Information Services (ISC) Q2 2025 earnings summary

Executive summary

• Solid second quarter performance driven by diversified operations and strategic execution, with steady results in Registry Operations and growth in higher-margin Recovery Solutions within Services.

• Technology Solutions segment saw notable year-over-year increases in both revenue and profitability, reflecting operational efficiency and market traction.

• Maintained financial discipline despite higher share-based compensation and unexpected costs, ensuring sustained performance.

Financial highlights

• Revenue was $67.3 million, nearly flat compared to $67.8 million in Q2 2024; Registry Operations revenue up 3%, Services down 4%, Technology Solutions up 6%.

• Net income was $5.9 million ($0.32 per share), down from $10.3 million ($0.57 per share) in Q2 2024, due to higher share-based compensation and professional fees.

• Adjusted net income rose to $15.1 million ($0.81 per share) from $14.1 million ($0.78 per share) year-over-year.

• Adjusted EBITDA was $26.7 million, nearly flat year-over-year; adjusted EBITDA margin was 39.6%, consistent with Q2 2024.

• Adjusted free cash flow increased to $21 million from $15.7 million in Q2 2024.

Outlook and guidance

• Revenue for 2025 expected in the range of $257 million–$267 million; adjusted EBITDA guidance is $89 million–$97 million.

• Robust free cash flow anticipated for 2025, supporting continued deleveraging toward a net leverage target of 2–2.5x.

• Registry Operations anticipate 2–3% annualized growth in Saskatchewan Land Registry volumes, with higher real estate values and inventory challenges in lower-value homes.

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

• Technology Solutions growth re-forecasted to be flat in 2025 due to project timing shifts.