Innovative Solutions and Support Inc (ISSC)
NASDAQIndustrialsAerospace & DefenseSnapshot 2026-09-04
$18.35+1.27%
Close 2026-09-03 · 1-day change
NASDAQIndustrialsAerospace & DefenseSnapshot 2026-09-04
Broken: Recent financial performance freshly dropped to the bottom half of its industry.
ISSC aims to reach $250M revenue by fiscal 2029. Revenue grew from $15.97M in 2025-Q1 to $22.37M in 2026-Q2. The company completed acquisitions to boost growth. Analysts expect about 10% revenue growth next year.
Gross profit fell from $14.05M in 2025-Q4 to $11.43M in 2026-Q2. Profit margins have not improved despite plans. The recent sharp stock selloff shows investor doubts.
The price is about 14% below our fair value near $22. Analysts expect nearly 10% revenue growth. Our view aligns with these expectations.
Breaks if: gross profit stays below $12 million next 4 quarters
Breaks if: annual revenue falls below $200 million by fiscal 2029
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story in the Industrials sector. The current thesis state is weakened, as recent performance has dropped in comparison to peers, which may affect investor confidence.
The market appears to have priced in a neutral valuation, with ISSC being seen as cheap compared to its peers. Expectations are slightly negative, indicating some caution among investors.
Management is on track to achieve its revenue target of $250 million by fiscal 2029, and gross margins have improved significantly. However, the recent financial performance has shifted to the lower half of its industry, which could pose risks in the near term.
The thesis hinges on the performance of sector bellwethers like SPCX, GE, and RTX. If these companies continue to perform well, it could provide a favorable backdrop for ISSC. Conversely, any negative guidance from these peers could further weaken ISSC's outlook.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. Recent financial performance dropped from the top half to the bottom half of its industry. This change indicates a weakened reason to own the stock. However, the latest earnings beat and improvements in gross margins provide some support.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Management aims to reach a $250 million annual revenue target by fiscal 2029.
Breaks if: no acquisitions completed in next 3 years
In the next 1-3 years, ISSC's performance will depend heavily on sector dynamics and management execution. Not investment advice.