. Total lease costs include variable lease costs, which are primarily comprised of the consumer price index adjustments and other changes based on rates, such as costs of insurance and property taxes. Variable payments are expensed in the period incurred and not included in the measurement of lease assets and obligations. Revenue Recognition and Deferred Revenue Revenue is recognized as each performance obligation is satisfied, in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience. The Company utilized the portfolio approach practical expedient within ASC 606-10-10-4 Revenue from Contracts with Customers—Objectives and the significant financing component practical expedient within ASC 606-10-32-18 Revenue from Contracts with Customers—The Existence of a Significant Financing Component in the Contract in performing the analysis. The Company adopted ASC 606 on October 1, 2019, using the modified retrospective method and applying the standard to all contracts not completed on the date of adoption. The Company's revenue for the three months ended December 31, 2021 and 2020 is derived from the following sources: • Software and related services — Includes sales of software as a service, transaction-based fees, ongoing software maintenance and support, software licenses and other professional services related to our software offerings • Payments — Includes volume-based payment processing fees (“discount fees”), gateway fees and other related fixed transaction or service fees • Other — Includes sales of equipment, non-software related professional services and other revenues Revenues from sales of the Company’s software are recognized when the related performance obligations are satisfied. Sales of software licenses are categorized into one of two categories of intellectual property in accordance with ASC 606, functional or symbolic. The key distinction is whether the license represents a right to use (functional) or a right to access (symbolic) intellectual property. The Company generates sales of one-time software licenses, which is functional intellectual property. Revenue from functional intellectual property is recognized at a point in time, when delivered to the client. The Company also offers access to its software under software-as-a-service (“SaaS”) arrangements, which represent services arrangements. Revenue from SaaS arrangements is recognized over time, over the term of the agreement. Discount fees represent a percentage of the dollar amount of each credit or debit transaction processed or a specified per transaction amount, depending on the card type. The Company frequently enters into agreements with clients under which the client engages the Company to provide both payment authorization services and transaction settlement services for all of the cardholder transactions of the client, regardless of which issuing bank and card network to which the transaction relates. The Company’s core performance obligations are to stand ready to provide continuous access to the Company’s payment authorization services and transaction settlement services in order to be able to process as many transactions as its clients require on a daily basis over the contract term. These services are stand ready obligations, as the timing and quantity of transactions to be processed is not determinable. Under a stand-ready obligation, the Company’s performance obligation is defined by each time increment rather than by the underlying activities satisfied over time based on days elapsed. Because the service of standing ready is substantially the same each day and has the same pattern of transfer to the client, the Company has determined that its stand-ready performance obligation comprises a series of distinct days of service. Discount fees are recognized each day based on the volume or transaction count at the time the merchants’ transactions are processed. The Company follows the requirements of ASC 606-10-55 Revenue from Contracts with Customers—Principal versus Agent Considerations , which states that the determination of whether a company should recognize revenue based on the gross amount billed to a client or the net amount retained is a matter of judgment that depends on the facts and circumstances of the arrangement. The determination of gross versus net recognition of revenue requires judgment that depends on whether the Company controls the good or service before it is transferred to the merchant or whether the Company is acting as an agent of a third party. The assessment is provided separately for each performance obligation identified. Under its agreements, the Company incurs interchange and network pass-through charges from the third-party card issuers and card networks, respectively, related to the provision of payment authorization services. The Company has determined that it is acting as an agent with respect to these payment authorization services, based on the following factors: (1) the Company has no discretion over which card issuing bank will be used to process a transaction and is unable to direct the activity of the merchant to another card issuing bank, and (2) interchange and card network rates are pre-established by the card issuers or card networks, and the Company has no latitude in determining these fees. Therefore, revenue allocated to the payment authorization performance obligation is presented net of interchange and card network fees paid to the card issuing banks and card networks, respectively. With regards to the Company's discount fees, generally, where the Company has control over merchant pricing, merchant portability, credit risk and ultimate responsibility for the merchant relationship, revenues are reported at the time of sale equal to the full amount of the discount charged to the merchant, less interchange and network fees. Revenues generated from merchant portfolios where the Company does not have control over merchant pricing, liability for merchant losses or credit risk or rights of portability are reported net of interchange and network fees as well as third-party processing costs directly attributable to processing and bank sponsorship costs. Revenues are also derived from a variety of fixed transaction or service fees, including authorization fees, convenience fees, statement fees, annual fees, gateway fees, which are charged for accessing our payment and software solutions, and fees for other miscellaneous services, such as handling chargebacks. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. Revenue from fixed transactions, which principally relate to the sale of equipment, is recognized upon transfer of ownership and delivery to the client, after which there are no further performance obligations. Arrangements may contain multiple performance obligations, such as payment authorization services, transaction settlement services, hardware, software products, maintenance, and professional installation and training services. Revenues are allocated to each performance obligation based on the standalone selling price of each good or service. The selling price for a deliverable is based on standalone selling price, if available, the adjusted market assessment approach, estimated cost plus margin approach, or residual approach. The Company establishes estimated selling price, based on the judgment of the Company's management, considering internal factors such as margin objectives, pricing practices and controls, client segment pricing strategies and the product life cycle. In arrangements with multiple performance obligations, the Company determines allocation of the transaction price at inception of the arrangement and uses the standalone selling prices for the majority of the Company's revenue recognition. Revenues from sales of the Company ’ s combined hardware and software element are recognized when each performance obligation has been satisfied which has been determined to be upon the delivery of the product. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. The Company’s professional services, including training, installation, and repair services are recognized as revenue as these services are performed. The tables below present a disaggregation of the Company's revenue from contracts with clients by product by segment. Refer to Note 14 for discussion of the Company's segments. The Company's products are defined as follows: • Software and related services — Includes sales of SaaS, transaction-based fees, ongoing software maintenance and support, software licenses and other professional services related to our software offerings. • Payments — Includes discount fees, gateway fees and other related fixed transaction or service fees. • Other — Includes sales of equipment, non-software related professional services and other revenues. For the Three Months Ended December 31, 2021 Merchant Services Proprietary Software and Payments Other Total Software and related services revenue $ 2,962 $ 33,384 $ (8) $ 36,338 Payments revenue 24,304 9,166 (4) 33,466 Other revenue 1,911 2,224 — 4,135 Total revenue $ 29,177 $ 44,774 $ (12) $ 73,939 For the Three Months Ended December 31, 2020 Merchant Services Proprietary Software and Payments Other Total Software and related services revenue $ 2,929 $ 13,856 $ — $ 16,785 Payments revenue 20,541 5,497 (426) 25,612 Other revenue 1,591 640 (7) 2,224 Total revenue $ 25,061 $ 19,993 $ (433) $ 44,621 The tables below present a disaggregation of the Company's revenue from contracts with clients by timing of transfer of goods or services by segment. The Company's revenue included in each category are defined as follows: • Revenue transferred over time — Includes discount fees, gateway fees, sales of SaaS and ongoing support contract revenue. • Revenue transferred at a point in time — Includes fixed service fees, software licenses sold as functional intellectual property, professional services and other equipment. For the Three Months Ended December 31, 2021 Merchant Services Proprietary Software and Payments Other Total Revenue earned over time $ 22,734 $ 31,288 $ (8) $ 54,014 Revenue earned at a point in time 6,443 13,486 (4) 19,925 Total revenue $ 29,177 $ 44,774 $ (12) $ 73,939 For the Three Months Ended December 31, 2020 Merchant Services Proprietary Software and Payments Other Total Revenue earned over time $ 18,102 $ 14,937 $ (388) $ 32,651 Revenue earned at a point in time 6,959 5,056 (45) 11,970 Total revenue $ 25,061 $ 19,993 $ (433) $ 44,621 Contract Assets The Company bills for certain software and related services sales and fixed fee professional services upon pre-determined milestones in the contracts. Therefore, the Company may have contract assets other than trade accounts receivable for performance obligations that are partially completed, which would typically represent consulting services provided before a milestone is completed in a contract. Unbilled amounts associated with these services are presented as accounts receivable as the Company has an unconditional right to payment for services performed. As of December 31, 2021 and September 30, 2021, the Company’s contract assets from contracts with customers was $4,030 and $1,505, respectively. Contract Liabilities Deferred revenue represents amounts billed to clients by the Company for services contracts. Payment is typically collected at the start of the contract term. The initial prepaid contract agreement balance is deferred. The balance is then recognized as the services are provided over the contract term. Deferred revenue that is expected to be recognized as revenue within one year is recorded as short-term deferred revenue and the remaining portion is recorded as other long-term liabilities in the condensed consolidated balance sheets. The terms for most of the Company's contracts with a deferred revenue component are one year. Substantially all of the Company's deferred revenue is anticipated to be recognized within the next year. The following tables present the changes in deferred revenue as of and for the three months ended December 31, 2021 and 2020, respectively: Balance at September 30, 2021 $ 30,024 Deferral of revenue 21,032 Recognition of unearned revenue (15,735) Balance at December 31, 2021 $ 35,321 Balance at September 30, 2020 $ 11,054 Deferral of revenue 22,142 Recognition of unearned revenue (7,541) Balance at December 31, 2020 $ 25,655 Costs to Obtain and Fulfill a Contract The Company capitalizes incremental costs to obtain new contracts and contract renewals and amortizes these costs on a straight-line basis as an expense over the benefit period, which is generally the contract term, unless a commensurate payment is not expected at renewal. As of December 31, 2021 and 2020 the Company had $4,087 and $3,356, respectively, of capitalized contract costs, which relates to commissions paid to employees and agents as well as other incentives given to customers to obtain new sales, included within “Other assets" on the condensed consolidated balance sheets. The Company recorded expense related to these costs of $167 and $119 for the three months ended December 31, 2021, and 2020 respectively. The Company expenses sales commissions as incurred for the Company's sales commission plans that are paid on recurring monthly revenues, portfolios of existing clients, or have a substantive stay requirement prior to payment. Other Cost of Services Other costs of services include third-party processing costs directly attributable to processing and bank sponsorship costs, which may not be based on a percentage of volume. These costs also include related costs such as residual payments to sales groups, which are based on a percentage of the net revenues generated from merchant referrals. In certain merchant processing bank relationships the Company is liable for chargebacks against a merchant equal to the volume of the transaction. Losses resulting from chargebacks against a merchant are included in other cost of services on the accompanying condensed consolidated statement of operations. The Company evaluates its risk for such transactions and estimates its potential loss from chargebacks based primarily on historical experience and other relevant factors. The reserve for merchant losses is included within accrued expenses and other current liabilities on the accompanying condensed consolidated balance sheets. The cost of equipment sold is also included in other cost of services. Other costs of services are recognized at the time the associated revenue is earned. The Company accounts for all governmental taxes associated with revenue transactions on a net basis. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the value of purchase consideration paid and identifiable assets acquired and assumed in acquisitions, goodwill and intangible asset impairment review, determination of performance obligations for revenue recognition, loss reserves, assumptions used in the calculation of equity-based compensation and in the calculation of income taxes, and certain tax assets and liabilities as well as the related valuation allowances. Actual results could differ from those estimates. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The amendments in ASU No. 2016-13 require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company’s financial assets impacted by this ASU include primarily accounts receivable, settlement processing assets, and certain other receivables. The Company adopted this ASU on October 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805)—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in ASU No. 2021-08 address diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination. The amendments in ASU No. 2021-08 require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. Upon adoption, an acquirer should account for the related revenue contracts of the acquiree as if it has originated the contracts. For public business entities, the amendments in ASU No. 2021-08 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in ASU No. 2021-08 should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted. An entity that early adopts should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The Company has early adopted ASU No. 2021-08 effective October 1, 2020. The adoption of ASU 2021-08 resulted in adjustments to the fair values assigned to goodwill and deferred revenue assumed as of the acquisition dates of acquisitions occurring during the year ended September 30, 2021, and an increase in revenue for the year ended September 30, 2021 due to recognition of revenue earned during the period for deferred revenue contracts acquired in business combinations. The following tables present the material impacts of adopting ASU 2021-08 on the Company's condensed consolidated balance sheets as of December 31, 2020: As of December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Assets Goodwill $ 219,912 $ 2,993 $ 222,905 Deferred tax asset $ 44,966 $ (303) $ 44,663 Liabilities and equity Liabilities Current liabilities Deferred revenue $ 23,868 $ 1,686 $ 25,554 Stockholders' equity Additional paid-in-capital $ 169,097 $ (31) $ 169,066 Accumulated deficit $ (4,595) $ 574 $ (4,021) Non-controlling interest $ 76,928 $ 461 $ 77,389 The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statements of operations for the three months ended December 31, 2020: Three months ended December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Revenue $ 43,313 $ 1,308 $ 44,621 Benefit from income taxes $ (219) $ 209 $ (10) Net loss $ (4,121) $ 1,099 $ (3,022) Net loss attributable to non-controlling interest $ (1,549) $ 525 $ (1,024) Net loss attributable to i3 Verticals, Inc. $ (2,572) $ 574 $ (1,998) Net loss per share attributable to Class A common stockholders: Basic $ (0.13) $ 0.03 $ (0.10) Diluted $ (0.13) $ 0.03 $ (0.10) The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statement of changes in equity for the three months ended December 31, 2020: Three months ended December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Net loss $ (4,121) $ 1,099 $ (3,022) Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis $ 1,257 $ (95) $ 1,162 Balance at December 31, 2020 $ 241,433 $ 1,004 $ 242,437 The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statements of cash flows for the three months ended December 31, 2020: Three months ended December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Cash flows from operating activities: Net loss $ (4,121) $ 1,099 $ (3,022) Adjustments to reconcile net (loss) income to net cash provided by operating activities: Benefit from deferred income taxes $ (219) $ 209 $ (10) Changes in operating liabilities: Deferred revenue $ 7,870 $ (1,307) $ 6,563 Other long-term liabilities $ 6,038 $ (1) $ 6,037 Recently Issued Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)—Accounting For Convertible Instruments and Contracts in an Entity's Own Equity (“ASU 2020-06”). ASU 2020-06 simplifies accounting for convertible instruments by removing major separation models required under current

