Canada's ISC Q4 revenue rises 5% on strong performance in Saskatchewan Land Registry

Overview

• The Canadian registry services firm's Q4 revenue grew 5% but missed analyst expectations

• Q4 adjusted EBITDA beat analyst estimates, driven by Registry Operations and Services

• Net income declined due to higher share-based compensation expense

Outlook

• ISC sees 2026 revenue between C$273 mln and C$283 mln

• Company expects 2026 adjusted EBITDA of C$100 mln to C$107 mln

• ISC anticipates robust free cash flow and aims to maintain net leverage target of 2.0x–2.5x

Result Drivers

• LAND REGISTRY ACTIVITY - Co said revenue growth was driven by strong performance in the Saskatchewan Land Registry, citing higher average real estate values, increased transaction volumes and record high-value property registrations

• SERVICES MARGIN MIX - Higher-margin Recovery Solutions and increased volumes in KYC and Due Diligence offerings supported Services segment growth

• SHARE-BASED COMPENSATION - Net income declined due to increased share-based compensation expense from a higher share price

Company press release: ID:nGNX8qBYB2

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate services peer group is "buy"

• Wall Street's median 12-month price target for Information Services Corp is C$43.75, about 7.8% below its March 19 closing price of C$47.46

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 19 three months ago

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