Revenue growth has experienced a sharp contraction from 105.2% in 2025Q3 to 2.0% in 2026Q2, while operating margins remain highly volatile, fluctuating between 8.4% and 37.0% over the last ten quarters.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 |
|---|
| Sales/Revenue | 90.56M | 84.3M | 47.2M | 34.81M | 27.74M | 23.04M | 21.6M | 17.57M | 13.85M | 16.79M | 27.97M | 20.07M | 44.1M | 31.57M | 24.58M | 25.74M | 25.26M | 36.73M | 30.53M | 18.35M | 16.72M | 63.26M | 46.1M | 28.17M | 28.35M | 34.38M | 33.27M | 22.49M |
| Revenue Growth % | 39.21% | 78.6% | 35.59% | 25.48% | 20.38% | 6.71% | 22.89% | 26.87% | -17.49% | -39.98% | 39.38% | -54.49% | 39.69% | 28.44% | -4.5% | 1.9% | -31.24% | 20.31% | 66.41% | 9.72% | -73.57% | 37.23% | 63.66% | -0.62% | -17.56% | 3.34% | 47.96% | - |
| Cost of Goods Sold | 46.35M | 46M | 21.28M | 13.5M | 11.07M | 10.26M | 9.79M | 7.68M | 7.31M | 8.67M | 11.48M | 13.14M | 30.51M | 18.94M | 14.07M | 11.95M | 11.52M | 17.9M | 20.55M | 14.15M | 8.63M | 20.89M | 15.66M | 11.35M | 11.29M | 14.48M | 14.82M | 10.57M |
| COGS % of Revenue | - | 54.57% | 45.1% | 38.78% | 39.89% | 44.54% | 45.35% | 43.68% | 52.79% | 51.64% | 41.05% | 65.46% | 69.19% | 60.01% | 57.24% | 46.41% | 45.61% | 48.72% | 67.31% | 77.14% | 51.62% | 33.02% | 33.98% | 40.28% | 39.83% | 42.11% | 44.54% | 47% |
| Gross Profit | 44.22M | 38.3M | 25.91M | 21.31M | 16.67M | 12.78M | 11.8M | 9.9M | 6.54M | 8.12M | 16.49M | 6.93M | 13.59M | 12.62M | 10.51M | 13.79M | 13.74M | 18.84M | 9.98M | 4.19M | 8.09M | 42.38M | 30.44M | 16.82M | 17.06M | 19.91M | 18.45M | 11.92M |
| Gross Margin % | 48.83% | 45.43% | 54.9% | 61.22% | 60.11% | 55.46% | 54.65% | 56.32% | 47.21% | 48.36% | 58.95% | 34.54% | 30.81% | 39.99% | 42.76% | 53.59% | 54.39% | 51.28% | 32.69% | 22.86% | 48.38% | 66.98% | 66.02% | 59.72% | 60.17% | 57.89% | 55.46% | 53% |
| Gross Profit Growth % | - | 47.78% | 21.6% | 27.81% | 30.46% | 8.3% | 19.25% | 51.36% | -19.46% | -50.76% | 137.85% | -48.98% | 7.62% | 20.12% | -23.8% | 0.4% | -27.08% | 88.73% | 138.01% | -48.16% | -80.91% | 39.23% | 80.93% | -1.37% | -14.32% | 7.87% | 54.85% | - |
| Operating Expenses | 21.24M | 18.22M | 16.25M | 13.95M | 9.46M | 8.88M | 9.06M | 8.37M | 10.25M | 8.2M | 14.04M | 10.55M | 13.73M | 10.7M | 10.09M | 13.18M | 13.33M | 13.96M | 35.09M | 21.02M | 16.61M | 14.96M | 12.38M | 9.27M | 10.49M | 10.15M | 8.23M | 5.25M |
| OpEx % of Revenue | - | 21.62% | 34.43% | 40.08% | 34.1% | 38.54% | 41.94% | 47.62% | 74.01% | 48.82% | 50.21% | 52.59% | 31.14% | 33.89% | 41.07% | 51.23% | 52.79% | 38% | 114.91% | 114.57% | 99.35% | 23.64% | 26.85% | 32.9% | 37% | 29.52% | 24.72% | 23.34% |