Acquisitions

Acquisitions	3 Months Ended
	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisitions	ACQUISITIONS During the three months ended December 31, 2021 and 2020 the Company acquired the following intangible assets and businesses: Business Combinations during the three months ended December 31, 2021 During the three months ended December 31, 2021, the Company completed the acquisition of two businesses to expand the Company’s software offerings in the public sector and healthcare vertical markets. Certain of the purchase price allocations assigned for these acquisitions are considered preliminary as of December 31, 2021. Total purchase consideration was $100,481, including $95,000 in cash consideration, funded by proceeds from the Company's revolving credit facility, and $5,481 of contingent consideration. The goodwill associated with one of the two acquisitions is deductible for tax purposes. The acquired merchant relationships intangible assets have estimated amortization periods of between nine Acquisition-related costs for these businesses amounted to approximately $228 and were expensed as incurred. Certain provisions in the purchase agreements provide for additional consideration of up to $18,000, in the aggregate, to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreements, through no later than December 2023. The Company determined the acquisition date fair values of the liabilities for the contingent consideration based on probability forecasts and discounted cash flow analyses. In each subsequent reporting period, the Company will reassess its current estimates of performance relative to the targets and adjust the contingent liabilities to their fair values through earnings. See additional disclosures in Note 10. Summary of Business Combinations during the three months ended December 31, 2021 The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, were as follows: Total Accounts receivable $ 223 Settlement assets 685 Prepaid expenses and other current assets 44 Property and equipment 181 Capitalized software 9,500 Acquired merchant relationships 38,700 Non-compete agreements — Trade name 1,500 Goodwill 57,354 Operating lease right-of-use assets 263 Other assets 22 Total assets acquired 108,472 Accounts Payable — Accrued expenses and other current liabilities 75 Settlement obligations 685 Deferred revenue, current — Current portion of operating lease liabilities 82 Operating lease liabilities, less current portion 181 Other long-term liabilities 6,968 Net assets acquired $ 100,481 Pro Forma Results of Operations for Business Combinations during the three months ended December 31, 2021 The following unaudited supplemental pro forma results of operations have been prepared as though each of the acquired businesses in the three months ended December 31, 2021 had occurred on October 1, 2020. Pro forma adjustments were made to reflect the impact of depreciation and amortization, changes to executive compensation and the increased debt, all in accordance with ASC 805. This supplemental pro forma information does not purport to be indicative of the results of operations that would have been attained had the acquisitions been made on these dates, or of results of operations that may occur in the future. Three months ended December 31, 2021 2020 Revenue $ 76,416 $ 54,134 Net loss $ (7,029) $ (4,912) Business Combinations during the year ended September 30, 2021 During the year ended September 30, 2021, the Company completed the acquisitions of eight unrelated businesses, including Business Information Systems, Inc., ImageSoft Inc., and six other collectively material businesses. Purchase of Business Information Systems, Inc. On February 1, 2021, the Company completed the acquisition of substantially all of the assets of Business Information Systems, GP, a Tennessee general partnership and Business Information Systems, Inc., a Tennessee corporation (collectively “BIS”) to expand its software offerings, primarily in the Public Sector vertical. BIS is within the Proprietary Software & Payments segment. Total purchase consideration was $95,495, including $52,500 in cash on hand and proceeds from the Company's revolving credit facility, 1,202,914 shares of the Company's Class A Common Stock (valued at $35,245), and $7,750 in contingent consideration. The goodwill associated with the acquisition is deductible for tax purposes. The acquired merchant relationships intangible asset has an estimated amortization period of nineteen years. The non-compete agreement and trade name have estimated amortization periods of three Acquisition-related costs for BIS amounted to approximately $374 and were expensed as incurred. Certain provisions in the merger agreement provide for additional consideration of up to $16,000 in the aggregate, to be paid based upon achievement of specified financial performance targets, as defined in the purchase agreement, in the 24 months from February 1, 2021 through January 31, 2023. The Company determined the acquisition date fair value of the liability for the contingent consideration based on a probability forecast and discounted cash flow analysis. In each subsequent reporting period, the Company will reassess the current estimates of performance relative to the targets and adjust the contingent liability to its fair value through earnings. See additional disclosures in Note 10. Purchase of ImageSoft, Inc. On November 17, 2020, the Company completed the acquisition of substantially all of the assets of ImageSoft, Inc. (“ImageSoft”) to expand its software offerings, primarily in the Public Sector vertical. ImageSoft, is within the Proprietary Software & Payments segment. Total purchase consideration was $46,300, including $40,000 in cash consideration, funded by proceeds from the Company's revolving credit facility, and $6,300 in contingent consideration. The goodwill associated with the acquisition is deductible for tax purposes. The acquired merchant relationships intangible asset has an estimated amortization period of twenty years. The non-compete agreement and trade name have estimated amortization periods of three Acquisition-related costs for ImageSoft amounted to approximately $403 and were expensed as incurred. Certain provisions in the merger agreement provide for additional consideration of up to $20,000 in the aggregate, to be paid based upon achievement of specified financial performance targets, as defined in the purchase agreement, in the 24 months from May 1, 2021 through April 30, 2023. The Company determined the acquisition date fair value of the liability for the contingent consideration based on a probability forecast and discounted cash flow analysis. In each subsequent reporting period, the Company will reassess the current estimates of performance relative to the targets and adjust the contingent liability to its fair value through earnings. See additional disclosures in Note 10. Other Business Combinations From October 1, 2020 to September 30, 2021, the Company completed the acquisitions of six other businesses to expand the Company’s software offerings in the public sector and Healthcare vertical markets and to add proprietary technology that will augment the Company’s existing platform across several verticals. Five of these businesses are within the Proprietary Software & Payments segment and one is within the Merchant Services segment. Total purchase consideration was $65,527, including $57,000 in cash consideration, funded by proceeds from the Company's revolving credit facility, and $8,527 of contingent consideration. For each of these businesses acquired, the goodwill associated with the acquisition is deductible for tax purposes. The acquired merchant relationships intangible assets have estimated amortization periods of between ten Acquisition-related costs for these businesses amounted to approximately $1,101 and were expensed as incurred. Certain provisions in the purchase agreements provide for additional consideration of up to $50,200, in the aggregate, to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreements, through no later than June 2023. The Company determined the acquisition date fair values of the liabilities for the contingent consideration based on probability forecasts and discounted cash flow analyses. In each subsequent reporting period, the Company will reassess its current estimates of performance relative to the targets and adjust the contingent liabilities to their fair values through earnings. See additional disclosures in Note 10. Summary of Business Combinations during the year ended September 30, 2021 The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2021 were as follows: BIS ImageSoft, Inc. Other Total Accounts receivable $ 1,567 $ 4,997 $ 3,216 $ 9,780 Settlement assets 6,889 120 — 7,009 Inventories 458 — 161 619 Prepaid expenses and other current assets 10 2,897 2,024 4,931 Property and equipment 206 433 312 951 Capitalized software 15,200 5,200 4,100 24,500 Acquired merchant relationships 32,300 16,300 24,040 72,640 Non-compete agreements 100 610 390 1,100 Trade name 700 1,100 840 2,640 Goodwill 46,660 22,408 35,906 104,974 Operating lease right-of-use assets — 332 484 816 Other assets — 6 32 38 Total assets acquired 104,090 54,403 71,505 229,998 Accrued expenses and other current liabilities 138 910 1 1,049 Settlement obligations 6,889 120 — 7,009 Deferred revenue, current 1,568 6,748 5,505 13,821 Current portion of operating lease liabilities — 75 221 296 Operating lease liabilities, less current portion — 250 251 501 Net assets acquired $ 95,495 $ 46,300 $ 65,527 $ 207,322 The fair values assigned were updated to reflect the retrospective adoption of ASU 2021-08, which resulted in increases to the fair values assigned to deferred revenue and goodwill as of the acquisition dates. Refer to Note 2 for further discussion.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	PREPAID EXPENSES AND OTHER CURRENT ASSETS A summary of the Company's prepaid expenses and other current assets as of December 31, 2021 and September 30, 2021 is as follows: December 31, September 30, 2021 2021 Inventory $ 3,071 $ 2,220 Prepaid licenses 8,256 4,646 Prepaid insurance 1,398 1,074 Other current assets 2,889 3,274 Prepaid expenses and other current assets $ 15,614 $ 11,214

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill are as follows: Merchant Services Proprietary Software and Payments Other Total Balance at September 30, 2021 $ 119,086 $ 173,157 $ — $ 292,243 Goodwill attributable to preliminary purchase price adjustments and acquisitions during the three months ended December 31,2021 — 57,354 — 57,354 Balance at December 31, 2021 $ 119,086 $ 230,511 $ — $ 349,597 Intangible assets consisted of the following as of December 31, 2021: Cost Accumulated Amortization Carrying Value Amortization Life and Method Finite-lived intangible assets: Merchant relationships $ 265,911 $ (69,212) $ 196,699 9 to 25 years – accelerated or straight-line Non-compete agreements 1,478 (624) 854 3 to 6 years – straight-line Website and brand development costs 218 (116) 102 3 to 4 years – straight-line Trade names 7,820 (3,066) 4,754 3 to 7 years – straight-line Residual buyouts 6,718 (1,617) 5,101 8 years – straight-line Referral and exclusivity agreements 800 (613) 187 5 years – straight-line Total finite-lived intangible assets 282,945 (75,248) 207,697 Indefinite-lived intangible assets: Trademarks 42 — 42 Total identifiable intangible assets $ 282,987 $ (75,248) $ 207,739 Amortization expense for intangible assets amounted to $4,178 and $3,360 during the three months ended December 31, 2021, and 2020 respectively. Based on net carrying amounts at December 31, 2021, the Company's estimate of future amortization expense for intangible assets are presented in the table below for fiscal years ending September 30: 2022 (nine months remaining) $ 13,712 2023 17,517 2024 16,534 2025 16,250 2026 15,855 Thereafter 127,829 $ 207,697

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES A summary of the Company's accrued expenses and other current liabilities as of December 31, 2021 and September 30, 2021 is as follows is as follows: December 31, September 30, 2021 2021 Accrued wages, bonuses, commissions and vacation $ 6,808 $ 6,649 Accrued interest 713 271 Accrued contingent consideration — current portion 26,703 25,768 Escrow liabilities 14,851 9,067 Customer deposits 1,842 1,913 Employee health self-insurance liability 648 1,032 Other current liabilities (1) 42,130 6,115 Accrued expenses and other current liabilities $ 93,695 $ 50,815 __________________________ 1. The Company accrued $35,000 as of December 31, 2021 for the purchase of an acquisition that was effective on December 31, 2021, but for which the Company did not transfer cash until January 3, 2022. See Note 3 to our interim consolidated financial statements for further discussion of acquisitions.

Long-Term Debt, Net

Long-Term Debt, Net	3 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Long-Term Debt, Net	LONG-TERM DEBT, NET A summary of long-term debt, net as of December 31, 2021 and September 30, 2021 is as follows: December 31, September 30, Maturity 2021 2021 Revolving lines of credit to banks under the Senior Secured Credit Facility May 9, 2024 $ 159,506 $ 104,396 1% Exchangeable Senior Notes due 2025 February 15, 2025 100,970 99,808 Debt issuance costs, net (3,346) (3,599) Total long-term debt, net of issuance costs $ 257,130 $ 200,605 2020 Exchangeable Notes Offering On February 18, 2020, i3 Verticals, LLC issued $138,000 aggregate principal amount of 1.0% Exchangeable Senior Notes due 2025 (the “Exchangeable Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company received approximately $132,762 in net proceeds from the sale of the Exchangeable Notes, as determined by deducting estimated offering expenses paid to third-parties from the aggregate principal amount. The Exchangeable Notes bear interest at a fixed rate of 1.00% per year, payable semiannually in arrears on February 15 and August 15 of each year, beginning on August 15, 2020. The Exchangeable Notes will mature on February 15, 2025, unless converted or repurchased at an earlier date. i3 Verticals, LLC issued the Exchangeable Notes pursuant to an Indenture, dated as of February 18, 2020 (the “Indenture”), among i3 Verticals, LLC, the Company and U.S. Bank National Association, as trustee. Prior to August 15, 2024, the Exchangeable Notes are exchangeable only upon satisfaction of certain conditions and during certain periods described in the Indenture, and thereafter, the Exchangeable Notes are exchangeable at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Exchangeable Notes are exchangeable on the terms set forth in the Indenture into cash, shares of Class A common stock, or a combination thereof, at i3 Verticals, LLC’s election. The exchange rate is initially 24.4666 shares of Class A common stock per $1,000 principal amount of Exchangeable Notes (equivalent to an initial exchange price of approximately $40.87 per share of Class A common stock). The exchange rate is subject to adjustment in certain circumstances. In addition, following certain corporate events that occur prior to the maturity date or i3 Verticals, LLC’s delivery of a notice of redemption, i3 Verticals, LLC will increase, in certain circumstances, the exchange rate for a holder who elects to exchange its Exchangeable Notes in connection with such a corporate event or notice of redemption, as the case may be. If the Company or i3 Verticals, LLC undergoes a fundamental change, holders may require i3 Verticals, LLC to repurchase all or part of their Exchangeable Notes at a repurchase price equal to 100% of the principal amount of the Exchangeable Notes to be repurchased, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. As of December 31, 2021, none of the conditions permitting the holders of the Exchangeable Notes to early convert have been met. i3 Verticals, LLC may not redeem the Exchangeable Notes prior to February 20, 2023. On or after February 20, 2023, and prior to the 47th scheduled trading day immediately preceding the maturity date, if the last reported sale price per share of Class A common stock has been at least 130% of the exchange price for the Exchangeable Notes for at least 20 trading days (whether or not consecutive), i3 Verticals, LLC may redeem all or any portion of the Exchangeable Notes at a cash redemption price equal to 100% of the principal amount of the Exchangeable Notes to be redeemed plus accrued and unpaid interest on such note to, but not including, the redemption date. The Exchangeable Notes are general senior unsecured obligations of i3 Verticals, LLC. The guarantee is the Company’s senior unsecured obligation and rank senior in right of payment to all of i3 Verticals, LLC’s and the Company’s future indebtedness that is expressly subordinated in right of payment to the Exchangeable Notes or the guarantee, as applicable. The Exchangeable Notes and the guarantee rank equally in right of payment with all of i3 Verticals, LLC’s and the Company’s existing and future unsecured indebtedness that is not so expressly subordinated in the right of payment to the Exchangeable Notes or the guarantee, as applicable. The Exchangeable Notes and the guarantee are effectively subordinated to any of the Companies’ existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness (including obligations under the credit agreement governing the Senior Secured Credit Facility, defined below). The Exchangeable Notes and the guarantee will be structurally subordinated to all indebtedness and other liabilities and obligations (including the debt and trade payables) of the Company’s subsidiaries, other than i3 Verticals, LLC. In accounting for the issuance of the Exchangeable Notes, the Company separated the Exchangeable Notes into liability and equity components. The carrying amount of the liability component before the allocation of any transaction costs was calculated by measuring the fair value of a similar liability that does not have an associated exchangeable feature. The carrying amount of the equity component (before the allocation of any transaction costs), representing the conversion option, which does not require separate accounting as a derivative as it meets a scope exception for certain contracts involving an entity's own equity, was determined by deducting the fair value of the liability component from the par value of the Exchangeable Notes. The difference between the principal amount of the Exchangeable Notes and the liability component represents the debt discount, which is recorded as a direct deduction from the related debt liability in the consolidated balance sheet and accreted over the period from the date of issuance to the contractual maturity date, resulting in the recognition of non-cash interest expense. The equity component of the Exchangeable Notes of approximately $28,662 is included in additional paid-in capital in the consolidated balance sheet and is not remeasured as longs as it continues to meet the conditions for equity classification. Transaction costs were allocated to the liability and equity components in the same proportion as the allocation of the proceeds. Transaction costs attributable to the liability component were recorded as debt issuance costs in the consolidated balance sheet and are amortized to interest expense using the effective interest method over the term of the Exchangeable Notes, and transaction costs attributable to the equity component were netted with the equity component in stockholders' equity. The Company incurred third-party issuance costs totaling $5,238, in connection with the issuance of the Exchangeable Notes. The Company capitalized $4,150 of debt issuance costs in connection with the Exchangeable Notes and allocated $1,088 of the third-party issuance costs to equity. Non-cash interest expense, including amortization of debt issuance costs, related to the Exchangeable Notes for the three months ended December 31, 2021 and 2020 was $159, and $140, respectively. The Company also wrote off a portion of the debt issuance costs in connection with the repurchase transactions in April and September 2020, as described below. Total unamortized debt issuance costs related to the Exchangeable Notes were $2,446 as of December 31, 2021. The estimated fair value of the Exchangeable Notes was $107,684 as of December 31, 2021. The estimated fair value of the Exchangeable Notes was determined through consideration of quoted market prices for similar instruments. The fair value is classified as Level 2, as defined in Note 10. The Company can choose to purchase its Exchangeable Notes on the open market. In April and September 2020, the Company paid $17,414 in aggregate to repurchase $21,000 in aggregate principal amount of the Exchangeable Notes and to repay approximately $24 in accrued interest on the repurchased portion of the Exchangeable Notes. The Company recorded a loss on retirement of debt of $2,297 due to the carrying value exceeding the fair value of the repurchased portion of the Exchangeable Notes at the dates of repurchases. The Company wrote off $592 of debt issuance costs in connection with the repurchase transactions. Exchangeable Note Hedge Transactions On February 12, 2020, concurrently with the pricing of the Exchangeable Notes, and on February 13, 2020, concurrently with the exercise by the initial purchasers of their right to purchase additional Exchangeable Notes, i3 Verticals, LLC entered into exchangeable note hedge transactions with respect to Class A common stock (the “Note Hedge Transactions”) with certain financial institutions (collectively, the “Counterparties”). The Note Hedge Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Exchangeable Notes, the same number of shares of Class A common stock that initially underlie the Exchangeable Notes in the aggregate and are exercisable upon exchange of the Exchangeable Notes. The Note Hedge Transactions are intended to reduce potential dilution to the Class A common stock upon any exchange of the Exchangeable Notes. The Note Hedge Transactions will expire upon the maturity of the Exchangeable Notes, if not earlier exercised. The Note Hedge Transactions are separate transactions, entered into by i3 Verticals, LLC with the Counterparties, and are not part of the terms of the Exchangeable Notes. Holders of the Exchangeable Notes will not have any rights with respect to the Note Hedge Transactions. i3 Verticals, LLC used approximately $28,676 of the net proceeds from the offering of the Exchangeable Notes (net of the premiums received for the warrant transactions described below) to pay the cost of the Note Hedge Transactions. The Note Hedge Transactions do not require separate accounting as a derivative as they meet a scope exception for certain contracts involving an entity's own equity. The premiums paid for the Note Hedge Transactions have been included as a net reduction to additional paid-in capital within stockholders' equity. Warrant Transactions On February 12, 2020, concurrently with the pricing of the Exchangeable Notes, and on February 13, 2020, concurrently with the exercise by the initial purchasers of their right to purchase additional Exchangeable Notes, the Company entered into warrant transactions to sell to the Counterparties warrants (the “Warrants”) to acquire, subject to customary adjustments, up to initially 3,376,391 shares of Class A common stock in the aggregate at an initial exercise price of $62.88 per share. The Company offered and sold the Warrants in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. The Warrants will expire over a period beginning on May 15, 2025. The Warrants are separate transactions, entered into by the Company with the Counterparties, and are not part of the terms of the Exchangeable Notes. Holders of the Exchangeable Notes will not have any rights with respect to the Warrants. The Company received approximately $14,669 from the offering and sale of the Warrants. The Warrants do not require separate accounting as a derivative as they meet a scope exception for certain contracts involving an entity's own equity. The premiums paid for the Warrants have been included as a net increase to additional paid-in capital within stockholders' equity. Senior Secured Credit Facility On May 9, 2019, the Company replaced its existing senior secured credit facility with a new credit agreement (the "Senior Secured Credit Facility"). On February 18, 2020, the Company entered into the second amendment to the Senior Secured Credit Facility in connection with the offering of the Company's Exchangeable Notes. The second amendment reduced the Company's borrowing capacity under the Senior Secured Credit Facility. The Senior Secured Credit Facility consists of a $275,000 revolving credit facility, together with an option to increase the revolving credit facility and/or obtain incremental term loans in an additional principal amount of up to $50,000 in the aggregate (subject to the receipt of additional commitments for any such incremental loan amounts). The Senior Secured Credit Facility accrues interest at the London Inter Bank Offered Rate ("LIBOR") (based upon an interest period of one, two, three or six months or, under some circumstances, up to twelve months) plus an applicable margin of 2.25% to 3.25% (3.25% as of December 31, 2021), or the base rate (defined as the highest of (x) the Bank of America prime rate, (y) the federal funds rate plus 0.50% and (z) LIBOR plus 1.00%), plus an applicable margin of 0.25% to 1.25% (1.25% as of December 31, 2021), in each case depending upon the consolidated total leverage ratio, as defined in the agreement. Interest is payable at the end of the selected interest period, but no less frequently than quarterly. Additionally, the Senior Secured Credit Facility requires the Company to pay unused commitment fees of 0.15% to 0.30% (0.30% as of December 31, 2021) on any undrawn amounts under the revolving credit facility and letter of credit fees of up to 3.25% on the maximum amount available to be drawn under each letter of credit issued under the agreement. The maturity date of the Senior Secured Credit Facility is May 9, 2024. The Senior Secured Credit Facility requires maintenance of certain financial ratios on a quarterly basis as follows: (i) a minimum consolidated interest coverage ratio of 3.00 to 1.00, (ii) a maximum total leverage ratio of 5.00 to 1.00, provided, that for each of the four fiscal quarters immediately following a qualified acquisition (each a “Leverage Increase Period”), the required ratio set forth above may be increased by up to 0.25, subject to certain limitations and (iii) a maximum consolidated senior secured leverage ratio of 3.25 to 1.00, provided, that for each Leverage Increase Period, the consolidated senior leverage ratio may be increased by up to 0.25, subject to certain limitations. As of December 31, 2021, the Company was in compliance with these covenants, and there was $115,494 available for borrowing under the revolving credit facility, subject to the financial covenants. The Senior Secured Credit Facility is secured by substantially all assets of the Company. The lenders under the Senior Secured Credit Facility hold senior rights to collateral and principal repayment over all other creditors. The provisions of the Senior Secured Credit Facility place certain restrictions and limitations upon the Company. These include, among others, restrictions on liens, investments, indebtedness, fundamental changes and dispositions; maintenance of certain financial ratios; and certain non-financial covenants pertaining to the activities of the Company during the period covered. The Company was in compliance with such covenants as of December 31, 2021. In addition, the Senior Secured Credit Facility restricts the Company's ability to make dividends or other distributions to the holders of the Company's equity. The Company is permitted to (i) make cash distributions to the holders of the Company's equity in order to pay taxes incurred by owners of equity in i3 Verticals, LLC, by reason of such ownership, (ii) move intercompany cash between subsidiaries that are joined to the Senior Secured Credit Facility, (iii) repurchase equity from employees, directors, officers or consultants in an aggregate amount not to exceed $3,000 per year, (iv) make certain payments in connection with the Tax Receivable Agreement, and (v) make other dividends or distributions in an aggregate amount not to exceed 5% of the net cash proceeds received from any additional common equity issuance. The Company is also permitted to make non-cash dividends in the form of additional equity issuances. Each subsidiary may make ratable distributions to persons that own equity interests in such subsidiary. All other forms of dividends or distributions are prohibited under the Senior Secured Credit Facility. Debt Issuance Costs The Company incurred no debt issuance costs during the three months ended December 31, 2021 and 2020. The Company's debt issuance costs are being amortized over the related term of the debt using the straight-line method, which is not materially different than the effective interest rate method, and are presented net against long-term debt in the condensed consolidated balance sheets. The amortization of deferred debt issuance costs is included in interest expense and amounted to approximately $254 and $235 during the three months ended December 31, 2021, and 2020, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES i3 Verticals, Inc. is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it from i3 Verticals, LLC based on i3 Verticals, Inc.’s economic interest in i3 Verticals, LLC. i3 Verticals, LLC's members, including the Company, are liable for federal, state and local income taxes based on their share of i3 Verticals, LLC's pass-through taxable income. i3 Verticals, LLC is not a taxable entity for federal income tax purposes but is subject to and reports entity level tax in both Tennessee and Texas. In addition, certain subsidiaries of i3 Verticals, LLC are corporations that are subject to state and federal income taxes. The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. When the estimate of the annual effective tax rate is unreliable, the Company records its income tax expense or benefit based up on a period to date effective tax rate. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the Company’s estimated tax rate changes, it makes a cumulative adjustment in that period. The Company’s provision for income taxes was a benefit of $228 and $10 for the three months ended December 31, 2021, and 2020, respectively. Tax Receivable Agreement On June 25, 2018, the Company entered into a Tax Receivable Agreement with i3 Verticals, LLC and each of the Continuing Equity Owners (the “Tax Receivable Agreement”) that provides for the payment by the Company to the Continuing Equity Owners of 85% of the amount of certain tax benefits, if any, that it actually realizes, or in some circumstances, is deemed to realize in its tax reporting, as a result of (i) future redemptions funded by the Company or exchanges, or deemed exchanges in certain circumstances, of Common Units of i3 Verticals, LLC for Class A common stock of i3 Verticals, Inc. or cash, and (ii) certain additional tax benefits attributable to payments made under the Tax Receivable Agreement. These tax benefit payments are not conditioned upon one or more of the Continuing Equity Owners maintaining a continued ownership interest in i3 Verticals, LLC. If a Continuing Equity Owner transfers Common Units but does not assign to the transferee of such units its rights under the Tax Receivable Agreement, such Continuing Equity Owner generally will continue to be entitled to receive payments under the Tax Receivable Agreement arising in respect of a subsequent exchange of such Common Units. In general, the Continuing Equity Owners’ rights under the Tax Receivable Agreement may not be assigned, sold, pledged or otherwise alienated to any person, other than certain permitted transferees, without (a) the Company's prior written consent, which should not be unreasonably withheld, conditioned or delayed, and (b) such persons becoming a party to the Tax Receivable Agreement and agreeing to succeed to the applicable Continuing Equity Owner’s interest therein. The Company expects to benefit from the remaining 15% of the tax benefits, if any, that the Company may realize. During the three months ended December 31, 2021, the Company acquired an aggregate of 15,000 Common Units in Verticals, LLC in connection with the redemption of Common Units from the Continuing Equity Owners, which resulted in an increase in the tax basis of our investment in i3 Verticals, LLC subject to the provisions of the Tax Receivable Agreement. As a result of the exchange, during the three months ended December 31, 2021, the Company recognized an increase to its net deferred tax assets in the amount of $96, and corresponding Tax Receivable Agreement liabilities of $81, representing 85% of the tax benefits due to the Continuing Equity Owners. The deferred tax asset and corresponding Tax Receivable Agreement liability balances were $41,104 and $39,204, respectively, as of December 31, 2021. Payments to the Continuing Equity Owners related to exchanges through December 31, 2021 will range from $0 to $3,180 per year and are expected to be paid over the next 26 years. The amounts recorded as of December 31, 2021, approximate the current estimate of expected tax savings and are subject to change after the filing of the Company’s U.S. federal and state income tax returns. Future payments under the Tax Receivable Agreement with respect to subsequent exchanges would be in addition to these amounts.

