Information Services (ISC) Q1 2025 earnings summary

Executive summary

• Q1 2025 performance met expectations, with revenue up 5% year-over-year to CAD 59.3 million, driven by strong Saskatchewan Registries and new BASR revenue, partially offset by lower Services revenue from the Ontario NOSI ban.

• Net income rose to CAD 7.5 million (CAD 0.40 per share) from CAD 0.4 million (CAD 0.02 per share) in Q1 2024, reflecting lower share-based compensation, strong adjusted EBITDA, and lower net finance expense.

• Adjusted EBITDA reached a record CAD 21.8 million (36.7% margin), up from CAD 19.4 million (34.5% margin) in Q1 2024, with growth from Registry Operations and Services.

• Adjusted net income was CAD 11.4 million (CAD 0.62 per share), up from CAD 8.5 million (CAD 0.47 per share) year-over-year.

• Business diversification and resilience supported strong results despite macroeconomic uncertainty.

Financial highlights

• Registry Operations revenue rose 13% to CAD 29.5 million, with growth in Land, Personal Property, and Corporate Registries.

• Services segment revenue declined 1% to CAD 26.6 million, with Regulatory Solutions down, Recovery Solutions up, and Corporate Solutions down.

• Technology Solutions revenue increased 21% to CAD 8.6 million.

• Consolidated expenses decreased to CAD 44.5 million from CAD 49.8 million in Q1 2024.

• Cash at quarter-end was CAD 16.8 million, down from CAD 21.0 million at year-end 2024; total debt was CAD 166.6 million, down slightly from CAD 167.6 million.

Outlook and guidance

• 2025 revenue guidance reiterated at CAD 257–267 million; adjusted EBITDA expected at CAD 89–97 million.

• Registry Operations segment to benefit from a declining interest rate environment and annual CPI fee adjustments, with 2–3% volume growth in Saskatchewan Land Registry anticipated.

• Services segment expects continued growth in Regulatory and Recovery Solutions, offsetting Ontario Business Registry headwinds and NOSI ban.

• Technology Solutions projects double-digit growth, supported by a strong contract pipeline.

• Robust free cash flow anticipated to support continued deleveraging toward a long-term net leverage target of 2–2.5x.