| Selling, General & Admin | 16.1M | 14.23M | 12.11M | 10.82M | 6.75M | 6.26M | 6.1M | 5.88M | 6.67M | 3.74M | 9.17M | 7.85M | 11.11M | 8.12M | 7.4M | 7.68M | 8.1M | 8.65M | 22.31M | 15.84M | 9.86M | 8.9M | 7.57M | 5.89M | 5.73M | 5.78M | 4.95M | 3.33M |
| SG&A % of Revenue | - | 16.88% | 25.67% | 31.09% | 24.35% | 27.15% | 28.25% | 33.45% | 48.19% | 22.27% | 32.79% | 39.11% | 25.2% | 25.72% | 30.11% | 29.85% | 32.07% | 23.54% | 73.05% | 86.33% | 58.99% | 14.07% | 16.42% | 20.91% | 20.22% | 16.8% | 14.88% | 14.83% |
| Research & Development | 5.13M | 3.99M | 4.14M | 3.13M | 2.71M | 2.62M | 2.96M | 2.49M | 3.58M | 4.46M | 4.87M | 2.71M | 2.62M | 2.58M | 2.69M | 5.5M | 5.23M | 5.31M | 10.3M | 5.18M | 6.75M | 6.06M | 4.81M | 3.38M | 4.76M | 4.37M | 3.27M | 1.92M |
| R&D % of Revenue | - | 4.74% | 8.77% | 8.99% | 9.75% | 11.38% | 13.69% | 14.17% | 25.82% | 26.55% | 17.42% | 13.48% | 5.94% | 8.17% | 10.96% | 21.37% | 20.72% | 14.46% | 33.75% | 28.23% | 40.36% | 9.58% | 10.44% | 11.99% | 16.78% | 12.71% | 9.84% | 8.52% |
| Other Operating Expenses | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 22.98M | 20.07M | 9.66M | 7.36M | 7.22M | 3.9M | 2.75M | 1.53M | -3.71M | -77.56K | 2.44M | -3.62M | -142.87K | 1.93M | 416.51K | 607.91K | 403.47K | 4.88M | -25.1M | -16.83M | -8.52M | 27.42M | 18.06M | 7.56M | 6.57M | 9.76M | 10.23M | 6.67M |
| Operating Margin % | 25.37% | 23.81% | 20.47% | 21.14% | 26.01% | 16.93% | 12.71% | 8.7% | -26.8% | -0.46% | 8.74% | -18.04% | -0.32% | 6.11% | 1.69% | 2.36% | 1.6% | 13.28% | -82.22% | -91.71% | -50.97% | 43.34% | 39.17% | 26.82% | 23.17% | 28.38% | 30.74% | 29.65% |
| Operating Income Growth % | - | 107.75% | 31.29% | 1.99% | 84.96% | 42.09% | 79.59% | 141.19% | -4685.07% | -103.17% | 167.48% | -2434.33% | -107.41% | 362.76% | -31.48% | 50.67% | -91.73% | 119.43% | -49.19% | -97.43% | -131.08% | 51.84% | 139% | 15.05% | -32.69% | -4.61% | 53.39% | - |
| EBITDA | 26.7M | 23.81M | 11.76M | 8.06M | 7.58M | 4.33M | 3.18M | 1.98M | -3.28M | 371.62K | 2.94M | -3.05M | 433.61K | 2.47M | 945.84K | 1.28M | 1.23M | 5.96M | -24.06M | -15.88M | -7.66M | 28.22M | 18.79M | 8.27M | 7.43M | 10.31M | 10.62M | 6.93M |
| EBITDA Margin % | 29.48% | 28.24% | 24.92% | 23.15% | 27.34% | 18.8% | 14.72% | 11.27% | -23.65% | 2.21% | 10.5% | -15.2% | 0.98% | 7.83% | 3.85% | 4.97% | 4.87% | 16.23% | -78.78% | -86.55% | -45.83% | 44.6% | 40.75% | 29.36% | 26.21% | 29.99% | 31.92% | 30.83% |
| EBITDA Growth % | 48.27% | 102.44% | 45.95% | 6.24% | 75.02% | 36.31% | 60.55% | 160.45% | -981.36% | -87.34% | 196.27% | -803.5% | -82.47% | 161.47% | -26.11% | 4.06% | -79.37% | 124.79% | -51.48% | -107.2% | -127.16% | 50.19% | 127.19% | 11.33% | -27.97% | -2.9% | 53.17% | - |