Leases

Leases	3 Months Ended
	Dec. 31, 2021
Leases [Abstract]
Leases	LEASES The Company’s leases consist primarily of real estate leases throughout the markets in which the Company operates. At contract inception, the Company determines whether an arrangement is or contains a lease, and for each identified lease, evaluates the classification as operating or financing. The Company had no finance leases as of December 31, 2021. Leased assets and obligations are recognized at the lease commencement date based on the present value of fixed lease payments to be made over the term of the lease. Renewal and termination options are factored into determination of the lease term only if the option is reasonably certain to be exercised. The weighted-average remaining lease term at December 31, 2021 and 2020 was five The Company’s leases do not provide a readily determinable implicit interest rate and the Company uses its incremental borrowing rate to measure the lease liability and corresponding right-of-use asset. The incremental borrowing rates were determined based on a portfolio approach considering the Company’s current secured borrowing rate adjusted for market conditions and the length of the lease term. The weighted-average discount rate used in the measurement of our lease liabilities was 6.7% and 6.8% as of December 31, 2021 and 2020, respectively. Operating lease cost is recognized on a straight-line basis over the lease term. Operating lease costs for the three months ended December 31, 2021 and December 31, 2020 were $1,491 and $854, respectively which are included in selling, general and administrative expenses in the condensed consolidated statements of operations. Total operating lease costs for the three months ended December 31, 2021 and December 31, 2020 include variable lease costs of approximately $38 and $1, respectively, which are primarily comprised of costs of maintenance and utilities and changes in rates, and are determined based on the actual costs incurred during the period. Variable payments are expensed in the period incurred and not included in the measurement of lease assets and liabilities. Short-term rent expense for the three months ended December 31, 2021 and December 31, 2020 was $47 and $58, respectively, and are included in selling, general and administrative expenses in the condensed consolidated statements of operations. As of December 31, 2021, maturities of lease liabilities are as follows: Years ending September 30: 2022 (nine months remaining) $ 4,329 2023 5,345 2024 4,550 2025 3,835 2026 3,136 Thereafter 3,456 Total future minimum lease payments (undiscounted) (1) 24,651 Less: present value discount (3,593) Present value of lease liability $ 21,058 __________________________

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS The Company applies the provisions of ASC 820, Fair Value Measurement , which defines fair value, establishes a framework for its measurement and expands disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or the price paid to transfer a liability as of the measurement date. A three-tier, fair-value reporting hierarchy exists for disclosure of fair value measurements based on the observability of the inputs to the valuation of financial assets and liabilities. The three levels are: Level 1 — Quoted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets. The carrying value of the Company’s financial instruments, including cash and cash equivalents, restricted cash, settlement assets and obligations, accounts receivable, other assets, accounts payable, and accrued expenses, approximated their fair values as of December 31, 2021 and 2020, because of the relatively short maturity dates on these instruments. The carrying amount of debt approximates fair value as of December 31, 2021 and 2020, because interest rates on these instruments approximate market interest rates. The Company has no Level 1 or Level 2 financial instruments measured at fair value on a recurring basis. The following tables present the changes in the Company's Level 3 financial instruments that are measured at fair value on a recurring basis. Accrued Contingent Consideration Balance at September 30, 2021 $ 36,229 Contingent consideration accrued at time of business combination 5,481 Change in fair value of contingent consideration included in Operating expenses 4,927 Contingent consideration paid (9,755) Balance at December 31, 2021 $ 36,882 Accrued Contingent Consideration Balance at September 30, 2020 $ 13,034 Contingent consideration accrued at time of business combination 10,440 Change in fair value of contingent consideration included in Operating expenses 1,904 Contingent consideration paid (5,851) Balance at December 31, 2020 $ 19,527 The fair value of contingent consideration obligations includes inputs not observable in the market and thus represents a Level 3 measurement. The amount to be paid under these obligations is contingent upon the achievement of certain growth metrics related to the financial performance of the entities subsequent to acquisition. The fair value of material contingent consideration included in an acquisition is calculated using a Monte Carlo simulation. The contingent consideration is revalued each period until it is settled. Management reviews the historical and projected performance of each acquisition with contingent consideration and uses an income probability method to revalue the contingent consideration. The revaluation requires management to make certain assumptions and represent management's best estimate at the valuation date. The probabilities are determined based on a management review of the expected likelihood of triggering events that would cause a change in the contingent consideration paid. The Company develops the projected future financial results based on an analysis of historical results, market conditions, and the expected impact of anticipated changes in the Company's overall business and/or product strategies. Approximately $26,703 and $25,768 of contingent consideration was recorded in accrued expenses and other current liabilities as of December 31, 2021 and September 30, 2021, respectively. Approximately $10,179 and $10,461 of contingent consideration was recorded in other long-term liabilities as of December 31, 2021 and September 30, 2021, respectively. Disclosure of Fair Values

