Strong high-value registration activity in the Saskatchewan Land Registry, supported by favourable macroeconomic conditions
Achieved long-term net leverage target range of 2.0x–2.5x, ahead of schedule
Capitalized terms that are used but not defined in this news release, including section references, have the meanings ascribed to those terms in Management's Discussion and Analysis for the three months and year ended December 31, 2025.
REGINA, Saskatchewan, March 19, 2026 (GLOBE NEWSWIRE) -- Information Services Corporation (TSX:ISC) (ISC or the Company) today reported on the Company's financial results for the quarter and year ended December 31, 2025.
Commenting on ISC's results, Shawn Peters, President and CEO stated, "2025 marked ISC's strongest year on record. The Company met revenue and surpassed adjusted EBITDA expectations and delivered on a number of key milestones, including achieving our long-term net leverage target six months ahead of schedule." Peters continued, "Looking ahead, I'm excited about ISC's potential in 2026. By keeping our people and our customers at the forefront of everything we do, we expect to continue delivering exceptional results under a strategy informed by the outcome of our Strategic Review."
Fourth Quarter 2025 Highlights
Revenue was $65.5 million for the quarter ended December 31, 2025, an increase of 5 per cent when compared to $62.2 million in the fourth quarter of 2024. Growth was driven by strong performance from the Saskatchewan Registries division of Registry Operations, particularly in the Land Registry, due to higher average real estate values across the Saskatchewan market, increased transaction volumes and record high-value property registrations compared to the prior year quarter as the Saskatchewan economy continued to show resiliency.
Net income was $4.9 million or $0.26 per basic share and $0.26 per diluted share for the quarter ended December 31, 2025, a decrease compared to $5.3 million or $0.29 per basic share and diluted share in the fourth quarter of 2024. The decrease was due to the increase in share-based compensation expense, excluding Employee Share Purchase Plan (ESPP), as a result of the appreciation in the share price. The increase in expense was offset by growth in adjusted EBITDA from Registry Operations and Services. Registry Operations saw the Land Registry benefit from increases in average real estate values across the Saskatchewan market combined with higher volumes and record high-value property registrations. Services growth came from the higher-margin Recovery Solutions business and increased margins from higher recurring and non-recurring volumes in the higher-margin KYC and Due Diligence offerings of the Regulatory Solutions division. Also contributing to the increase was lower net finance expense as a result of lower interest rates and lower average long-term debt outstanding.
Net cash flow provided by operating activities was $26.3 million for the quarter ended December 31, 2025, an increase of $4.0 million compared to the fourth quarter of 2024. Contributing to the increase was strength
from Registry Operations and Services 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 $14.3 million or $0.76 per basic share and $0.76 per diluted share for the quarter ended December 31, 2025, compared to $9.3 million or $0.51 per basic share and $0.50 per diluted share in the fourth quarter of 2024. The increase reflects the continued strength in adjusted EBITDA across the operating segments.
Adjusted EBITDA for the quarter ended December 31, 2025, was $27.1 million, an increase compared to $21.0 million in the fourth quarter of 2024 driven by strength in Registry Operations and Services for the same reasons described above for net income. Adjusted EBITDA margin was 41 per cent, which was an increase compared to 34 per cent in the fourth quarter of 2024 as a result of the strong performance across the operating segments.
Adjusted free cash flow for the quarter ended December 31, 2025, was $19.2 million, compared to $13.2 million in the fourth quarter of 2024, due primarily to strong operating results from Registry Operations, Services and lower net finance expense as described above.
Voluntary prepayments of $15.0 million were made towards the Company's secured syndicated credit facility (Credit Facility) during the quarter, which contributed to the Company achieving its stated long-term net leverage target of 2.0x, 2.5x ahead of the previously expected timeframe of mid-2026.
Year-end 2025 Highlights
Revenue was $257.8 million for the year ended December 31, 2025, an increase of 4 per cent compared to $247.4 million in the prior year. This growth was led by strong results across the Saskatchewan Registries division of Registry Operations and in particular, the Land Registry, which benefitted from higher average real estate values.
Net income was $26.8 million or $1.44 per basic share and $1.43 per diluted share for the year ended December 31, 2025, compared to $20.2 million or $1.11 per basic share and diluted share in 2024. The increase is due to adjusted EBITDA contributions from Registry Operations and Services during the year. Registry Operations adjusted EBITDA is a result of strong revenue for the reasons described above. Services adjusted EBITDA contribution is a result of the continued performance of the higher-margin Recovery Solutions division in addition to increased recurring and non-recurring volumes in the higher-margin KYC and Due Diligence offerings of the Regulatory Solutions division. Lower net finance expense due to lower interest rates also contributed to the increase but was partially offset by higher share-based compensation expense due to an increase in the Company's share price during the year and professional and consulting services expenses related to resources deployed to respond to Plantro Ltd.'s mini-tender (the Mini-tender).
Net cash flow provided by operating activities was $77.6 million for the year ended December 31, 2025, an increase of $6.4 million compared to the prior year, driven by the same factors described above for net income along with the timing of changes in non-cash working capital.
Adjusted net income was $56.8 million or $3.05 per basic share and diluted share $3.04 for the year ended December 31, 2025, compared to $42.9 million or $2.36 per basic share and $2.35 per diluted share in the prior year. The growth reflects strong results from Registry Operations and Services in addition to lower interest expense on long-term debt and depreciation and amortization.