| D&A (Non-Cash Add-back) | 3.72M | 3.73M | 2.1M | 697.94K | 368.5K | 432.18K | 433.51K | 451.28K | 436.21K | 449.19K | 493.36K | 570.31K | 576.48K | 545.62K | 529.33K | 672.2K | 826.75K | 1.09M | 1.05M | 946.22K | 858.64K | 797.99K | 729.99K | 714.21K | 860.94K | 554.94K | 391.26K | 264.79K |
| EBIT | 22.98M | 20.07M | 9.79M | 8.03M | 7.34M | 3.9M | 2.75M | 1.53M | -3.71M | -77.56K | 2.44M | -3.62M | -142.87K | 1.93M | 582.53K | 901.86K | 641.64K | 5.33M | -25.1M | -16.83M | -8.52M | 27.42M | 18.06M | 7.56M | 6.57M | 9.76M | 10.23M | 6.67M |
| Net Interest Income | -1.9M | -1.71M | -809.98K | 124.91K | 61.05K | 1.23K | 154.95K | 249.62K | 53.56K | 35.89K | 33.5K | 24.8K | 21.76K | 41.17K | 100.41K | 142.43K | 185.81K | 315.76K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 16.89K | 18.94K | 127.33K | 518.19K | 61.05K | 1.23K | 154.95K | 249.62K | 53.56K | 35.89K | 33.5K | 24.8K | 21.76K | 41.17K | 101.01K | 143.94K | 188.17K | 398.04K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.92M | 1.73M | 937.31K | 393.28K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 598 | 1.51K | 2.36K | 82.28K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -248.95K | -120.53K | -809.98K | 276.22K | 126.28K | 76.14K | 215.45K | 323.36K | 121.28K | 4.89M | 111.94K | 58.09K | 59.51K | 79.29K | 165.42K | 292.44K | 235.81K | 365.86K | 18.72M | 2.89M | 3.09M | 1.76M | 404.73K | 450.42K | 722.85K | 2.2M | 564.55K | 30.14K |
| Pretax Income | 22.73M | 19.95M | 8.85M | 7.64M | 7.34M | 3.98M | 2.96M | 1.85M | -3.59M | 4.82M | 2.56M | -3.56M | -83.35K | 2.01M | 581.93K | 900.35K | 639.28K | 5.24M | -6.39M | -13.94M | -5.43M | 29.18M | 18.46M | 8.01M | 7.29M | 11.95M | 10.79M | 6.7M |
| Pretax Margin % | 25.1% | 23.67% | 18.75% | 21.94% | 26.47% | 17.26% | 13.71% | 10.54% | -25.92% | 28.69% | 9.14% | -17.75% | -0.19% | 6.36% | 2.37% | 3.5% | 2.53% | 14.27% | -20.92% | -75.98% | -32.48% | 46.13% | 40.05% | 28.42% | 25.72% | 34.76% | 32.44% | 29.79% |
| Income Tax | 5.68M | 4.32M | 1.85M | 1.61M | 1.82M | -1.09M | -308.88K | 1.8K | 63.65K | 247.92K | 568.33K | 2.3M | -283.62K | 119.84K | -2.4M | 183.76K | -109.09K | 234.86K | 1.51M | -5.1M | -2.55M | 10.6M | 6.53M | 2.46M | 1.88M | 4.42M | 4.04M | 2.52M |
| Effective Tax Rate % | 25% | 21.67% | 20.94% | 21.05% | 24.76% | -27.35% | -10.43% | 0.1% | -1.77% | 5.15% | 22.24% | -64.66% | 340.26% | 5.97% | -411.92% | 20.41% | -17.07% | 4.48% | -23.62% | 36.55% | 46.93% | 36.32% | 35.37% | 30.79% | 25.79% | 37% | 37.46% | 37.59% |
| Net Income | 17.05M | 15.63M | 7M | 6.03M | 5.52M | 5.06M | 3.27M | 1.85M | -3.65M | 4.57M | 1.99M | -5.87M | 200.27K | 1.89M | 2.98M | 716.59K | 748.38K | 5.01M | -7.9M | -8.85M | -2.88M | 18.58M | 11.93M | 5.54M | 5.41M | 7.53M | 6.75M | 4.18M |
