A Business at a Glance
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INNOVATIVE SOLUTIONS & SUPPORT INC
ISSC
$340M
Mkt Cap
$19.14
-2.55%
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) has a current P/E ratio of 21.7, compared to its historical median P/E of 23.2. The stock is currently considered Fair based on its historical valuation range.
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) has a 5-year average return on invested capital (ROIC) of 10.6%. This indicates solid capital allocation.
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) has a market capitalization of $347M. It is classified as a small-cap stock.
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) does not currently pay a regular dividend.
Based on historical P/E analysis, INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) appears fair. The current P/E of 21.7 is 6% below its historical median of 23.2. The estimated fair value CAGR (P/E method) is 27.9%.
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) operates in the Services-Computer Programming Services industry, within the Technology sector.
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) reported annual revenue of $84 million in its most recent fiscal year, based on SEC EDGAR filings.
Item 1. Business. As used in this Annual Report on Form 10-K, unless expressly stated otherwise or the context otherwise requires, the terms “IA” or “the Company”, “we”, “us” and “our”, refers to Innovative Solutions & Support, Inc. dba Innovative Aerosystems and its subsidiaries. Incorporated in Pennsylvania in 1988, IA is a vertically integrated provider of flight solutions and equipment to commercial air transport, general aviation markets, the United States Department of Defense (“DoD”) and allied foreign militaries. On October 6, 2025, the Company rebranded and adopted our new trade name, Innovative Aerosystems. We operate in one business segment that designs, develops, manufactures, sells and services avionics products and systems for retrofit applications and Original Equipment Manufacturers (“OEMs”). In the fiscal year ended September 30, 2025, we reported net sales of $84.3 million, an increase of 78.6% on a year-over-year basis from $47.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 90M | 84M | 47M | 35M | 28M | 23M |
| Net Income | 19M | 16M | 7.0M | 6.0M | 5.5M | 5.1M |
| EPS | $1.02 | $0.88 | $0.40 | $0.35 | $0.32 | $0.29 |
| Free Cash Flow | 12M | 6.8M | 5.1M | 1.8M | 5.9M | 4.3M |
| ROIC | 22.7% | - | - | 10.6% | - | - |
| Gross Margin | 50.8% | 48.1% | 54.9% | 61.2% | 60.1% | 55.5% |
| Debt/Equity | 0.34 | - | - | 0.50 | - | - |
| Dividends/Share | $0.00 | - | - | - | - | $1.13 |
| Operating Income | 25M | 20M | 9.7M | 7.4M | 7.2M | 3.9M |
| Operating Margin | 27.8% | 23.8% | 20.5% | 21.1% | 26.0% | 16.9% |
| ROE | 27.6% | - | - | 15.6% | - | - |
| Shares Outstanding | 18M | 18M | 17M | 17M | 17M | 17M |
| Metric | 2019 | 2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 44M | 20M | 28M | 17M | 14M | 18M | 22M | 23M | 28M | 35M | 47M | 84M | 90M |
