Information Services (ISC) Q1 2025 earnings summary

Executive summary

• Q1 2025 performance met expectations, with registry operations, especially Saskatchewan Registries, outperforming the prior year due to higher volumes and increased residential resale prices; revenue grew 5% year-over-year to $59.3 million, driven by higher volumes in Saskatchewan Registries and new BASR revenue, partially offset by a decline in Services revenue due to the Ontario NOSIS ban.

• Net income rose to $7.5 million ($0.40 per share) from $0.4 million ($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 $21.8 million (36.7% margin), up from $19.4 million (34.5% margin) in Q1 2024, with growth from Registry Operations and Services.

• Adjusted net income was $11.4 million ($0.62 per basic share), up from $8.5 million ($0.47 per share) in Q1 2024.

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

Financial highlights

• Revenue was CAD 59.3 million, up 5% year-over-year, driven by Saskatchewan Registries and new bank acts security registry revenue.

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

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

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

• Adjusted free cash flow was CAD 15.2 million, up from CAD 11.6 million in Q1 2024.

• Net cash flow from operating activities was CAD 5.8 million, down from CAD 10.5 million, mainly due to working capital timing.

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

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

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