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Equity-Based Compensation	EQUITY-BASED COMPENSATION A summary of equity-based compensation expense recognized during the three months ended December 31, 2021 and 2020 is as follows: Three months ended December 31, 2021 2020 Stock options $ 6,624 $ 3,441 Amounts are included in general and administrative expense on the condensed consolidated statements of operations. Income tax benefits of $27 and $205 were recognized during the three months ended December 31, 2021 and 2020, respectively. Stock Options In May 2018, the Company adopted the 2018 Equity Incentive Plan (the “2018 Plan”) under which the Company may grant up to 3,500,000 stock options and other equity-based awards to employees, directors and officers. The number of shares of Class A common stock available for issuance under the 2018 Plan includes an annual increase on the first day of each year, beginning with the 2019 calendar year, equal to 4.0% of the outstanding shares of all classes of the Company's common stock as of the last day of the immediately preceding calendar year, unless the Company’s board of directors determines prior to the last trading day of December of the immediately preceding calendar year that the increase shall be less than 4.0%. As of December 31, 2021, there were 262,692 equity awards available for grant under the 2018 Plan. In September 2020, the Company adopted the 2020 Acquisition Equity Incentive Plan (the “2020 Inducement Plan”) under which the Company may grant up to 1,500,000 stock options and other equity-based awards to individuals that were not previously employees of the Company or its subsidiaries in connection with acquisitions, as a material inducement to the individual's entry into employment with the Company or its subsidiaries within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules. In May 2021, the Company amended the 2020 Inducement Plan to increase the number of shares of the Company's Class A common stock available for issuance from 1,500,000 to 3,000,000 shares. As of December 31, 2021, there were 892,072 equity awards available for grant under the 2020 Inducement Plan. The fair value of the stock option awards during the three months ended December 31, 2021 and during the year ended September 30, 2021 was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions: December 31, 2021 September 30, 2021 Expected volatility (1) 55.8 % 59.7 % Expected dividend yield (2) — % — % Expected term (3) 6 years 6 years Risk-free interest rate (4) 1.2 % 0.7 % _________________ 1. Expected volatility is based on the Company's own share price. 2. The Company has assumed a dividend yield of zero as management has no plans to declare dividends in the foreseeable future. 3. Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method. 4. The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term. A summary of stock option activity for the three months ended December 31, 2021 is as follows: Stock Options Weighted Average Exercise Price Outstanding at beginning of period 7,547,622 $ 25.26 Granted 942,821 23.19 Exercised (43,889) 15.17 Forfeited (147,336) 30.05 Outstanding at end of period 8,299,218 $ 24.99 The weighted-average grant date fair value of stock options granted during the three months ended December 31, 2021 was $12.14. As of December 31, 2021, there were 8,299,218 stock options outstanding, of which 3,339,373 were exercisable. As of December 31, 2021, total unrecognized compensation expense related to unvested stock options, including an estimate for pre-vesting forfeitures, was $45,867, which is expected to be recognized over a weighted-average period of two years. The Company's policy is to account for forfeitures of stock-based compensation awards as they occur. The total fair value of stock options that vested during the three months ended December 31, 2021 was $4,941.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Leases The Company utilizes office space and equipment under operating leases. Rent expense under these leases amounted to $1,494 and $912 during the three months ended December 31, 2021 and 2020, respectively. Refer to Note 9 for further discussion and a table of the future minimum payments under these leases. Minimum Processing Commitments The Company has non-exclusive agreements with several processors to provide the Company services related to transaction processing and transmittal, transaction authorization and data capture, and access to various reporting tools. Certain of these agreements require the Company to submit a minimum monthly number of transactions for processing. If the Company submits a number of transactions that is lower than the minimum, it is required to pay to the processor the fees the processor would have received if the Company had submitted the required minimum number of transactions. As of December 31, 2021, such minimum fee commitments were as follows: Years ending September 30: 2022 (nine months remaining) $ 2,923 2023 2,690 2024 450 2025 — 2026 — Thereafter — Total $ 6,063 Third Party Sales Organization Buyout Agreement The Company has conditionally committed to a future buyout of the third party's business at the earlier of (a) the 60th day following the date upon which the founder of the third party sales organization dies or becomes disabled or (b) the 60th day following July 1, 2023. The buyout amount is dependent on certain financial metrics but is capped at $29,000, which would be net of repayment of secured loans. The buyout also contains certain provisions to provide additional consideration of up to $9,000, in the aggregate, to be paid based on the achievement of specified financial performance targets, following the buyout. As the eventual financial metrics are not known, the amount of the buyout transaction as well as the additional consideration are not able to be estimated at this time. Litigation With respect to all legal, regulatory and governmental proceedings, and in accordance with ASC 450-20, Contingencies—Loss Contingencies , the Company considers the likelihood of a negative outcome. If the Company determines the likelihood of a negative outcome with respect to any such matter is probable and the amount of the loss can be reasonably estimated, the Company records an accrual for the estimated amount of loss for the expected outcome of the matter. If the likelihood of a negative outcome with respect to material matters is reasonably possible and the Company is able to determine an estimate of the amount of possible loss or a range of loss, whether in excess of a related accrued liability or where there is no accrued liability, the Company discloses the estimate of the amount of possible loss or range of loss. However, the Company in some instances may be unable to estimate an amount of possible loss or range of loss based on the significant uncertainties involved in, or the preliminary nature of, the matter, and in these instances the Company will disclose the nature of the contingency and describe why the Company is unable to determine an estimate of possible loss or range of loss. The Company is involved in ordinary course legal proceedings, which include all claims, lawsuits, investigations and proceedings, including unasserted claims, which are probable of being asserted, arising in the ordinary course of business. The Company has considered all such ordinary course legal proceedings in formulating its disclosures and assessments. After taking into consideration the evaluation of such legal matters by the Company's legal counsel, the Company's management believes at this time such matters will not have a material impact on the Company's consolidated balance sheet, results of operations or cash flows. S&S Litigation On June 2, 2021, the State of Louisiana, Division of Administration (the “State”) and a putative class of Louisiana law enforcement districts filed a Petition (as amended on October 4, 2021, the “Petition”), in the 19th Judicial District Court for the Parish of East Baton Rouge against i3-Software & Services, LLC (“S&S”), a subsidiary of the Company located in Shreveport, Louisiana, the Company, i3 Verticals, LLC, the current leader of the S&S business, the former leader of the S&S business, and 1120 South Pointe Properties, LLC (“South Pointe”), the former owner of the assets of the S&S business. The Petition was amended on October 4, 2021 to add a putative class of Louisiana sheriffs (the “Sheriffs”) and subsequently removed to the United States District Court for the Middle District of Louisiana. See State of Louisiana, by and through its Division of Administration, East Baton Rouge Parish Law Enforcement District, by and through the duly elected East Baton Rouge Parish Sheriff, Sid J. Gautreaux, III, et. al., individually and as class representatives vs. i3-Software & Services, LLC; 1120 South Pointe Properties, LLC, formerly known as Software and Services of Louisiana, L.L.C.; i3 Verticals, Inc.; i3 Verticals, LLC; Gregory R. Teeters; and Scott Carrington. The Petition seeks monetary damages for the cost of network remediation of $15,000 purportedly spent by the State and $7,000 purportedly spent by the Sheriffs, return of purchase prices, potential additional expenses related to remediation and any obligation to notify parties of an alleged data breach as and if required by applicable law, and reasonable attorneys’ fees. The claimed damages relate to a third-party remote access software product used in connection with services provided by S&S to certain Louisiana Parish law enforcement districts and alleged inadequacies in the Company’s cybersecurity practices. The assets of the S&S business were acquired from South Pointe by the Company in 2018 for $17,000, including upfront cash consideration and contingent consideration, and provides software and payments services within the Company’s Public Sector vertical to local government agencies almost exclusively in Louisiana. The Company is unable to predict the outcome of this litigation. While we do not believe that this matter will have a material adverse effect on our business or financial condition, we cannot give assurance that this matter will not have a material effect on our results of operations for the period in which it is resolved. The Company is also aware of a related investigation led by the U.S. Department of Justice (“DOJ”). The Company produced documents in response to subpoenas and made employees available for interviews by the government and otherwise cooperated fully with this investigation. The Company believes that the investigation was focused on unauthorized access to certain S&S customers’ internal networks by unknown third parties. On September 10, 2021, the DOJ informed the Company that the investigation was concluded with respect to the Company and that no criminal charges would be brought against the Company. Other The Company's subsidiary CP-PS, LLC has certain indemnification obligations in favor of FDS Holdings, Inc. related to the acquisition of certain assets of Merchant Processing Solutions, LLC in February 2014. The Company has incurred expenses related to these indemnification obligations in prior periods and may have additional expenses in the future. However, after taking into consideration the evaluation of such matters by the Company’s legal counsel, the Company’s management believes at this time that the anticipated outcome of any existing or potential indemnification liabilities related to this matter will not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Dec. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONSIn connection with the Company’s IPO, the Company and i3 Verticals, LLC entered into a Tax Receivable Agreement with the Continuing Equity Owners that provides for the payment by the Company to the Continuing Equity Owners of 85% of the amount of certain tax benefits, if any, that it actually realizes, or in some circumstances, is deemed to realize in its tax reporting, as a result of (i) future redemptions funded by the Company or exchanges, or deemed exchanges in certain circumstances, of Common Units of i3 Verticals, LLC for Class A common stock of i3 Verticals, Inc. or cash, and (ii) certain additional tax benefits attributable to payments made under the Tax Receivable Agreement. See Note 8 for further information. As of December 31, 2021, the total amount due under the Tax Receivable Agreement was $39,204.

Segments

Segments	3 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
Segments	SEGMENTS The Company determines its operating segments based on ASC 280, Segment Reporting , how the chief operating decision making group monitors and manages the performance of the business and the level at which financial information is reviewed. The Company’s operating segments are strategic business units that offer different products and services. The Company's core business is delivering seamlessly integrated payment and software solutions to SMBs and organizations in strategic vertical markets. This is accomplished through the Merchant Services and Proprietary Software and Payments segments. The Merchant Services segment provides comprehensive payment solutions to businesses and organizations. The Merchant Services segment includes third-party integrated payment solutions as well as merchant of record payment services across the Company's strategic vertical markets. The Proprietary Software and Payments segment delivers solutions, including embedded payments, to the Company's clients through proprietary software. Payments are delivered through both the payment facilitator model and the traditional merchant processing model. The Other category includes corporate overhead expenses when presenting reportable segment information. The Company primarily uses processing margin to measure operating performance. Processing margin is equal to revenue less other cost of services plus residuals expense, which are a component of other cost of services. The following is a summary of reportable segment operating performance for the three months ended December 31, 2021 and 2020. As of and for the Three Months Ended December 31, 2021 Merchant Services Proprietary Software and Payments Other Total Revenue $ 29,177 $ 44,774 $ (12) $ 73,939 Other costs of services (13,442) (3,080) 12 (16,510) Residuals 8,181 343 (4) 8,520 Processing margin $ 23,916 $ 42,037 $ (4) $ 65,949 Residuals (8,520) Selling general and administrative (46,387) Depreciation and amortization (6,870) Change in fair value of contingent consideration (4,927) Loss from operations $ (755) Total assets $ 206,780 $ 507,399 $ 62,257 $ 776,436 Goodwill $ 119,086 $ 230,511 $ — $ 349,597 As of and for the Three months ended December 31, 2020 (1) Merchant Services Proprietary Software and Payments Other Total Revenue $ 25,061 $ 19,993 $ (433) $ 44,621 Other costs of services (10,841) (3,257) 432 (13,666) Residuals 5,944 257 (426) 5,775 Processing margin $ 20,164 $ 16,993 $ (427) $ 36,730 Residuals (5,775) Selling general and administrative (24,962) Depreciation and amortization (5,092) Change in fair value of contingent consideration (1,904) Loss from operations $ (1,003) Total assets $ 213,093 $ 224,925 $ 62,361 $ 500,379 Goodwill $ 119,079 $ 103,826 $ — $ 222,905 __________________________ 1. Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement. The Company has not disclosed expenditures on long-lived assets as such expenditures are not reviewed by or provided to the chief operating decision maker.

Non-Controlling Interest

Non-Controlling Interest	3 Months Ended
	Dec. 31, 2021
Noncontrolling Interest [Abstract]
Non-Controlling Interest	NON-CONTROLLING INTEREST i3 Verticals, Inc. is the sole managing member of i3 Verticals, LLC, and as a result, consolidates the financial results of i3 Verticals, LLC and reports a non-controlling interest representing the Common Units of i3 Verticals, LLC held by the Continuing Equity Owners. Changes in i3 Verticals, Inc.’s ownership interest in i3 Verticals, LLC while i3 Verticals, Inc. retains its controlling interest in i3 Verticals, LLC will be accounted for as equity transactions. As such, future redemptions or direct exchanges of Common Units of i3 Verticals, LLC by the Continuing Equity Owners will result in a change in ownership and reduce or increase the amount recorded as non-controlling interest and increase or decrease additional paid-in capital when i3 Verticals, LLC has positive or negative net assets, respectively. As of December 31, 2021, i3 Verticals, Inc. owned 22,064,317 of i3 Verticals, LLC's Common Units, representing a 68.4% economic ownership interest in i3 Verticals, LLC. The following table summarizes the impact on equity due to changes in the Company's ownership interest in i3 Verticals, LLC: Three months ended December 31, 2021 2020 Net loss attributable to non-controlling interest $ (1,153) $ (1,024) Transfers to (from) non-controlling interests: Redemption of common units in i3 Verticals, LLC (123) (7,185) Allocation of equity to non-controlling interests 1,899 1,008 Net transfers to (from) non-controlling interests 1,776 (6,177) Change from net loss attributable to non-controlling interests and transfers to (from) non-controlling interests $ 623 $ (7,201) __________________________ 1. Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2021
Earnings Per Share [Abstract]
Earnings Per Share	EARNINGS PER SHARE Basic earnings per share of Class A common stock is computed by dividing net income available to i3 Verticals, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income available to i3 Verticals, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock for the three months ended December 31, 2021 and 2020: Three months ended December 31, 2021 2020 )1) Basic (2) and diluted (3) net loss per share: Numerator Net loss $ (3,681) $ (3,022) Less: Net loss attributable to non-controlling interests (1,153) (1,024) Net loss attributable to Class A common stockholders $ (2,528) $ (1,998) Denominator Weighted average shares of Class A common stock outstanding 22,042,801 19,129,056 Basic and diluted net loss per share $ (0.11) $ (0.10) __________________________ 1. Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement. 2. Excludes 18,869 restricted Class A common stock units for the three months ended December 31, 2020. 3. For the three months ended December 31, 2021 and 2020, all potentially dilutive securities were anti-dilutive, so diluted net loss per share was equivalent to basic net loss per share. The following securities were excluded from the weighted average effect of dilutive securities in the computation of diluted net loss per share of Class A common stock: a. 10,222,946 and 11,668.199 shares of weighted average Class B common stock for the three months ended December 31, 2021 and 2020, respectively, along with the reallocation of net income assuming conversion of these shares, were excluded because the effect would have been anti-dilutive, b. 5,444,557 and 1,251,600 stock options for the three months ended December 31, 2021 and 2020, respectively, were excluded because the exercise price of these stock options exceeded the average market price of our Class A common stock during the period (“out-of-the-money”) and the effect of including them would have been anti-dilutive, c. 606,942 and 1,212,584 shares for the three months ended December 31, 2021 and 2020, respectively, resulting from estimated stock option exercises as calculated by the treasury stock method were excluded because of the effect of including them would have been anti dilutive, and 18,869 restricted Class A common units for the three months ended December 31, 2020 were excluded because the effect of including them would have been anti-dilutive. Since the Company expects to settle the principal amount of its outstanding Exchangeable Notes in cash and any excess in cash or shares of the Company's Class A common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company's Class A common stock for a given period exceeds the exchange price of $40.87 per share for the Exchangeable Notes. The Warrants sold in connection with the issuance of the Exchangeable Notes are considered to be dilutive when the average price of the Company's Class A common stock during the period exceeds the Warrants' stock price of $62.88 per share. The effect of the additional shares that may be issued upon exercise of the Warrants will be included in the weighted average shares of Class A common stock outstanding—diluted using the treasury stock method. The Note Hedge Transactions purchased in connection with the issuance of the Exchangeable Notes are considered to be anti-dilutive and therefore do not impact our calculation of diluted net income per share. Refer to Note 7 for further discussion regarding the Exchangeable Notes.

Significant Non-cash Transactio

Significant Non-cash Transactions	3 Months Ended
	Dec. 31, 2021
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Significant Non-cash Transactions	SIGNIFICANT NON-CASH TRANSACTIONS The Company engaged in the following significant non-cash investing and financing activities during the three months ended December 31, 2021 and 2020: Three months ended December 31, 2021 2020 Acquisition date fair value of contingent consideration in connection with business combinations $ 5,481 $ 3,400 Right-of-use assets obtained in exchange for operating lease obligations $ 6,820 $ 11,251 Purchase consideration accrued for December 31, 2021 acquisition $ 35,000 $ —