| Net Margin % | 18.82% | 18.54% | 14.83% | 17.32% | 19.91% | 21.98% | 15.14% | 10.53% | -26.38% | 27.22% | 7.1% | -29.23% | 0.45% | 5.98% | 12.12% | 2.78% | 2.96% | 13.63% | -25.86% | -48.21% | -17.24% | 29.38% | 25.88% | 19.67% | 19.09% | 21.9% | 20.28% | 18.59% |
| Net Income Growth % | 57.78% | 123.3% | 16.1% | 9.12% | 9.06% | 54.9% | 76.72% | 150.64% | -179.98% | 129.95% | 133.87% | -3029.14% | -89.39% | -36.66% | 315.72% | -4.25% | -85.06% | 163.42% | 10.72% | -206.87% | -115.51% | 55.75% | 115.34% | 2.42% | -28.16% | 11.57% | 61.45% | - |
| Net Income (Continuing) | 17.05M | 15.63M | 7M | 6.03M | 5.52M | 5.06M | 3.27M | 1.85M | -3.65M | 4.57M | 1.99M | -5.87M | 200.27K | 1.89M | 2.98M | 716.59K | 748.38K | 5.01M | -7.9M | -8.85M | -2.88M | 18.58M | 11.93M | 5.54M | 5.41M | 7.53M | 6.75M | 4.18M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.93 | 0.88 | 0.40 | 0.35 | 0.32 | 0.29 | 0.19 | 0.11 | -0.22 | 0.27 | 0.12 | -0.28 | 0.01 | 0.11 | 0.18 | 0.04 | 0.04 | 0.30 | -0.47 | -0.52 | -0.17 | 1.02 | 0.67 | 0.29 | 0.27 | 0.38 | 0.44 | 0.20 |
| EPS Growth % | 53.9% | 120% | 14.29% | 9.38% | 10.34% | 52.63% | 72.73% | 150% | -181.48% | 125% | 142.86% | -2900% | -90.91% | -38.89% | 350% | 0% | -86.67% | 163.83% | 9.62% | -205.88% | -116.67% | 52.24% | 131.03% | 7.41% | -28.95% | -13.64% | 120% | - |
| EPS (Basic) | - | 0.89 | 0.40 | 0.35 | 0.32 | 0.29 | 0.19 | 0.11 | -0.22 | 0.27 | 0.12 | -0.28 | 0.01 | 0.11 | 0.18 | 0.04 | 0.04 | 0.30 | -0.47 | -0.52 | -0.17 | 1.04 | 0.46 | 0.30 | 0.28 | 0.39 | 0.57 | 0.28 |
| Diluted Shares Outstanding | 18.3M | 17.83M | 17.48M | 17.42M | 17.26M | 17.23M | 17.11M | 16.94M | 16.81M | 16.86M | 17.04M | 16.92M | 17.15M | 16.86M | 16.64M | 16.82M | 16.78M | 16.76M | 16.89M | 16.87M | 17.39M | 18.26M | 17.85M | 18.74M | 19.6M | 19.93M | 15.35M | 20.7M |
| Basic Shares Outstanding | 17.8M | 17.57M | 17.46M | 17.41M | 17.26M | 17.23M | 16.94M | 16.87M | 16.61M | 16.74M | 16.93M | 16.76M | 16.93M | 16.75M | 16.64M | 16.78M | 16.75M | 16.75M | 16.89M | 16.87M | 17.39M | 17.87M | 17.61M | 18.39M | 19.25M | 19.1M | 11.84M | 15.17M |
| Dividend Payout Ratio | - | - | - | - | - | 390.69% | 341.95% | - | - | - | - | - | - | 1325.31% | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and working capital
According to the provided quarterly income statements, ISSC experienced a sharp deceleration in revenue growth, falling from a peak of 105.2% in 2025Q3 to a modest 2.0% in 2026Q2, suggesting that the initial surge from recent product deliveries may be losing its momentum.
