The call highlighted a strong first quarter with robust top-line growth (+36.5%), large improvements in profitability (gross profit +80%, adjusted EBITDA +140.9%) and excellent cash generation, supported by a healthy backlog ($75M) and resumed F-16 production. Progress on strategic initiatives — notably UMS unit production and defense integration plans, low net leverage (~0.5x), and significant liquidity — reinforce a favorable outlook. Offsetting items are temporary headwinds from manufacturing transitions (~$1.2M F-16, ~$1.0M Pilatus), timing-driven guidance calling for essentially flat organic revenue for the full year, and some integration timing risk with third parties. Overall, the positive operational and financial momentum materially outweighs the manageable near-term challenges.

Company Guidance

Management guided that organic revenue for fiscal 2026 is expected to be essentially flat year‑over‑year, with Q2 revenue pegged at $20.0–$22.0 million and a steady sequential build thereafter; they expect gross margins to average in the mid‑40% range over the year (despite Q1’s 54.5%), reiterated a long‑term target of $250.0 million in revenue with adjusted EBITDA margins of 25–30%, and noted operational milestones including UMS deliveries to Pilatus beginning mid‑2026 and insourcing F‑16 subassemblies in late‑2026. For context, Q1 metrics that inform the outlook included net revenue $21.8M (+36.5% YoY), product sales $13.6M, service revenue $8.2M, gross profit $11.9M (+80%), operating expenses $5.6M (25.6% of revenue), net income $4.1M (GAAP EPS $0.22), adjusted net income $4.5M (adjusted EPS $0.25), adjusted EBITDA $7.4M (+140.9%), new orders ~$19M, backlog ~$75M, cash from operations $8.2M, capex $1.1M, free cash flow $7.0M, cash $8.3M, total debt $23.8M (net debt $15.5M), total liquidity including credit availability ~$83.3M, and net leverage of 0.5x; management also noted temporary headwinds of ~$1.2M on F‑16 revenues and ~$1.0M on Pilatus as transitions progressed.

Strong Top-Line Growth

Net revenues of $21.8M in Q1 FY2026, up 36.5% year-over-year (management cited 37%); product sales $13.6M (up from $10.0M) and service revenue $8.2M (up from $6.0M).

Significant Profitability Improvement

Gross profit of $11.9M, up 80% from $6.6M a year ago; gross margin expanded to 54.5% from 41.4% (+13.1 percentage points).

Material Adjusted EBITDA and Net Income Gains

Adjusted EBITDA of $7.4M, up 140.9% from $3.1M a year ago; GAAP net income $4.1M (vs. $0.7M prior year) and GAAP diluted EPS $0.22 (vs. $0.04).

Strong Cash Generation and Financial Flexibility

Operating cash flow $8.2M (vs. $1.8M prior year) and free cash flow $7.0M (vs. $1.6M). End-of-quarter net debt $15.5M (total debt $23.8M, cash $8.3M) and net leverage ~0.5x with ~ $83.3M of cash + availability under credit line.

Backlog and New Orders

Backlog of approximately $75.0M and new orders in the quarter of approximately $19.0M, supporting near-term revenue visibility.

Operational and Strategic Milestones on Defense Programs

Completed recertification and resumed full-scale production of the digital flight control computer for the F-16 at Exton; IPDG recertification and resumption planned for current quarter; company expects to begin insourcing F-16 subassemblies in late 2026 to improve margins.

Progress on Autonomous Flight Platform (UMS)

Completed test flights of the UMS on the Pilatus PC-24, begun unit production, and expect deliveries to Pilatus beginning mid-2026—advances the company's next-generation flight deck ambitions.

Improved Operating Leverage

Operating expenses increased modestly to $5.6M (from $5.3M) but fell as a percentage of revenue to 25.6% from 33.0%, reflecting operating leverage amid revenue growth.

Innovative Solutions And Support (ISSC) Earnings, Revenues Date & History

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ISSC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 20, 2026	2026 (Q2)	0.17 / -	0.3	―	―	―
Feb 12, 2026	2026 (Q1)	0.10 / 0.25	0.04	525.00% (+0.21)	―
Dec 18, 2025	2025 (Q4)	0.11 / 0.39	0.18	116.67% (+0.21)	―
Aug 14, 2025	2025 (Q3)	0.16 / 0.14	0.09	55.56% (+0.05)	―
May 14, 2025	2025 (Q2)	0.12 / 0.30	0.07	328.57% (+0.23)	―
Feb 13, 2025	2025 (Q1)	0.12 / 0.04	0.06	-33.33% (-0.02)	―
Dec 19, 2024	2024 (Q4)	0.15 / 0.18	0.15	20.00% (+0.03)	―
Aug 09, 2024	2024 (Q3)	0.11 / 0.09	0.08	12.50% (<+0.01)	―
May 13, 2024	2024 (Q2)	- / 0.07	0.07	0.00% (0.00)	―
Feb 14, 2024	2024 (Q1)	- / 0.06	0.04	50.00% (+0.02)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

ISSC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 12, 2026	$18.98	$20.77	+9.43%
Dec 18, 2025	$10.99	$14.37	+30.76%
Aug 14, 2025	$19.73	$13.51	-31.53%
May 14, 2025	$7.35	$9.79	+33.20%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Innovative Solutions And Support (ISSC) report earnings?

Innovative Solutions And Support (ISSC) is schdueled to report earning on May 20, 2026, After Close (Confirmed).

What is Innovative Solutions And Support (ISSC) earnings time?

Innovative Solutions And Support (ISSC) earnings time is at May 20, 2026, After Close (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

You can see a list of the companies which are reporting today on TipRanks earnings calendar.

What is ISSC EPS forecast?

ISSC EPS forecast for the fiscal quarter 2026 (Q2) is 0.17.