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the reporting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for fair presentation of the unaudited condensed consolidated financial statements of the Company and its subsidiaries as of December 31, 2021 and for the three months ended December 31, 2021 and 2020. The results of operations for the three months ended December 31, 2021 and 2020 are not necessarily indicative of the operating results for the full year. It is recommended that these interim condensed consolidated financial statements be read in conjunction with the Company's consolidated financial statements and related footnotes for the years ended September 30, 2021 and 2020, included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2021.
Principles of Consolidation	Principles of Consolidation These interim condensed consolidated financial statements include the accounts of the Company and its subsidiary companies. All significant intercompany accounts and transactions have been eliminated in consolidation.
Restricted Cash	Restricted Cash Restricted cash represents funds held-on-deposit with processing banks pursuant to agreements to cover potential merchant losses. It is presented as long-term assets on the accompanying condensed consolidated balance sheets since the related agreements extend beyond the next twelve months.
Settlement Assets and Obligations	Settlement Assets and ObligationsSettlement assets and obligations result when funds are temporarily held or owed by the Company on behalf of merchants, consumers, schools, and other institutions. Timing differences, interchange expense, merchant reserves and exceptional items cause differences between the amount received from the card networks and the amount funded to counterparties. These balances arising in the settlement process are reflected as settlement assets and obligations on the accompanying consolidated balance sheets. With the exception of merchant reserves, settlement assets or settlement obligations are generally collected and paid within one to four days.
Inventories	Inventories Inventories consist of point-of-sale equipment to be sold to clients and are stated at the lower of cost, determined on a weighted average or specific basis, or net realizable value.
Acquisitions	Acquisitions Business acquisitions have been recorded using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”), and, accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair value as of the date of acquisition. Where relevant, the fair value of contingent consideration included in an acquisition is calculated using a Monte Carlo simulation. The fair value of merchant relationships and non-compete assets acquired is identified using the Income Approach. The fair values of trade names and internally-developed software acquired are identified using the Relief from Royalty Method. The fair value of deferred revenue is identified using the Adjusted Fulfillment Cost Method. After the purchase price has been allocated, goodwill is recorded to the extent the total consideration paid for the acquisition, including the acquisition date fair value of contingent consideration, if any, exceeds the sum of the fair values of the separately identifiable acquired assets and assumed liabilities. Acquisition costs for business combinations are expensed when incurred and recorded in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. Acquisitions not meeting the accounting criteria to be accounted for as a business combination are accounted for as an asset acquisition. An asset acquisition is recorded at its purchase price, inclusive of acquisition costs, which is allocated among the acquired assets and assumed liabilities based upon their relative fair values at the date of acquisition.
Leases	Leases The Company adopted ASU 2016-02, Leases, (“ASC 842”) on October 1, 2020, using the optional modified retrospective method under which the prior period financial statements were not restated for the new guidance. The Company elected the accounting policy practical expedients for all classes of underlying assets to (i) combine associated lease and non-lease components in a lease arrangement as a combined lease component and (ii) exclude recording short-term leases as right-of-use assets on the condensed consolidated balance sheets. At contract inception the Company determines whether an arrangement is, or contains a lease, and for each identified lease, evaluates the classification as operating or financing. Leased assets and obligations are recognized at the lease commencement date based on the present value of fixed lease payments to be made over the term of the lease. Renewal and termination options are factored into determination of the lease term only if the option is reasonably certain to be exercised. The Company’s leases do not provide a readily determinable implicit interest rate and the Company uses its incremental borrowing rate to measure the lease liability and corresponding right-of-use asset. The incremental borrowing rate is a fully collateralized rate that considers the Company’s credit rating, market conditions and the term of the lease. The Company accounts for all components in a lease arrangement as a single combined lease component. Operating lease cost is recognized on a straight-line basis over the lease term. Total lease costs include variable lease costs, which are primarily comprised of the consumer price index adjustments and other changes based on rates, such as costs of insurance and property taxes. Variable payments are expensed in the period incurred and not included in the measurement of lease assets and obligations.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue Revenue is recognized as each performance obligation is satisfied, in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience. The Company utilized the portfolio approach practical expedient within ASC 606-10-10-4 Revenue from Contracts with Customers—Objectives and the significant financing component practical expedient within ASC 606-10-32-18 Revenue from Contracts with Customers—The Existence of a Significant Financing Component in the Contract in performing the analysis. The Company adopted ASC 606 on October 1, 2019, using the modified retrospective method and applying the standard to all contracts not completed on the date of adoption. The Company's revenue for the three months ended December 31, 2021 and 2020 is derived from the following sources: • Software and related services — Includes sales of software as a service, transaction-based fees, ongoing software maintenance and support, software licenses and other professional services related to our software offerings • Payments — Includes volume-based payment processing fees (“discount fees”), gateway fees and other related fixed transaction or service fees • Other — Includes sales of equipment, non-software related professional services and other revenues Revenues from sales of the Company’s software are recognized when the related performance obligations are satisfied. Sales of software licenses are categorized into one of two categories of intellectual property in accordance with ASC 606, functional or symbolic. The key distinction is whether the license represents a right to use (functional) or a right to access (symbolic) intellectual property. The Company generates sales of one-time software licenses, which is functional intellectual property. Revenue from functional intellectual property is recognized at a point in time, when delivered to the client. The Company also offers access to its software under software-as-a-service (“SaaS”) arrangements, which represent services arrangements. Revenue from SaaS arrangements is recognized over time, over the term of the agreement. Discount fees represent a percentage of the dollar amount of each credit or debit transaction processed or a specified per transaction amount, depending on the card type. The Company frequently enters into agreements with clients under which the client engages the Company to provide both payment authorization services and transaction settlement services for all of the cardholder transactions of the client, regardless of which issuing bank and card network to which the transaction relates. The Company’s core performance obligations are to stand ready to provide continuous access to the Company’s payment authorization services and transaction settlement services in order to be able to process as many transactions as its clients require on a daily basis over the contract term. These services are stand ready obligations, as the timing and quantity of transactions to be processed is not determinable. Under a stand-ready obligation, the Company’s performance obligation is defined by each time increment rather than by the underlying activities satisfied over time based on days elapsed. Because the service of standing ready is substantially the same each day and has the same pattern of transfer to the client, the Company has determined that its stand-ready performance obligation comprises a series of distinct days of service. Discount fees are recognized each day based on the volume or transaction count at the time the merchants’ transactions are processed. The Company follows the requirements of ASC 606-10-55 Revenue from Contracts with Customers—Principal versus Agent Considerations , which states that the determination of whether a company should recognize revenue based on the gross amount billed to a client or the net amount retained is a matter of judgment that depends on the facts and circumstances of the arrangement. The determination of gross versus net recognition of revenue requires judgment that depends on whether the Company controls the good or service before it is transferred to the merchant or whether the Company is acting as an agent of a third party. The assessment is provided separately for each performance obligation identified. Under its agreements, the Company incurs interchange and network pass-through charges from the third-party card issuers and card networks, respectively, related to the provision of payment authorization services. The Company has determined that it is acting as an agent with respect to these payment authorization services, based on the following factors: (1) the Company has no discretion over which card issuing bank will be used to process a transaction and is unable to direct the activity of the merchant to another card issuing bank, and (2) interchange and card network rates are pre-established by the card issuers or card networks, and the Company has no latitude in determining these fees. Therefore, revenue allocated to the payment authorization performance obligation is presented net of interchange and card network fees paid to the card issuing banks and card networks, respectively. With regards to the Company's discount fees, generally, where the Company has control over merchant pricing, merchant portability, credit risk and ultimate responsibility for the merchant relationship, revenues are reported at the time of sale equal to the full amount of the discount charged to the merchant, less interchange and network fees. Revenues generated from merchant portfolios where the Company does not have control over merchant pricing, liability for merchant losses or credit risk or rights of portability are reported net of interchange and network fees as well as third-party processing costs directly attributable to processing and bank sponsorship costs. Revenues are also derived from a variety of fixed transaction or service fees, including authorization fees, convenience fees, statement fees, annual fees, gateway fees, which are charged for accessing our payment and software solutions, and fees for other miscellaneous services, such as handling chargebacks. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. Revenue from fixed transactions, which principally relate to the sale of equipment, is recognized upon transfer of ownership and delivery to the client, after which there are no further performance obligations. Arrangements may contain multiple performance obligations, such as payment authorization services, transaction settlement services, hardware, software products, maintenance, and professional installation and training services. Revenues are allocated to each performance obligation based on the standalone selling price of each good or service. The selling price for a deliverable is based on standalone selling price, if available, the adjusted market assessment approach, estimated cost plus margin approach, or residual approach. The Company establishes estimated selling price, based on the judgment of the Company's management, considering internal factors such as margin objectives, pricing practices and controls, client segment pricing strategies and the product life cycle. In arrangements with multiple performance obligations, the Company determines allocation of the transaction price at inception of the arrangement and uses the standalone selling prices for the majority of the Company's revenue recognition. Revenues from sales of the Company ’ s combined hardware and software element are recognized when each performance obligation has been satisfied which has been determined to be upon the delivery of the product. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. The Company’s professional services, including training, installation, and repair services are recognized as revenue as these services are performed. The tables below present a disaggregation of the Company's revenue from contracts with clients by product by segment. Refer to Note 14 for discussion of the Company's segments. The Company's products are defined as follows: • Software and related services — Includes sales of SaaS, transaction-based fees, ongoing software maintenance and support, software licenses and other professional services related to our software offerings. • Payments — Includes discount fees, gateway fees and other related fixed transaction or service fees. • Other — Includes sales of equipment, non-software related professional services and other revenues. For the Three Months Ended December 31, 2021 Merchant Services Proprietary Software and Payments Other Total Software and related services revenue $ 2,962 $ 33,384 $ (8) $ 36,338 Payments revenue 24,304 9,166 (4) 33,466 Other revenue 1,911 2,224 — 4,135 Total revenue $ 29,177 $ 44,774 $ (12) $ 73,939 For the Three Months Ended December 31, 2020 Merchant Services Proprietary Software and Payments Other Total Software and related services revenue $ 2,929 $ 13,856 $ — $ 16,785 Payments revenue 20,541 5,497 (426) 25,612 Other revenue 1,591 640 (7) 2,224 Total revenue $ 25,061 $ 19,993 $ (433) $ 44,621 The tables below present a disaggregation of the Company's revenue from contracts with clients by timing of transfer of goods or services by segment. The Company's revenue included in each category are defined as follows: • Revenue transferred over time — Includes discount fees, gateway fees, sales of SaaS and ongoing support contract revenue. • Revenue transferred at a point in time — Includes fixed service fees, software licenses sold as functional intellectual property, professional services and other equipment. For the Three Months Ended December 31, 2021 Merchant Services Proprietary Software and Payments Other Total Revenue earned over time $ 22,734 $ 31,288 $ (8) $ 54,014 Revenue earned at a point in time 6,443 13,486 (4) 19,925 Total revenue $ 29,177 $ 44,774 $ (12) $ 73,939 For the Three Months Ended December 31, 2020 Merchant Services Proprietary Software and Payments Other Total Revenue earned over time $ 18,102 $ 14,937 $ (388) $ 32,651 Revenue earned at a point in time 6,959 5,056 (45) 11,970 Total revenue $ 25,061 $ 19,993 $ (433) $ 44,621 Contract Assets The Company bills for certain software and related services sales and fixed fee professional services upon pre-determined milestones in the contracts. Therefore, the Company may have contract assets other than trade accounts receivable for performance obligations that are partially completed, which would typically represent consulting services provided before a milestone is completed in a contract. Unbilled amounts associated with these services are presented as accounts receivable as the Company has an unconditional right to payment for services performed. As of December 31, 2021 and September 30, 2021, the Company’s contract assets from contracts with customers was $4,030 and $1,505, respectively. Contract Liabilities Deferred revenue represents amounts billed to clients by the Company for services contracts. Payment is typically collected at the start of the contract term. The initial prepaid contract agreement balance is deferred. The balance is then recognized as the services are provided over the contract term. Deferred revenue that is expected to be recognized as revenue within one year is recorded as short-term deferred revenue and the remaining portion is recorded as other long-term liabilities in the condensed consolidated balance sheets. The terms for most of the Company's contracts with a deferred revenue component are one year. Substantially all of the Company's deferred revenue is anticipated to be recognized within the next year. The following tables present the changes in deferred revenue as of and for the three months ended December 31, 2021 and 2020, respectively: Balance at September 30, 2021 $ 30,024 Deferral of revenue 21,032 Recognition of unearned revenue (15,735) Balance at December 31, 2021 $ 35,321 Balance at September 30, 2020 $ 11,054 Deferral of revenue 22,142 Recognition of unearned revenue (7,541) Balance at December 31, 2020 $ 25,655 Costs to Obtain and Fulfill a Contract The Company capitalizes incremental costs to obtain new contracts and contract renewals and amortizes these costs on a straight-line basis as an expense over the benefit period, which is generally the contract term, unless a commensurate payment is not expected at renewal. As of December 31, 2021 and 2020 the Company had $4,087 and $3,356, respectively, of capitalized contract costs, which relates to commissions paid to employees and agents as well as other incentives given to customers to obtain new sales, included within “Other assets" on the condensed consolidated balance sheets. The Company recorded expense related to these costs of $167 and $119 for the three months ended December 31, 2021, and 2020 respectively. The Company expenses sales commissions as incurred for the Company's sales commission plans that are paid on recurring monthly revenues, portfolios of existing clients, or have a substantive stay requirement prior to payment. Other Cost of Services Other costs of services include third-party processing costs directly attributable to processing and bank sponsorship costs, which may not be based on a percentage of volume. These costs also include related costs such as residual payments to sales groups, which are based on a percentage of the net revenues generated from merchant referrals. In certain merchant processing bank relationships the Company is liable for chargebacks against a merchant equal to the volume of the transaction. Losses resulting from chargebacks against a merchant are included in other cost of services on the accompanying condensed consolidated statement of operations. The Company evaluates its risk for such transactions and estimates its potential loss from chargebacks based primarily on historical experience and other relevant factors. The reserve for merchant losses is included within accrued expenses and other current liabilities on the accompanying condensed consolidated balance sheets. The cost of equipment sold is also included in other cost of services. Other costs of services are recognized at the time the associated revenue is earned.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the value of purchase consideration paid and identifiable assets acquired and assumed in acquisitions, goodwill and intangible asset impairment review, determination of performance obligations for revenue recognition, loss reserves, assumptions used in the calculation of equity-based compensation and in the calculation of income taxes, and certain tax assets and liabilities as well as the related valuation allowances. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The amendments in ASU No. 2016-13 require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company’s financial assets impacted by this ASU include primarily accounts receivable, settlement processing assets, and certain other receivables. The Company adopted this ASU on October 1, 2021. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805)—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in ASU No. 2021-08 address diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination. The amendments in ASU No. 2021-08 require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. Upon adoption, an acquirer should account for the related revenue contracts of the acquiree as if it has originated the contracts. For public business entities, the amendments in ASU No. 2021-08 are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in ASU No. 2021-08 should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted. An entity that early adopts should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The Company has early adopted ASU No. 2021-08 effective October 1, 2020. The adoption of ASU 2021-08 resulted in adjustments to the fair values assigned to goodwill and deferred revenue assumed as of the acquisition dates of acquisitions occurring during the year ended September 30, 2021, and an increase in revenue for the year ended September 30, 2021 due to recognition of revenue earned during the period for deferred revenue contracts acquired in business combinations. The following tables present the material impacts of adopting ASU 2021-08 on the Company's condensed consolidated balance sheets as of December 31, 2020: As of December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Assets Goodwill $ 219,912 $ 2,993 $ 222,905 Deferred tax asset $ 44,966 $ (303) $ 44,663 Liabilities and equity Liabilities Current liabilities Deferred revenue $ 23,868 $ 1,686 $ 25,554 Stockholders' equity Additional paid-in-capital $ 169,097 $ (31) $ 169,066 Accumulated deficit $ (4,595) $ 574 $ (4,021) Non-controlling interest $ 76,928 $ 461 $ 77,389 The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statements of operations for the three months ended December 31, 2020: Three months ended December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Revenue $ 43,313 $ 1,308 $ 44,621 Benefit from income taxes $ (219) $ 209 $ (10) Net loss $ (4,121) $ 1,099 $ (3,022) Net loss attributable to non-controlling interest $ (1,549) $ 525 $ (1,024) Net loss attributable to i3 Verticals, Inc. $ (2,572) $ 574 $ (1,998) Net loss per share attributable to Class A common stockholders: Basic $ (0.13) $ 0.03 $ (0.10) Diluted $ (0.13) $ 0.03 $ (0.10) The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statement of changes in equity for the three months ended December 31, 2020: Three months ended December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Net loss $ (4,121) $ 1,099 $ (3,022) Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis $ 1,257 $ (95) $ 1,162 Balance at December 31, 2020 $ 241,433 $ 1,004 $ 242,437 The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statements of cash flows for the three months ended December 31, 2020: Three months ended December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Cash flows from operating activities: Net loss $ (4,121) $ 1,099 $ (3,022) Adjustments to reconcile net (loss) income to net cash provided by operating activities: Benefit from deferred income taxes $ (219) $ 209 $ (10) Changes in operating liabilities: Deferred revenue $ 7,870 $ (1,307) $ 6,563 Other long-term liabilities $ 6,038 $ (1) $ 6,037 Recently Issued Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)—Accounting For Convertible Instruments and Contracts in an Entity's Own Equity (“ASU 2020-06”). ASU 2020-06 simplifies accounting for convertible instruments by removing major separation models required under current
Fair Value Measurement	The Company applies the provisions of ASC 820, Fair Value Measurement , which defines fair value, establishes a framework for its measurement and expands disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or the price paid to transfer a liability as of the measurement date. A three-tier, fair-value reporting hierarchy exists for disclosure of fair value measurements based on the observability of the inputs to the valuation of financial assets and liabilities. The three levels are: Level 1 — Quoted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Schedule of Disaggregation of Revenue	The tables below present a disaggregation of the Company's revenue from contracts with clients by product by segment. Refer to Note 14 for discussion of the Company's segments. The Company's products are defined as follows: • Software and related services — Includes sales of SaaS, transaction-based fees, ongoing software maintenance and support, software licenses and other professional services related to our software offerings. • Payments — Includes discount fees, gateway fees and other related fixed transaction or service fees. • Other — Includes sales of equipment, non-software related professional services and other revenues. For the Three Months Ended December 31, 2021 Merchant Services Proprietary Software and Payments Other Total Software and related services revenue $ 2,962 $ 33,384 $ (8) $ 36,338 Payments revenue 24,304 9,166 (4) 33,466 Other revenue 1,911 2,224 — 4,135 Total revenue $ 29,177 $ 44,774 $ (12) $ 73,939 For the Three Months Ended December 31, 2020 Merchant Services Proprietary Software and Payments Other Total Software and related services revenue $ 2,929 $ 13,856 $ — $ 16,785 Payments revenue 20,541 5,497 (426) 25,612 Other revenue 1,591 640 (7) 2,224 Total revenue $ 25,061 $ 19,993 $ (433) $ 44,621 The tables below present a disaggregation of the Company's revenue from contracts with clients by timing of transfer of goods or services by segment. The Company's revenue included in each category are defined as follows: • Revenue transferred over time — Includes discount fees, gateway fees, sales of SaaS and ongoing support contract revenue. • Revenue transferred at a point in time — Includes fixed service fees, software licenses sold as functional intellectual property, professional services and other equipment. For the Three Months Ended December 31, 2021 Merchant Services Proprietary Software and Payments Other Total Revenue earned over time $ 22,734 $ 31,288 $ (8) $ 54,014 Revenue earned at a point in time 6,443 13,486 (4) 19,925 Total revenue $ 29,177 $ 44,774 $ (12) $ 73,939 For the Three Months Ended December 31, 2020 Merchant Services Proprietary Software and Payments Other Total Revenue earned over time $ 18,102 $ 14,937 $ (388) $ 32,651 Revenue earned at a point in time 6,959 5,056 (45) 11,970 Total revenue $ 25,061 $ 19,993 $ (433) $ 44,621
Schedule of Contract with Customer, Asset and Liability	The following tables present the changes in deferred revenue as of and for the three months ended December 31, 2021 and 2020, respectively: Balance at September 30, 2021 $ 30,024 Deferral of revenue 21,032 Recognition of unearned revenue (15,735) Balance at December 31, 2021 $ 35,321 Balance at September 30, 2020 $ 11,054 Deferral of revenue 22,142 Recognition of unearned revenue (7,541) Balance at December 31, 2020 $ 25,655
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The following tables present the material impacts of adopting ASU 2021-08 on the Company's condensed consolidated balance sheets as of December 31, 2020: As of December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Assets Goodwill $ 219,912 $ 2,993 $ 222,905 Deferred tax asset $ 44,966 $ (303) $ 44,663 Liabilities and equity Liabilities Current liabilities Deferred revenue $ 23,868 $ 1,686 $ 25,554 Stockholders' equity Additional paid-in-capital $ 169,097 $ (31) $ 169,066 Accumulated deficit $ (4,595) $ 574 $ (4,021) Non-controlling interest $ 76,928 $ 461 $ 77,389 The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statements of operations for the three months ended December 31, 2020: Three months ended December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Revenue $ 43,313 $ 1,308 $ 44,621 Benefit from income taxes $ (219) $ 209 $ (10) Net loss $ (4,121) $ 1,099 $ (3,022) Net loss attributable to non-controlling interest $ (1,549) $ 525 $ (1,024) Net loss attributable to i3 Verticals, Inc. $ (2,572) $ 574 $ (1,998) Net loss per share attributable to Class A common stockholders: Basic $ (0.13) $ 0.03 $ (0.10) Diluted $ (0.13) $ 0.03 $ (0.10) The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statement of changes in equity for the three months ended December 31, 2020: Three months ended December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Net loss $ (4,121) $ 1,099 $ (3,022) Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis $ 1,257 $ (95) $ 1,162 Balance at December 31, 2020 $ 241,433 $ 1,004 $ 242,437 The following tables present the material impacts of adoption of ASU 2021-08 on the Company's condensed consolidated statements of cash flows for the three months ended December 31, 2020: Three months ended December 31, 2020 Excluding impacts of adoption of ASU 2021-08 Adjustment Presentation with adoption of ASU 2021-08 Cash flows from operating activities: Net loss $ (4,121) $ 1,099 $ (3,022) Adjustments to reconcile net (loss) income to net cash provided by operating activities: Benefit from deferred income taxes $ (219) $ 209 $ (10) Changes in operating liabilities: Deferred revenue $ 7,870 $ (1,307) $ 6,563 Other long-term liabilities $ 6,038 $ (1) $ 6,037

