Forensic Analysis · Technology / Software · as of Jun 28, 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

6.1

Altman Z-score

Clean

Earnings quality

Forensic signals

18.8

P / E (ttm)

26.0%

ROE

$320M

Market cap

INNOVATIVE SOLUTIONS & SUPPORT INC earns a A (High-quality compounder) forensic quality grade, and its Altman Z-score is 6.1, placing it in the Safe zone. 6 forensic signals were flagged in its latest SEC filings, led by share-count dilution.

What the filings flag

+1.1%/yrShare-count dilution. Diluted share count changed +3% over the last 3 years to FY2025 (+1.1%/yr). The count is GROWING — existing holders are being diluted. 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%.

3% of revStock-based comp load. Stock-based compensation ran 3% of revenue and 34% of free cash flow in FY2025 — about $0.13 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.

465% of FCFShareholder 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×Cash conversion. Over FY2023–FY2025, operating cash flow was 0.74× cumulative net income. Cash is lagging reported profit — worth checking what's accruing rather than being collected.

+14.9%Accruals ratio. Net operating assets grew +14.9% relative to their average in FY2025 — the accrual component of earnings. Accruals are building faster than is comfortable — part of profit sits in receivables, inventory or capitalized costs rather than cash. The cash-flow cross-check agrees: reported earnings ran in line with operating cash by +3% of net operating assets.

-21%Dividend — cut. The payout was CUT ~21% in FY2020 (from FY2013). It still returns some cash, but it is NOT the dependable, rising dividend an unbroken streak implies — weigh the cut when judging reliability.

Key fundamentals

Net Margin18.5%

Debt / Equity0.37x

Free Cash Flow$6.8M

Latest Revenue$84.3M

Return on Equity24.2%

Revenue Growth YoY+78.6%

Go deeper — free with an account

The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on INNOVATIVE SOLUTIONS & SUPPORT INC:

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🔒Peer comparison + filing-change monitoring & alerts

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Data from SEC EDGAR public filings · metrics as of Jun 28, 2026. Forensic signals flag probability, not certainty.