| Gross Margin | 30.8% | 34.5% | 58.9% | 48.4% | 47.2% | 56.3% | 54.7% | 55.5% | 60.1% | 61.2% | 54.9% | 48.1% | 50.8% |
| R&D | 2.6M | 2.7M | 4.9M | 4.5M | 3.6M | 2.5M | 3.0M | 2.6M | 2.7M | 3.1M | 4.1M | 4.0M | 4.2M |
| SG&A | 11M | 7.8M | 9.2M | 3.7M | 6.7M | 5.9M | 6.1M | 6.3M | 6.8M | 11M | 12M | 16M | 17M |
| EBIT | -143K | -3.6M | 2.4M | N/A | -3.7M | 1.5M | 2.7M | 3.9M | 7.2M | 7.4M | 9.7M | 20M | 25M |
| Op. Margin | -0.3% | -18.0% | 8.7% | N/A | -26.8% | 8.7% | 12.7% | 16.9% | 26.0% | 21.1% | 20.5% | 23.8% | 27.8% |
| Net Income | 200K | -5.9M | 2.0M | 4.6M | -3.7M | 1.9M | 3.3M | 5.1M | 5.5M | 6.0M | 7.0M | 16M | 19M |
| Net Margin | 0.5% | -29.2% | 7.1% | 27.2% | -26.4% | 10.5% | 15.1% | 22.0% | 19.9% | 17.3% | 14.8% | 18.5% | 21.0% |
| Non-Recurring | 0 | 62K | -4K | 0 | 0 | 0 | 0 | 0 | 1.2M | 44K | 161K | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 0.5% | -17.2% | 13.0% | N/A | -10.2% | N/A | N/A | N/A | N/A | 10.6% | N/A | N/A | 22.7% |
| ROE | 0.5% | -17.2% | 6.2% | 13.0% | -10.2% | N/A | N/A | N/A | N/A | 15.6% | N/A | N/A | 27.6% |
| ROA | 0.5% | -14.6% | 5.5% | 11.8% | -9.3% | N/A | N/A | N/A | N/A | 9.6% | N/A | N/A | 17.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -712K | 1.4M | 3.6M | 6.1M | -1.7M | 2.1M | 4.6M | 4.6M | 6.1M | 2.1M | 5.8M | 13M | 20M |
| Free Cash Flow | -1.4M | 1.2M | 3.2M | 5.9M | -4.3M | 2.0M | 4.3M | 4.3M | 5.9M | 1.8M | 5.1M | 6.8M | 12M |
| Owner Earnings | -1.7M | 569K | 2.8M | 5.4M | -2.4M | 1.7M | 3.3M | 4.0M | 5.6M | -52K | 2.7M | 7.2M | 13M |
| CapEx | 720K | 189K | 353K | 153K | 2.5M | 81K | 341K | 341K | 161K | 298K | 658K | 6.5M | 7.4M |
| Maint. CapEx | 576K | 570K | 493K | 449K | 436K | 451K | 432K | 432K | 368K | 698K | 2.1M | 3.7M | 3.4M |
| Growth CapEx | 143K | 0 | 0 | 0 | 2.1M | 0 | 0 | 0 | 0 | 0 | 0 | 2.8M | 4.0M |
| D&A | 576K | 570K | 493K | 449K | 436K | 451K | 432K | 432K | 368K | 698K | 2.1M | 3.7M | 3.4M |
| CapEx/OCF | N/A | 13.4% | 9.9% | 2.5% | N/A | 3.9% | 7.4% | 7.4% | 2.6% | 14.2% | 11.3% | 49.0% | 37.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 20M | 20M | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | 25.8% | 17.6% | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 254K | 725K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | 0.7% | 1.6% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 407K | 262K | 251K | 203K | 200K | 0 | 880K | 181K | 167K | 1.5M | 1.0M | 2.3M | 2.9M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 500K | 44M | 28M | 28M |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 16M | 29M | 21M | 15M |
| Cash & Equiv. | 15M | 16M | 19M | 25M | 20M | 22M | 8.6M | 8.3M | 17M | 3.1M | 539K | 2.7M | 8.3M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 18M | 28M | 22M | 21M |
| Debt/Equity | 0.19 | 0.15 | 0.11 | 0.09 | 0.10 | N/A | N/A | N/A | N/A | 0.50 | N/A | N/A | 0.34 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 18.7 | 10.3 | 11.6 | 13.9 |
| Equity | 37M | 31M | 33M | 38M | 34M | N/A | N/A | N/A | N/A | 39M | N/A | N/A | 69M |
| Total Assets | 44M | 36M | 36M | 41M | 38M | N/A | N/A | N/A | N/A | 63M | N/A | N/A | 110M |
| Total Liabilities | 7.2M | 4.8M | 3.6M | 3.4M | 3.5M | 2.3M | 14M | 2.5M | 4.0M | 24M | 36M | 39M | 41M |
