ISC Reports Financial Results for the Third Quarter Of 2025

Executive Summary

• ISC reported strong Q3 2025 results: revenue $65.6 M (+8%), adjusted EBITDA $27.6 M (+22%) and net income $8.5 M (+103%) versus Q3 2024.
• The company reaffirmed its 2025 guidance, expects full‑year revenue $257–267 M and adjusted EBITDA $89–97 M, with adjusted EBITDA now projected toward the middle‑to‑higher end of that range.
• Credit facility was amended (term to 2029, total availability $250 M, accordion option increased to $150 M) and voluntary prepayments of $16 M were made; net leverage stands at 2.55×, on target for the 2.0–2.5× range by 2026.
• Board declared a quarterly cash dividend of $0.23 per Class A share (payable ≤ Jan 15 2026).

Key Details

• Revenue: $65.629 M (Q3 2025) vs. $60.932 M (Q3 2024); 8% YoY increase.
• Segment Performance:
• Registry Operations: $36.363 M (+15%) – Land Registry $24.5 M, Personal Property $3.5 M, Corporate Registry $3.3 M, Property Tax Assessment $4.2 M.
• Services: $26.365 M (+3%).
• Technology Solutions (Third‑Party): $8.4 M (+2%).
• Adjusted EBITDA: $27.592 M vs. $22.706 M YoY; margin 42% vs. 37.3%.
• Net Income: $8.509 M ($0.46 basic, $0.45 diluted) vs. $4.203 M YoY.
• Adjusted Net Income: $15.993 M vs. $11.035 M YoY.
• Adjusted Free Cash Flow: $19.357 M vs. $15.941 M YoY.
• Cash & Debt (Sept 30 2025): Cash $17.5 M; Total debt $168.1 M; Net leverage 2.55×.
• Credit Facility Amendment (July 31 2025):
• Term extended to July 31 2029.
• Availability unchanged at $250 M; accordion option increased to $150 M (total potential $400 M).
• Consolidated into a single revolving facility with improved pricing.
• Prepayments: Voluntary prepayment of $16.0 M made during the quarter; second $30 M annual cash payment under extension agreement executed July 31 2025.
• Strategic Review Update (Sept 8 2025): Board’s Special Committee continues review of strategic alternatives (asset divestitures, acquisitions, combinations, or sale). No transaction guaranteed.
• Dividend: Quarterly cash dividend $0.23 per Class A share declared Nov 4 2025; payable ≤ Jan 15 2026 to shareholders of record Dec 31 2025.
• Guidance Reaffirmed (2025): Revenue $257–267 M; Adjusted EBITDA $89–97 M, now expected toward the middle‑to‑higher end of the range.

Notable Quotes

“Our third quarter performance reflects the continued strength of our Saskatchewan Registry Operations and the resilience of our diversified Services segment… We remain on track to achieve our net leverage target range of 2.0x to 2.5x by 2026.” – Shawn Peters, President & CEO

All figures are in Canadian dollars unless noted otherwise.