Adjusted EBITDA was $103.1 million for the year ended December 31, 2025, compared to $90.3 million in the prior year. Adjusted EBITDA margin for the year was 40 per cent, which increased compared to 37 per cent in the prior year as a result of the strong performance across the operating segments. Registry Operations continued to showcase growth in adjusted EBITDA due to strong results in the Land Registry in the Saskatchewan Registries division. Services adjusted EBITDA growth was driven by ongoing margin improvement as a result of the continued strength in the Recovery and Regulatory Solutions divisions and a shift towards a higher-margin sales mix. Technology Solutions growth was due to higher revenue as a result of progress on solution definition and implementation contracts combined with lower wages and salaries and information technology services expenses as a result of increased capitalization and one-time grant funding.
Adjusted free cash flow for the year ended December 31, 2025, was $74.7 million, an increase of $18.3 million compared to $56.4 million in the prior year. This growth was driven by an increase in adjusted EBITDA as described above in addition to lower interest paid on debt.
During the year, voluntary prepayments to the Credit Facility totalled $47.0 million, which contributed to the Company achieving its stated long-term net leverage target of 2.0x, 2.5x ahead of the previously expected timeframe of mid-2026
On July 31, 2025, the second of five annual cash payments of $30.0 million was made to the Government of Saskatchewan pursuant to the Extension Agreement (as defined herein), using funds drawn from the Credit Facility.
On June 4, 2025, the Company announced that it had authorized and the Toronto Stock Exchange (the TSX) had accepted, a notice filed of its intention to make a normal course issuer bid (the NCIB), to purchase for cancellation up to 929,007 Class A limited voting shares of ISC (the Class A Shares) over the 12-month period commencing on June 6, 2025 and ending no later than June 5, 2026, representing approximately 5 per cent of the Class A Shares issued and outstanding as at June 2, 2025. See Section 6.6 "Other" for more information on the NCIB.
On July 31, 2025, ISC announced that it had extended the Company's 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" for more information on ISC's Credit Facility.
On August 18, 2025, ISC announced it had entered into an agreement with MECP to deliver a new digital records system. The project is part of MECP's Modernization of Property Information Program, which is focused on improving access to environmental property information across Ontario. It begins with 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 (the Special Committee), had been undertaking a review of strategic alternatives to identify opportunities to maximize value for all shareholders. This initiative is led by the Special Committee, which has been established and mandated to carry out this work. For more information, please see our news releases dated September 8 and 11, 2025.
Financial Position as at December 31, 2025
Cash of $19.5 million compared to $21.0 million as at December 31, 2024, a decrease of $1.5 million.
Total debt of $153.1 million compared to $167.6 million as at December 31, 2024. The Company is focused on maintaining a long-term net leverage target of 2.0x, 2.5x. As at December 31, 2025, the Company had achieved a net leverage1 of 2.25x.
Subsequent Events
On March 19, 2026, the Board declared a quarterly cash dividend of $0.23 per Class A Share, payable on or before April 15, 2026, to shareholders of record as of March 31, 2026.
________________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 Fourth Quarter and Year-end 2025 Financial Results
(thousands of CAD; except earnings per share, adjusted earnings per share and where noted)
Three Months EndedDecember 31,
Year EndedDecember 31,
2025
2024
2025
2024
Revenue
Registry Operations
$
36,411
$
33,069
$
137,655
$
125,588
Services
26,429
26,742
109,213
110,196
Technology Solutions1
2,676
2,371
10,852
11,570
Corporate and other
4
4
46
12
Total revenue
$
65,520
$
62,186
$
257,766
$
247,366
Total expenses
$
54,601
$
49,338
$
204,116
$
196,495
Adjusted EBITDA2
$
27,051
$
21,000
$
103,104
$
90,326
Adjusted EBITDA margin2
41.3
%
33.8
%
40.0
%
36.5
%
Net income
$
4,869
$
5,296
$
26,754
$
20,241
Adjusted net income2
$
14,258
$
9,330
$
56,812
$
42,931
Earnings per share (basic)
$
0.26
$
0.29
$
1.44
$
1.11
Earnings per share (diluted)
$
0.26
$
0.29
$
1.43
$
1.11
Adjusted earnings per share (basic)2
$
0.76
$
0.51
$
3.05
$
2.36
Adjusted earnings per share (diluted)2
$
0.76
$
0.50
$
3.04
$
2.35
Adjusted free cash flow2
$
19,150
$
13,179
$
74,686
$
56,420
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.
Year-end 2025 Results of Operations
Total revenue was $257.8 million, up 4 per cent compared to 2024.
Registry Operations segment revenue was $138.1 million, up 10 per cent compared to 2024.
Land Registry revenue was $89.9 million, up compared to $82.2 million in 2024.
Personal Property Registry revenue was $13.5 million, an increase compared to $12.8 million in 2024.
Corporate Registry revenue was $14.1 million, up compared to $13.2 million in 2024.
Property Tax Assessment Services revenue was $16.7 million, up compared to $15.7 million in 2024.
Other Registries revenue was $3.5 million, up compared to $1.6 million in 2024.
Services segment revenue was $109.2 million, down 1 per cent compared to 2024.
Regulatory Solutions revenue was $81.2 million, down compared to $82.6 million in 2024.
Recovery Solutions revenue was $17.3 million, up compared to $14.8 million in 2024.
Corporate Solutions revenue was $10.7 million, down compared to $12.8 million in 2024.
Technology Solutions revenue was $33.2 million, up 10 per cent compared to 2024.
Consolidated expenses were $204.1 million compared to $196.5 million for 2024.
Net income was $26.8 million or $1.44 per basic share and $1.43 ...