| Intangibles | 100K | 83K | 71K | 69K | 69K | 49K | 113K | 62K | 60K | 20M | 32M | 30M | 23M |
| Retained Earnings | 6.7M | 819K | 2.8M | 7.4M | 3.7M | 5.6M | -2.3M | -5.9M | -359K | 5.7M | 13M | 28M | 32M |
| Working Capital | 30M | 24M | 26M | 31M | 25M | 28M | 19M | 15M | 24M | 28M | 27M | 34M | 39M |
| Current Assets | 37M | 28M | 29M | 34M | 29M | 30M | 33M | 18M | 28M | 35M | 35M | 51M | 58M |
| Current Liabilities | 7.0M | 4.8M | 3.6M | 3.4M | 3.3M | 2.2M | 14M | 2.5M | 3.9M | 6.4M | 7.3M | 17M | 20M |
| Per Share Data | |||||||||||||
| EPS | 0.01 | -0.35 | 0.12 | 0.27 | -0.22 | 0.11 | 0.19 | 0.29 | 0.32 | 0.35 | 0.40 | 0.88 | 1.02 |
| Owner EPS | -0.08 | 0.03 | 0.17 | 0.32 | -0.14 | 0.10 | 0.19 | 0.23 | 0.32 | -0.00 | 0.15 | 0.41 | 0.74 |
| Book Value | 1.85 | 1.87 | 1.98 | 2.22 | 2.06 | N/A | N/A | N/A | N/A | 2.24 | N/A | N/A | 3.80 |
| Cash Flow/Share | -0.04 | 0.08 | 0.22 | 0.36 | -0.10 | 0.13 | 0.27 | 0.26 | 0.35 | 0.12 | 0.33 | 0.75 | 1.23 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | 1.15 | 1.13 | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 20.0M | 16.8M | 16.6M | 16.9M | 16.6M | 16.8M | 17.2M | 17.5M | 17.3M | 17.2M | 17.5M | 17.8M | 18.1M |
| Valuation | |||||||||||||
| P/E Ratio | 457.4 | N/A | 23.2 | 11.7 | N/A | 36.1 | 35.0 | 24.4 | 28.1 | 21.3 | 16.5 | 13.5 | 18.9 |
| P/FCF | N/A | 32.0 | 14.4 | 9.0 | N/A | 33.0 | 26.9 | 29.0 | 26.2 | 71.3 | 22.5 | 31.0 | 28.3 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 19.6 | 15.0 | 11.6 | 14.5 |
| Price/Book | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 3.3 | N/A | N/A | 5.0 |
| Price/Sales | 2.7 | 2.4 | 1.4 | 3.0 | 3.2 | 2.9 | 3.6 | 4.9 | 4.5 | 3.9 | 2.6 | 2.1 | 3.8 |
| FCF Yield | -1.6% | 3.1% | 7.0% | 11.1% | -11.8% | 3.0% | 3.7% | 3.4% | 3.8% | 1.4% | 4.4% | 3.2% | 3.5% |
| Market Cap | 92M | 39M | 46M | 53M | 36M | 67M | 114M | 123M | 155M | 128M | 116M | 210M | 347M |
| Avg. Price | 5.98 | 2.83 | 2.35 | 3.02 | 2.66 | 3.00 | 4.46 | 6.42 | 7.31 | 7.90 | 7.08 | 9.81 | 19.14 |
| Year-End Price | 4.57 | 2.31 | 2.79 | 3.16 | 2.18 | 3.97 | 6.64 | 7.07 | 9.00 | 7.44 | 6.61 | 11.85 | 19.14 |
INNOVATIVE SOLUTIONS & SUPPORT INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
INNOVATIVE SOLUTIONS & SUPPORT INC trades at 21.7x trailing earnings, compared to its 15-year median P/E of 23.2x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 50.1x vs a median of 26.9x. The company's 5-year average ROIC is 10.6% with a gross margin of 56.0%. At current prices, the estimated annualized return to fair value is +8.9%.
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) has a net profit margin of 18.5%. This is a healthy margin.
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) generated $7 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) reported earnings per share (EPS) of $0.88 in its most recent fiscal year.
INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC) has a 5-year average gross margin of 56.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for INNOVATIVE SOLUTIONS & SUPPORT INC (ISSC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.