Company currently on track to hit net leverage target range of 2.0x, 2.5x by 2026
Guidance for 2025 re-affirmed; adjusted EBITDA expected to be at the middle to higher end of the range
Capitalized terms that are used but not defined in this news release have the meaning ascribed to those terms in Management's Discussion & Analysis for the three and nine months ended September 30, 2025.
REGINA, Saskatchewan, Nov. 04, 2025 (GLOBE NEWSWIRE) -- Information Services Corporation (TSX:ISC) ("ISC" or the "Company") today reported on the Company's financial results for the quarter ended September 30, 2025.
Commenting on ISC's results for the third quarter of 2025, Shawn Peters, President and CEO stated, "Our third quarter performance reflects the continued strength of our Saskatchewan Registry Operations and the resilience of our diversified Services segment. These results reflect our disciplined execution and strategic focus across the business. We also remain on track to achieve our net leverage target range of 2.0x to 2.5x by 2026, reinforcing our disciplined approach to capital management." Peters continued, "With our 2025 guidance reaffirmed, we remain focused on our business and our customers."
Third Quarter 2025 Highlights
Revenue was $65.6 million for the quarter ended September 30, 2025, an increase of 8 percent when compared to $60.9 million in the third quarter of 2024. Growth was driven by strong performance from the Saskatchewan Registries division of Registry Operations, particularly in the Land Registry, due to an increase in average real estate values across the Saskatchewan market combined with higher transaction volumes and increased high-value property registrations compared to the prior year quarter as the Saskatchewan economy continues to show resiliency.
Net income was $8.5 million or $0.46 per basic share and $0.45 per diluted share for the quarter ended September 30, 2025, an increase compared to $4.2 million or $0.23 per basic share and diluted share in the third quarter of 2024. The increase was supported primarily by growth in adjusted EBITDA from Registry Operations where the Land Registry benefited from increases in average real estate values across the Saskatchewan market combined with higher volumes and increased high-value property registrations compared to the prior year quarter. Lower net finance expense as a result of lower interest rates and lower average debt outstanding also contributed to the increase.
Net cash flow provided by operating activities was $22.6 million for the quarter ended September 30, 2025, an increase of $8.4 million compared to the third quarter of 2024. Contributing to the increase were the same items as described above for net income along with the timing of changes in non-cash working capital, largely as a result of the timing of share-based compensation payments.
Adjusted net income was $16.0 million or $0.86 per basic and $0.85 per diluted share for the quarter ended September 30, 2025, compared to $11.0 million or $0.61 per basic share and $0.60 per diluted share in the third quarter of 2024. The increase reflects growth in adjusted EBITDA in Registry Operations and lower interest expense on long-term debt as discussed for net income above.
Adjusted EBITDA for the quarter ended September 30, 2025, was $27.6 million, an increase compared to $22.7 million in the third quarter of 2024 driven by strength in Registry Operations for the same reasons described above for net income. Adjusted EBITDA margin was 42 per cent, which was an increase compared to 37% in the third quarter of 2024 primarily as a result of the strong revenue performance of the higher-margin Saskatchewan Registries division.
Adjusted free cash flow for the quarter ended September 30, 2025, was $19.4 million, compared to $15.9 million in the third quarter of 2024, due primarily to strong operating results from Registry Operations as described above.
On July 31, 2025, ISC announced that it had extended the Company's secured syndicated credit facility (the "Credit Facility"), initially provided by its lenders on August 5, 2020, by entering into a third amendment to the amended and restated credit agreement made as of July 5, 2023. The amendment extends the term of the Credit Facility to July 31, 2029 and maintains total availability at $250.0 million. In addition, it expands the accordion option to $150.0 million, an increase from $100.0 million under the previous agreement, providing the flexibility to upsize the Credit Facility to $400.0 million. The Credit Facility has also been simplified by consolidating the two existing revolving credit facility tranches into a single revolving facility of $250.0 million with improved pricing and updated covenants to provide additional balance sheet flexibility. See Section 6.3 "Debt" in the MD&A for more information on ISC's Credit Facility.
Voluntary prepayments of $16.0 million were made towards the Company's Credit Facility during the quarter. This is part of the Company's plan to deleverage towards a long-term net leverage target of 2.0x, 2.5x. On July 31, 2025, the second of five annual cash payments of $30.0 million was made pursuant to the Extension Agreement (as defined herein), using funds drawn from the Credit Facility.
On August 18, 2025, ISC announced it had entered into an agreement with Ontario's Ministry of Environment, Conservation and Parks ("MECP") to deliver a new digital records system. The project is part of the MECP's Modernization of Property Information Program, which is focused on improving access to environmental property information across Ontario and includes a two-year build phase followed by a seven-year operating term, with extension options at the sole discretion of MECP. For more information, please see our news release dated August 18, 2025.
On September 8, 2025, the Company announced that its Board of Directors, through a Special Committee of independent directors, has been undertaking a review of strategic alternatives to identify opportunities to maximize value for all shareholders. This initiative is led by a Special Committee of the Board, which has been established and mandated to carry out this work. For more information, please see our news release dated September 8, 2025.
Financial Position as at September 30, 2025
Cash of $17.5 million compared to $21.0 million as at December 31, 2024, a decrease of $3.5 million.
Total debt of $168.1 million compared to $167.6 million as at December 31, 2024. The Company is focused on continuing sustainable growth and deleveraging its balance sheet towards a long-term net leverage target of 2.0x, 2.5x, and as at September 30, 2025, the Company is at a net leverage1 of 2.55x.
Subsequent Events
On November 4, 2025, the Board declared a quarterly cash dividend of $0.23 per Class A Share, payable on or before January 15, 2026, to shareholders of record as of December 31, 2025.
