Forensic Analysis · Technology / Software · as of Aug 8, 2026

Innovative Solutions & Support Inc (ISSC)

A forensic read on Innovative Solutions & Support Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

A · High-quality compounder

Forensic grade

Safe

Financial health

14.3

Distress distance

Clean

Earnings quality

Forensic signals

22.0

P / E (ttm)

24.2%

ROE

$358M

Market cap

78.6%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Innovative Solutions & Support Inc earns an A (High-quality compounder) forensic quality grade, and its balance-sheet distress test reads 14.3, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by share-count dilution.

What the filings flag

+1.1%/yr

FY2022–FY2025

Share-count dilution. Diluted share count changed +3% over the last 3 years to FY2025 (+1.1%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.1% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~3%.

465% of FCF

FY2021

Shareholder returns. Returned $20M to shareholders (buybacks + dividends) in FY2021 — 465% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely.

0.74×

FY2023–FY2025

Cash conversion. Over FY2023–FY2025, operating cash flow was 0.74× cumulative net income. Cash is lagging reported profit. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.

-22%

FY2013→FY2020

Dividend — cut. The payout was CUT ~22% in FY2020 (from FY2013) and hasn't been restored since. It still returns some cash, but it is NOT the dependable, rising dividend an unbroken streak implies.

Key fundamentals

Latest Revenue$84.3M

Revenue Growth YoY+78.6%

Revenue CAGR (3yr)+44.8%

Net Margin18.5%

Free Cash Flow$6.8M

Return on Equity24.2%

Debt / Equity0.37x

The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Innovative Solutions & Support Inc's actual 10-K/10-Q/8-K filings?

Generate the AI investment read →

No credit card · informational only, not investment advice · see the track record

← Browse all forensic stock analyses

Data from SEC EDGAR public filings · metrics as of Aug 8, 2026. Forensic signals flag probability, not certainty.