Information Services Corporation wins huge price target raise at Raymond James

Raymond James analyst Stephen Boland raised his price target on Information Services Corporation (Information Services Corporation Stock Quote, Chart, News, Analysts, Financials TSX:ISC) to C$53.00 from C$39.00 after the company posted stronger-than-expected fourth-quarter profitability, driven by solid Saskatchewan land registry activity and continued strength in higher-margin service businesses.

As reported by the Globe and Mail, the analyst reiterated an “Outperform” rating on the shares.

In a note to clients, Boland said the quarter was solid, with the company benefiting from strength in Saskatchewan’s real estate market and continued momentum in higher-margin service lines.

“Overall, this was a solid quarter, with ISC benefiting from strength in the Saskatchewan real estate market,” he said.

ISC reported Q4 revenue of C$65.5-million, compared with C$65.2-million in Boland’s model and C$67.1-million in consensus estimates. Adjusted EBITDA came in at C$27.1-million, ahead of both consensus at C$23.9-million and Raymond James at C$23.1-million, up 29% year-over-year.

Boland said margins were driven by stronger-than-expected performance in the Land Registry division, helped by higher real estate prices and volumes in Saskatchewan, as well as continued strength in the higher-margin Recovery Solutions business.

ISC reported record full-year 2025 revenue of C$257.8-million and record Adjusted EBITDA of C$103.1-million, with diluted earnings per share of C$1.43.

The company said fourth-quarter revenue rose 5% year-over-year, supported by strong activity in Saskatchewan Registries, particularly the Land Registry, where higher average property values, increased transaction volumes and record high-value registrations boosted results.

Quarterly net income was C$4.9-million, or C$0.26 per share, down modestly from C$5.3-million, largely because of higher share-based compensation expense tied to the rising share price. That was partly offset by stronger operating results and lower finance costs.

Operating cash flow for the quarter rose to C$26.3-million from C$22.3-million a year earlier, while adjusted free cash flow increased to C$19.2-million from C$13.2-million.

For the full year, revenue increased 4% from C$247.4-million in 2024, while net income rose to C$26.8-million from C$20.2-million. Adjusted EBITDA margin improved to 40% from 37%, and adjusted free cash flow climbed to C$74.7-million from C$56.4-million.

ISC also said it reached its long-term net leverage target range of 2.0x to 2.5x ahead of schedule, ending 2025 at 2.25x after making C$47.0-million in voluntary debt repayments during the year.

“2025 marked ISC’s strongest year on record,” ISC President and CEO Shawn Peters said. “The company met revenue and surpassed Adjusted EBITDA expectations and delivered on a number of key milestones, including achieving our long-term net leverage target six months ahead of schedule.”

He added that ISC expects to continue delivering strong results in 2026 under a strategy shaped by its ongoing strategic review.

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