Innovative Solutions Reports Q3 Revenue Up 105.2%, Beats Estimates

Innovative Solutions and Support reported Q3 revenue up 105.2%, beating estimates. The aviation solutions firm's revenue growth is attributed to strong demand for its products and services. The company's revenue reached $11.3 million, exceeding expectations. Innovative Solutions and Support has entered a new five-year, $100 million committed credit agreement. The company's stock price soared premarket after announcing fiscal Q2 sales doubled and adjusted EBITDA tripled.

Innovative Solutions & Support, Inc. (Nasdaq: ISSC) reported its third-quarter 2025 financial results, showcasing significant revenue growth and strong operational performance. The company's net revenue increased by 105.2% to $24.1 million, exceeding market expectations and demonstrating robust demand for its advanced avionic solutions. Gross profit rose to $8.6 million, up 36.7% from the prior year, while adjusted EBITDA grew by 43.3% to $4.4 million.

The company's CEO, Shahram Askarpour, highlighted the key drivers behind the strong performance. "We delivered solid third quarter results, highlighted by revenue growth of 105% to $24.1 million and adjusted EBITDA growth of 43% to $4.4 million," he stated. The growth was primarily driven by the acquisition and integration of the F-16 product line, with deliveries pulled forward by Honeywell to build safety stock ahead of the transition to the company's Exton facility.

IS&S also announced the completion of its Exton facility construction and the expected completion of the fit-out process in early fall. This will enable the company to leverage its expanded manufacturing capacity and integrate the recently acquired F-16 products. However, the company expects a reduction in F-16 product line revenues in the next two quarters as inventory levels normalize.

In addition to its operational achievements, IS&S secured a new five-year, $100 million committed credit agreement. This agreement provides an additional $65 million in expanded liquidity and an option to request up to $25 million in additional loan commitments under an accordion feature. The new credit facility will support the company's long-term growth strategy and enable it to pursue strategic acquisitions and organic growth initiatives.

The company's stock price surged premarket after the announcement, reflecting investor confidence in its financial performance and future prospects. IS&S will host a conference call on August 14, 2025, to discuss its third-quarter 2025 results in more detail.

References:
[1] https://www.stocktitan.net/news/ISSC/innovative-solutions-support-reports-third-quarter-2025-r29vuewyms6d.html