The dramatic swing in top-line performance indicates that ISSC's revenue model is highly sensitive to the timing of project-based installations rather than a steady stream of recurring demand. Investors should monitor whether this deceleration reflects a temporary lull in certification cycles or a more permanent saturation of the current addressable market for their retrofit solutions.
As reported in the company's financial filings, gross margins have fluctuated significantly, ranging from a low of 33.3% in 2025Q3 to a high of 60.7% in 2025Q4, which implies that the product mix or project-specific costs are highly variable and difficult to forecast.
This margin instability suggests that ISSC may struggle with consistent cost control on individual aerospace contracts, potentially due to supply chain disruptions or varying levels of engineering intensity required for different airframes. The lack of a stable margin profile complicates the assessment of the company's long-term pricing power in the competitive avionics retrofit market.
Based on the reported income statement data, operating margins have swung from 8.4% to 37.0% over the last ten quarters, indicating that ISSC's ability to scale operating income is heavily dependent on the specific revenue mix achieved in any given reporting period.
While the company has demonstrated the capacity for high operating margins, the lack of consistent scaling suggests that fixed costs, particularly R&D and SG&A, are not yet fully optimized against revenue fluctuations. This volatility warrants further investigation into whether management can maintain operational efficiency if revenue growth remains at the lower levels observed in 2026Q2.
As indicated by the quarterly data, stock-based compensation has become a consistent feature of the expense structure, with recent quarterly charges reaching as high as $915.9K, which may be masking the true cash-generating potential of the company's core operations.
The reliance on equity-based incentives during periods of high revenue growth suggests that management is prioritizing talent retention in a competitive engineering environment, though this dilutes the quality of reported net income. Investors should carefully evaluate the impact of these non-cash expenses on the company's overall earnings quality and long-term shareholder value.
Based on the reported figures, the company's cash position of $2.69 million against $84.3 million in trailing twelve-month revenue suggests a potential liquidity mismatch, which may limit the firm's ability to fund future R&D or navigate unexpected operational headwinds.
Short-sellers might focus on this thin cash buffer as a primary risk, particularly if the company's revenue recognition cycle continues to outpace actual cash collection. This structural vulnerability implies that any delay in project milestones or customer payments could force the company to seek external financing, potentially diluting existing shareholders.
Quick answers to the most common questions about buying ISSC stock.
For fiscal year 2025, Innovative Aerosystems, Inc. (ISSC) reported total revenue of $84.3M. This represents a 274.9% increase compared to $22.5M in 1999.
Innovative Aerosystems, Inc. (ISSC) is profitable, generating $15.6M in net income for the fiscal year ending 2025 with a net profit margin of 18.5%.
Innovative Aerosystems, Inc. (ISSC) reported an operating income of $20.1M, resulting in an operating profit margin of 23.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Innovative Aerosystems, Inc. (ISSC) generated $38.3M in gross profit for the year, representing a gross profit margin of 45.4%. This demonstrates the company's core pricing power and production efficiency.