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule of Preliminary Purchase Consideration of the Acquired Assets and Assumed Liabilities	The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, were as follows: Total Accounts receivable $ 223 Settlement assets 685 Prepaid expenses and other current assets 44 Property and equipment 181 Capitalized software 9,500 Acquired merchant relationships 38,700 Non-compete agreements — Trade name 1,500 Goodwill 57,354 Operating lease right-of-use assets 263 Other assets 22 Total assets acquired 108,472 Accounts Payable — Accrued expenses and other current liabilities 75 Settlement obligations 685 Deferred revenue, current — Current portion of operating lease liabilities 82 Operating lease liabilities, less current portion 181 Other long-term liabilities 6,968 Net assets acquired $ 100,481 The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2021 were as follows: BIS ImageSoft, Inc. Other Total Accounts receivable $ 1,567 $ 4,997 $ 3,216 $ 9,780 Settlement assets 6,889 120 — 7,009 Inventories 458 — 161 619 Prepaid expenses and other current assets 10 2,897 2,024 4,931 Property and equipment 206 433 312 951 Capitalized software 15,200 5,200 4,100 24,500 Acquired merchant relationships 32,300 16,300 24,040 72,640 Non-compete agreements 100 610 390 1,100 Trade name 700 1,100 840 2,640 Goodwill 46,660 22,408 35,906 104,974 Operating lease right-of-use assets — 332 484 816 Other assets — 6 32 38 Total assets acquired 104,090 54,403 71,505 229,998 Accrued expenses and other current liabilities 138 910 1 1,049 Settlement obligations 6,889 120 — 7,009 Deferred revenue, current 1,568 6,748 5,505 13,821 Current portion of operating lease liabilities — 75 221 296 Operating lease liabilities, less current portion — 250 251 501 Net assets acquired $ 95,495 $ 46,300 $ 65,527 $ 207,322
Pro Forma Information	This supplemental pro forma information does not purport to be indicative of the results of operations that would have been attained had the acquisitions been made on these dates, or of results of operations that may occur in the future. Three months ended December 31, 2021 2020 Revenue $ 76,416 $ 54,134 Net loss $ (7,029) $ (4,912)

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	A summary of the Company's prepaid expenses and other current assets as of December 31, 2021 and September 30, 2021 is as follows: December 31, September 30, 2021 2021 Inventory $ 3,071 $ 2,220 Prepaid licenses 8,256 4,646 Prepaid insurance 1,398 1,074 Other current assets 2,889 3,274 Prepaid expenses and other current assets $ 15,614 $ 11,214

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Carrying Amount of Goodwill	Changes in the carrying amount of goodwill are as follows: Merchant Services Proprietary Software and Payments Other Total Balance at September 30, 2021 $ 119,086 $ 173,157 $ — $ 292,243 Goodwill attributable to preliminary purchase price adjustments and acquisitions during the three months ended December 31,2021 — 57,354 — 57,354 Balance at December 31, 2021 $ 119,086 $ 230,511 $ — $ 349,597
Schedule of Finite-Lived Intangible Assets	Intangible assets consisted of the following as of December 31, 2021: Cost Accumulated Amortization Carrying Value Amortization Life and Method Finite-lived intangible assets: Merchant relationships $ 265,911 $ (69,212) $ 196,699 9 to 25 years – accelerated or straight-line Non-compete agreements 1,478 (624) 854 3 to 6 years – straight-line Website and brand development costs 218 (116) 102 3 to 4 years – straight-line Trade names 7,820 (3,066) 4,754 3 to 7 years – straight-line Residual buyouts 6,718 (1,617) 5,101 8 years – straight-line Referral and exclusivity agreements 800 (613) 187 5 years – straight-line Total finite-lived intangible assets 282,945 (75,248) 207,697 Indefinite-lived intangible assets: Trademarks 42 — 42 Total identifiable intangible assets $ 282,987 $ (75,248) $ 207,739
Schedule of Indefinite-Lived Intangible Assets	Intangible assets consisted of the following as of December 31, 2021: Cost Accumulated Amortization Carrying Value Amortization Life and Method Finite-lived intangible assets: Merchant relationships $ 265,911 $ (69,212) $ 196,699 9 to 25 years – accelerated or straight-line Non-compete agreements 1,478 (624) 854 3 to 6 years – straight-line Website and brand development costs 218 (116) 102 3 to 4 years – straight-line Trade names 7,820 (3,066) 4,754 3 to 7 years – straight-line Residual buyouts 6,718 (1,617) 5,101 8 years – straight-line Referral and exclusivity agreements 800 (613) 187 5 years – straight-line Total finite-lived intangible assets 282,945 (75,248) 207,697 Indefinite-lived intangible assets: Trademarks 42 — 42 Total identifiable intangible assets $ 282,987 $ (75,248) $ 207,739
Schedule of Future Amortization Expense of Finite-lived Intangible Assets	Based on net carrying amounts at December 31, 2021, the Company's estimate of future amortization expense for intangible assets are presented in the table below for fiscal years ending September 30: 2022 (nine months remaining) $ 13,712 2023 17,517 2024 16,534 2025 16,250 2026 15,855 Thereafter 127,829 $ 207,697

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Dec. 31, 2021
Payables and Accruals [Abstract]
Summary of Accrued Expenses and Other Current Liabilities	A summary of the Company's accrued expenses and other current liabilities as of December 31, 2021 and September 30, 2021 is as follows is as follows: December 31, September 30, 2021 2021 Accrued wages, bonuses, commissions and vacation $ 6,808 $ 6,649 Accrued interest 713 271 Accrued contingent consideration — current portion 26,703 25,768 Escrow liabilities 14,851 9,067 Customer deposits 1,842 1,913 Employee health self-insurance liability 648 1,032 Other current liabilities (1) 42,130 6,115 Accrued expenses and other current liabilities $ 93,695 $ 50,815 __________________________ 1. The Company accrued $35,000 as of December 31, 2021 for the purchase of an acquisition that was effective on December 31, 2021, but for which the Company did not transfer cash until January 3, 2022. See Note 3 to our interim consolidated financial statements for further discussion of acquisitions.

Long-Term Debt, Net (Tables)

Long-Term Debt, Net (Tables)	3 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
Summary of Long-term Debt	A summary of long-term debt, net as of December 31, 2021 and September 30, 2021 is as follows: December 31, September 30, Maturity 2021 2021 Revolving lines of credit to banks under the Senior Secured Credit Facility May 9, 2024 $ 159,506 $ 104,396 1% Exchangeable Senior Notes due 2025 February 15, 2025 100,970 99,808 Debt issuance costs, net (3,346) (3,599) Total long-term debt, net of issuance costs $ 257,130 $ 200,605

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 31, 2021
Leases [Abstract]
Schedule of Maturities of Lease Liabilities	As of December 31, 2021, maturities of lease liabilities are as follows: Years ending September 30: 2022 (nine months remaining) $ 4,329 2023 5,345 2024 4,550 2025 3,835 2026 3,136 Thereafter 3,456 Total future minimum lease payments (undiscounted) (1) 24,651 Less: present value discount (3,593) Present value of lease liability $ 21,058 __________________________

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Changes in Level 3 Financial Instruments Measured on a Recurring Basis	The following tables present the changes in the Company's Level 3 financial instruments that are measured at fair value on a recurring basis. Accrued Contingent Consideration Balance at September 30, 2021 $ 36,229 Contingent consideration accrued at time of business combination 5,481 Change in fair value of contingent consideration included in Operating expenses 4,927 Contingent consideration paid (9,755) Balance at December 31, 2021 $ 36,882 Accrued Contingent Consideration Balance at September 30, 2020 $ 13,034 Contingent consideration accrued at time of business combination 10,440 Change in fair value of contingent consideration included in Operating expenses 1,904 Contingent consideration paid (5,851) Balance at December 31, 2020 $ 19,527

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Summary of Equity-Based Compensation Expense	A summary of equity-based compensation expense recognized during the three months ended December 31, 2021 and 2020 is as follows: Three months ended December 31, 2021 2020 Stock options $ 6,624 $ 3,441
Schedule of Fair Value of Stock Option Awards	The fair value of the stock option awards during the three months ended December 31, 2021 and during the year ended September 30, 2021 was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions: December 31, 2021 September 30, 2021 Expected volatility (1) 55.8 % 59.7 % Expected dividend yield (2) — % — % Expected term (3) 6 years 6 years Risk-free interest rate (4) 1.2 % 0.7 % _________________ 1. Expected volatility is based on the Company's own share price. 2. The Company has assumed a dividend yield of zero as management has no plans to declare dividends in the foreseeable future. 3. Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method. 4. The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
Summary of Stock Option Activity	A summary of stock option activity for the three months ended December 31, 2021 is as follows: Stock Options Weighted Average Exercise Price Outstanding at beginning of period 7,547,622 $ 25.26 Granted 942,821 23.19 Exercised (43,889) 15.17 Forfeited (147,336) 30.05 Outstanding at end of period 8,299,218 $ 24.99

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Minimum Fee Commitments	As of December 31, 2021, such minimum fee commitments were as follows: Years ending September 30: 2022 (nine months remaining) $ 2,923 2023 2,690 2024 450 2025 — 2026 — Thereafter — Total $ 6,063

Segments (Tables)

Segments (Tables)	3 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
Summary of Reportable Segment Performance	The following is a summary of reportable segment operating performance for the three months ended December 31, 2021 and 2020. As of and for the Three Months Ended December 31, 2021 Merchant Services Proprietary Software and Payments Other Total Revenue $ 29,177 $ 44,774 $ (12) $ 73,939 Other costs of services (13,442) (3,080) 12 (16,510) Residuals 8,181 343 (4) 8,520 Processing margin $ 23,916 $ 42,037 $ (4) $ 65,949 Residuals (8,520) Selling general and administrative (46,387) Depreciation and amortization (6,870) Change in fair value of contingent consideration (4,927) Loss from operations $ (755) Total assets $ 206,780 $ 507,399 $ 62,257 $ 776,436 Goodwill $ 119,086 $ 230,511 $ — $ 349,597 As of and for the Three months ended December 31, 2020 (1) Merchant Services Proprietary Software and Payments Other Total Revenue $ 25,061 $ 19,993 $ (433) $ 44,621 Other costs of services (10,841) (3,257) 432 (13,666) Residuals 5,944 257 (426) 5,775 Processing margin $ 20,164 $ 16,993 $ (427) $ 36,730 Residuals (5,775) Selling general and administrative (24,962) Depreciation and amortization (5,092) Change in fair value of contingent consideration (1,904) Loss from operations $ (1,003) Total assets $ 213,093 $ 224,925 $ 62,361 $ 500,379 Goodwill $ 119,079 $ 103,826 $ — $ 222,905 __________________________ 1. Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement.

Non-Controlling Interest (Table

Non-Controlling Interest (Tables)	3 Months Ended
	Dec. 31, 2021
Noncontrolling Interest [Abstract]
Summary of Ownership Interest	The following table summarizes the impact on equity due to changes in the Company's ownership interest in i3 Verticals, LLC: Three months ended December 31, 2021 2020 Net loss attributable to non-controlling interest $ (1,153) $ (1,024) Transfers to (from) non-controlling interests: Redemption of common units in i3 Verticals, LLC (123) (7,185) Allocation of equity to non-controlling interests 1,899 1,008 Net transfers to (from) non-controlling interests 1,776 (6,177) Change from net loss attributable to non-controlling interests and transfers to (from) non-controlling interests $ 623 $ (7,201) __________________________ 1. Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2021
Earnings Per Share [Abstract]
Schedule of Reconciliations of the Numerators and Denominators Used to Compute Basic and Diluted Earnings Per Share	The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock for the three months ended December 31, 2021 and 2020: Three months ended December 31, 2021 2020 )1) Basic (2) and diluted (3) net loss per share: Numerator Net loss $ (3,681) $ (3,022) Less: Net loss attributable to non-controlling interests (1,153) (1,024) Net loss attributable to Class A common stockholders $ (2,528) $ (1,998) Denominator Weighted average shares of Class A common stock outstanding 22,042,801 19,129,056 Basic and diluted net loss per share $ (0.11) $ (0.10) __________________________ 1. Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement. 2. Excludes 18,869 restricted Class A common stock units for the three months ended December 31, 2020. 3. For the three months ended December 31, 2021 and 2020, all potentially dilutive securities were anti-dilutive, so diluted net loss per share was equivalent to basic net loss per share. The following securities were excluded from the weighted average effect of dilutive securities in the computation of diluted net loss per share of Class A common stock: a. 10,222,946 and 11,668.199 shares of weighted average Class B common stock for the three months ended December 31, 2021 and 2020, respectively, along with the reallocation of net income assuming conversion of these shares, were excluded because the effect would have been anti-dilutive, b. 5,444,557 and 1,251,600 stock options for the three months ended December 31, 2021 and 2020, respectively, were excluded because the exercise price of these stock options exceeded the average market price of our Class A common stock during the period (“out-of-the-money”) and the effect of including them would have been anti-dilutive, c. 606,942 and 1,212,584 shares for the three months ended December 31, 2021 and 2020, respectively, resulting from estimated stock option exercises as calculated by the treasury stock method were excluded because of the effect of including them would have been anti dilutive, and 18,869 restricted Class A common units for the three months ended December 31, 2020 were excluded because the effect of including them would have been anti-dilutive.

Significant Non-cash Transact_2

Significant Non-cash Transactions (Tables)	3 Months Ended
	Dec. 31, 2021
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Schedule of Significant Noncash Transactions	The Company engaged in the following significant non-cash investing and financing activities during the three months ended December 31, 2021 and 2020: Three months ended December 31, 2021 2020 Acquisition date fair value of contingent consideration in connection with business combinations $ 5,481 $ 3,400 Right-of-use assets obtained in exchange for operating lease obligations $ 6,820 $ 11,251 Purchase consideration accrued for December 31, 2021 acquisition $ 35,000 $ —

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Settlement assets	$ 8,034	$ 84	$ 4,768	$ 0
Settlement obligations	8,034		4,768
Inventories	3,071		2,220
Revenue from acquisitions	7,555
Net income from acquisitions	805
Contract assets from contracts with customer	4,030		$ 1,505
Capitalized contract costs	4,087	3,356
Commissions related to capitalized contract costs	$ 167	$ 119

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Total revenue	$ 73,939	$ 44,621	[1]
Revenue earned over time
Concentration Risk [Line Items]
Total revenue	54,014	32,651
Revenue earned at a point in time
Concentration Risk [Line Items]
Total revenue	19,925	11,970
Merchant Services
Concentration Risk [Line Items]
Total revenue	29,177	25,061
Merchant Services | Revenue earned over time
Concentration Risk [Line Items]
Total revenue	22,734	18,102
Merchant Services | Revenue earned at a point in time
Concentration Risk [Line Items]
Total revenue	6,443	6,959
Proprietary Software and Payments
Concentration Risk [Line Items]
Total revenue	44,774	19,993
Proprietary Software and Payments | Revenue earned over time
Concentration Risk [Line Items]
Total revenue	31,288	14,937
Proprietary Software and Payments | Revenue earned at a point in time
Concentration Risk [Line Items]
Total revenue	13,486	5,056
Other
Concentration Risk [Line Items]
Total revenue	(12)	(433)
Other | Revenue earned over time
Concentration Risk [Line Items]
Total revenue	(8)	(388)
Other | Revenue earned at a point in time
Concentration Risk [Line Items]
Total revenue	(4)	(45)
Software and related services revenue
Concentration Risk [Line Items]
Total revenue	36,338	16,785
Software and related services revenue | Merchant Services
Concentration Risk [Line Items]
Total revenue	2,962	2,929
Software and related services revenue | Proprietary Software and Payments
Concentration Risk [Line Items]
Total revenue	33,384	13,856
Software and related services revenue | Other
Concentration Risk [Line Items]
Total revenue	(8)	0
Payments revenue
Concentration Risk [Line Items]
Total revenue	33,466	25,612
Payments revenue | Merchant Services
Concentration Risk [Line Items]
Total revenue	24,304	20,541
Payments revenue | Proprietary Software and Payments
Concentration Risk [Line Items]
Total revenue	9,166	5,497
Payments revenue | Other
Concentration Risk [Line Items]
Total revenue	(4)	(426)
Other revenue
Concentration Risk [Line Items]
Total revenue	4,135	2,224
Other revenue | Merchant Services
Concentration Risk [Line Items]
Total revenue	1,911	1,591
Other revenue | Proprietary Software and Payments
Concentration Risk [Line Items]
Total revenue	2,224	640
Other revenue | Other
Concentration Risk [Line Items]
Total revenue	$ 0	$ (7)
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of operations.

