ISC Reports Financial Results for the Third Quarter Of 2025

Core Insights - The company reported strong financial results for Q3 2025, driven by robust performance in its Saskatchewan Registry Operations and a resilient Services segment [2][4][5] - The company is on track to achieve its net leverage target range of 2.0x to 2.5x by 2026, reinforcing its disciplined capital management approach [2][4][9] - The 2025 guidance has been reaffirmed, with adjusted EBITDA expected to be at the middle to higher end of the range [2][4][18] Financial Performance - Total revenue for Q3 2025 was $65.6 million, an increase of 8% from $60.9 million in Q3 2024, primarily driven by the Saskatchewan Registries division [5][14] - Net income for the quarter was $8.5 million, or $0.46 per basic share, compared to $4.2 million, or $0.23 per basic share in Q3 2024 [5][14] - Adjusted EBITDA for Q3 2025 was $27.6 million, up from $22.7 million in Q3 2024, with an adjusted EBITDA margin of 42%, compared to 37.3% in the prior year [5][10][14] Segment Performance - Registry Operations revenue was $36.5 million, a 15% increase compared to Q3 2024, with significant contributions from the Land Registry due to rising real estate values and transaction volumes [5][14] - Services segment revenue was $26.4 million, up 3% from Q3 2024, with growth in Regulatory Solutions and Recovery Solutions [5][14] - Technology Solutions revenue was $8.4 million, a 2% increase compared to Q3 2024, although some projects have been delayed into 2026 [5][14][17] Cash Flow and Debt Management - Net cash flow from operating activities was $22.6 million for Q3 2025, an increase of $8.4 million compared to Q3 2024 [5][14] - The company made voluntary prepayments of $16.0 million towards its Credit Facility during the quarter, part of its strategy to deleverage [9][14] - As of September 30, 2025, the company had total debt of $168.1 million and a net leverage ratio of 2.55x, down from 2.90x at the end of 2024 [9][42] Strategic Initiatives - The company is conducting a strategic review to explore opportunities for maximizing shareholder value, which may include asset divestments or acquisitions [19][20] - The Board has established a Special Committee to oversee the strategic review process [19][20]