Sparks - Information Services Corporation

Information Services Corporation (ISC: TSX) announced its management guidance for FY25, with revenue of C$257–267m and adjusted EBITDA of C$89m–97m (FY24 guidance: revenue of C$240m–250m, adjusted EBITDA of C$83m–91m). Management also commented that it expects to see sustained organic revenue and adjusted EBITDA growth, robust free cash flow to support growth and further deleveraging of its balance sheet as well as a focus on M&A and business development to support the company’s 2028 growth plans (doubling of revenue and adjusted EBITDA on a FY23 basis by 2028) throughout 2025. The company also stated that it expects to see annual volume growth in its Saskatchewan Registry segment in the range of 2–3%, continued growth in its Services segment due to the ongoing trend of increased due diligence by financial institutions and double-digit growth in its Technology Solutions segment. Our FY24 forecasts sit slightly below the mid-point of management’s FY24 guidance with revenue of C$242m and adjusted EBITDA of C$85.5m