________________________1 Net leverage is not a recognized measures under IFRS Accounting Standards, and does not have a standardized meaning prescribed and may not be comparable to similar measures reported by other companies. Refer to Section 8.8 "Non-IFRS financial measures" for a discussion on why we use this measure, the calculation of it and its most directly comparable financial measure calculated in accordance with IFRS Accounting Standards.
Summary of Third Quarter 2025 Financial Results
(thousands of CAD; except earnings per share, adjusted earnings per share and where noted)
Three Months Ended September 30,
2025
2024
Revenue
Registry Operations
$
36,363
$
31,860
Services
26,365
25,562
Technology Solutions1
2,884
3,508
Corporate and other
17
2
Total revenue
$
65,629
$
60,932
Total expenses
$
50,079
$
49,707
Adjusted EBITDA2
$
27,592
$
22,706
Adjusted EBITDA margin2
42.0
%
37.3
%
Net income
$
8,509
$
4,203
Adjusted net income2
$
15,993
$
11,035
Earnings per share (basic)
$
0.46
$
0.23
Earnings per share (diluted)
$
0.45
$
0.23
Adjusted earnings per share (basic)2
$
0.86
$
0.61
Adjusted earnings per share (diluted)2
$
0.85
$
0.60
Adjusted free cash flow2
$
19,357
$
15,941
1 Corporate and other and Inter-segment eliminations are excluded. Technology Solutions revenue included in the above chart is Third Party revenue. Please see Section 3.3 " Technology Solutions" in the MD&A for more information.2 Adjusted net income, adjusted earnings per share, basic, adjusted earnings per share, diluted, adjusted EBITDA, adjusted EBITDA margin and adjusted free cash flow are not recognized as measures under IFRS Accounting Standards, do not have a standardized meaning prescribed and may not be comparable to similar measures reported by other companies. Refer to Section 8.8 " Non-IFRS financial measures" in the MD&A for a discussion on why we use these measures, the calculation of them and their most directly comparable financial measure calculated in accordance with IFRS Accounting Standards. Refer to Section 2. " Consolidated Financial Analysis" and Section 6.1 " Cash flow" in the MD&A for a reconciliation of these measures to the most directly comparable financial measure calculated in accordance with IFRS Accounting Standards.
Third Quarter 2025 Results of Operations
Total revenue was $65.6 million, up 8 per cent compared to Q3 2024.
Registry Operations segment revenue was $36.5 million, up 15 per cent compared to Q3 2024.
Land Registry revenue was $24.5 million, up compared to $20.7 million in Q3 2024.
Personal Property Registry revenue was $3.5 million, up compared to $3.3 million in Q3 2024.
Corporate Registry revenue was $3.3 million, up compared to $3.1 million in Q3 2024.
Property Tax Assessment Services revenue was $4.2 million, up compared to $3.9 million in Q3 2024.
Other Registries revenue was $0.9 million, up compared to Q3 2024.
Services segment revenue was $26.4 million, up 3 per cent compared to Q3 2024.
Regulatory Solutions revenue was $19.6 million, up compared to $18.9 million in Q3 2024.
Recovery Solutions revenue was $4.4 million, up compared to $3.7 million in Q3 2024.
Corporate Solutions revenue was $2.4 million, down compared to $2.9 million in Q3 2024.
Technology Solutions revenue was $8.4 million, up 2 per cent compared to Q3 2024.
Consolidated expenses were $50.1 million compared to $49.7 million for Q3 2024.
Net income was $8.5 million or $0.46 per basic share and $0.45 per diluted share, compared to $4.2 million or $0.23 per basic share and $0.23 per diluted share in Q3 2024.
Sustaining capital expenditures were $2.7 million, compared to $1.9 million in Q3 2024.
Outlook
The following section includes forward-looking information, including statements related to our strategy, future results, including revenue and adjusted EBITDA, segment performance, the industries in which we operate, economic activity, growth opportunities, investments and business development opportunities. Refer to "Caution Regarding Forward-Looking Information".
Our guidance for 2025 reflects continued organic growth in line with historical trends. While not included in our guidance, our disciplined M&A strategy is intended to support our long-term growth targets as we continue to pursue new opportunities.
In Registry Operations, a declining interest rate environment is likely to support ongoing activity in the Saskatchewan real estate market. At the same time, there is also forecasted to be an increase in the fair market value of regular real estate transfers, along with inventory challenges in the lower-value homes category. The stability of the Ontario Property Tax Assessment division along with a full year of BASR and annual Saskatchewan Registries CPI fee adjustments will support the segment's steady financial performance.
In Services, we expect continued growth in the Regulatory Solutions division due to the ongoing trend of increased due diligence by financial institutions. In addition, we expect to build on the strong gains made in the Recovery Solutions division in 2024. Growth in these two divisions is expected to offset any headwinds from the further opening of the Ontario Business Registry, the unexpected ban on NOSIs in Ontario at the start of June 2024 and the potential impact of prevailing economic uncertainty in Ontario.
In Technology Solutions, the timing of some Third Party projects has been further extended into 2026 and we therefore now expect the segment to be slightly lower on a Third Party revenue basis.
As a result, ISC is reiterating its annual guidance for 2025, with revenue expected to be within a range of $257.0 million to $267.0 million and adjusted EBITDA expected to be in a range of $89.0 million to $97.0 million. Given the Company's performance year-to-date, we expect revenue to be at the lower end of our guidance range. However, adjusted EBITDA is now expected to be at the middle to higher end of the guidance range. In keeping with our historical performance, the Company also expects to see robust free cash flow in 2025, which will support the deleveraging of our balance sheet to realize a long-term net leverage target of 2.0x, 2.5x.
Update on Strategic Review
On ...
