Record quarterly revenue in Recovery Solutions division, driven by increased customer demand and market conditions
Strong operating results supporting diluted EPS of $0.49
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 ended March 31, 2026.
REGINA, Saskatchewan, May 15, 2026 (GLOBE NEWSWIRE) -- Information Services Corporation (TSX:ISC) (ISC or the Company) today reported on the Company's financial results for the quarter ended March 31, 2026.
Commenting on ISC's results, Shawn Peters, President and CEO stated, "ISC's first quarter was defined by strong execution across the business. Registry Operations continued to perform well, with Saskatchewan Registries leading the way and benefiting from a favourable Saskatchewan real estate market. At the same time, our Recovery Solutions division delivered record results, demonstrating the resilience and consistency we have worked to build across the business. The strength of these results reflects the discipline of our operations and focus of our teams, positioning us well as we move through the year."
First Quarter 2026 Highlights
Revenue was $61.8 million for the quarter ended March 31, 2026, an increase of 4 per cent when compared to $59.3 million in the first quarter of 2025. Revenue from the Saskatchewan Registries division in the Registry Operations segment saw growth as volumes were up in all registries showcasing the continued resilience of the Saskatchewan economy. The Land Registry saw the most significant increase due to an increase in average real estate values across the Saskatchewan market in addition to a first-quarter record in high-value property registrations. The growth was further supplemented by new revenue related to the digitization and redaction services provided to support MECP's new digital records system. This was partially offset by a decrease in Technology Solutions revenue as a result of timing of the advancement of work on solution definition and implementation contracts.
Net income was $9.2 million or $0.49 per basic share and $0.49 per diluted share for the quarter ended March 31, 2026, an increase compared to $7.5 million or $0.40 per basic share and diluted share in the first quarter of 2025. The increase was due to the adjusted EBITDA growth in the Registry Operations segment, as well as decreased interest expense as a result of lower interest rates and lower average long-term debt outstanding. Registry Operations saw the Land Registry benefit from increases in average real estate values across the Saskatchewan market combined with higher volumes and a first-quarter record in high-value property registrations. Partially offsetting this was an increase in professional and consulting expenses associated with the Strategic Review in addition to increased income tax expense as a result of higher net income before tax. See Section 7.3 "Strategic Review" for more information on the Strategic Review.
Net cash flow provided by operating activities was $13.7 million for the quarter ended March 31, 2026, an increase of $7.9 million compared to the first quarter of 2025. Contributing to the increase was strength from Registry Operations as described above for net income in addition to an increase in non-cash working capital.
Adjusted net income was $13.7 million or $0.73 per basic share and $0.73 per diluted share for the quarter ended March 31, 2026, compared to $11.4 million or $0.62 per basic share and $0.61 per diluted share in the first quarter of 2025. The increase reflects the continued strength in adjusted EBITDA contributed by the Registry Operations segment.
Adjusted EBITDA for the quarter ended March 31, 2026, was $24.3 million, an increase compared to $21.8 million in the first quarter of 2025 driven by strength in Registry Operations for the same reasons described above for net income. Adjusted EBITDA margin was 39 per cent, which was an increase compared to 37 per cent in the first quarter of 2025 as a result of the strong performance across the higher-margin Registry Operations segment.
Adjusted free cash flow for the quarter ended March 31, 2026, was $17.0 million, compared to $15.2 million in the first quarter of 2025, due primarily to strong operating results from Registry Operations and lower net finance expense as described above.
Voluntary prepayments of $3.0 million were made towards the Company's secured syndicated credit facility (Credit Facility) during the quarter. The Company is focused on maintaining a long-term net leverage target of 2.0x, 2.5x. As at March 31, 2026, the Company had achieved a net leverage1 of 2.16x.
Financial Position as at March 31, 2026
Cash of $21.4 million compared to $19.5 million as at December 31, 2025, an increase of $1.9 million.
Total debt of $150.1 million compared to $153.1 million as at December 31, 2025.
