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Innovative Solutions and Support, Inc. (ISSC) reported strong financial results for Q1 2026 (period ending December 31, 2025). The company generated total net sales of $21.8 million, resulting in a gross profit of $11.9 million and net income of $4.1 million. Operating income was $6.3 million, driven by disciplined cost management with total operating expenses of $5.6 million. The balance sheet remains solid with total assets of $109.9 million and shareholders' equity of $68.7 million. Cash flow from operations was robust at $8.2 million, contributing to a net increase in cash of $5.6 million, ending the period with $8.3 million in cash and equivalents. The company maintained healthy liquidity while reducing debt through principal payments of $1.5 million during the quarter.
Innovative Solutions and Support, Inc. delivered solid Q1 2026 results with total net sales of $21.8 million for the period ending December 31, 2025. The company achieved net income of $4.1 million, representing strong profitability. Operating performance was robust with operating income of $6.3 million, supported by gross profit of $11.9 million. The company maintained disciplined expense management with total operating expenses of $5.6 million, comprising research and development expenses of $1.3 million and selling, general and administrative expenses of $4.3 million. Interest expense was $496,000, partially offset by interest income of $4,000 and other income of $64,000. Income before taxes was $5.9 million, with income tax expense of $1.8 million.
The filing does not provide segment breakdown or geographic mix data for revenue analysis. The XBRL data shows total net sales of $21.8 million without further segmentation. No information is provided about revenue growth drivers, customer concentration, or product/service mix in the available data. The document content and XBRL financial data focus on consolidated financial statements without segment-level disclosure.
The company maintained healthy profitability margins during Q1 2026. Gross margin was 54.6% based on gross profit of $11.9 million and total net sales of $21.8 million. Operating margin was 28.9% calculated from operating income of $6.3 million relative to total net sales. The cost structure shows total cost of sales of $9.9 million, representing 45.4% of revenue. Operating expenses as a percentage of revenue were 25.7%, with selling, general and administrative expenses comprising 19.7% of revenue and research and development expenses representing 6.0% of revenue.
Cash flow from operations was strong at $8.2 million, significantly exceeding net income of $4.1 million due to positive working capital changes including a $3.9 million increase in accounts payable and $2.0 million decrease in inventories. Free cash flow, calculated as operating cash flow ($8.2 million) minus capital expenditures ($1.1 million), was $7.1 million. The balance sheet shows total assets of $109.9 million, with current assets of $58.4 million including cash and equivalents of $8.3 million, accounts receivable of $14.5 million, and inventories of $28.3 million. Total liabilities were $41.2 million, including long-term debt of $21.1 million and current portion of long-term debt of $2.4 million. Shareholders' equity was $68.7 million, resulting in a debt-to-equity ratio of 0.34.
The filing does not contain management guidance, forward-looking statements, or specific strategic priorities for future periods. No information is provided about expected performance, growth initiatives, or risk factors beyond the historical financial data presented in the condensed consolidated financial statements. The document focuses exclusively on historical financial results for the quarter ended December 31, 2025, without discussion of future expectations or outlook.
Revenue
$21.8M
Net Income
$4.1M
Gross Margin
54.6%
Gross Profit
$11.9M
free cash flow
$7.1M
Operating Income
$6.3M
operating margin
28.9%