Innovative Solutions and Support (NASDAQ:ISSC) Releases Quarterly Earnings Results, Beats Expectations By $0.33 EPS

Innovative Solutions and Support (NASDAQ:ISSC) posted its quarterly earnings data on Thursday. The aerospace company reported $0.39 earnings per share for the quarter, beating analysts’ consensus estimates of $0.06 by $0.33, FiscalAI reports. The business had revenue of $22.25 million during the quarter, compared to the consensus estimate of $18.59 million. Innovative Solutions and Support had a return on equity of 28.01% and a net margin of 18.54%.During the same period in the prior year, the business posted $0.21 earnings per share.

Here are the key takeaways from Innovative Solutions and Support’s conference call:

• Fourth-quarter revenue rose 45% year-over-year to $22.2 million and full-year revenue reached $84 million, with Q4 net income of $7.1 million and Adjusted EBITDA up 71% year-over-year, reflecting strong operating performance.
• The company completed integration of the F-16 program into its Exton facility, has resumed Digital Flight Control Computer production, plans recertification for the Programmable Display Generator, and will begin insourcing subassemblies in 2026 to drive more consistent margins on that platform.
• Significant product and R&D progress: the UMS-2 autonomous-capable platform completed test flights with a June 2026 delivery to Pilatus, and the new Liberty Flight Deck was unveiled (targeting 2027 aftermarket certification and OEM timelines into 2029–2031), supported by +50% engineering headcount growth and internal AI development tools.
• Balance sheet and liquidity strengthened via a new five-year $100 million committed credit facility (with an accordion to $125 million), ending the quarter with modest leverage (~0.9x) and roughly $77.7 million of cash plus available capacity to fund organic growth and acquisitions.
• Management cautioned margins and near-term growth can be volatile from quarter-to-quarter due to revenue mix (Q4 gross margin was an elevated 63% vs. an expected mid-40% run-rate) and noted some F-16 and service revenues were pulled into FY2025, so FY2026 organic growth is expected to be more modest.

Innovative Solutions and Support Price Performance

Innovative Solutions and Support stock opened at $16.62 on Friday. The stock has a market capitalization of $293.09 million, a price-to-earnings ratio of 19.10 and a beta of 0.77. Innovative Solutions and Support has a 52-week low of $5.30 and a 52-week high of $20.00. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.69 and a current ratio of 3.53. The stock’s 50 day moving average price is $10.15 and its two-hundred day moving average price is $12.33.

Analyst Upgrades and Downgrades

ISSC has been the subject of several recent research reports. Northland Securities began coverage on Innovative Solutions and Support in a research note on Friday, November 21st. They issued an “outperform” rating and a $16.50 price target for the company. Wall Street Zen upgraded Innovative Solutions and Support from a “hold” rating to a “buy” rating in a report on Saturday, November 22nd. Craig Hallum initiated coverage on shares of Innovative Solutions and Support in a research report on Friday, December 5th. They set a “buy” rating and a $16.00 target price for the company. Northland Capmk upgraded shares of Innovative Solutions and Support to a “strong-buy” rating in a research report on Friday, November 21st. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Innovative Solutions and Support in a research note on Wednesday, October 8th. Two equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $16.25.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Bank of America Corp DE grew its holdings in Innovative Solutions and Support by 589.9% in the third quarter. Bank of America Corp DE now owns 9,113 shares of the aerospace company’s stock worth $114,000 after purchasing an additional 7,792 shares during the period. Quantbot Technologies LP bought a new position in shares of Innovative Solutions and Support during the 3rd quarter worth about $160,000. American Century Companies Inc. grew its stake in shares of Innovative Solutions and Support by 21.9% in the 2nd quarter. American Century Companies Inc. now owns 12,386 shares of the aerospace company’s stock valued at $172,000 after buying an additional 2,228 shares during the period. Squarepoint Ops LLC acquired a new stake in shares of Innovative Solutions and Support in the 3rd quarter valued at about $180,000. Finally, Jump Financial LLC bought a new stake in Innovative Solutions and Support in the 2nd quarter valued at about $224,000. 28.53% of the stock is owned by institutional investors.

About Innovative Solutions and Support

Innovative Solutions and Support, Inc (NASDAQ: ISSC) is a provider of technology solutions and mission support services to U.S. federal government agencies, with a focus on defense, intelligence, and national security programs. The company delivers integrated program management, systems engineering, and advanced IT infrastructure support designed to enhance operational readiness and maintain secure, scalable environments for mission-critical operations.

Its core service offerings include systems integration, custom software development, data analytics, cybersecurity, and logistics management.