Innovative Solutions and Support Inc
NASDAQ:ISSC
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Innovative Solutions and Support Inc
Innovative Solutions & Support, Inc. manufactures flight navigation systems. The company is headquartered in Malvern, Pennsylvania and currently employs 83 full-time employees. The company went IPO on 2000-08-04. IS&S supplies integrated Flight Management Systems (FMS), Flat Panel Display Systems (FPDS), FPDS with Autothrottle, air data equipment, Integrated Standby Units (ISU), ISU with Autothrottle and advanced Global Positioning System (GPS) receivers that enable reduced carbon footprint navigation. The company offers solutions for the general aviation, commercial air transport, United States Department of Defense (DoD)/governmental and foreign military markets. The firm provides pilots with information to enhance both the safety and efficiency of flying, through its COCKPIT/IP Cockpit Information Portal (CIP) product line.
Innovative Solutions & Support, Inc. manufactures flight navigation systems. The company is headquartered in Malvern, Pennsylvania and currently employs 83 full-time employees. The company went IPO on 2000-08-04. IS&S supplies integrated Flight Management Systems (FMS), Flat Panel Display Systems (FPDS), FPDS with Autothrottle, air data equipment, Integrated Standby Units (ISU), ISU with Autothrottle and advanced Global Positioning System (GPS) receivers that enable reduced carbon footprint navigation. The company offers solutions for the general aviation, commercial air transport, United States Department of Defense (DoD)/governmental and foreign military markets. The firm provides pilots with information to enhance both the safety and efficiency of flying, through its COCKPIT/IP Cockpit Information Portal (CIP) product line.
Strong Revenue Growth: Q4 revenue rose 45% year-over-year to $22.2 million, with full-year revenue up nearly 80% to $84 million.
Margin Expansion: Q4 gross margin reached 63.2% (from 55.4% last year), though management expects margins to normalize to the mid-40% range.
Profitability Up: Q4 net income more than doubled to $7.1 million and diluted EPS climbed to $0.39, supported by favorable sales mix and operating leverage.
Backlog and Orders: New orders in Q4 were around $27 million, with backlog at quarter end at $77 million.
Full-Year Cash Flow: Free cash flow for fiscal 2025 was $6.8 million, despite increased capital expenditures for facility expansion.
Outlook: FY26 organic revenue growth expected to be modest after FY25 pull-forward; Q1 FY26 revenue guided to $18–20 million.
Strategic Progress: Key milestones included F-16 production integration, launch of Liberty Flight Deck, and tripling of Exton facility capacity.
Acquisition-Driven Growth: Long-term target of $250 million revenue and 25–30% EBITDA margin combines high single-digit organic growth with disciplined acquisitions.
