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

Executive Summary

• Information Services Corporation (ISC) reported record annual financial results for the year ended December 31, 2025, with revenue reaching $257.8 million and adjusted EBITDA of $103.1 million.
• The company achieved its long-term net leverage target of 2.0x–2.5x (reaching 2.25x) ahead of schedule, driven by voluntary debt prepayments totaling $47.0 million during the year.
• ISC announced a 2026 outlook expecting revenue between $273.0 million and $283.0 million and adjusted EBITDA between $100.0 million and $107.0 million, while simultaneously conducting a strategic review to maximize shareholder value.

Key Details

• Annual Financials (Year Ended Dec 31, 2025):
  • Revenue: $257.8 million (up 4% from $247.4 million in 2024).
  • Net Income: $26.8 million ($1.43 diluted EPS), compared to $20.2 million ($1.11 diluted EPS) in 2024.
  • Adjusted EBITDA: $103.1 million (up from $90.3 million in 2024), with an adjusted EBITDA margin of 40%.
  • Adjusted Free Cash Flow: $74.7 million (up from $56.4 million in 2024).
  • Net Cash Flow from Operating Activities: $77.6 million.
• Quarterly Financials (Q4 2025):
  • Revenue: $65.5 million (up 5% from $62.2 million in Q4 2024).
  • Net Income: $4.9 million ($0.26 diluted EPS), down from $5.3 million in Q4 2024 due to increased share-based compensation expense.
  • Adjusted EBITDA: $27.1 million (up from $21.0 million in Q4 2024), with an adjusted EBITDA margin of 41%.
  • Adjusted Free Cash Flow: $19.2 million.
• Segment Performance (Annual):
  • Registry Operations Revenue: $138.1 million (up 10%), driven by Land Registry revenue of $89.9 million (up from $82.2 million) due to higher real estate values and transaction volumes.
  • Services Revenue: $109.2 million (down 1%), with Regulatory Solutions at $81.2 million and Recovery Solutions at $17.3 million.
  • Technology Solutions Revenue: $33.2 million (up 10%).
• Debt and Capital Structure:
  • Total Debt: $153.1 million (down from $167.6 million at year-end 2024).
  • Net Leverage: 2.25x (down from 2.90x in 2024), achieving the target range of 2.0x–2.5x six months ahead of schedule.
  • Voluntary prepayments to the Credit Facility totaled $47.0 million during the year, including $15.0 million in Q4.
  • Credit Facility extended to July 31, 2029, with total availability of $250.0 million and an accordion option expanded to $150.0 million (total capacity up to $400.0 million).
• Strategic and Corporate Actions:
  • Strategic Review: A Special Committee of independent directors is reviewing strategic alternatives, including potential asset sales, acquisitions, or a sale of the Company, to maximize shareholder value.
  • NCIB: Authorized a normal course issuer bid to purchase up to 929,007 Class A shares (approx. 5% of outstanding) between June 2025 and June 2026.
  • Government Payment: Paid $30.0 million to the Government of Saskatchewan on July 31, 2025, pursuant to an Extension Agreement.
  • New Contract: Entered into an agreement with MECP on August 18, 2025, to deliver a new digital records system in Ontario (two-year build, seven-year operating term).
• Dividend:
  • Board declared a quarterly cash dividend of $0.23 per Class A Share, payable on or before April 15, 2026, to shareholders of record as of March 31, 2026.

Notable Quotes

• Shawn Peters, President and CEO: “2025 marked ISC’s strongest year on record. The Company met revenue and surpassed adjusted EBITDA expectations and delivered on a number of key milestones, including achieving our long-term net leverage target six months ahead of schedule.”
• Shawn Peters, President and CEO: “Looking ahead, I'm excited about ISC's potential in 2026. By keeping our people and our customers at the forefront of everything we do, we expect to continue delivering exceptional results under a strategy informed by the outcome of our Strategic Review.”