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Here are 1-2 brief analogies for Innovative Solutions and Support (ISSC):

• Like a highly specialized **Honeywell Aerospace** or **Collins Aerospace** for integrated flight systems and cockpit displays.
• Think of them as **Garmin Aviation** but focused on advanced cockpit solutions for commercial and military aircraft.

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• Integrated Flight Management Systems (IFMS): Comprehensive avionics solutions for aircraft flight planning, navigation, and performance optimization.
• Flat Panel Display Systems: Advanced, high-resolution displays designed for modern aircraft cockpits, providing critical flight information.
• Air Data Systems: Precision instruments that measure and process critical atmospheric data like airspeed, altitude, and temperature for aircraft operation.
• Autopilot and Flight Control Systems: Electronic systems that assist in controlling the aircraft's attitude, altitude, and heading, reducing pilot workload.
• Cockpit Modernization Solutions: Services and hardware upgrades to modernize existing aircraft cockpits with advanced avionics and display technologies.

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The company Innovative Solutions and Support (ISSC) primarily sells its IT solutions and services to other companies and organizations rather than individuals.

Based on its annual reports (10-K filings), ISSC depends on a limited number of customers for a significant portion of its revenue, with one customer accounting for approximately 21% of consolidated net revenue in 2023. However, the company does not publicly disclose the specific names of these major customers in its SEC filings.

Instead, ISSC describes its customer base by sector. Its primary customer categories for its IT solutions and services include:

• Federal, state, and local government agencies: This encompasses various departments and entities within the public sector at all levels of government.
• Commercial enterprises: This refers to businesses in the private sector across different industries.

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Shahram Askarpour, President and Chief Executive Officer

Shahram Askarpour is the President and CEO of Innovative Solutions & Support Inc. (IS&S). He brings over 40 years of experience in the technology and aerospace industries, holding increasingly responsible technical and managerial positions. Prior to joining IS&S, he was employed by Smiths Aerospace (a division of Smiths Group PLC), Instrumentation Technology, and Marconi Avionics. Mr. Askarpour holds several key patents in the aviation field. He earned an undergraduate degree in Electrical Engineering from Middlesex University in the United Kingdom, a postgraduate Certificate in Systems Engineering, and a PhD in Automatic Control from Brunel University London. He also served as an Associate Research Fellow for three years at Brunel and has published numerous papers in international peer-reviewed journals. His education includes management courses at Carnegie Mellon University and finance courses at the Wharton School.

Jeffrey DiGiovanni, Chief Financial Officer and Principal Accounting Officer

Jeffrey DiGiovanni was appointed Chief Financial Officer of Innovative Solutions & Support, Inc. effective April 8, 2024. He is described as a seasoned public company CFO with expertise in SEC filings, financial reporting, acquisitions, and capital markets interaction. Mr. DiGiovanni previously served as Senior Vice President and Chief Financial Officer of StoneMor Inc., a provider of funeral and cemetery products and services, from September 2019 to May 2023. Before that, he was StoneMor Inc.'s Chief Accounting Officer from September 2018 to September 2019. From January 2012 to September 2018, Mr. DiGiovanni was a Managing Director at Pine Hill Group, an accounting and transaction advisory firm, where he advised clients on initial public offering readiness, financial reporting to the Securities and Exchange Commission, and technical accounting for complex transactions. He is a Certified Public Accountant and holds a B.S. in Accounting and an M.S. in Financial Services from Saint Joseph's University.

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Key Business Risks for Innovative Solutions and Support (ISSC)

1. Integration and Execution Challenges from Acquisitions: Innovative Solutions and Support (ISSC) faces significant risks related to the integration and execution of newly acquired product lines, particularly those from Honeywell. These challenges have led to "lumpy" gross margins, transient margin pressures, and duplicate costs, impacting operational efficiency and financial performance. Delays in the transition of F-16 production are also a part of this risk. Successful completion of the integration process and repricing of contracts are crucial for margin improvement.
2. Customer Concentration: A substantial portion of ISSC's revenue is derived from a concentrated customer base, largely due to the acquisition of Honeywell products. Specifically, the military segment, particularly the F-16 program, now accounts for a significant percentage of sales. As of Q2 2025, Lockheed Martin alone comprised 48% of the company's sales, making ISSC highly vulnerable to the renegotiation or cancellation of these key contracts.
3. Market Competition and Economic Sensitivity: ISSC operates within a competitive aerospace and defense industry where larger players could impact its market share and pricing power. Furthermore, the company's revenue streams are susceptible to the sensitivity of the aerospace and defense sectors to government budgets and broader economic cycles.