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Contract with customer, Liability [Roll Forward]
Deferred revenue, beginning	$ 30,024	$ 11,054
Deferral of revenue	21,032	22,142
Recognition of unearned revenue	(15,735)	(7,541)
Deferred revenue, ending	$ 35,321	$ 25,655

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Impact and Adoption of ASU 2021-08 (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020		Sep. 30, 2021
Assets
Goodwill	$ 349,597	$ 222,905		$ 292,243
Deferred tax asset	50,647			49,992
Current liabilities
Deferred revenue	35,321			29,862
Stockholders' equity
Additional paid-in capital	216,604			211,237
Accumulated deficit	(9,008)			(6,480)
Non-controlling interest	85,454			84,831
Revenue	73,939	44,621	[1]
Benefit from income taxes	(228)	(10)	[1]
Net loss	(3,681)	(3,022)	[1],[2],[3],[4]
Net loss attributable to non-controlling interest	(1,153)	(1,024)	[1]
Net loss attributable to i3 Verticals, Inc.	$ (2,528)	$ (1,998)	[1]
Net loss per share attributable to Class A common stockholders:
Basic (in USD per share)	$ (0.11)	$ (0.10)	[1],[5]
Diluted net loss per share (in USD per Share)	$ (0.11)	$ (0.10)	[1]
Statement of Stockholders' Equity [Abstract]
Net loss	$ (3,681)	$ (3,022)	[1],[2],[3],[4]
Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	345	1,162	[2]
Balance at December 31, 2020	207,599			$ 204,760
Cash flows from operating activities:
Net loss	(3,681)	(3,022)	[1],[2],[3],[4]
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Benefit from deferred income taxes	(228)	(10)	[3],[4]
Changes in operating liabilities:
Deferred revenue	5,439	6,563	[3],[4]
Other long-term liabilities	$ 1	6,037	[3],[4]
As reported
Assets
Goodwill		219,912
Deferred tax asset		44,966
Current liabilities
Deferred revenue		23,868
Stockholders' equity
Additional paid-in capital		169,097
Accumulated deficit		(4,595)
Non-controlling interest		76,928
Revenue		43,313
Benefit from income taxes		(219)
Net loss		(4,121)
Net loss attributable to non-controlling interest		(1,549)
Net loss attributable to i3 Verticals, Inc.		$ (2,572)
Net loss per share attributable to Class A common stockholders:
Basic (in USD per share)		$ (130)
Diluted net loss per share (in USD per Share)		$ (130)
Statement of Stockholders' Equity [Abstract]
Net loss		$ (4,121)
Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis		1,257
Balance at December 31, 2020		241,433
Cash flows from operating activities:
Net loss		(4,121)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Benefit from deferred income taxes		(219)
Changes in operating liabilities:
Deferred revenue		7,870
Other long-term liabilities		6,038
Accounting Standards Update 2021-08
Assets
Goodwill		222,905
Deferred tax asset		44,663
Current liabilities
Deferred revenue		25,554
Stockholders' equity
Additional paid-in capital		169,066
Accumulated deficit		(4,021)
Non-controlling interest		77,389
Revenue		44,621
Benefit from income taxes		(10)
Net loss		(3,022)
Net loss attributable to non-controlling interest		(1,024)
Net loss attributable to i3 Verticals, Inc.		$ (1,998)
Net loss per share attributable to Class A common stockholders:
Basic (in USD per share)		$ (100)
Diluted net loss per share (in USD per Share)		$ (100)
Statement of Stockholders' Equity [Abstract]
Net loss		$ (3,022)
Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis		1,162
Balance at December 31, 2020		242,437
Cash flows from operating activities:
Net loss		(3,022)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Benefit from deferred income taxes		(10)
Changes in operating liabilities:
Deferred revenue		6,563
Other long-term liabilities		6,037
Accounting Standards Update 2021-08 | Adjustment
Assets
Goodwill		2,993
Deferred tax asset		(303)
Current liabilities
Deferred revenue		1,686
Stockholders' equity
Additional paid-in capital		(31)
Accumulated deficit		574
Non-controlling interest		461
Revenue		1,308
Benefit from income taxes		209
Net loss		1,099
Net loss attributable to non-controlling interest		525
Net loss attributable to i3 Verticals, Inc.		$ 574
Net loss per share attributable to Class A common stockholders:
Basic (in USD per share)		$ 30
Diluted net loss per share (in USD per Share)		$ 30
Statement of Stockholders' Equity [Abstract]
Net loss		$ 1,099
Establishment of liabilities under a tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis		(95)
Balance at December 31, 2020		1,004
Cash flows from operating activities:
Net loss		1,099
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Benefit from deferred income taxes		209
Changes in operating liabilities:
Deferred revenue		(1,307)
Other long-term liabilities		$ (1)
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of operations.
[2]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statement of changes in equity.
[3]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of cash flows.
[4]	The prior period amounts included in the statement of cash flows have been updated to correct settlement assets as restricted cash, which were previously reported as cash flows used in operating activities. These adjustments reflect an increase in prior year cash flows provided by operating activities of $84 and a corresponding increase in cash, cash equivalents, and restricted cash at the end of the period.
[5]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement.

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details)	Feb. 01, 2021USD ($)	Nov. 17, 2020USD ($)	Dec. 31, 2021USD ($)business	Sep. 30, 2021USD ($)business
Finite-Lived Intangible Assets [Line Items]
Number of businesses acquired | business				8
2021 Business Combinations
Finite-Lived Intangible Assets [Line Items]
Number of businesses acquired | business			2
Total purchase consideration			$ 100,481,000
Proceeds from issuance of long-term debt used to fund the acquisition			95,000,000
Contingent consideration			$ 5,481,000
Estimated amortization period			14 years
Acquisition-related costs			$ 228,000
Potential additional consideration			$ 18,000,000
2021 Business Combinations | Trade name
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period			5 years
2021 Business Combinations | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period			5 years
2021 Business Combinations | Capitalized software
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period			7 years
2021 Business Combinations | Minimum | Acquired merchant relationships
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period			9 years
2021 Business Combinations | Maximum | Acquired merchant relationships
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period			19 years
BIS
Finite-Lived Intangible Assets [Line Items]
Total purchase consideration	$ 95,495,000
Proceeds from issuance of long-term debt used to fund the acquisition	$ 52,500,000
Estimated amortization period	19 years
Acquisition-related costs	$ 374,000
Potential additional consideration	16,000,000
Contingent consideration	7,750,000
BIS | Class A Common Stock
Finite-Lived Intangible Assets [Line Items]
Common units issued to seller	$ 35,245,000
BIS | Acquired merchant relationships
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period	19 years
BIS | Trade name
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period	5 years
BIS | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period	3 years
BIS | Capitalized software
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period	10 years
ImageSoft Inc
Finite-Lived Intangible Assets [Line Items]
Total purchase consideration		$ 46,300,000
Proceeds from issuance of long-term debt used to fund the acquisition		40,000,000
Contingent consideration		$ 6,300,000
Estimated amortization period		19 years
Acquisition-related costs		$ 403,000
Potential additional consideration		$ 20,000,000
ImageSoft Inc | Acquired merchant relationships
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period		20 years
ImageSoft Inc | Trade name
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period	5 years
ImageSoft Inc | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period	3 years
ImageSoft Inc | Capitalized software
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period		7 years
Other Business Combinations
Finite-Lived Intangible Assets [Line Items]
Number of businesses acquired | business			6
Total purchase consideration				$ 65,527,000
Proceeds from issuance of long-term debt used to fund the acquisition				$ 57,000,000
Estimated amortization period				16 years
Acquisition-related costs				$ 1,101,000
Potential additional consideration				50,200,000
Contingent consideration				$ 8,527,000
Other Business Combinations | Trade name
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period				4 years
Other Business Combinations | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period				4 years
Other Business Combinations | Capitalized software
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period				7 years
Other Business Combinations | Minimum | Acquired merchant relationships
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period				10 years
Other Business Combinations | Maximum | Acquired merchant relationships
Finite-Lived Intangible Assets [Line Items]
Estimated amortization period				25 years
Other Business Combinations | Proprietary Software and Payments
Finite-Lived Intangible Assets [Line Items]
Number of businesses acquired | business			5
Other Business Combinations | Merchant Services Segment
Finite-Lived Intangible Assets [Line Items]
Number of businesses acquired | business			1

Acquisitions - Schedule of Prel

Acquisitions - Schedule of Preliminary Purchase Consideration of the Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 349,597	$ 292,243	$ 222,905
BIS
Business Acquisition [Line Items]
Accounts receivable		1,567
Settlement assets		6,889
Inventories		458
Prepaid expenses and other current assets		10
Property and equipment		206
Goodwill		46,660
Operating lease right-of-use assets		0
Other assets		0
Total assets acquired		104,090
Accrued expenses and other current liabilities		138
Settlement obligations		6,889
Deferred revenue, current		1,568
Current portion of operating lease liabilities		0
Operating lease liabilities, less current portion		0
Net assets acquired		95,495
BIS | Acquired merchant relationships
Business Acquisition [Line Items]
Intangible assets		32,300
BIS | Non-compete agreements
Business Acquisition [Line Items]
Intangible assets		100
BIS | Trade name
Business Acquisition [Line Items]
Intangible assets		700
BIS | Capitalized software
Business Acquisition [Line Items]
Intangible assets		15,200
ImageSoft Inc
Business Acquisition [Line Items]
Accounts receivable		4,997
Settlement assets		120
Inventories		0
Prepaid expenses and other current assets		2,897
Property and equipment		433
Goodwill		22,408
Operating lease right-of-use assets		332
Other assets		6
Total assets acquired		54,403
Accrued expenses and other current liabilities		910
Settlement obligations		120
Deferred revenue, current		6,748
Current portion of operating lease liabilities		75
Operating lease liabilities, less current portion		250
Net assets acquired		46,300
ImageSoft Inc | Acquired merchant relationships
Business Acquisition [Line Items]
Intangible assets		16,300
ImageSoft Inc | Non-compete agreements
Business Acquisition [Line Items]
Intangible assets		610
ImageSoft Inc | Trade name
Business Acquisition [Line Items]
Intangible assets		1,100
ImageSoft Inc | Capitalized software
Business Acquisition [Line Items]
Intangible assets		5,200
Other Business Combinations
Business Acquisition [Line Items]
Accounts receivable		3,216
Settlement assets		0
Inventories		161
Prepaid expenses and other current assets		2,024
Property and equipment		312
Goodwill		35,906
Operating lease right-of-use assets		484
Other assets		32
Total assets acquired		71,505
Accrued expenses and other current liabilities		1
Settlement obligations		0
Deferred revenue, current		5,505
Current portion of operating lease liabilities		221
Operating lease liabilities, less current portion		251
Net assets acquired		65,527
Other Business Combinations | Acquired merchant relationships
Business Acquisition [Line Items]
Intangible assets		24,040
Other Business Combinations | Non-compete agreements
Business Acquisition [Line Items]
Intangible assets		390
Other Business Combinations | Trade name
Business Acquisition [Line Items]
Intangible assets		840
Other Business Combinations | Capitalized software
Business Acquisition [Line Items]
Intangible assets		4,100
2021 Business Combinations
Business Acquisition [Line Items]
Accounts receivable	223	9,780
Settlement assets	685	7,009
Inventories		619
Prepaid expenses and other current assets	44	4,931
Property and equipment	181	951
Goodwill	57,354	104,974
Operating lease right-of-use assets	263	816
Other assets	22	38
Total assets acquired	108,472	229,998
Accounts Payable	0
Accrued expenses and other current liabilities	75	1,049
Settlement obligations	685	7,009
Deferred revenue, current	0	13,821
Current portion of operating lease liabilities	82	296
Operating lease liabilities, less current portion	181	501
Other long-term liabilities	6,968
Net assets acquired	100,481	207,322
2021 Business Combinations | Acquired merchant relationships
Business Acquisition [Line Items]
Intangible assets	38,700	72,640
2021 Business Combinations | Non-compete agreements
Business Acquisition [Line Items]
Intangible assets	0	1,100
2021 Business Combinations | Trade name
Business Acquisition [Line Items]
Intangible assets	1,500	2,640
2021 Business Combinations | Capitalized software
Business Acquisition [Line Items]
Intangible assets	$ 9,500	$ 24,500

Acquisitions - Pro Forma Inform

Acquisitions - Pro Forma Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 76,416	$ 54,134
Net loss	$ (7,029)	$ (4,912)

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Inventory	$ 3,071	$ 2,220
Prepaid licenses	8,256	4,646
Prepaid insurance	1,398	1,074
Other current assets	2,889	3,274
Prepaid expenses and other current assets	$ 15,614	$ 11,214

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2021USD ($)
Goodwill [Roll Forward]
Goodwill, beginning	$ 292,243
Goodwill attributable to preliminary purchase price adjustments and acquisitions during the three months ended December 31,2021	57,354
Goodwill, ending	349,597
Merchant Services
Goodwill [Roll Forward]
Goodwill, beginning	119,086
Goodwill attributable to preliminary purchase price adjustments and acquisitions during the three months ended December 31,2021	0
Goodwill, ending	119,086
Proprietary Software and Payments
Goodwill [Roll Forward]
Goodwill, beginning	173,157
Goodwill attributable to preliminary purchase price adjustments and acquisitions during the three months ended December 31,2021	57,354
Goodwill, ending	230,511
Other
Goodwill [Roll Forward]
Goodwill, beginning	0
Goodwill attributable to preliminary purchase price adjustments and acquisitions during the three months ended December 31,2021	0
Goodwill, ending	$ 0

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 282,945
Finite-lived intangible assets, accumulated amortization	(75,248)
Finite-lived intangible assets, carrying value	207,697
Total identifiable intangible assets, cost	282,987
Total identifiable intangible assets, carrying value	207,739		$ 171,706
Amortization expense of intangible assets	4,178	$ 3,360
Trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	42
Merchant relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	265,911
Finite-lived intangible assets, accumulated amortization	(69,212)
Finite-lived intangible assets, carrying value	$ 196,699
Merchant relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	9 years
Merchant relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	25 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 1,478
Finite-lived intangible assets, accumulated amortization	(624)
Finite-lived intangible assets, carrying value	$ 854
Non-compete agreements | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	3 years
Non-compete agreements | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	6 years
Website and brand development costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 218
Finite-lived intangible assets, accumulated amortization	(116)
Finite-lived intangible assets, carrying value	$ 102
Website and brand development costs | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	3 years
Website and brand development costs | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	4 years
Trade names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 7,820
Finite-lived intangible assets, accumulated amortization	(3,066)
Finite-lived intangible assets, carrying value	$ 4,754
Trade names | Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	3 years
Trade names | Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	7 years
Residual buyouts
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 6,718
Finite-lived intangible assets, accumulated amortization	(1,617)
Finite-lived intangible assets, carrying value	$ 5,101
Amortization life	8 years
Referral and exclusivity agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 800
Finite-lived intangible assets, accumulated amortization	(613)
Finite-lived intangible assets, carrying value	$ 187
Amortization life	5 years

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022 (nine months remaining)	$ 13,712
2023	17,517
2024	16,534
2025	16,250
2026	15,855
Thereafter	127,829
Finite-lived intangible assets, carrying value	$ 207,697

