Filing Flows › Innovative Solutions & Support (IA) › Q3 FY25
Innovative Solutions & Support (IA) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Aug 14, 2025
Innovative Solutions & Support (IA) reported revenue of $24.1M for the third quarter fiscal 2025 (Q3 FY25), +105% from a year earlier and +10% from the quarter before. Operating margin was 14.6%, net earnings $2.4M (10.1% of revenue).
Innovative Solutions & Support, Q3 FY25: revenue $24.1M (+105% year over year), operating margin 14.6%, net earnings $2.4M, operating cash flow $7.2M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $24.1M | +10% | +105% |
| Gross profit | $8.6M | -24% | +37% |
| Operating profit | $3.5M | -50% | +73% |
| Net earnings | $2.4M | -54% | +57% |
| Operating cash flow | $7.2M | +460% | +672% |
| Free cash flow | $3.5M | — | +382% |
What changed
Revenue was $24.1M in Q3 FY25, up 105% year over year and up 10% from the previous quarter. Product was the largest line at 69% of revenue. Product added $11.5M year over year (up 224%), 93% of the total change.
Gross margin was 35.5%, down 17.8 points from a year earlier. Operating profit was $3.5M, a 14.6% margin (down 2.8 points year over year). Of the extra revenue versus a year earlier, 12% reached operating profit, below the 17% margin then. Operating expenses grew 19% against revenue growth of 105%. The fastest-growing cost line was SG&A (+32%). Net earnings were $2.4M, up 57% year over year. The effective tax rate was 21.5%.
Operating cash flow was $7.2M (up 672% year over year), 295% of net earnings. Non-cash charges added back $820K of depreciation and amortization and $832K of share-based compensation. Working capital and other items added $3.1M. Capital expenditures of $3.7M left free cash flow of $3.5M.
Questions
What was Innovative Solutions & Support's revenue in the third quarter fiscal 2025?
Innovative Solutions & Support (IA) reported revenue of $24.1M for the third quarter fiscal 2025 (Q3 FY25), +105% from a year earlier and +10% from the quarter before.
Was Innovative Solutions & Support profitable in the third quarter fiscal 2025?
Operating profit was $3.5M (14.6% of revenue) and net earnings $2.4M.