Subsequent Events
On May 1, 2026, the Company through its wholly owned subsidiary, Reamined Systems Inc. (Reamined), entered into a new agreement with Ontario's Ministry of Public and Business Service Delivery and Procurement (the Ministry) to enhance the existing Property Tax Analysis System. The agreement includes a seven-year operating term, with extension options available at the sole discretion of the Ministry.
On May 15, 2026, the Board declared a quarterly cash dividend of $0.23 per Class A Share, payable on or before July 15, 2026, to shareholders of record as of June 30, 2026.
________________1 Net leverage is not a recognized measure 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" in the MD&A 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 First Quarter 2026 Financial Results
(thousands of CAD; except earnings per share, adjusted earnings per share and where noted)
Three Months Ended March 31,
2026
2025
Revenue
Registry Operations
$
32,855
$
29,464
Services
26,955
26,649
Technology Solutions1
1,996
3,188
Corporate and other
3
4
Total revenue
$
61,809
$
59,305
Total expenses
$
45,474
$
44,535
Adjusted EBITDA2
$
24,254
$
21,783
Adjusted EBITDA margin2
39.2
%
36.7
%
Net income
$
9,162
$
7,486
Adjusted net income2
$
13,686
$
11,427
Earnings per share (basic)
$
0.49
$
0.40
Earnings per share (diluted)
$
0.49
$
0.40
Adjusted earnings per share (basic)2
$
0.73
$
0.62
Adjusted earnings per share (diluted)2
$
0.73
$
0.61
Adjusted free cash flow2
$
16,950
$
15,175
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.
First Quarter 2026 Results of Operations
Total revenue was $61.8 million, up 4 per cent compared to Q1 2025.
Registry Operations segment revenue was $33.1 million, up 12 per cent compared to Q1 2025.
Land Registry revenue was $19.8 million, up compared to $17.5 million in Q1 2025.
Personal Property Registry revenue was $3.1 million, consistent compared to $3.1 million in Q1 2025.
Corporate Registry revenue was $4.0 million, consistent compared to $4.0 million in Q1 2025.
Property Tax Assessment Services revenue was $4.3 million, up compared to $3.9 million in Q1 2025.
Other Registries revenue was $1.7 million, up compared to Q1 2025.
Services segment revenue was $27.0 million, up 1 per cent compared to Q1 2025.
Regulatory Solutions revenue was $19.0 million, down compared to $19.5 million in Q1 2025.
Recovery Solutions revenue was $5.3 million, up compared to $4.1 million in Q1 2025.
Corporate Solutions revenue was $2.7 million, down compared to $3.0 million in Q1 2025.
Technology Solutions revenue was $6.9 million, down 19 per cent compared to Q1 2025.
Consolidated expenses were $45.5 million compared to $44.5 million for Q1 2025.
Net income was $9.2 million or $0.49 per basic share and $0.49 per diluted share, compared to $7.5 million or $0.40 per basic share and $0.40 per diluted share in Q1 2025.
Sustaining capital expenditures were $2.1 million, compared to $1.9 million in Q1 2025.
OutlookThe following section includes forward-looking information, including statements related to our strategy, future results, including revenue and adjusted EBITDA, segment performance, the industries in which we operate, economic activity, growth opportunities, investments and business development opportunities. Refer to "Caution Regarding Forward-Looking Information".
2026 marks the third year of ISC's growth plan to double the size of the Company by 2028, on a similar metrics basis and based on 2023 results. Our guidance for 2026 reflects our continued progress against that plan with organic growth in line with historical trends.
In 2026, the continued strength of the Saskatchewan economy and a buoyant residential real estate market are expected to drive revenue growth in Registry Operations, leading to a continued, meaningful contribution to the bottom line on a consolidated basis.
In Services, we anticipate revenue growth through organic growth in the Regulatory and Recovery Solutions divisions. This will mainly be derived from the expected onboarding of new customers across the segment. Further, we expect continued consumer delinquencies in the automotive market will positively impact the segment's adjusted EBITDA profile, given the higher-margin profile of the Recovery Solutions division.
Technology Solutions anticipates revenue growth in 2026 to be driven by progress on several third-party contracts, including MECP, and the completion of other projects, as well as continued support for the enhancement of the Saskatchewan Registries.
As in prior years, the ...