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Innovative Solutions and Support (ISSC) primarily operates in the aerospace industry, providing a range of advanced avionics systems and components for commercial, military, and business aviation markets. The addressable markets for their main products are as follows:

Flight Management Systems (FMS)

The global market size for Flight Management Systems is estimated to be approximately USD 4.44 billion in 2025. North America holds a significant share of this market, accounting for over 35.5% in 2024.

Cockpit Display Systems (including Flat Panel Display Systems)

The global Aircraft Cockpit Display System Market is projected to be around USD 4.89 billion in 2025. Innovative Solutions and Support also provides flat panel display systems for military aircraft. The global Military Displays Market size is approximately USD 1.40 billion in 2025. In 2024, the North American military displays market alone surpassed USD 520 million.

Other Main Products/Services

For other main products and services such as Autothrottles, Air Data Equipment, Engine Instrument Displays, Standby Equipment, Advanced Global Positioning Systems (GPS), RNP Navigator, and Precision Air Data Instruments, specific addressable market sizes are currently unavailable in the provided data. Therefore, the market size for these individual products is null.

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• Integration and Ramp-up of Acquired Military Product Lines: The company expects significant revenue contributions from the integration and ramp-up of recently acquired Honeywell military product lines, particularly the F-16 program. This acquisition has already been a primary driver of increased product sales and is anticipated to bolster future revenues as production transitions and stabilizes at ISSC's facilities.
• Expansion in Military and Commercial Sectors: ISSC is actively expanding its presence in both military and commercial markets. The company has secured new orders and is focused on growing revenue from military clients, with a stated goal to increase military revenue to over 40% of total revenue in 2025. This expansion is supported by momentum in new military programs and long-term contracts with OEM customers for platforms such as the Pilatus PC-24, Textron King Air, Boeing T-7 Red Hawk, Boeing KC-46A, and Lockheed Martin's F-16.
• Increased Production Capacity through Facility Expansion: The ongoing expansion of ISSC's Exton facility is a crucial driver, as it is projected to more than triple production capabilities. This enhanced manufacturing capacity is essential for meeting the growing demand from new military programs and larger Department of Defense (DoD) contracts, thereby supporting long-term revenue growth.
• Launch of New Products and Continued Product Development: Innovative Solutions and Support is investing in research and development to introduce new offerings, such as the planned launch of its next-generation Utility Management System (UMS2) in 2025. These product development efforts are aimed at enhancing their portfolio and capturing new market opportunities.

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Share Repurchases

• Innovative Solutions and Support (ISSC) has shown a 3-year average share buyback ratio of -0.5, indicating a net issuance rather than significant repurchases on average over the last three years.

Share Issuance

• The number of shares outstanding for ISSC has generally increased over the last few years, from 17.24 million in 2021 to 17.6 million as of October 2025.
• The number of shares increased by 1.11% in one year leading up to a recent reporting period (likely late 2024/early 2025).
• The company may issue shares directly, through agents, or via underwriters for purposes including acquisitions and general corporate needs.

Inbound Investments

• No significant large inbound investments from third-parties such as strategic partners or private equity firms were reported over the last 3-5 years.
• A significant beneficial owner, Christopher Harborne and Klear Kite LLC, exited their position and now beneficially own 0 shares as of July 10, 2025.

Outbound Investments

• In July 2023, ISSC acquired exclusive licenses and assets for inertial, communication, and navigation lines from Honeywell, which was followed by additional licenses for Communication & Navigation product lines a year later, completing the acquisition.
• The acquisition of Honeywell's military display generators and flight control computers was finalized on September 27, 2024, through a $14.2 million cash transaction.
• The company's long-term growth strategy includes pursuing strategic acquisitions to expand product lines, enter new markets, and potentially acquire stand-alone companies.

Capital Expenditures

• Capital expenditures for the nine months ended June 30, 2025, totaled $5.5 million, a significant increase from $0.5 million in the same period of the prior year.
• The primary focus of these capital expenditures has been the expansion of ISSC's Exton facility, with construction completed and fit-out expected in early fall 2025, which will increase manufacturing capacity more than threefold.
• In the last 12 months (prior to August 2025), capital expenditures were approximately $9.90 million.