ISC Reports Financial Results for the Three Months and Year Ended December 31, 2025

Core Insights - Information Services Corporation (ISC) reported its strongest financial performance in 2025, achieving record annual revenue and adjusted EBITDA, while surpassing expectations for adjusted EBITDA and meeting long-term net leverage targets six months ahead of schedule [2][5][10]. Financial Performance - Fourth Quarter 2025 revenue was $65.5 million, a 5% increase from $62.2 million in Q4 2024, driven by strong performance in the Saskatchewan Registries division, particularly in the Land Registry [6][15]. - Annual revenue for 2025 reached $257.8 million, up 4% from $247.4 million in 2024, primarily due to strong results in the Saskatchewan Registries division [8][15]. - Adjusted EBITDA for Q4 2025 was $27.1 million, an increase from $21.0 million in Q4 2024, with an adjusted EBITDA margin of 41% compared to 34% in the prior year [6][7]. - Annual adjusted EBITDA was $103.1 million for 2025, up from $90.3 million in 2024, with an adjusted EBITDA margin of 40% [10][15]. Income and Cash Flow - Net income for Q4 2025 was $4.9 million, or $0.26 per share, down from $5.3 million or $0.29 per share in Q4 2024, attributed to increased share-based compensation expenses [6][10]. - Annual net income for 2025 was $26.8 million, or $1.44 per share, compared to $20.2 million or $1.11 per share in 2024 [10][26]. - Adjusted free cash flow for Q4 2025 was $19.2 million, up from $13.2 million in Q4 2024, driven by strong operating results [9][10]. - Annual adjusted free cash flow was $74.7 million for 2025, an increase of $18.3 million compared to $56.4 million in 2024 [10][15]. Strategic Outlook - The company anticipates continued revenue growth in 2026, projecting revenue between $273.0 million and $283.0 million, and adjusted EBITDA between $100.0 million and $107.0 million [22][18]. - The strength of the Saskatchewan economy and a buoyant residential real estate market are expected to drive growth in Registry Operations [18][22]. - In Services, revenue growth is anticipated through organic growth in Regulatory and Recovery Solutions divisions, with new customer onboarding expected to enhance adjusted EBITDA [19][22]. Strategic Review - The Board of Directors has initiated a Strategic Review to explore options for maximizing shareholder value, which may include asset sales or acquisitions [23][24]. - The review is supported by independent advisors and aims to ensure that any outcomes align with the interests of the Government of Saskatchewan, the largest shareholder [24][23].