Investor Presentation March 2026 SAFE HARBOR STATEMENT This presentation contains highly confidential and proprietary information regarding Innovative Solutions & Support, Inc. (Nasdaq: ISSC) dba Innovative Aerosystems and its subsidiaries ("IA or the "Company") and their strategy and organization. This confidential presentation is provided to you on the condition that you agree that you will hold it in strict confidence and not reproduce, disclose, forward or distribute it to any third party in whole or in ...

Company Overview - Innovative Solutions and Support (ISSC) designs, produces, and sells avionics solutions, focusing on electronic devices and systems used in aircraft [1]. Product Line - The company's main product lines include Flat Panel Display Systems, which are multi-function LCD screens [1]. Investment Philosophy - The company emphasizes diversification not only in assets but also in methods and investment philosophies, suggesting that diversification involves applying different methods to different goals [1]. Investment Strategies - The company adopts a "long only" investment approach, avoiding shorting companies, and engages in delta-neutral options plays to benefit from a stock or fund's lack of movement [1]. - Various options strategies are utilized, including covered calls, iron condors, butterflies, calendar spreads, and call-put spreads [1]. Analysis and Reporting - The company primarily analyzes and writes about stocks and funds that it owns or intends to own, indicating a focus on personal investment interests [1].

Core Insights - Innovative Solutions & Support, Inc. (ISSC) reported significant financial growth in Q2 2025, with revenue more than doubling year-over-year to $21.9 million and net income surging 300% to $5.3 million [7] Financial Performance - Adjusted EPS for Q2 was $0.30, compared to $0.07 in Q2 2024 [7] - Adjusted EBITDA increased 219% to $7.7 million, compared to $2.4 million in Q2 2024 [7] - Operating expenses rose modestly to $4.3 million, representing 19.6% of revenue, with SG&A falling from 36.7% year-over-year [4] Operational Analysis - Military sales now account for 40-50% of total revenue, up from less than 10% in 2022, driven by $10.8 million from Honeywell-related programs and organic defense contracts [3] - Gross margin rebounded to 51.4%, up from 41.4% in Q1 2025, as Honeywell integration costs subsided [5] Strategic Developments - The Exton facility expansion is on track to triple capacity by mid-2025, positioning ISSC for over $250 million in revenue potential [5] - Backlog stood at $80 million as of quarter-end, excluding long-term OEM programs [14] 2025 Outlook - Revenue growth is expected to exceed 30%, with military revenue projected to exceed 40% of total sales by FY 2025 year-end [8] - EBITDA margins are expected to sustain above 30% as scale benefits offset defense mix headwinds [9]