ISSC is a high-growth IT solutions provider that has successfully scaled its revenue and profitability in the last two years through strategic operational expansion.
ISSC presents a compelling growth story with revenue and net income trending strongly upward over the last three years, supported by healthy gross margins derived from $40.5M in gross profit against $84.3M in revenue. The company's ability to generate positive operating cash flow while maintaining a growing cash position suggests sustainable scalability for future investors.
Concerns regarding the significant increase in inventory valued at $25.8M and substantial non-cash adjustments of -$23.7M warrant caution, as these may indicate working capital inefficiencies or earnings quality issues. Additionally, the company carries long-term debt of $21.7M which could constrain future flexibility if revenue growth decelerates.
ISSC delivers innovative software solutions and IT support services to diverse markets, leveraging a robust technology stack to drive digital transformation. The company has demonstrated significant scalability with revenue surging from $34.8M in 2023 to $84.3M in 2025, while net income more than doubled to $15.6M.
Management has executed a successful growth strategy evidenced by revenue accelerating 78% year-over-year from $47.2M in 2024 to $84.3M in 2025, while operating profit reached $20.1M. The balance sheet remains manageable with cash flow from operations of $13.3M exceeding capital expenditures of $6.5M, allowing for reinvestment despite financing outflows.
The IT solutions and support services industry is characterized by rapid technological adoption and increasing demand for digital infrastructure, creating a favorable environment for companies that can scale efficiently. ISSC operates within this competitive landscape, leveraging its growing market share to capture value from expanding enterprise technology needs.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $34.8M | $47.2M | $84.3M |
| Cost of Revenue | $13.5M | $21.3M | $43.8M |
| Gross Profit | $21.3M | $25.9M | $40.5M |
| Operating Expenses | $14.0M | $16.3M | $20.4M |
| Operating Income | $7.4M | $9.7M | $20.1M |
| R&D | $3.1M | $4.1M | $4.0M |
| G&A | $10.8M | $12.1M | $16.4M |
| Stock-Based Comp | $1.3M | $1.0M | $2.3M |
| D&A | $697.9K | $2.1M | $3.7M |
| Depreciation | $427.3K | $906.6K | $1.5M |
| Amortization | $270.6K | $1.2M | $2.2M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $276.2K | $-810.0K | $-120.5K |
| Interest Expense | $393.3K | $937.3K | $1.7M |
| Interest Income | $518.2K | $127.3K | $18.9K |
| Pre-Tax Income | $7.6M | $8.9M | $20.0M |
| Income Tax | $1.6M | $1.9M | $4.3M |
| Continuing Ops | $6.0M | $7.0M | $15.6M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $6.0M | $7.0M | $15.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $6.0M | $7.0M | $15.6M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $34.7M | $34.7M | $50.7M |
| Cash & Equivalents | $3.1M | $539.0K | $2.7M |
| Accounts Receivable | $9.7M | $12.6M | $13.0M |
| Inventory | $6.1M | $12.7M | $25.8M |
| Prepaid Expenses | $1.1M | $1.2M | $1.4M |
| Other Current Assets | $14.6M | $7.6M | $7.9M |
| Long-Term Assets | $28.3M | $47.7M | $52.6M |
| PP&E (Net) | $7.9M | $13.4M | $18.8M |
| Intangibles | $16.2M | $27.0M | $23.6M |
| Goodwill | $3.6M | $5.2M | $6.7M |
| Operating Leases | $15.1K | $2.1K | — |
| Other LT Assets | $633.0K | $2.1M | $3.5M |
| Total Assets | $63.0M | $82.4M | $103.4M |
| Current Liabilities | $6.4M | $7.3M | $16.7M |
| Accounts Payable | $1.3M | $2.3M | $3.6M |
| Current Debt | $2.0M | — | $2.4M |
| Current Leases | $13.0K | $2.1K | — |
| Deferred Revenue | $143.4K | $340.5K | $2.5M |
| Taxes Payable | — | $1.2M | $2.0M |
| Other Current Liab | $-13.0K | $-1.2M | $-2.0M |
| Long-Term Liabilities | $17.9M | $28.5M | $22.1M |
| Long-Term Debt | $17.5M | $28.0M | $21.7M |
| LT Operating Leases | $2.1K | — | — |
| Other LT Liab | $419.4K | $451.4K | $396.5K |
| Total Liabilities | $24.3M | $35.7M | $38.8M |
| Shareholders' Equity | $38.6M | $46.6M | $64.6M |
| Retained Earnings | $5.7M | $12.7M | $28.3M |
| Total L&E | $63.0M | $82.4M | $103.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $6.0M | $7.0M | $15.6M |
| Non-Cash Adjustments | $-11.3M | $-10.1M | $-23.7M |
| Working Capital Changes | $7.3M | $8.9M | $21.4M |
| Cash from Operations | $2.1M | $5.8M | $13.3M |
| Capital Expenditures | $298.4K | $657.8K | $6.5M |
| Cash from Investing | $-36.2M | $-16.9M | $-6.5M |
| Cash from Financing | $19.9M | $8.5M | $-4.6M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-14.2M | $-2.6M | $2.2M |
| Beginning Cash | $17.3M | $3.1M | $539.0K |
| Ending Cash | $3.1M | $539.0K | $2.7M |
The company's financial profile suggests primary revenue streams include custom software development, managed IT support services, and potentially professional consulting or SaaS licensing given the substantial R&D spend of $4.0M relative to operating expenses.
Investors should consider the company's elevated current portion of long-term debt at $2.4M alongside total liabilities of $38.8M, potential sensitivity to client concentration given the high accounts receivable balance, and the impact of non-cash adjustments totaling -$23.7M on reported earnings quality.
ISSC benefits from strong working capital efficiency with $13.0M in accounts receivable supporting its operations, a growing cash balance that increased net change by $2.2M, and significant intangible assets totaling $23.6M that likely provide long-term value through proprietary technology or contracts.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.