Filing Flows › Innovative Solutions & Support (IA) › Q2 FY25
Innovative Solutions & Support (IA) Q2 FY25 earnings results (second quarter fiscal 2025)
10-Q filed May 15, 2025
Innovative Solutions & Support (IA) reported revenue of $21.9M for the second quarter fiscal 2025 (Q2 FY25), +104% from a year earlier and +37% from the quarter before. Operating margin was 31.8%, net earnings $5.3M (24.3% of revenue).
Innovative Solutions & Support, Q2 FY25: revenue $21.9M (+104% year over year), operating margin 31.8%, net earnings $5.3M, operating cash flow $1.3M. The chart follows the revenue to costs, profit and cash.
| Q2 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $21.9M | +37% | +104% |
| Gross profit | $11.3M | +70% | +102% |
| Operating profit | $7.0M | +420% | +325% |
| Net earnings | $5.3M | +625% | +342% |
| Operating cash flow | $1.3M | -30% | +540% |
What changed
Revenue was $21.9M in Q2 FY25, up 104% year over year and up 37% from the previous quarter. Product was the largest line at 60% of revenue. Product added $8.3M year over year (up 169%), 74% of the total change.
Gross margin was 51.4%, down 0.6 points from a year earlier. Operating profit was $7.0M, a 31.8% margin (up 16.5 points year over year). Of the extra revenue versus a year earlier, 48% reached operating profit, above the 15% margin then. Operating expenses grew 9% against revenue growth of 104%. The fastest-growing cost line was SG&A (+17%). Net earnings were $5.3M, up 342% year over year. The effective tax rate was 19.2%.
Operating cash flow was $1.3M (up 540% year over year), 24% of net earnings. Non-cash charges added back $638K of depreciation and amortization and $405K of share-based compensation. Working capital and other items used $5.1M. Capital expenditures of $1.6M exceeded it, leaving free cash flow of −$268K.
Questions
What was Innovative Solutions & Support's revenue in the second quarter fiscal 2025?
Innovative Solutions & Support (IA) reported revenue of $21.9M for the second quarter fiscal 2025 (Q2 FY25), +104% from a year earlier and +37% from the quarter before.
Was Innovative Solutions & Support profitable in the second quarter fiscal 2025?
Operating profit was $7.0M (31.8% of revenue) and net earnings $5.3M.