Filing Flows › Innovative Solutions & Support (IA) › Q2 FY26
Innovative Solutions & Support (IA) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed May 15, 2026
Innovative Solutions & Support (IA) reported revenue of $22.4M for the second quarter fiscal 2026 (Q2 FY26), +2% from a year earlier and +3% from the quarter before. Operating margin was 22.1%, net earnings $3.4M (15.4% of revenue).
Innovative Solutions & Support, Q2 FY26: revenue $22.4M (+2% year over year), operating margin 22.1%, net earnings $3.4M, operating cash flow $2.3M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $22.4M | +3% | +2% |
| Gross profit | $11.4M | -4% | +1% |
| Operating profit | $4.9M | -21% | -29% |
| Net earnings | $3.4M | -15% | -36% |
| Operating cash flow | $2.3M | -72% | +78% |
| Free cash flow | $667K | -91% | — |
What changed
Revenue was $22.4M in Q2 FY26, up 2% year over year and up 3% from the previous quarter. Product was the largest line at 64% of revenue. Product added $1.1M year over year (up 9%), 264% of the total change. Services declined 8%.
Gross margin was 51.1%, down 0.2 points from Q2 FY25. Operating profit was $4.9M, a 22.1% margin (down 9.7 points year over year). Operating profit fell $2.0M even though revenue rose $429K versus Q2 FY25, so costs grew faster than sales. Operating expenses grew 52% against revenue growth of 2%. The fastest-growing cost line was Research & development (+106%). Net earnings were $3.4M, down 36% year over year. The effective tax rate was 22.6%.
Operating cash flow was $2.3M (up 78% year over year), 67% of net earnings. Non-cash charges added back $860K of depreciation and amortization and $496K of share-based compensation. Working capital and other items used $2.5M. Capital expenditures of $1.6M left free cash flow of $667K.
Questions
What was Innovative Solutions & Support's revenue in the second quarter fiscal 2026?
Innovative Solutions & Support (IA) reported revenue of $22.4M for the second quarter fiscal 2026 (Q2 FY26), +2% from a year earlier and +3% from the quarter before.
Was Innovative Solutions & Support profitable in the second quarter fiscal 2026?
Operating profit was $4.9M (22.1% of revenue) and net earnings $3.4M.