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Accrued expenses and other current liabilities:
Accrued wages, bonuses, commissions and vacation	$ 6,808	$ 6,649
Accrued interest	713	271
Accrued contingent consideration — current portion	26,703	25,768
Escrow liabilities	14,851	9,067
Customer deposits	1,842	1,913
Employee health self-insurance liability	648	1,032
Other current liabilities	42,130	6,115
Accrued expenses and other current liabilities	93,695	$ 50,815
Acquisition related liabilities, current	$ 35,000

Long-Term Debt, Net - Summary o

Long-Term Debt, Net - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Feb. 18, 2020
Debt Instrument [Line Items]
Debt issuance costs, net	$ (3,346)	$ (3,599)
Total long-term debt, net of issuance costs	257,130	200,605
Line of Credit | Revolving lines of credit to banks under the Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	159,506	104,396
Exchangeable Notes | 1.0% Exchangeable Senior Notes due 2025
Debt Instrument [Line Items]
Long-term debt	100,970	$ 99,808
Debt issuance costs, net	$ (2,446)
Stated interest rate (percent)			1.00%

Long-Term Debt, Net - Additiona

Long-Term Debt, Net - Additional Information (Details)	Dec. 31, 2021USD ($)$ / shares	Feb. 18, 2020USD ($)day$ / shares	Feb. 13, 2020USD ($)$ / sharesshares	May 09, 2019USD ($)	Dec. 31, 2021USD ($)$ / shares	Dec. 31, 2020USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)
Debt Instrument [Line Items]
Debt issuance costs incurred					$ 0	$ 0
Amortization of deferred debt issuance costs					254,000	235,000
Debt issuance costs, net	$ 3,346,000				3,346,000			$ 3,599,000
Exchangeable notes, fair value	107,684,000				107,684,000
Payments for note hedge transactions		$ 28,676,000
1.0% Exchangeable Senior Notes due 2025
Debt Instrument [Line Items]
Repayments of convertible debt							$ 17,414,000
1.0% Exchangeable Senior Notes due 2025 | Exchangeable Notes
Debt Instrument [Line Items]
Original principal amount		$ 138,000,000
Stated interest rate (percent)		1.00%
Proceeds from convertible debt		$ 132,762,000
Debt issuance costs incurred		5,238,000
Debt issuance costs		$ 4,150,000
Amortization of deferred debt issuance costs					159,000	$ 140,000
Debt issuance costs, net	$ 2,446,000				$ 2,446,000
Debt aggregate repurchase amount							21,000,000
Debt interest repurchase amount							24,000
Loss on retirement of debt							2,297,000
Debt issuance cost write offs							$ 592,000
1.0% Exchangeable Senior Notes due 2025 | Exchangeable Notes | In Event of Fundamental Change
Debt Instrument [Line Items]
Repurchase price as percent of face value of notes (percent)		100.00%
1.0% Exchangeable Senior Notes due 2025 | Exchangeable Notes | February 20, 2023 to 47th Scheduled Trading Day Immediately Preceding the Maturity Date
Debt Instrument [Line Items]
Repurchase price as percent of face value of notes (percent)		100.00%
2020 Senior Secured Credit Facility | Line of Credit
Debt Instrument [Line Items]
Revolving line of credit borrowing capacity				$ 275,000,000
Optional addition to borrowing capacity				50,000,000
Unused commitment fee (percent)	0.30%
Debt covenant, minimum consolidated interest coverage ratio	3				3
Debt covenant, maximum total leverage ratio	5				5
Debt covenant, increase to maximum consolidated senior secured leverage ratio during leverage increase period	0.25				0.25
Debt covenant, maximum consolidated senior secured leverage ratio	3.25				3.25
Remaining borrowing capacity	$ 115,494,000				$ 115,494,000
Debt covenant, equity repurchase limit from employees, directors, officers or consultants				$ 3,000,000
Debt covenant, dividend or distribution limit as percent of net cash proceeds from additional common equity issuance (percent)				5.00%
2020 Senior Secured Credit Facility | Line of Credit | Minimum
Debt Instrument [Line Items]
Unused commitment fee (percent)				0.15%
2020 Senior Secured Credit Facility | Line of Credit | Maximum
Debt Instrument [Line Items]
Unused commitment fee (percent)				0.30%
2020 Senior Secured Credit Facility | Line of Credit | One, Two, Three or Six-month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	3.25%
2020 Senior Secured Credit Facility | Line of Credit | One, Two, Three or Six-month LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				2.25%
2020 Senior Secured Credit Facility | Line of Credit | One, Two, Three or Six-month LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				3.25%
2020 Senior Secured Credit Facility | Line of Credit | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				0.50%
2020 Senior Secured Credit Facility | Line of Credit | LIBOR plus 1%
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.25%			1.00%
2020 Senior Secured Credit Facility | Line of Credit | LIBOR plus 1% | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				0.25%
2020 Senior Secured Credit Facility | Line of Credit | LIBOR plus 1% | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				1.25%
2020 Senior Secured Credit Facility | Line of Credit | Letter of Credit | Maximum
Debt Instrument [Line Items]
Unused commitment fee (percent)				3.25%
Additional Paid-In Capital
Debt Instrument [Line Items]
Adjustments to additional paid in capital, equity component of convertible debt		$ 28,662,000
Additional Paid-In Capital | 1.0% Exchangeable Senior Notes due 2025 | Exchangeable Notes
Debt Instrument [Line Items]
Debt issuance costs		$ 1,088,000
Class A Common Stock
Debt Instrument [Line Items]
Exchangeable notes, exchange price per share (in USD per share) | $ / shares	$ 40.87	$ 40.87			$ 40.87
Warrants outstanding (shares) | shares			3,376,391
Warrants sold in connection with the issuance of the Exchangeable notes (in USD per share) | $ / shares			$ 62.88
Proceeds from issuance of warrants			$ 14,669,000
Class A Common Stock | 1.0% Exchangeable Senior Notes due 2025 | Exchangeable Notes
Debt Instrument [Line Items]
Exchangeable notes, exchange rate, shares per $1000		0.0244666
Class A Common Stock | 1.0% Exchangeable Senior Notes due 2025 | Exchangeable Notes | February 20, 2023 to 47th Scheduled Trading Day Immediately Preceding the Maturity Date
Debt Instrument [Line Items]
Threshold exchange price as percent of closing price per share to allow redemption (percent)		130.00%
Threshold trading days closing price for stock must exceed exchange price | day		20

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020		Jun. 25, 2018
Class of Stock [Line Items]
(Benefit from) Provision for income taxes	$ (228)	$ (10)	[1]
Percent of tax benefits payable to continuing equity owners	85.00%			85.00%
Tax benefits retained (percent)				15.00%
Increase in net deferred tax assets	$ 96
Increase tax receivable agreement liability	$ 81
Period of payment to continuing equity owners	26 years
Minimum
Class of Stock [Line Items]
Expected payments for repurchase of redeemable noncontrolling interest	$ 0
Maximum
Class of Stock [Line Items]
Expected payments for repurchase of redeemable noncontrolling interest	3,180
Class B Common Stock | Continuing Equity Owner
Class of Stock [Line Items]
Deferred tax asset recognized	41,104
Tax benefits due to continuing equity owners	$ 39,204
Common Stock | Class A Common Stock
Class of Stock [Line Items]
Redemption of common units in i3 Verticals, LLC (shares)	15,000	1,019,609
Common Stock | Class B Common Stock
Class of Stock [Line Items]
Redemption of common units in i3 Verticals, LLC (shares)	(15,000)	(1,019,609)
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of operations.

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term	5 years	5 years
Weighted-average discount rate of operating leases	6.70%	6.80%
Operating lease costs	$ 1,491	$ 854
Variable lease costs	38	1
Short-term rent expense	$ 47	$ 58

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2021USD ($)
Leases [Abstract]
2022 (nine months remaining)	$ 4,329
2023	5,345
2024	4,550
2025	3,835
2026	3,136
Thereafter	3,456
Total future minimum lease payments (undiscounted)	24,651
Less: present value discount	(3,593)
Present value of lease liability	21,058
Short-term leases	$ 60

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Exchangeable notes, fair value	$ 107,684
Accrued Contingent Consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	36,229	$ 13,034
Contingent consideration accrued at time of business combination	5,481	10,440
Change in the fair value of warrant liabilities, included in Other expenses	4,927	1,904
Contingent consideration paid	(9,755)	(5,851)
Balance, ending	36,882	$ 19,527
Accrued Expenses and Other Current Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration	26,703		$ 25,768
Other Long-term Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration	$ 10,179		$ 10,461

Equity-Based Compensation (Deta

Equity-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 6,624	$ 3,441

Equity-Based Compensation - Add

Equity-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	May 31, 2021	Sep. 30, 2020	May 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax (expense) benefits related to equity-based compensation	$ 27	$ 205
Granted, weighted average grant date fair value (in USD per share)	$ 12.14
Options exercisable at end of period (shares)	3,339,373
Unrecognized compensation expense related to unvested options at end of period	$ 45,867
Period for recognition of unrecognized compensation cost	2 years
Fair value of stock options that vested	$ 4,941
2018 Equity Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under the plan (shares)	262,692				3,500,000
Additional Class A common shares added at the beginning of calendar year as percentage of common stock outstanding at end of previous year (percent)					4.00%
2020 Equity Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under the plan (shares)	892,072		3,000,000	1,500,000

Equity-Based Compensation - Fai

Equity-Based Compensation - Fair Value of Stock Option Awards (Details) - Stock Options	3 Months Ended	12 Months Ended
	Dec. 31, 2021	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (percent)	55.80%	59.70%
Expected dividend yield (percent)	0.00%	0.00%
Expected term	6 years	6 years
Risk-free interest rate (percent)	1.20%	0.70%

Equity-Based Compensation - Sto

Equity-Based Compensation - Stock Option Activity (Details) - $ / shares	3 Months Ended
	Dec. 31, 2021	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period (shares)	7,547,622
Granted (shares)	942,821
Exercised (shares)	(43,889)
Forfeited (shares)	(147,336)
Outstanding at end of period (shares)	8,299,218
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period, weighted average exercise price (in USD per share)	$ 24.99	$ 25.26
Granted, weighted average exercise price (in USD per share)	23.19
Exercised, weighted average exercise price (in USD per share)	15.17
Forfeited, weighted average exercise price (in USD per share)	30.05
Outstanding at end of period, weighted average exercise price (in USD per share)	$ 24.99	$ 25.26

Commitments and Contingencies -

Commitments and Contingencies - Minimum Fee Commitments (Details) $ in Thousands	Dec. 31, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022 (nine months remaining)	$ 2,923
2023	2,690
2024	450
2025	0
2026	0
Thereafter	0
Total	$ 6,063

Commitments and Contingencies_2

Commitments and Contingencies - Loan Commitment (Details) - USD ($) $ in Thousands	Oct. 04, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2018	Oct. 31, 2020
Other Commitments [Line Items]
Rent expense		$ 1,494	$ 912
Software & Services, LLC ("S&S")
Other Commitments [Line Items]
Total purchase consideration				$ 17,000
S & S Vs. State
Other Commitments [Line Items]
Loss contingency, damages sought, value	$ 15,000
S & S Vs. Sheriffs
Other Commitments [Line Items]
Loss contingency, damages sought, value	$ 7,000
Buyout Commitment | Third Party Sales Organization
Other Commitments [Line Items]
Commitments to third party sales organization					$ 29,000
Additional Buyout Consideration | Third Party Sales Organization
Other Commitments [Line Items]
Commitments to third party sales organization					$ 9,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 25, 2018
Related Party Transaction [Line Items]
Percent of tax benefits payable to continuing equity owners	85.00%	85.00%
Class B Common Stock | Continuing Equity Owner
Related Party Transaction [Line Items]
Tax benefits due to continuing equity owners	$ 39,204

Segments (Details)

Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020		Sep. 30, 2021
Segment Reporting Information [Line Items]
Revenue	$ 73,939	$ 44,621	[1]
Other costs of services	(16,510)	(13,666)	[1]
Residuals	8,520	5,775
Processing margin	65,949	36,730
Residuals	(8,520)	(5,775)
Selling, general and administrative	(46,387)	(24,962)	[1]
Depreciation and amortization	(6,870)	(5,092)	[1],[2],[3]
Change in fair value of contingent consideration	(4,927)	(1,904)	[1],[2],[3]
Loss from operations	(755)	(1,003)	[1]
Total assets	776,436	500,379		$ 651,800
Goodwill	349,597	222,905		292,243
Merchant Services
Segment Reporting Information [Line Items]
Revenue	29,177	25,061
Other costs of services	(13,442)	(10,841)
Residuals	8,181	5,944
Processing margin	23,916	20,164
Residuals	(8,181)	(5,944)
Total assets	206,780	213,093
Goodwill	119,086	119,079		119,086
Proprietary Software and Payments
Segment Reporting Information [Line Items]
Revenue	44,774	19,993
Other costs of services	(3,080)	(3,257)
Residuals	343	257
Processing margin	42,037	16,993
Residuals	(343)	(257)
Total assets	507,399	224,925
Goodwill	230,511	103,826		173,157
Other
Segment Reporting Information [Line Items]
Revenue	(12)	(433)
Other costs of services	12	432
Residuals	(4)	(426)
Processing margin	(4)	(427)
Residuals	4	426
Total assets	62,257	62,361
Goodwill	$ 0	$ 0		$ 0
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of operations.
[2]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of cash flows.
[3]	The prior period amounts included in the statement of cash flows have been updated to correct settlement assets as restricted cash, which were previously reported as cash flows used in operating activities. These adjustments reflect an increase in prior year cash flows provided by operating activities of $84 and a corresponding increase in cash, cash equivalents, and restricted cash at the end of the period.

Non-Controlling Interest - Narr

Non-Controlling Interest - Narrative (Details) - i3Verticals, LLC	Dec. 31, 2021shares
Noncontrolling Interest [Line Items]
Non-controlling interest, common units (shares)	22,064,317
Non-controlling interest, ownership interest (percent)	68.40%

Non-Controlling Interest - Impa

Non-Controlling Interest - Impact on Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Noncontrolling Interest [Abstract]
Net loss attributable to non-controlling interest	$ (1,153)	$ (1,024)	[1]
Redemption of common units in i3 Verticals, LLC	(123)	(7,185)
Allocation of equity to non-controlling interests	1,899	1,008
Net transfers to (from) non-controlling interests	1,776	(6,177)
Change from net loss attributable to non-controlling interests and transfers to (from) non-controlling interests	$ 623	$ (7,201)
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of operations.

Earnings Per Share, Basic and D

Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Numerator
Net (loss) income	$ (3,681)	$ (3,022)	[1],[2],[3],[4]
Less: Net loss attributable to non-controlling interests	(1,153)	(1,024)	[3]
Net loss attributable to i3 Verticals, Inc.	$ (2,528)	$ (1,998)	[3]
Denominator
Weighted average shares of Class A common stock outstanding - basic (shares)	22,042,801	19,129,056	[3]
Weighted average shares of Class A common stock outstanding - diluted (shares)	22,042,801	19,129,056	[3]
Basic net loss per share (in USD per Share)	$ (0.11)	$ (0.10)	[3],[5]
Diluted net loss per share (in USD per Share)	$ (0.11)	$ (0.10)	[3]
Class A Common Stock
Numerator
Net (loss) income	$ (3,681)	$ (3,022)	[5]
Less: Net loss attributable to non-controlling interests	(1,153)	(1,024)	[5]
Net loss attributable to i3 Verticals, Inc.	$ (2,528)	$ (1,998)	[5]
Denominator
Weighted average shares of Class A common stock outstanding - basic (shares)	22,042,801	19,129,056	[5]
Weighted average shares of Class A common stock outstanding - diluted (shares)	22,042,801	19,129,056
[1]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statement of changes in equity.
[2]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of cash flows.
[3]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement and the impacts of adoption on the condensed consolidated statements of operations.
[4]	The prior period amounts included in the statement of cash flows have been updated to correct settlement assets as restricted cash, which were previously reported as cash flows used in operating activities. These adjustments reflect an increase in prior year cash flows provided by operating activities of $84 and a corresponding increase in cash, cash equivalents, and restricted cash at the end of the period.
[5]	Effective October 1, 2020, the Company's financial statements are presented in accordance with ASU 2021-08, Accounting Standards Codification Topic 805, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . See Note 2 to the interim consolidated financial statements for a description of the recently adopted accounting pronouncement.

Earnings Per Share - Antidiluti

Earnings Per Share - Antidilutive Securities (Details) - shares	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Restricted Class A Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)		18,869
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	10,222,946	11,668,199
Out-of-the-money Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	5,444,557	1,251,600
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	606,942	1,212,584

Significant Non-cash Transact_3

Significant Non-cash Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Acquisition date fair value of contingent consideration in connection with business combinations	$ 5,481	$ 3,400
Right-of-use assets obtained in exchange for operating lease obligations	6,820	11,251
Purchase consideration accrued for December 31, 2021 acquisition	$ 35,000	$ 0