Filing Flows › Innovative Solutions & Support (IA) › Q1 FY26
Innovative Solutions & Support (IA) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Feb 13, 2026
Innovative Solutions & Support (IA) reported revenue of $21.8M for the first quarter fiscal 2026 (Q1 FY26), +37% from a year earlier and -2% from the quarter before. Operating margin was 28.9%, net earnings $4.1M (18.6% of revenue).
Innovative Solutions & Support, Q1 FY26: revenue $21.8M (+37% year over year), operating margin 28.9%, net earnings $4.1M, operating cash flow $8.2M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $21.8M | -2% | +37% |
| Gross profit | $11.9M | -15% | +80% |
| Operating profit | $6.3M | -24% | +368% |
| Net earnings | $4.1M | -43% | +451% |
| Operating cash flow | $8.2M | +175% | +343% |
| Free cash flow | $7.0M | — | +346% |
What changed
Revenue was $21.8M in Q1 FY26, up 37% year over year and down 2% from the previous quarter. Product was the largest line at 62% of revenue. Product added $3.6M year over year (up 36%), 61% of the total change.
Gross margin was 54.5%, up 13.1 points from a year earlier. Operating profit was $6.3M, a 28.9% margin (up 20.4 points year over year). Of the extra revenue versus a year earlier, 85% reached operating profit, above the 8% margin then. Operating expenses grew 6% against revenue growth of 37%. The fastest-growing cost line was Research & development (+20%). Net earnings were $4.1M, up 451% year over year. The effective tax rate was 30.8%.
Operating cash flow was $8.2M (up 343% year over year), 201% of net earnings. Non-cash charges added back $1.0M of depreciation and amortization and $916K of share-based compensation. Working capital and other items added $2.2M. After capital Expenditures ($1.1M), free cash flow as the company reports it was $7.0M.
Questions
What was Innovative Solutions & Support's revenue in the first quarter fiscal 2026?
Innovative Solutions & Support (IA) reported revenue of $21.8M for the first quarter fiscal 2026 (Q1 FY26), +37% from a year earlier and -2% from the quarter before.
Was Innovative Solutions & Support profitable in the first quarter fiscal 2026?
Operating profit was $6.3M (28.9% of revenue) and net earnings $4.1M.