- Sustained organic revenue and adjusted EBITDA growth forecasted in 2026.
- Robust free cash flow will support organic growth and further balance-sheet deleveraging.
- Continued focus on execution underpinned by best-in-class customer service while the Strategic Review is ongoing.
Consolidated Annual Guidance 2026 (in millions of Canadian dollars)
| Guidance Ranges 2025 | Guidance Ranges 2026 | |
| Revenue | ||
| Adjusted EBITDA1 |
Outlook
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.
As shown in our third-quarter and year-to-date results, 2025 was shaping up to be another strong year as we executed on our organic growth. Preliminary unaudited fourth-quarter results are expected to exceed the Company's expectations noted in our Outlook update provided in the third quarter of 2025. While we continue to expect revenue to be at the lower end of our guidance range, adjusted EBITDA is now expected to be approximately 5 percent above the top end of our 2025 guidance range. This stronger-than-expected performance is anticipated to be driven in large part by an increase in high-value registrations in the Registry Operations segment in
In 2026, the continued strength of the
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 Ontario’s Ministry of Environment, Conservation and Parks, and the completion of other projects, as well as continued support for the enhancement of the Saskatchewan Registries.
As in prior years, the key drivers of expenses in 2026 are expected to be wages and salaries, cost of goods sold, additional operating costs associated with enhancements to the Saskatchewan Registries, and interest expense (the last two of which are excluded from adjusted EBITDA.)
As a result, in 2026, ISC expects revenue to be within a range of
Update on Strategic Review
On
The Strategic Review considers a wide range of potential outcomes, such as asset divestments, acquisitions, transformative business combinations, or a sale of the Company. The Special Committee, with the support of its advisors, is advancing its work with an appropriate sense of urgency while ensuring that all potential outcomes are fully explored before arriving at a recommendation to present to the Board. Once the Board has reached a decision, the Company will provide an update to the market.
ISC cautions that there can be no assurance that the Strategic Review will result in a transaction or, if a transaction is undertaken, as to its terms, timing or completion.
Notes
1 Adjusted EBITDA is not a recognized measure under International Financial Reporting Standards (IFRS) and does not have a standardized meaning prescribed by IFRS, therefore, it may not be comparable to similar measures reported by other corporations. Please refer to section 8 for “Non-IFRS Financial Measures” and “Financial Measures and Key Performance Indicators” in Management’s Discussion and Analysis for the three and nine months ended
About ISC®
Headquartered in
Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities laws, including, without limitation, those contained in the “Outlook” section hereof, statements related to the industries in which we operate, growth opportunities, our future financial position, results of operations, the progress of the Strategic Review, the results thereof and the terms, timing completion or effects of any transaction undertaken pursuant thereto. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Important factors that could cause actual results to differ materially from the Company's plans or expectations include, without limitation, risks relating to changes in economic, market and business conditions, changes in technology and customers’ demands and expectations, reliance on key customers and licences, dependence on key projects and clients, securing new business and fixed-price contracts, identification of viable growth opportunities, implementation of our growth strategy, competition, termination risks and other risks detailed from time to time in the filings made by the Company including those detailed in ISC’s Annual Information Form for the year ended
The forward-looking information in this release is made as of the date hereof and, except as required under applicable securities laws, ISC assumes no obligation to update or revise such information to reflect new events or circumstances.
Non-IFRS Performance Measures
Included within this news release is reference to certain measures that have not been prepared in accordance with IFRS, such as adjusted EBITDA. This measure is provided as additional information to complement those IFRS measures by providing further understanding of our financial performance from management’s perspective, to provide investors with supplemental measures of our operating performance and, thus, highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures.
Management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet future capital expenditure and working capital requirements.
Accordingly, these non-IFRS measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS. Such measures do not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies.
| Non-IFRS Performance Measure | Why we use it | How we calculate it | Most comparable IFRS financial measure |
| Adjusted EBITDA |
|
Adjusted EBITDA: Net income Add(remove) Depreciation and amortization, net finance expense and income tax expense, share-based compensation expense, excluding ESPP, acquisition, integration and other costs, gain/loss on disposal of assets and asset impairment charges if significant. |
Net income |
Investor Contact
Senior Director, Investor Relations & Capital Markets
Toll Free: 1-855-341-8363 in
investor.relations@isc.ca
Media Contact
External Communications Specialist
Toll Free: 1-855-341-8363 in
corp.communications@isc.ca
Source: Information Services Corporation